Category: 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.

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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.

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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.

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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.

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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.

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NetJets Inc. buys and sells more airplanes than any other private aviation company in the world, and now the fractional ownership pioneer is offering these capabilities to the entire private aviation community through a new, independent subsidiary: QS Partners, a whole-aircraft brokerage and dealership.

QS Partners is dedicated to delivering customized aircraft sales and acquisition services. QS Partners has a global network of resources and expertise that enables the delivery of creative solutions to all corners of the globe.

“By recognizing a growing need from our clients regarding whole-aircraft sales and trades and leveraging NetJets’ global network of resources, QS Partners allows us to offer a valuable service that goes beyond what is traditionally offered by aircraft brokerage services,” said Doug Henneberry, EVP of Aircraft Asset Management at NetJets. “This is a service our customers have asked for, and we’ll extend the uncompromising attention to detail they have come to expect from NetJets to this new venture.”

Whole-aircraft transactions are hardly new territory for NetJets–or for QS Partners. For years the company has assisted aircraft owners looking to transition into a NetJets Share™ or Marquis Jet Card®, or fractional owners looking to supplement with whole aircraft ownership. The company’s aircraft expertise also runs deep; it maintains a fleet of more than 700 jets globally that continuously require refreshing.

“Even though we are a new company, we have the resources, the expertise, the capital strength, and the global presence of NetJets,” said Brian Hirsh, President of QS Partners. “Those four elements set QS Partners apart from almost every other broker dealer.” QS Partners is now the exclusive authorized reseller of NetJets airplanes.

A long-term strategy for QS Partners is to focus on customer-centric service. Every transition is about more than buying or selling an airplane—it’s about developing a relationship and understanding the core of the customers’ objectives and where they want to be. This allows QS Partners to create the best solution, especially with the expertise of John Odegard and Seth Zlotkin, NetJets veterans and industry experts who bring a combined 25 years of aviation sales experience to the team.

In addition to being customer-centric, QS Partners is also a data-driven company with global reach. Fueled with decades of research provided by its parent company, QS Partners has more data, more details, more knowledge of the market, and more understanding of what’s happening in all corners of the world than other companies.

“Data allows us to better guide customers and provide valuable options,” said Hirsh. “We have the resources to facilitate a seamless transaction anywhere around the globe.”

© 2016 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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NetJets’ seemingly endless labor disputes look finally to be ending, as the flight dispatchers have now followed the pilots and flight attendants in reaching a new contract with Berkshire Hathaway’s fractional aircraft ownership company.

The International Brotherhood of Teamsters, Teamsters Airline Division and Local 284 report they have reached a tentative agreement with NetJets on a five-year contract for approximately 50 flight dispatchers at NetJets.

The agreement was reached on May 5, and is the first union agreement for the NetJets dispatchers.

According to the union, the average first year wage increase is 18.5 percent.

The contract prohibits displacement or removal from a dispatcher position, furlough or remaining on furlough as a result of implementation of new technology or changes to existing technology. In addition to average signing bonuses in excess of $11,000, the contract prohibits management from increasing out of pocket expenses related to the dispatchers’ health insurance benefits.

The new collective bargaining agreement ends at-will employment and replaces it with just cause protections, access to stewards and other union representatives on the job. It also includes protections against subcontracting or assigning work to employees who are not covered by the contract.

“This moment is the culmination of years of hard work,” said Capt. David Bourne, Director of the Teamsters Airline Division. “This group has overcome many obstacles and fought incredibly hard to attain this contract. They’ve achieved an excellent agreement which contains job protections, large wage increases and improved retirement benefits. I’m proud to be able to call them Teamsters.”

“We’re ready to represent this group,” said Paul Suffoletto, President of Local 284. “Whether it’s signing bonuses, recognition of seniority rights or job security protections, these dispatchers will now be given the status they deserve within the industry. We appreciate the efforts of everyone involved in organizing and negotiations. The work has been greatly rewarded with this agreement, which has the full support of the negotiating committee.”

© 2016 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

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Berkshire Hathaway’s NetJets can’t seem to escape its labor troubles, even after finally reaching agreement with its flight attendants and pilots.

In December 2015, NetJets put its two-year battle over wages with its approximately 2,700 pilots firmly behind it when it agreed to raises that brought the pilots $575 million spread over five years.

Now, it’s the NetJets technicians and flight dispatchers that are preparing for a strike authorization vote, as Teamsters Local 284 complains of “cost-cutting demands and proposals that they say undermine the ability to perform their jobs.”

“NetJets demands the right to replace human flight dispatchers with automation and software programs,” said Paul Suffoletto, President of Local 284 in Columbus, Ohio. “Management is also telling our aviation technicians that they have to compete against lower cost mechanics if they want to perform necessary maintenance work on NetJets aircraft. These actions raise serious questions about cost-cutting at the expense of employees responsible for the safety of flights.”

Local 284 states that its members at NetJets that work in fueling, catering, dispatching, stock clerk, aircraft cleaning and maintenance control operations also could be impacted by the latest round of labor unrest.

They note that the affected workers have been in contract negotiations for more than five years.

Berkshire Hathaway acquired NetJets in 1998, and has struggled with labor troubles. In June 2015, Berkshire canned NetJets’s chairman and CEO Jordan Hansell, who was unable to resolve the pilots’ dispute. The replacement CEO, Adam Johnson, has had better luck.

© 2016 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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In January, Berkshire Hathaway’s NetJets signed tennis superstar Maria Sharapova as a “brand ambassador.” Now, the leader in fractional jet ownership has signed on as the official private aviation partner of PowerShares Series Tennis for the 2016 season.

As part of the deal, NetJets will receive increased advertising throughout the series, branded features during broadcasts, and hospitality for select events.

Jon Venison, president of InsideOut Sports and Entertainment, the operator of the PowerShares Series, stated that the series is “thrilled and honored to be associated with such a prestigious company.”

The PowerShares Series is a competitive tennis circuit featuring legendary tennis icons and world-renowned champions Andre Agassi, Pete Sampras, Andy Roddick, John McEnroe, Jim Courier, Michael Chang, James Blake, Mark Philippoussis, and Mardy Fish. Each tournament features 4 Champions paired off in one set semi-finals and culminates with the winners meeting in a one-set championship match.

The series begins on April 8th in Chicago, the first of five events in April, before three more events in July and August, culminating with two events in each November and December.

In her role as a NetJets brand ambassador, Maria Sharapova will work with NetJets’ marketing, with a particular focus on social media. She will also provide exclusive experiences for NetJets owners throughout the partnership.

“I have been a long time owner of NetJets, since 2004, and now to become an Ambassador for this quintessential lifestyle company is very exciting,” said Sharapova.

Forbes ranks Sharapova as the highest paid female athlete for the past nine years.

© 2016 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.