Dassault Aviation Lands $1B Deal With NetJets

May 19, 2008 · Filed Under Aviation Related · 2 Comments 

On Monday, Dassault Aviation signed a deal worth over $1 Billion USD with NetJets, owned by Warren Buffett’s Berkshire Hathaway. The order is for thirty Dassault Falcon 2000 LX model aircraft to be delivered over the next eight years, starting in September 2008. This is a bold move despite the high oil prices and the gloomy economic slow down for business travel. Dassault’s LX series airplanes have undergone a few minor changes including winglets, that provide approximately 7% fuel savings. However, the cost of winglets for a Falcon can be nearly $1M USD. An operator would need to fly the airplane for years before seeing any benefit. Even with a few improvements, this large cabin fleet burns a considerable amount of jet fuel and today’s crude oil price hit $127.77 per barrel and continues to rise. With these kinds of prices, I wouldn’t be surprised if NetJets decides to cancel after taking delivery of so many and going with a more fuel efficient Cessna.

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