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.
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.
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.
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.”
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.
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.
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.
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.”
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.
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.
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.
Berkshire Hathaway’s NetJets has added its 100th jet, a Cessna Citation Latitude, to its Europe-based fleet, as part of its $2.5 billion fleet investment.
“NetJets is proud of its unwavering commitment to safety, service, and unmatched global access,” Christian Luwisch, executive director of NetJets Europe, said. “This landmark achievement is a testament to all at NetJets continuing to deliver exceptional service and access to our owners.”
Netjets has been experiencing record demand, and 55 aircraft to its global fleet of 800 aircraft in 2021. Its plans for 2022 include the purchase of more than 75 new aircraft, and the company has slowed the decommissioning of aircraft.
Looking towards a lower carbon future, NetJets signed a Memorandum of Understanding with German aerospace company Lilium for the prospective¬ sale of up to 150 Lilium electric vertical take-off jets, plus related after-market services.
The proprietary technology at the core of the Lilium Jet is Ducted Electric Vectored Thrust (DEVT), which has zero operating emissions.
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.
German aerospace company Lilium and Berkshire Hathaway’s NetJets have signed a Memorandum of Understanding for the prospective sale of up to 150 Lilium jets plus related after-market services.
Lilium is looking to produce the first electric vertical take-off and landing jet.
The proprietary technology at the core of the Lilium Jet is Ducted Electric Vectored Thrust (DEVT), which has zero operating emissions.
According to the company, the Lilium Jet can adapt for a range of customers and uses, with each configuration optimized for an unparalleled experience. The most spacious cabin arrangement is designed for private flights, with luxurious club seating. Alternatively, the cabin can be configured with 6 seats for passenger flights, or without seats to serve the zero-emissions logistics market.
Lilium announced the signing of the MOU in its 2021 FY Letter to Shareholders.
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.
Berkshire Hathaway’s NetJets is returning to the China market by partnering with Shenzhen, China-based Amber Aviation. The partnership will see NetJets provide up to 20 aircraft to Amber, with the first aircraft to be delivered in April 2022.
The partnership will be part of a new Jet Card, membership club and shared lease programs. In addition to planes, NetJets will also provide 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.
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.
Berkshire Hathaway’s NetJets Europe is the first to purchase certified sustainable aviation fuel in Spain from Air bp, the international aviation fuel products and service supplier that is the aviation division of bp.
Spain is one of the largest global aviation markets.
The ISCC PLUS certified sustainable aviation fuel (SAF) was produced at AIR bp’s Castellon refinery and is available across the Air bp network in Spain.
The fuel is produced from waste based sustainable feedstocks procured by the refinery and co-processed with fossil fuel to create a synthetic low carbon fuel. SAF is certified using International Sustainability and Carbon Certification (ISCC) PLUS procedures. This is the first time that Air bp has sold SAF using the ISCC PLUS certified method.
The Co-processing is a key step in replacing fossil fuel with renewable feedstock within refineries and helping to advance the decarbonization of transport including aviation.
The ISCC PLUS certified SAF claims an attributed saving of around 80 percent carbon emissions over its lifecycle compared with conventional jet fuel it replaces.
Christian Luwisch, NetJets Europe, executive director, said, “We are proud to collaborate with Air bp to supply SAF for NetJets’ aircraft in Europe. This new partnership is an important next step in our ongoing commitment to reduce the environmental footprint of our company. Our Owners will now benefit from this supply of SAF which we expect to be in the region of 325,000 USG during the first 12 months.”
Martin Thomsen, CEO, Air bp, said, “We are excited to announce our first sale of SAF in Spain, which opens up new supply opportunities in an important aviation market. We are also delighted to have the support of our customer, NetJets Europe, which demonstrates their willingness to invest in SAF to help reduce carbon emissions. We hope this announcement will encourage more customers to purchase SAF in Spain. We believe SAF is one of the aviation industry’s key routes to reducing carbon emissions, and ISCC PLUS certified SAF is the first step towards developing new refining and commercial solutions, including those that achieve CORSIA certification, to keep decarbonizing our offers for our aviation customers.”
Air bp notes that it was involved in fueling the first SAF flight by an airline in February 2008 and since then has been enabling ground-breaking test flights and investing in sustainable alternative fuels. To date Air bp has supplied sustainable aviation fuel to over 20 airports.
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.