NetJets Aspen

NetJets

What It Is: This Berkshire Hathaway division is the leading provider of fractional-aircraft ownership. The company—which operates the world’s largest fleet of privately owned aircraft—also offers jet cards. Its shareowners pay a buy-in cost for their portion (one-eighth to one-half) of the retail cost of their jet, a monthly management fee, and a per-hour charge for flight time.

How It Grew: Among the world’s first jet charter and management companies, it was founded in 1964 as Executive Jet Aviation (EJA). Early board members included former U.S. Air Force generals Curtis LeMay and Paul Tibbets, Jr., as well as actor Jimmy Stewart and entertainer Arthur Godfrey. In 1984 Richard Santulli, a mathematician and former Goldman Sachs executive, bought EJA, and in 1987, following a statistical analysis of pilot logbooks, the company launched the world’s first fractional-ownership program. The concept has since been widely copied.

Warren Buffett purchased a share in 1995, and in 1998 Berkshire Hathaway, the holding company he controls, bought EJA. The NetJets name was adopted in 2002. In 2012, NetJets announced orders for Bombardier Globals and Challengers, Cessna Citations, and Embraer Phenoms totaling $17.6 billion, the largest aircraft purchase in private aviation history. NetJets now has some 750 jets and more than 7,000 shareowners and operates some 300,000 flights annually. Berkshire Hathaway doesn’t disclose financials for individual companies but it credited NetJets in part for the 2017 jump in service business revenues to $11.249 billion.

NetJets, Pilot Union Sign 'Industry-leading' Contract

Related Article

NetJets, Pilot Union Sign 'Industry-leading' Contract

The interim bargaining agreement increases pilot compensation and extends contract to 2026.

What It Offers: 

Fractional ownership. NetJets offers 12 aircraft models via share or lease across light, mid, super-mid, and larger-cabin aircraft from Bombardier, Cessna, Dassault, Embraer, and Gulfstream. 

Jet cards. The Marquis Jet Card provides access to the NetJets fleet in 25-hour blocks; Cross-Country and Elite Cards offers access to Challenger 350 and Cessna XLS jets, respectively.

Aircraft management and charter. Subsidiary Executive Jet Management, which operates more than 100 aircraft, provides aircraft management and charter.

Aircraft brokerage. QS Partners handles fleet dispositions, and sales and acquisitions for NetJets clients.

Recent News: At the National Business Aviation Association’s convention in October 2018, NetJets placed an order for Cessna Citations valued at up to $10 billion. In January NetJets and its pilot union signed a new contract providing increased compensation and quality of life benefits.


FAST FACTS:

Founded: 1964 (as Executive Jet Aviation)

HQ: Columbus, Ohio

Employees: About 6,300

CEO and chairman: Adam Johnson

Website: netjets.com

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