Warren Buffett’s NetJets Orders Up To 120 Bombardier Global Business Jets

From Reuters,

“Bombardier Inc (BBDb.TO) has agreed to sell as many as 120 aircraft to Warren Buffett’s NetJets Inc in a deal that could earn it more than $6.7 billion.

The deal, consisting of a firm order of 50 jets and options to purchase a further 70, is the largest business aircraft sale for Bombardier, the world’s No. 3 civil aircraft maker after Airbus (EAD.PA) and Boeing (BA.N).

While airlines still account for the majority of corporate travel, many businesses are gradually returning to private planes. They are eager to avoid airport hassles, flight delays and other potential logistical snags associated with commercial flying.”

In the current economic climate, I think it is nice for Bombardier to have this deal. At the same time, I bet NetJets is getting a pretty good deal for the jets too. Alice Schroeder, Buffett’s biographer, wrote about NetJets earlier this week here and here before this deal. It will be interesting to hear what she has to say on this deal.

Now, here is a video clip of what Warren talking about the deal on CNBC (with transcript).

P.S. Warren has previous experience in airlines related investments. Since we are talking about a lot more money here, I hope it works out better (much better) this time around.

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March 6th, 2011 Update: Financial Post, “Worldwide Private Aviation Leader NetJets Inc. Announces Purchase Agreement for Bombardier Business Aircraft” Here is an excerpt with emphasis and comment added. And yes, I was a bit of an idiot to miss it.

“The agreement includes a firm order from NetJets for 50 Global business jets valued at a retail price of $2.8 billion, with options for an additional 70 Global aircraft. The firm order comprises 30 Global 5000 Vision and Global Express XRS Vision aircraft, with deliveries scheduled to begin in the fourth quarter of 2012, as well as 20 firm orders for Bombardier’s newly-launched Global 7000 and Global 8000 jets, with deliveries of these aircraft to begin in 2017. At a total retail price exceeding $6.7B, this is the largest aircraft purchase agreement in the history of private aviation. Additional terms of the deal were not disclosed.”

[Kempton: First of all, how could I missed "retail price"?! You must be kidding me that Warren Buffett or CEO of NetJets David Sokol would pay retail price during a recession for jets! Therefore someheavy discounting is probably happening here. And the option for additional 70 jets, probably cost nothing or just a token amount.]

Eugene Levy to Be Honoured at BANFF 2011!

Eugene Levy is one of the most funny comedian and character actor in the world, he will be honoured with an Award of Excellence at Banff World Media Festival 2011! Eugene will also be giving a Master class which I will look forward to attend.

You can register for the June 12 – 15 Banff event here.

Warren Buffett having some fun (CNBC videos and transcripts)

The following are links to videos and transcripts of Warren Buffett having some fun on CNBC and, in a sense, putting up a big free TV ad to attract profitable businesses to sell to him.

Part 1 “Most Berkshire Businesses ‘Inching Along”, Part 2 “The ‘Zebra’ That Got Away”, Part 3 “‘Elephant Gun’ Targets & Riding the Railroad”, Part 4″Blame Bankers, Bankers, Bankers?”, Part 5 “Cars and Bricks”, Part 6 “China and America’s Diminishing Dominance”, Part 7 “What Should Happen to CEOs of Failed Companies”.

The Great Pain of Free-Speech

For the record. From ABC News “Supreme Court OKs Protests at Military Funerals – Westboro Baptist Church Protected by First Amendment, 8-1 Majority Rules”,

“”Speech is powerful,” [US Chief Justice John] Roberts wrote. “It can stir people to action, move them to tears of both joy and sorrow, and — as it did here — inflict great pain.“

“On the facts before us, we cannot react to that pain by punishing the speaker. As a nation we have chosen a different course — to protect even hurtful speech on public issues to ensure that we do not stifle public debate,” he said. “That choice requires that we shield Westboro from tort liability for its picketing in this case.”"

More news from,

CBC, “U.S. top court upholds church’s funeral protests”

AFP, “Anti-gay US church has right to picket funerals: court”

Reason, “What Speech Would Be Free In Alitopia?”

Brett Wilson talks to media about leaving CBC Dragons’ Den

Of all the reports/interviews I could find today (Feb 28th, Monday) about Brett leaving Dragons’ Den, I want to say I enjoy the report (see below) from Calgary Sun‘s Lisa Wilton the most (very detail and insightful). It is nice to be pleasantly surprised by Calgary Sun.

Reports (see below) in Ottawa Citizen, National Post, Canadian Press, NewsTalk980 all added a little something (see emphasis) and worth a read. And then there are reports in Toronto Star and Calgary Herald. (March 6th Update: CityTV Breakfast Television Calgary interview video, “What’s Next for Brett Wilson? – Brett Wilson is leaving the Dragon’s Den. He tells us why and what’s next on his agenda.“)

Here is an excerpt from Calgary Sun ”Wilson opens up regarding ‘Den“,

“[ Q ] – Did your reason for leaving just come down to a contract negotiation breakdown?

Well, it started in December.

They gave me three weeks to sign the contract, take it or leave it.

There were some issues with the contract. First of all, they tried to cut the compensation. We negotiated that and got that solved. And they wanted to stop me from going on any other networks, so we negotiated that and got that solved.

Where we got stuck was on schedule. When I told them I had a family vacation and I wasn’t prepared to vary, they told me that wouldn’t work.

So, I politely advised that I would have to be out of the show because I wasn’t prepared to walk away from the vacation. It’s the first time I’ve had all three kids in one place in two years so I wasn’t going to walk away from that. It meant more to me than another season of the show.

Then CBC moved heaven and earth, and I really give them credit for it.