Introduction<br /><ul><li>What is NetJets ?</li></ul>A subsidiary aviation company of Berkshire Hathaway that offers factional ownership and rental of private business jets.<br />NetJets operate under FAR Part 135 Air Carrier Certificates.<br /><ul><li>Philosophy:</li></ul>“We lead the industry because we scrupulously tend to every aspect of our business and hold ourselves to a higher standard. And we do it all for one reason - to provide owners with the ultimate in safety, security and reliability”.<br />3<br />
Foundation<br /><ul><li>1964 – Executive Jet Aviation Era
Founded by Brigadier General O. F. Dick Lassiter.
Incorporated as the civilian version of the Air Force’s Special Air Mission Squadron.
The original board includes General Curtis LeMay, M.J. Rathbone, and actors Jimmy Stewart Arthur Godfrey.
Purchased the first 10 produced Lear Jet 23s.</li></ul>4<br />
Executive Jet Aviation launches its Computerized Aviation Management System, a state-of-the-art, proprietary system which manages every facet of aircraft operations, including flight, pilot and maintenance scheduling.
Executive Jet Aviation International, Inc. (now NJI, Inc.), formed as a wholly owned subsidiary of Executive Jet, Inc., sells its first wide body Gulfstream aircraft in the Gulfstream Shares program.
Executive Jet, Inc., is been purchased by Berkshire Hathaway (for $ 725 M) after three and a half years of Warren Buffet’s first NetJets share purchase.
Mr. Santulli and Mr. Buffet attended NBAA’s annual convention and announced the purchase of 161 new business jets – an order that was valued over $ 3 Billion and included Boeing Business Jets, Gulfstream Vs & IV-SPs, and Citation Sovereigns. </li></ul>7<br />
Executive Jet Aviation, Inc. changed its name to NetJets Inc. due to companies primary focus, fractional ownership program.</li></ul>8<br />
Recent Activities<br /><ul><li>NetJets agreed with Gulfstream on purchase of 40 more jets. Four G450s and four G500s each year from 2012 to 2016. [August ‘08]
The FAA and NetJets signed an agreement on NextGen. NetJets plans to run test programs in various parts in the U.S. by equipping some of the G550s and G600s with the required avionics. [January ‘09]
Egelsbach Airport, a general aviation field just south of Frankfurt International, was bought by NetJets. The field is considered key to improving access to German Bank Capital. [February ‘09]</li></ul>9<br />
Recent Activities<br /><ul><li>NetJets Europe shed the equivalent of 300 flight crew positions, approximately %30 of its pilot workforce. [July ‘09]
NetJets guru Richard Santulli resigns. David Sokol, former head of a Berkshire Hathaway subsidiary MidAmerican Energy Holdings, assigned by Warren Buffet. [ August ‘09]
Headquarters moved to Columbus, OH from Woodbridge, NJ. [August ‘09]
NetJetsEurope continued to slash its workforce with ending another 100 employee’s contract, approximately %6 of its workforce [September ‘09] </li></ul>10<br />
Recent Activities<br /><ul><li>NetJets US cut %5 of its workforce by ending contracts of 300 employees. [October ‘09]
NetJets has cancelled the Hawker Beechcraftcontract of $712 Million for 2009. [February ‘10]
NetJets has cancelled 65 Dassault Falcon jet orders that it placed for delivery beyond 2014. [March ‘10]</li></ul>11<br />
Conclusion<br /><ul><li>NetJets enables the owner to select the desired time and destination of arrival and departure, requiring only an 8hr notice.
Amenities and services in-flight are selected regarding to owners interest.
NetJets is the biggest, the most luxurious, and the most experienced aviation company offering private jet service.
NetJets has a fleet size as big as the second biggest airline in the world. However, the crisis in 2009 had a major effect in NetJets’ financials. The company decided to downsize in fleet, cancelling the orders from various manufacturers.</li></ul>17<br />
Recommendations<br /><ul><li> Downsizing and reducing the aircraft type variety would be a good idea to minimize the costs, especially maintenance.
The biggest companies are often choosing the chartering option instead of fractional ownership. NetJets might make a radical move and offer chartering options next to fractional ownership. Therefore, instead of just focusing on individuals, NetJets might draw the companies’ attention as well.
Special offers for specific aircraft types, such as offering a lease option for a type of aircraft in the fleet would be beneficial. XOJet’s Citation X Lease option is an example to that.</li></ul>18<br />
References<br />Anselmo, J.. (2010, February). Hawker Posts $712 Million Loss As NetJets Orders Evaporate. Aviation Daily, 379(27), 3. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry. (Document ID: 1969881961).<br />Flottau, J.. (2009, February). NetJets Buys GA Airport Near Frankfurt, Germany. Aviation Daily, 375(21), 1. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry. (Document ID: 1645326111).<br />Garvey, W.. (March 15, 2010). Buffet: “I Failed You” with Netjets. Aviation Week & Space Technology. 45. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry.<br />Hughes, D. (2008, December 15). NetJets and NextGen. Aviation Week & Space Technology, , 38. <br />NetJets Inc. (2010). NetJets fast facts. Columbus, OH: Author. <br />Richard Newman. (15 August). NetJets headquarters moved out of New Jersey. McClatchy - Tribune Business News. Retrieved April 8, 2010, from ProQuest Newsstand. (Document ID: 1831274531).<br />Sarsfield, K., (2009, July). Netjets Europe to Get Rid of Equivalent of 300 Pilot Jobs. Flight International. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry.<br />Sarsfield, K.. (2009, October). NetJets slashes jobs as chief resigns. Flight International, 176(5210), 24. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry. (Document ID: 1904808311).<br />Starry, C., & Bernstein, G., 2008. The Economics of Private Business Jet Travel. Business Economics, 43(4), 36-44. Retrieved April 8, 2010, from ABI/INFORM Global. (Document ID: 1632635051).<br />Swickard, J. E.. (2008, August). NetJets Buys 40 More Gulfstream in $1.9 Billion Deal. Business & Commercial Aviation. 22. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry.<br />Swickard, J. E.. (2009, September). NetJets Founder Santulli Resigns. Business & Commercial Aviation. 13. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry.<br />Swickard, J. E.. (2010, April). NetJets Posts ‘Staggering Loss,’ but Buffet Predicts Profitability. Business & Commercial Aviation. 13. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry.<br />Wall, R.. (2010, March). Dassault Also Hit by NetJets Cancellation. Business Aviation, 8. Retrieved April 8, 2010, from ABI/INFORM Trade & Industry.<br />19<br />