NetJets and Embraer announced in 2023 they had agreed on a 250-unit transaction of the Praetor 500 mid-sized jet aircraft. This deal worked out to be about $20 million per unit, a 10-15% discount, and a total of over $5 billion. The agreement also includes comprehensive service and support. This will give NetJets priority treatment and pricing when it comes to regular scheduled service and required repairs.
This transaction is another example of how to leverage your buying power to negotiate a better purchase price by committing to a bulk purchase. These types of transactions are mutually beneficial and can cross over into any industry. This transaction continued to strengthen the partnership between NetJets and Embraer. I believe that any product or service can be purchased in this same manner if you have the right processes in place. Michael Amalfitano, President and CEO of Embraer Executive Jets was quoted saying “Our strategic partnership has been an integral part of our business growth, with NetJets taking all aircraft delivery options that have been ordered with Embraer since inception. After building this successful foundation with the Phenom 300 series, it’s our pleasure to have now signed this monumental deal for the Praetor 500 midsize jet, and we look forward to an even more exciting future ahead.”
When it comes to construction services, whether it be from a recent acquisition, new development or planned capital investments in existing locations we can help you see the similarities and group those purchases together. It’s easy to see the similarities when you have two airplanes parked next to each other. It is not always as easy to see a remodel or a new building as being the same when it’s not sitting on a shelf or parked next to each other in a hangar.
Please see links below for the press releases from NetJets and Embraer: