Category: NetJets

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Berkshire Hathaway’s NetJets and Textron Aviation have announced a record-breaking fleet agreement for the option for NetJets to purchase up to 1,500 additional Cessna Citation business jets over the next 15 years.

The agreement extends NetJets’ existing fleet agreement, and includes options for an increasing number of aircraft each year, enabling NetJets to expand its fleet with Cessna Citation Ascend, Citation Latitude and Citation Longitude aircraft. Equally exciting is the announcement that NetJets has been named the fleet launch customer for Textron Aviation’s newest jet — the Citation Ascend. Deliveries of the Citation Ascend are expected to begin in 2025 when the aircraft, currently under development, is expected to enter into service.

“NetJets customers around the world continually select Citations as their aircraft of choice. We’re honored to be the largest provider of industry-leading aircraft to NetJets and look forward to continuing to work together to design and deliver the best aviation experience based on customer feedback,” said Ron Draper, president and CEO, Textron Aviation. “Expanding and adding the Citation Ascend to the NetJets fleet will provide its global customers with even more versatility and flexibility to accomplish their missions, building upon the exceptional performance and popularity of the Latitude and Longitude.”

Since the inception of the more than 40-year relationship between the companies, NetJets has taken delivery of more than 800 aircraft from Textron Aviation, including exercising over 300 options for Citation Latitudes and Longitudes during the past eight years. This enduring relationship equips discerning customers with class-leading, safe, and reliable aviation travel experiences worldwide. Through the years, NetJets has owned and operated industry-leading Citations including the Citation SII, V, Excel/XLS, Sovereign, X, Latitude and Longitude models.

“As a long-time, trusted ally who shares our commitment to safety and service, Textron Aviation is the ideal partner to help us expand our offerings to NetJets Owners with the introduction of the new Ascend to our midsize jet class, as well as by growing our overall fleet,” said Doug Henneberry, NetJets Executive Vice President, Aircraft Asset Management. “Based on past demand for the popular Citation Latitude and Longitude, the new Ascend and all our new Citations will undoubtedly be well received by our Owners, particularly those who depend on NetJets to help them do more and miss less.”

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.

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Berkshire Hathaway’s NetJets, the world’s largest private jet operator, may end up with one less competitor as Wheels Up, a membership model private aviation provider, struggles to stay in business.

Wheels Up has given notice to the Securities and Exchange Commission that “there is substantial doubt about its ability to continue as a going concern for any meaningful period of time.”

Wheels Up recently received a cash infusion from its 20% equity partner Delta Air Lines, but that looks to be insufficient to sustain the company long term.

Wheels Up is third behind NetJets and Flexjet in the private aviation market.

Wheels Up also signed a non-binding letter of intent sell its aircraft management business to Airshare, which is currently ninth in the private aviation market.

© 2023 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.

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Berkshire Hathaway’s NetJets, the world’s largest private jet operator, has recently unveiled its state-of-the-art Maintenance Service Hub at Paris Airport-Le Bourget. This new facility aims to provide round-the-clock maintenance services for all NetJets aircraft operating in Europe, catering to the growing demand in the region.

In collaboration with JetSupport, the Le Bourget Maintenance Service Hub offers a comprehensive 24/7/365 MRO (maintenance, repairs, and operations) service. With this strategic expansion, NetJets seeks to ensure the smooth functioning of its impressive annual tally of 450,000 global flights. In addition to the new Paris hub, NetJets also operates a maintenance hub at London Luton Airport.

Spanning an area of 4,014 square meters, the Le Bourget service hub hangar boasts an additional 11,329 square meters of ramp space. This extensive facility can comfortably accommodate NetJets’ largest aircraft models, such as the Bombardier Global 6000 and Bombardier Challenger 650. By providing ample capacity, the company aims to maximize aircraft availability and minimize downtime.

Christian Luwisch, the executive director of NetJets Europe, expressed his delight in officially inaugurating the Maintenance Service Hub at Le Bourget. With NetJets’ continued fleet expansion in Europe, Luwisch emphasized the importance of scaling up operational capabilities to ensure uninterrupted service for aircraft owners. Safety remains the company’s utmost priority, and the strategic locations of both Le Bourget and Luton hubs play a crucial role in delivering seamless and proactive servicing.

NetJets’ new Maintenance Service Hub at Paris Airport-Le Bourget is a testament to the company’s commitment to excellence in aircraft maintenance and customer satisfaction. By establishing this 24-hour facility, NetJets reinforces its position as a leader in the private aviation industry, providing reliable and efficient services to its discerning clientele.

© 2023 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.

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Berkshire Hathaway’s NetJets, the world’s largest private jet operator, has signed a new deal with Embraer for up to 250 Praetor 500 jet options. This partnership also includes a comprehensive services and support agreement, making the deal valued at over US $5 billion. The deliveries for this aircraft are expected to begin in 2025.

The Praetor 500 jet will be a new addition to NetJets’ fleet, which for over a decade has operated Embraer’s Phenom 300 series, one of the company’s most requested aircraft. This partnership between Embraer and NetJets began in 2010 when NetJets signed a purchase agreement for 50 Phenom 300 aircraft, with up to 75 additional options. In 2021, the companies signed a continuing deal for up to 100 additional Phenom 300/E jets, valued at over $1.2 billion, after Embraer successfully delivered over 100 aircraft.

NetJets’ commitment to creating an enhanced customer experience and its trust in Embraer’s industry-leading portfolio and top-ranked support has made this deal possible. NetJets is averaging over 1,200 worldwide flights per day.

“We are eager to add the Embraer Praetor 500, one of today’s most state-of-the-art business jets, to our midsize fleet,” said Doug Henneberry, Executive Vice President of NetJets Aircraft Asset Management. “This historic fleet agreement is another way that we are growing our fleet for the benefit of our loyal customers. By adding up to 250 aircraft to our fleet, we will continue providing NetJets Owners with exceptional service and seamless access to all corners of the globe.”

The Praetor 500 is the world’s most disruptive and technologically advanced midsize business jet. It has an impressive best-in-class range, enabling U.S. coast-to-coast capability, industry-leading speed, and unparalleled runway performance. It’s the only aircraft in its category with full fly-by-wire flight controls.

The Praetor 500 also offers exceptional comfort in its cabin. It features the lowest cabin altitude in its class, as well as the tallest and widest cross-section in the segment. Additionally, it offers a flat-floor cabin, stone flooring, a vacuum lavatory, and ample baggage space, including a fully enclosed internal baggage compartment.

“Since 2010, Embraer has enjoyed NetJets’ ongoing commitment to our industry-leading aircraft, which is a true testament to the value of our brand and our ability to deliver the ultimate experience in business aviation,” said Michael Amalfitano, President and CEO of Embraer Executive Jets. “Our strategic partnership has been an integral part of our business growth, with NetJets taking all aircraft delivery options that have been ordered with Embraer since inception. After building this successful foundation with the Phenom 300 series, it’s our pleasure to have now signed this monumental deal for the Praetor 500 midsize jet, and we look forward to an even more exciting future ahead.”

© 2023 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.

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Berkshire Hathaway’s Aviation businesses, NetJets and FlightSafety, have taken off. In the first quarter of 2023, their revenues saw an impressive 18.8 percent year-over-year growth. This is a testament to the strong performance and demand for these aviation services.

Berkshire Hathaway’s overall operating earnings for Q1 2023 hit a remarkable $8.065 billion. This is a significant increase from the first quarter of 2022, which recorded earnings of $7.160 billion.

“The revenue increase was primarily due to increases in the number of aircraft in shared aircraft ownership programs and in flight hours across NetJets’ various programs, as well as higher average rates,” the company stated in its Form 10-Q.

© 2023 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 a 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.

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NetJets, a subsidiary of Berkshire Hathaway, is facing a major challenge in the marketplace as the pilot shortage continues to tighten its grip.

NetJet’s Executive Management Team is yet to take proactive steps to attract and retain increasingly scarce pilot talent, claims the NetJets Association of Shared Aircraft Pilots (NJASAP).

“We are watching management teams across the industry – from legacy carriers to ultra-low-cost carriers – take bold steps to reinforce their competitive footing for top pilot talent,” NJASAP President Capt. Pedro Leroux said. “We fear NetJets’s intransigence on this industry-shaping moment will have very serious consequences for the brand’s ability to deliver the unparalleled safety and service product for which our customers pay a premium.”

The shortage of pilots is a critical issue across the aviation industry, with legacy carriers and ultra-low-cost carriers taking steps to reinforce their competitive footing for top pilot talent.

NetJets and its pilots union had a decade of often contentious relations. However, in 2021, they reached a new agreement without any of the past drama. The relationship between the two parties had hit rock bottom in 2015, with angry pilots conducting picketing at the Berkshire Hathaway annual meeting in Omaha.

Earlier this week, NJASAP filed a complaint against the luxury jet carrier in the United States District Court for the Southern District of Ohio. The lawsuit accuses NetJets of attempting to suppress union-related pilot speech in violation of federal labor law. NJASAP filed the lawsuit after NetJets threatened to discipline pilots for referring customers to the Union’s website.

© 2023 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 a 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.

The NetJets Association of Shared Aircraft Pilots (NJASAP), which represents the 3,000-plus pilots employed by Berkshire Hathaway’s NetJets, Inc., has filed a complaint against the luxury jet carrier in the United States District Court for the Southern District of Ohio. 

The lawsuit accuses NetJets of attempting to suppress union-related pilot speech in violation of federal labor law. NJASAP filed the lawsuit after NetJets threatened to discipline pilots for referring customers to the Union’s website.

According to the union, NJASAP filed the lawsuit  in response to NetJets’s threat to discipline or to discharge pilots for referring aircraft owners and customers to the union’s www.GenuineQS.com website when they ask questions about contract negotiations. The Union website provides visitors with information about the sustained U.S. pilot shortage, the status of negotiations between the parties and how career earnings at NetJets compare to the airlines.

In a press release, the union states that on March 8, 2023, NetJets Chief Operating Officer Alan Bobo sent an email to NetJets pilots accusing them of violating the carrier’s work rules. Union representatives asked NetJets how pilots should respond if they are asked questions about contract negotiations and related issues. But NetJets refused to respond to the union’s questions and did not lift the ban on speaking about the website.

“The aircraft owners and customers we fly engage our pilots in conversations every day, including about their jobs and a wide variety of other topics,” NJASAP President Capt. Pedro Leroux said. “It is only natural that they would ask us for basic information about our current labor dispute when they see picketers. Referring to a union website is a professional and legal way to respond to their questions. We believe NetJet’s discriminatory ban on union-related speech is unprofessional and illegal.”

While prohibiting pilots from speaking about the union website, NetJets President of Sales, Marketing and Service Patrick Gallagher, on April 19, sent an email to hundreds of NetJets employees claiming the pilot union’s leadership is out of touch with its members.

Gallagher’s email, sent the same day that more than 350 NetJets pilots engaged in an informational picket at the air carrier’s Columbus, Ohio headquarters, also accuses NJASAP and unions at unnamed airlines of raising safety issues “when negotiations heat up” as part of what he referred to as “the union playbook.” In the lawsuit, NJASAP calls these allegations false, reckless, and part of a campaign to undermine the pilot union and its elected leadership in violation of the Railway Labor Act.

“NJASAP stands ready to resolve our disputes with NetJets in the best interest of pilots, the company we work for and the people who depend on us for world class safety and service,” Leroux said. “What we will not stand for is an attack on our members’ workplace speech rights or their federally protected right to elect union leaders without management interference.”

© 2023 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.

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Aircraft manufacturer Bombardier has announced that NetJets will become the fleet launch customer for the Global 8000 aircraft. Adding to its already massive global fleet of more than 850 aircraft (and still growing), NetJets has placed a new firm order for four Global 8000 aircraft, valued at $312 million dollars and converted eight existing orders for Bombardier products.

The transaction adds to Global 7500 aircraft already on order and in service. NetJets will build a 24-strong fleet of the performance leading Global 8000 aircraft, as they will also be working with Bombardier to upgrade the entire in-service Global 7500 fleet to Global 8000 jets when they begin taking delivery of its new flagship aircraft. NetJets could subsequently grow its fleet—the world’s largest, most diverse fleet in private aircraft—through a series of options that could be exercised progressively over the coming years.

Introduced earlier this year at EBACE in Geneva, Bombardier’s flagship for a new era features an industry-leading range of 8,000 nautical miles and an unbeaten top speed of Mach 0.94. This ultimate all-in-one business aircraft will offer NetJets Owners a unique blend of outstanding performance, the smoothest ride, and an exceptional passenger experience focused on uncompromising safety and service standards that only NetJets can provide.

“The new Global 8000 aircraft is the ultimate solution for NetJets’ discerning Owners, offering a truly seamless private aviation experience,” said Eric Martel, President and CEO, Bombardier. “NetJets’ experience and expertise make them the ideal partner to unlock the full potential of this revolutionary Mach 0.94 business jet in a large fleet context. Our valued relationship continues to grow stronger, and we are proud to share this historic milestone together.”

“The new Global 8000 will help us to continue offering our Owners, specifically our international travelers, the pinnacle in unforgettably personalized experiences aboard the finest ultra-long-range aircraft available,” said Patrick Gallagher, NetJets’ President of Sales, Marketing, and Service. “With inventory sold out through 2023 in the U.S., we are continuing to invest in further expansion for prospective Owners in North America and across the globe. In fact, by the end of 2023, we are proud to share that our worldwide fleet will be approximately 30% larger than it was in the beginning of 2022.”

The discerning Global 8000 business jet features the most generous cabin size in the industry, with the lowest cabin altitude in its class of 2,900 feet when flying at 41,000 ft. It is also equipped with Bombardier Pũr Air and advanced HEPA filter technology for the fastest fresh air replacement.

The Global 8000 aircraft delivers when it comes to in-flight experience. The cabin incorporates the revolutionary features introduced on the Global 7500 aircraft that dramatically improve passenger comfort. The aircraft also features the innovative Nuage seat, with the first-ever zero gravity position in a business jet, allowing NetJets Owners to arrive at their destinations revitalized and refreshed.

An exemplary commitment to detail is assured on the new Global 8000 aircraft, including an available Principal Suite with a full-size bed. Revolutionary cabin entertainment control and connectivity, the intuitive nice Touch CMS and OLED touch dial, Bombardier’s l’Opéra directional audio sound system and available 4K monitor, also ensure passengers will receive an unrivalled cabin experience.

Performance-wise, the new Global 8000 aircraft can efficiently transport NetJets Owners to a wide variety of destinations both faster and farther than ever before. With its exceptional class-leading range and short-field performance, even more exclusive city pairs are now achievable, including Dubai-Houston, Singapore-Los Angeles, London-Perth, and many others.

© 2022 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.

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Berkshire Hathaway’s NetJets has broken ground on a new NetJets exclusive-use facility in Scottsdale, Arizona.

The first from-the-ground-up NetJets Maintenance Service Hub will significantly improve direct collaboration with the company’s supply chain partners.

Securing ramp space will limit traffic congestion and fuel delays and improve on-time performance.

The new facility in Scottsdale is part of the larger worldwide network of 10+ NetJets Maintenance Service Hubs—all located in regional facilities where NetJets owners travel to and from the most.

Owners can also take advantage of the on-site private boarding lounge where they can relax pre-flight.

“At NetJets, our priority is to provide Owners with safe, exceptional, and seamless experiences,” said Brad Ferrell, NetJets’ Executive Vice President, Administrative Services. “Our ongoing investment in expanding our real estate portfolio will continue to improve our industry-leading service, Owner experience, and maintenance abilities. We are excited to introduce our first from-the-ground-up NetJets Maintenance Service Hub site as a part of this larger investment in dedicated facilities across the globe.”

© 2022 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.

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Berkshire Hathaway’s NetJets has begun delivering Gulfstream G450s for its China market partnership with Shenzhen, China-based Amber Aviation. The partnership will see NetJets provide up to 20 aircraft to Amber Aviation.

The partnership is part of a new Jet Card, membership club and shared lease programs. In addition to planes, NetJets is also providing service support, sales assistance, product design and legal support.

“This partnership with Amber Aviation offers NetJets a unique opportunity to provide long-term service in the Asian Market to our owners,” said NetJets Chairman and CEO Adam Johnson. “The team at Amber Aviation shares NetJets’ commitment to safety and service, and is a truly collaborative partner that we look forward to working with alongside our respected co-investors.”

Amber Aviation chairman Chang Qiusheng first joined the aviation sector in 1981 and has served in various management positions in the field for over 30 years. Prior to founding Amber Aviation, Mr. Chang established Business Aviation Asia Limited where he served as Chairman and General Manager. He guided the firm to become the largest business jet management company within a period of ten years. Mr. Chang has also served in senior management positions in Beijing Air China Aviation Service Corp., Air China VVIP Office and Air China Business Jet.

This is not the first go around for NetJets in China. NetJets previously had a China joint venture formed in 2012 with Hony Jinsi Investment Management (Beijing) Ltd and Fung Investments, but the partnership was scrapped in 2017.

© 2022 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.