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Textron (TXT) to Sell 325 Cessna Citation Aircraft to NetJets

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Textron Inc.’s (TXT - Free Report) unit Textron Aviation Inc. announced an agreement with NetJets® Inc., a subsidiary of Berkshire Hathaway Inc. (BRK.A - Free Report) , to sell a fleet of aircraft. Per the deal, the NetJets has an option to purchase up to 175 super-midsize Cessna Citation Longitude® aircraft and up to 150 Cessna Citation Hemisphere® aircraft.
 
NetJets has the choice to take the first deliveries of the Citation Longitude during the second half of 2019 with additional options on Longitude aircraft exercised over the following 10-15 years.
 
Textron’s Robust Commercial Aviation Fleet
 
Textron commands a solid presence in diverse areas including business jets and other general aviation aircraft, helicopter, aircraft engines, golf carts, turf maintenance equipment, electronic test equipment and blow-molded fuel tanks. 
 
Textron continued to witness strong order growth in second-quarter 2018 along with solid delivery figures. Textron Aviation delivered 48 jets, up from 46 last year and 47 commercial turboprops, up from 33 last year. In fact, the company consistently saw an improved order flow across its jet and commercial turboprop product lines with greater strength coming from the international markets. Going ahead, the company expects positive demand in the commercial space with a sturdy representation across all its existing models.
 
While Textron’s legacy product portfolio steadily expands its well-established footprint across the globe, the company has been innovating new items to capture more shares in the market place. To this end, the company is progressing well toward achieving Federal Aviation Administration (FAA) certification for its Citation Longitude aircraft. As a result, new products coming in coupled with strong order growth for existing commercial jets will boost the company’s top line substantially in the upcoming quarters.
 
U.S. Commercial Aviation Industry
 
The Boeing Company’s (BA - Free Report) latest Commercial Market Outlook (CMO) anticipates that the world will need 42,730 new planes worth $6.35 trillion between 2018 and 2037. Such surging demand will aid the aviation services market. The single aisle segment is expected to witness maximum growth with a requirement of 31,360 airplanes. 
 
To this end, The Boeing Company expects commercial aviation services market to grow 4.2% annually, reaching a value of $8.8 trillion over the next 20 years. Total value of the commercial aeroplane market with commercial airplanes and services will touch nearly $15 trillion.
 
Another major player in the industry is Airbus Group (EADSY - Free Report) . The company manufactures airplanes and military equipment. In the commercial space, net commercial aircraft order stands at 206 at the end of the first half of 2018 while the gross orders are 261 aircraft. Also, during the Farnborough Airshow, the company received orders and commitments for a total of 431 aircraft.
 
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