Jump to content

NetJets

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by FAEP (talk | contribs) at 15:04, 10 December 2013. The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

For the first commercially available web accelerator, see NetJet.
NetJets
File:Netjestd.png
IATA ICAO Call sign
1I EJA EXECJET
Founded1986
Fleet size340+
DestinationsPoint to point
Parent companyBerkshire Hathaway
HeadquartersColumbus, Ohio
Key peopleJordan Hansell, Chairman and CEO
Bruce Sundlun, Founder
Paul Tibbets, Founder
Richard Santulli, Founder
Founderacb
Websitenetjets.com

NetJets, a subsidiary of Berkshire Hathaway, offers fractional ownership and rental of private business jets.[1]

History

NetJets Inc., formerly Executive Jet Aviation, was founded in 1964 as the first private business jet charter and aircraft management company in the world. The founding members of the board of directors of Executive Jet Aviation Corporation (EJA) included Air Force generals Curtis E. LeMay and Paul Tibbetts, Washington lawyer and former military pilot Bruce Sundlun, and entertainers James Stewart and Arthur Godfrey among others, with retired Air Force Brigadier General Olbert F. ("Dick") Lassiter as president and chairman of the board.[2][3] EJA initially began operations in 1964 with a fleet of ten Learjet 23 aircraft.[4] Bruce Sundlun became EJA president in 1970, and Paul Tibbetts became president in 1976.[5] By the late 1970s, EJA was doing business with approximately 250 contract flying customers and logging more than three million miles per year.

Executive Jet Aviation Corporation was purchased in 1984 by former Goldman Sachs executive Richard Santulli and he became chairman and CEO of the corporation. In 1986 the NetJets program was created by Santulli 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.[4]

In early August 2009 Santulli resigned as CEO and was replaced by David Sokol.[6] NetJets Inc. has moved its corporate headquarters from New Jersey back to its original home in Columbus, Ohio, following the departure of the company's founder, Richard Santulli.[7]

On March 30, 2011, Sokol resigned unexpectedly and was replaced with then-President Jordan Hansell.

Services

NetJets International Gulfstream IV-SP N477QS. The larger Netjets aircraft all wear this paint scheme, and those based in the US have the letters "QS" as part of their registrations

NetJets sells fraction of specific aircraft, chosen from several available types at the time of purchase. When purchasing a fraction of an aircraft, the purchaser is considered an "owner." Being an owner offers customers the convenience, access, and time advantages of flying point to point in private jets. This also allows the owner access to more, often smaller, airports; possibly shortening travel to both arrival and departure point. Arrival and departure points along with departure time are chosen by the customer for each individual trip. Costs are higher than flying commercial carriers but lower than purchasing, staffing and maintenance of a similar private jet.

  • Fractional ownership — the price is pro-rated from the market price of a full aircraft. Owners then have guaranteed access (50–400 hours annually, depending on share size) to that aircraft with as little as four hours’ notice. If the owner's aircraft is unavailable for some reason, another aircraft of the same type, or a larger aircraft, will be provided. Fractional owners pay a monthly maintenance fee and an “occupied” hourly operating fee. The latter is charged only when an owner or guest is on board, not when the aircraft is flying to a pick up point, or flying to another location after completing a flight.
  • Marquis Jet Card — This plan is aimed for people who need fewer than the minimum of 50 flight hours with fractional ownership plans and do not want the usual five-year commitment of fractional ownership. All costs would be paid upfront and are sold in 25-hour increments.

Tax controversy

NetJets has been involved in a tax dispute with the IRS. Commercial airlines are charged tax per passenger ticket to pay for various Federal Aviation Administration activities. Private aviation is not charged the same tax. The IRS has argued that the NetJets fractional ownership model is really disguised commercial aviation in some cases, and has assessed NetJets with unpaid taxes and penalties exceeding $366 million.[8] NetJets has sued the IRS over this assessment and previously paid taxes and penalties exceeding $643 million.[9] The recent FAA re-authorization bill contains a provision that would (temporarily) address the issue by changing the law to support NetJets and other fractional ownership airlines, after what was reported to be a $2.5 million lobbying effort by NetJets, the largest fractional jet ownership airline by market share.[10]

Fleet

NetJets' fleet is the largest private jet fleet in the world with more than 650 aircraft worldwide. Jets in their fleet are classified by cabin size: Template:MultiCol Light Cabin

| class="col-break " | Midsized Cabin

| class="col-break " | Large Cabin

Template:EndMultiCol

Orders

On June 11, 2012, NetJets placed the largest aircraft order in private aviation history. NetJets placed a firm order for 75 Bombardier Challenger 300 and 25 Bombardier Challenger 600 jets, with options for additional 125 Challenger 300 and 50 Challenger 600 aircraft.[12] On the same day, it also placed a firm order for 25 Cessna Citation Latitude with options for 125 more.[13]

NetJets companies

Executive Jet Management, Inc.
Manages on-demand air charter services, charter aircraft management, and aircraft management services. Based in Cincinnati, Ohio, United States.
NetJets Aviation, Inc.
Operates all aircraft in the NetJets U.S. Fleet. Based in Columbus, Ohio, USA.
Marquis Jet Partners, Inc.
Sells the Marquis Jet Card prepaid flight hours package. Became a wholly owned subsidiary of NetJets in 2010.

Affiliated companies

NetJets Europe is a partially owned subsidiary based in Lisbon, Portugal.

References

  1. ^ Hermann Simon mentioned this company in his correspondent Book as an example of a "Hidden Champion" (Simon, Hermann: Hidden Champions of the 21st Century : Success Strategies of unknown World Market Leaders. London: Springer, 2009.- ISBN 978-0-387-98147-5. P. 13)
  2. ^ p. 58 in: U.S. Congress, House Committee on Banking and Currency. (1972). The Penn Central Failure and the Role of Financial Institutions. U.S. Government Printing Office, Washington, D.C. 336pp.
  3. ^ "Homage to Dick Lassiter". International Air Bahama Crew Association. Retrieved 10 July 2009.
  4. ^ a b "Netjets History". Retrieved 5-June-2009. {{cite web}}: Check date values in: |accessdate= (help)
  5. ^ "Paul Tibbets: A Rendezvous with History by Di Freeze". Airport Journals. Retrieved 5-June-2009. {{cite web}}: Check date values in: |accessdate= (help)
  6. ^ "Cuts at NetJets delay expansion plans in Ohio". Retrieved 3-October-2009. {{cite web}}: Check date values in: |accessdate= (help)
  7. ^ "Netjets History". Retrieved 3-November-2009. {{cite web}}: Check date values in: |accessdate= (help)
  8. ^ Andrew Harris. "Buffett's NetJets Countersued by for Unpaid Taxes". Bloomberg. Retrieved 9 March 2012.
  9. ^ Erik Holm. "Berkshire's NetJets Sues IRS Over Tax Bill". Wall Street Journal. Retrieved 9 March 2012.
  10. ^ Ariel Edwards-Levy & Ryan Grim. "Warren Buffett Company: Please Hike Cut Our Taxes". Huffington Post. Retrieved 9 March 2012.
  11. ^ a b c d e f g h i j "Name Inquiry Results". FAA. Retrieved 2010-05-12.
  12. ^ "NetJets Orders Up to 275 Bombardier Challenger Business Jets". 2012-06-11.
  13. ^ "NetJets order big for Cessna, but impact may be delayed". 2012-06-03.
Wikimedia Commons has media related to NetJets.
Retrieved from "https://en.wikipedia.org/enwiki/w/index.php?title=NetJets&oldid=585440384"