(BRK.A), (BRK.B)
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.