NetJets who are they?

By Mark A. Gardner

June 6, 2009 (D-Day)

NetJets, Inc. Is based in Columbus, Ohio, the company is currently owned by, Berkshire Hathaway, a very large company; It also owns Geico, Friuit of the Loom, FlightSafety International, See"s Candies, and othes. Warren Buffet, last years, Richest Man in the World" runs the Berkshire Hathaway Company. 

NetJets Inc. formerly Executive Jet Aviation. began in 1964. Was one of the first private business jet charter and aircraft management companies. The NetJets program was created in 1986 by Richard Santulli, the Chairman and CEO of NetJets Inc. as the first fractional aircraft ownership program. In 1998, after being a NetJets customer for three years, Warren Buffett, Chairman & CEO of the Berkshire Hathaway company, acquired NetJets Inc.

Since the purchase of the company, by Berkshire Hathaway, the company has become the premier "fractional" corporate provider. The company has been so succesful, that technically, it is the World's Largest Airline" with over 800 business jets worldwide.

 The following is a breakdown of the NetJet's fleet^*1 by aircraft size:

NetJets is not the only Fractional provider, out there, however, it is the largest: Some of the other major players, include, FlexJet, CitationShares and Flight Options. I am not sure, but I believe, the combined fleets of these operators don't amount to the total fleet numbers of NetJets! That's right, NetJet's is the 800 pound Gorilla in the room!

 So what's next for NetJets?

Well for now, the Giant is in a period of rest. The Economic Crash of 2009, has caused the company to slow it's growth and cancel orders for new aircraft deliveries. These cancellations have in turn, affected the rest of the General Aviation; For instance, the Cessna Aircraft company was hit very hard by the cancellation of a major NetJet's alrcraft order.

^{*2 "}Textron’s Cessna aircraft division will see “well over” 150 orders dropped in the second quarter, chief executive officer Lewis Campbell said at the Electrical Products Group conference in Longboat Key, Fla.

The cancellations may include purchase agreements from “big customers like NetJets and others” and 70 to 80 orders for the new Columbus model, on which the plane maker suspended work last month, Campbell said."

http://www.projo.com/business/content/bz_textron20_05-20-09_4JEED0C_v6.2e27b95.html ^*2

Since NetJets is a major player in the industry, you can expect the rest of 2009 to be slow in this part of the Aviation. If, you are a Pilot, NetJets is taking applications, however, I wouldn't expect to called, for an interview, unless you are highly qualified. In fact, Netjets is doing everything it can to minimize it's expenditures, at this time.

What's ahead for the company?

Well, this depends a many factors, first that Berkshire Hathaway retains ownership in the company. There is no sign that this will change in the future, so, we can look to other factors that may be important.

How about fuel prices? That's a big factor. In 2008, the price of fuel was affecting everything in the ecomomy. 2009 has given us a break, however, for 2010 and beyond, I would look for this to be a major determinant in the growth of the industry. Inflation is going to raise it ugly head soon. This will be good for the industry bottom line, in the asset catagory, but eventually it will hurt sales.

Next, demand.... Will there be a demand for business aircraft?

Yes, there will always be a demand; the question is how much of a demand? Since the cost of ownership of a corporate aircraft will likely increase in the next couple of years, I think you can look for most of the growth, in the corporate area, to occur in the Fractional and Air Taxi segments.

So what does this all mean?

In the case of NetJets, it's likely that the company's dominate position in it's business segment will ensure it's continued success. As for the rest of the pack, FlexJet and CitationShares will likely remain solvent.

This is a tough time in Aviation our livelyhoods are dependent on companies like NetJets. The success, or failure, of these companies will be a large factor in our success, or failure, as Aviators. I believe that in mid 2010, the pilot employment picture will improve dramatically; The next couple of years will be up and down with the economy, however, in general, things should improve.

Are you wondering what NetJets Pay Scales are like?  Well here they are:

If, your interested in finding out more about Netjets, I have provided the corporate contact information below:

Human Resources

NetJets U.S.

Corporate Headquarters (Sales/Marketing):
NetJets Inc.
581 Main Street
Woodbridge, NJ 07095

FAX
(877) 356-5823
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Operations Center:
NetJets Aviation, Inc.
4111 Bridgeway Ave.
Columbus, OH 43219-1882

This e-mail address is being protected from spambots. You need JavaScript enabled to view it


NetJets Europe

Sales & Marketing:
NetJets Management Limited
5 Young Street
London W8 5EH

 FAX
www.netjetseurope.com
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Operations Center:
NetJets Transportes Aéreos, SA
Edifício Cristal
Rua Calvet Magalhães
Nº245 Bloco B
2775-550 Paço D'Arcos, Portugal

FAX


NetJets International

Operations Center:
NetJets International (Gulfstream large cabin aircraft)
108 Traders Cross, Suite 100
Okatie, SC 29909

FAX
www.netjetsinternational.com

Executive Jet Management

Private Jet Charter and Aircraft Management
4556 Airport Road
Cincinnati, OH 45226
Phone
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
www.ExecutiveJetManagement.com

Footnotes: 

*1  Wikipedia http://en.wikipedia.org/wiki/NetJets

^{*2 "NetJets’ Cessna order in doubt,"  Wednesday, May 20, 2009, By Susanna Ray}

*3 WillFlyForFood.com "NetJets Pay Scales  http://www.willflyforfood.com/airlinepilotpay/NetJets_Pilot_Pay.php