Tag Archives: NetJets

NetJets to Add 325 Cessna Jets to Fleet

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Berkshire Hathaway’s fractional jet ownership company, NetJets, has signed a deal with Textron, the maker of the Cessna brand, to add as many as 325 of the company’s jets to its fleet.

The deal, announced on the eve of the National Business Aviation Association’s annual corporate jet show, has a value of roughly $10 billion.

The new agreement will give NetJets the ability to add up to 175 super-midsize Citation Longitude aircraft, as well as up to 150 of the new large cabin Citation Hemisphere aircraft to their fleet.

Textron Aviation began their relationship with NetJets more than 30 years ago when with the Citation SII. Since then, NetJets has owned and operated nearly 500 Citations including the Citation Latitude, Citation Sovereign, and Citation XLS.

NetJets recently ordered their 100th Citation Latitude, and are forecasting delivery of the first Citation Longitude in the second half of 2019.

The Longitude is a new super-midsize, 8-passenger jet that has a top-speed of 554-MPH and an endurance aloft of 7:45 hours.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets Pilots Can Fly Until Age 70 Under Proposed FAA Reauthorization Bill

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The FAA reauthorization bill currently under consideration by Congress would have a mandatory retirement age of 70 for NetJets pilots.

The mandatory age 70 retirement age for certain Part 135 and Part 91K pilots would apply only to companies that perform at least 150,000 turbojet operations in a calendar year. The only company that currently has that level of turbojet operations is NetJets.

The AARP has come out in opposition to any age limits as arbitrary.

“AARP has long opposed mandatory retirement; using an arbitrary age as a proxy for competence is wrong in any occupation, and it is wrong for pilots,” AARP stated in a letter to House Transportation and Infrastructure Committee chairman Bill Shuster and ranking member Pete DeFazio.

“Pilots should be judged on the basis of their individual ability, flying skills, and their health, not on stereotypes or mistaken assumptions about their fitness based on age,” notes the nonprofit, nonpartisan organization, which has nearly 38 million members.

However, NetJets has come out in support of the age 70 retirement age.

“The lack of a pilot age restriction for large private air carriers is a growing concern in aviation safety,” NetJets said in a statement. “NetJets supports an amendment to the FAA Reauthorization bill that would impose an age restriction for pilots of large, private air carriers that is similar to the restriction that currently exists for commercial airlines. Such a restriction is an important safety measure for private carriers whose flight operations are comparable in size and complexity to their commercial counterparts. We hold passenger safety as our highest priority and we look forward to working with Congress on this common-sense regulation that will make air travel safer for everyone.”

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets Appoints Mario Pacifico as European CEO

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Berkshire Hathaway’s NetJets has announced the appointment of a new European CEO to coincide with the launch of the company’s brand new Cessna Citation Latitude aircraft.

With more than 25 years of leadership experience across Europe, Asia and the U.S, that Mario Pacifico has joined NetJets as its new European CEO. Pacifico will oversee the company’s operations in Europe out of their London office.

Pacifico joins NetJets at a time of significant growth. In 2017, NetJets flights in Europe grew by 7.2% to a total of around 50,000 flights. And total NetJets flight hours in Europe were more than double the amount of the wider industry.

The appointment coincides with NetJets’ announcement that it has successfully obtained certification to operate its new Cessna Citation Latitude aircraft at London City Airport, allowing business travellers to save a significant amount of time in their journeys to and from London’s financial district.

The Citation Latitude is the newest addition to NetJets European fleet of around 90 aircraft. The aircraft seats up to eight passengers and is easily able to fly to Dubai, Nigeria and Beirut from London.

NetJets is the only company that currently operates the aircraft into London City Airport. Over 53% of NetJets’ European customer base comes from London’s finance sector – with private equity and hedge fund management seeing the most growth over the past 12 months.

Mario Pacifico said: “NetJets now accounts for 6% of the total private jet market in Europe with around 74,000 flight hours. This is an exciting time of growth and I look forward to working with the team here to propel the company forward at this pinnacle moment.

“NetJets is committed to improving the lives of its clients, and I am pleased to launch the Cessna Citation Latitude at London City Airport. The aircraft’s stellar short-field performance will enable us to access many small general aviation airports that offer important time savings for businesses and individuals looking to work more efficiently.”

Robert Sinclair, CEO of London City Airport, added: “London City Airport offers London’s most central private jet facility, just 5 miles from the City, with a 90 second service from car to plane. This speed and efficiency is valued by NetJets and its clients, and we look forward to continued growth of its business here.”

Founded in 1996, NetJets is the only pan-European business aviation company with its own fleet of aircraft.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets Subsidiary Acquires Cerretani Aviation Group

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QS Partners, the aircraft brokerage subsidiary of Berkshire Hathaway’s NetJets, has acquired aircraft brokers Cerretani Aviation Group of Boulder, Colorado.

QS Partners was launched in 2016 to meet what NetJets called “a growing need from our clients regarding whole-aircraft sales and trades and leveraging NetJets’ global network of resources…”

With the acquisition of Cerretani Aviation Group, the company will more than double its size.

In a release, Nick Cerretani and Paul Kirby said, “We are pleased to announce that Cerretani Aviation Group has merged with QS Partners, a leading aircraft sales company composed of individuals with whom we share a commitment to integrity, knowledge, and insightful service to our clients. While we will operate under the QS Partners brand, we will remain based in Boulder, Colorado, and will retain all of our current staff.

Our merger with QS Partners will enable us to significantly expand our industry reach and enhance transactional opportunities for our clients, whether buying or selling. At the same time, we are aware of the foundations of our success and will focus on providing our clients the personal attention and independent thinking they have come to expect from Cerretani Aviation Group.”

The Cerretani Aviation Group was founded in 2001 by Nick Cerretani, a former Executive VP at Flight Options, and Paul Kirby, co-founder of Kirby Ramsey Aviation.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Super Bowl a Super Week for NetJets

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With any big sporting event comes big money, and in the case of the upcoming Super Bowl LII, which will be played on Sunday, February 4, the week-long celebration that culminates in the NFL’s championship means a big logistical operation for Berkshire Hathaway’s NetJets.

The fractional ownership private jet company has created a temporary fixed-based operation at St. Paul’s Holman Field. The services will include a special bar and lounge for NetJets customers.

Late-January and February is a particulary active period for private jet services, and in addition to the Super Bowl, there is the Davos Economic Forum, The Grammy Awards, The Academy Awards, the NHL All-Star Weekend, and the NBA All-Star Game. Not to mention flying your sweetheart to Venice or Maui for Valentine’s Day.

It is actually Davos that has the highest concentration of the largest, long-range jets, including the Bombardier Global Express and Gulfstream 650, as people fly in from the farthest corner’s of the Earth.

Of the roughly 1,500 private jets anticipated to fly in and out of the Minneapolis area for the Super Bowl, approximately 16.5% of them will be NetJets flights.

The cost of private jets for the event are are reportedly running as high as $75,000 an hour.

Of course you do get some extra frills for all that cost. NetJets is hosting an invitation only party. The location? Well, it’s on your invitation.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Teamster Mechanics Ratify Agreement With NetJets

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The labor troubles that long plagued NetJets are finally over. NetJets aircraft technicians and related employees have ratified a new six-year collective bargaining agreement with the Columbus, Ohio-based fractional ownership private jet company.

NetJets ongoing labor disputes, which for a number of years saw the pilot’s union stage informational picketing at Berkshire Hathaway’s annual meeting, has made steady progress since the pilot’s won a 30 percent raise at the thend of 2015.

The latest agreement is with The International Brotherhood of Teamsters, the Teamsters Airline Division and the Teamsters Local 284 that represent 212 aircraft mechanics, maintenance controllers, stock clerks, aircraft fuelers and aircraft cleaners at the company.

“After more than six years of negotiations, our members secured a new contract with major improvements, including an immediate 20 percent wage increase, additional pay increases every year of the contract, premium-free health insurance that can’t be cut or reduced, retirement improvements and many other benefits,” said Capt. David Bourne, Teamsters Airline Division Director. “The union and its members stand ready to work with NetJets to help ensure a successful company and the highest standards of air safety now and in the future.”

More than 94 percent of the members voted on the proposed contract which goes into effect tomorrow. NetJets will pay signing bonuses of up to $30,000 by the end of the month. NetJets workers are also eligible for employer matching contributions if they direct some or all of their bonus into their 401(k) accounts.

“The new labor agreement was made possible by membership solidarity and the support of unionized NetJets pilots, flight attendants and dispatchers, as well as the hard work and dedication of a long line of Teamsters representatives at every level of our union who pulled out all the stops for these men and women,” said Local 284 President Mark Vandak. “This contract demonstrates what strong unions can accomplish for working people across the United States.”

The new contract runs through December 2023. NetJets has the right to extend the contract for an additional two years if it provides additional wage increases, hires additional aircraft technicians at its Columbus maintenance facility and satisfies other negotiated requirements.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets Reaches New Labor Accord with Teamsters Technicians

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After many years of labor disputes that dogged Berkshire Hathaway’s NetJets, the fractional jet ownership company seems to have finally put its labor troubles behind it.

In 2015, NetJets reached new agreements with its pilots and flight attendants after years of picketing.

Now, the negotiating team comprised of Teamsters Airline Division representatives, Teamsters Local 284 business agent and rank and file committee members for the NetJets Technicians and Related Group have reached an “agreement in principle” to amend their current collective bargaining agreement with NetJets.

The negotiations, which began in February of 2012, have been successfully concluded, according to the Teamsters.

“I am pleased with the ability of the union negotiators and NetJets to work cooperatively to reach a mutually satisfactory ‘agreement in principle,'” said Captain David Bourne, Director of the Teamsters Airline Division.

The Teamsters and NetJets are working to finalize the contract language that will result in a tentative agreement, which will then be put before the membership for a ratification vote.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets Gives Up On China, For Now

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Berkshire Hathaway’s NetJets has scrapped expanding to China, at least for now.

NetJet’s had a small presence in the country through its China subsidiary, NetJets Business Aviation (Zhuhai), which also had Hony Jinsi Investment Management Ltd., and Fung Investments as stakeholders.

NetJet’s push into the China market began in 2014 when it received its Chinese Air Operator’s Certificate. It got its toe into the China market flying two Hawker 800s , but demand for fractional ownership has been weak from the outset.

“We still foresee tremendous long-term opportunities for business aviation, however, current economic and operating conditions are not yet ideal for business expansion,” NetJets said in a statement. “NetJets’ customers will continue to enjoy private aircraft travel to and from China and other Asian countries using aircraft from our programs in the US and Europe.”

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets Partners with Mercedes-AMG Petronas Motorsport

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Berkshire Hathaway’s NetJets, the worldwide leader in private aviation, has formed a partnership with Mercedes-AMG Petronas Motorsport, a Formula One chassis team, based in Brackley, United Kingdom.

NetJets will provide travel for race drivers and team members.

With an expanding race calendar and resulting greater travel burden on both race drivers and team members, the Team has made it a major focus to optimize travel times and improve the efficiency of its logistics as much as possible.

For example, the ‘triple header’ of three consecutive race weekends planned for the 2018 season will present the Team with new logistical challenges. The prospect of gaining back working hours at the factory that would otherwise be spent travelling is a particularly valuable prospect.

“Over the past season, we have been working to optimize every area of our team operations and that includes how we best manage the challenges of race travel,” explained Toto Wolff, Head of Mercedes-Benz Motorsport.

“People will automatically think that private aviation means luxury lifestyle – but it has been common practice in Formula One for some time and will provide us with valuable time savings that can then be invested in finding more performance.

“We know that these extra hours can make the difference and also keep the team fresher and fitter as the season goes on. I am delighted that we have been able to transform this work into a partnership with a market leader like NetJets.”

“We share a special kinship with motorsports professionals who thrive at the intersection of speed, safety and innovation,” commented NetJets Executive Vice President of Sales & Marketing, Patrick Gallagher.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

NetJets and Southwest Pilots’ Unions Seek Reversal of Norwegian Air Foreign Carrier Permit

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The Southwest Airlines Pilots’ Association (SWAPA) in conjunction with the NetJets Association of Shared Aircraft Pilots (NJASAP) are urging President-elect Trump to reverse the decision to grant Norwegian Air International a foreign carrier permit.

The US Department of Transportation’s (DOT) recent decision came three years after NAI, an Irish subsidiary of Norwegian Air, first applied for a foreign air carrier permit in 2013.

According to the unions, the Obama administrations late-December decision to grant NAI a foreign carrier permit enables NAI to “execute on its flag of convenience (FOC) scheme.” The permit allows for Norwegian to establish an Irish subsidiary in order to take advantage of Ireland’s impotent labor, tax, and social laws.

“The Obama administration has tilted the field of play in favor of a foreign competitor and put thousands of good-paying, middle-class, U.S. aviation jobs at risk. It will be up to the Trump administration to save them,” said SWAPA Governmental Affairs Committee Chair Chip Hancock.

Captain Jon Weaks, SWAPA President, stated, “President-elect Trump was elected on a pro-American worker platform and has already delivered wins for several American companies. It is our sincere desire that the president-elect will right this wrong by repealing this detrimental ruling.”

The DOT has maintained that the United States and European Union’s bilateral agreements leave the agency no basis to reject the permit.

“Regardless of our appreciation of the public policy arguments raised by opponents, we have been advised that the law and our bilateral obligations leave us no avenue to reject this application,” noted the DOT in its final order.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.