Tag: NetJets

Categories
Acquisitions NetJets

NetJets Subsidiary Acquires Cerretani Aviation Group

(BRK.A), (BRK.B)

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.

Categories
NetJets

Super Bowl a Super Week for NetJets

(BRK.A), (BRK.B)

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.

Categories
Uncategorized

Teamster Mechanics Ratify Agreement With NetJets

(BRK.A), (BRK.B)

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.

Categories
NetJets

NetJets Reaches New Labor Accord with Teamsters Technicians

(BRK.A), (BRK.B)

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.

Categories
NetJets

NetJets Gives Up On China, For Now

(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.

Categories
NetJets

NetJets Partners with Mercedes-AMG Petronas Motorsport

(BRK.A), (BRK.B)

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.

Categories
NetJets

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

(BRK.A), (BRK.B)

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.

Categories
Uncategorized

NetJets Brings Michelin-Starred Chef’s Cuisine to Flyers

(BRK.A), (BRK.B)

NetJets owners flying from Washington D.C. will have the opportunity to order from menus specially-curated by Michelin-starred chef José Andrés.

Andrés is chef/owner of ThinkFoodGroup, and with partner Rob Wilder, is the team responsible for popular dining destinations in Washington DC, Los Angeles, Las Vegas and Miami and Puerto Rico. ThinkFoodGroup oversees all of José’s creative endeavors such as cookbooks, television programming, concept consulting and project development.

Andrés was named Outstanding Chef of the Year at the 2011 James Beard Foundation Awards and was named among the 100 most influential people in the world by Time magazine in 2012.

Recently he was named Dean of the Spanish Studies program at the International Culinary Center.

© 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.

Categories
NetJets

NetJets Gets Into Whole-Aircraft Brokerage With New Subsidiary

(BRK.A), (BRK.B)

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.

Categories
Commentary NetJets

Commentary: Supersonic Business Jets Will Boost Fractional Jet Ownership

(BRK.A), (BRK.B)

It’s no secret that the fractional jet ownership business has struggled in recent years, with several competitors leaving the market, and the merger of Flexjet and Flight Options. While Berkshire Hathaway’s NetJets is healthy, NetJets Executive Vice President, Sales & Marketing, Patrick Gallagher, noted on AINonline that “We’re growing our market share of a shrinking pie.”

All that may soon change with the coming of a new generation of supersonic business jets, produced by companies such as the Aerion Corporation. The planes will cruise at Mach 1.4, cutting three hours off New York City to Europe, and six hours or more off long Pacific routes.

The planes will give corporate leaders and other high-end travelers a compelling reason to consider fractional ownership.

Even cross-country travel, which draws additional concerns about sonic booms, will be faster. Aerion claims that its Boomless Cruise(sm) flight is feasible at speeds up to Mach 1.2, depending on atmospheric conditions, principally temperature and wind.

The company hopes that the U.S. will adopt International Civil Aviation Organization (ICAO) standards, permitting supersonic speeds over the U.S. Supersonic flights are currently prohibited.

Aerion claims that at speeds around Mach 1.2 a “sonic boom would, essentially, dissipate before reaching the ground.”

Another fledgling supersonic business jet manufacturer, Boston-based Spike Aerospace, calls no sonic booms the “holy grail of the next generation of aircraft.” It hopes to have its 18-passenger jets in the market by the early 2020s.

Even before these jets debut, NetJets is focusing on the growth potential of its long-haul business.

NetJets is looking to expand its long-haul business by offering new pricing incentive programs developed for Challenger 350 and Global shareowners.

NetJets hopes to capture a portion of the business that is currently going on commercial airlines or ad hoc charter by providing operational savings on 3.5-plus-hour flights for Challenger 350 shareholders who have purchased a minimum of 50-plus hours (1/16th of a share).

NetJets’ cross-country program is aimed at flyers travelling cross-country or to Europe on a super-midsize airplane like the Challenger 350. Currently, the average NetJets flight time is two hours, and the goal is to increase the number of hours of flight time.

NetJets and the Supersonic Market

The new supersonic business jets will fall into an interesting category of jets that will have a decided advantage over other private jets, but will be too expensive for most people to own outright.

While the supersonic business jet market offers opportunity, it also comes at a high cost, with the price of each jet at over $100 million.

That’s the perfect opening for fractional ownership companies to plot their growth.

Currently, Flexjet is the only company to place a firm order for the jets. In 2015, they ordered twenty of Aerion’s AS2 aircraft.

The Aerion AS2 is a three-engine jet and is larger than the originally conceived Aerion supersonic business jet. Fuselage length is 160 feet and maximum takeoff weight is 115,000 pounds. Minimum projected range is 4,750 nautical miles with the intention to achieve a range of more than 5,000 nautical miles.

The aircraft will have a 30-foot cabin in a two-lounge layout plus galley and both forward and aft lavatories, plus a baggage compartment that is accessible in-flight. Cabin dimensions widen from entryway to the aft seating area where height is six feet, two inches and cabin width is seven feet, three inches.

Carrying eight to 12 passengers, the AS2 has an intercontinental-capable range of 4,750 nautical miles at supersonic speed.

While, NetJets has yet to announce any orders, it’s clear that only the strongest of the fractional ownership companies will be able to compete in this market, giving them a clear advantage over smaller charter companies, and a major capability advantage over commercial airlines.

© 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.