NetJets

NetJets. It is a leading provider of fractional ownership and management services for private aircraft, operating as a subsidiary of Berkshire Hathaway. Founded as Executive Jet Airways in 1964, the company pioneered the fractional ownership model, allowing individuals and corporations to purchase shares of an aircraft rather than owning one outright. Headquartered in Columbus, Ohio, its operations span North America and Europe, managed by its European affiliate.

History

The company was founded in 1964 by attorney Bruce Sundlun as Executive Jet Airways (EJA), initially offering air charter and air ambulance services. A significant early investor was retired United States Air Force General Curtis LeMay, who served as its first president. In 1986, the company was acquired by Richard Santulli, a former Goldman Sachs executive, who is widely credited with developing the modern fractional ownership concept, launching the NetJets program in the same year. This innovative model proved highly successful, leading to rapid expansion. In 1998, Warren Buffett's Berkshire Hathaway purchased the company, providing immense capital for fleet growth. The company later established NetJets Europe in 1996 to serve the European market and formed a strategic alliance with Marquis Jet Partners in 2001 to offer a jet card program. Leadership has included figures like Jordan Hansell and current CEO Adam Johnson.

Business model

The core offering is fractional ownership, where clients purchase a share (typically one-sixteenth to one-half) of a specific aircraft model, guaranteeing a set number of flight hours annually with corresponding monthly management and hourly operating fees. This provides the benefits of private aviation without the full capital outlay and operational burdens of whole aircraft ownership. The company also markets the Marquis Jet Card, a pre-paid card program offering access to the fleet without an equity commitment, and provides comprehensive aircraft management services for third-party owners. All operations are supported by a large, standardized fleet and centralized dispatch through its NetJets Aviation operating certificate, ensuring consistent service and safety standards across its global network.

Fleet

The company operates one of the world's largest and most diverse private jet fleets, featuring aircraft from leading manufacturers like Bombardier Aviation, Cessna, Gulfstream Aerospace, and Embraer. Its fleet includes light jets such as the Cessna Citation Excel and Embraer Phenom 300, midsize jets like the Bombardier Challenger 300 and Cessna Citation X, and large-cabin, long-range aircraft including the Gulfstream G650 and Bombardier Global 7500. This standardization allows for efficient maintenance, crew training, and operational logistics. The fleet is consistently renewed through massive, multi-billion dollar orders with manufacturers, such as a historic 2015 order with Bombardier Aviation and Cessna for over 400 aircraft.

Safety and regulations

The company operates under a single Air Operator's Certificate (AOC) held by its operating carrier, NetJets Aviation, which is regulated by the Federal Aviation Administration (FAA) in the United States and the European Union Aviation Safety Agency (EASA) in Europe. It adheres to the highest safety standards, including International Standard for Business Aircraft Operations (IS-BAO) certification. All pilots are trained to Airline Transport Pilot (ATP) certification levels and undergo recurrent simulator training at dedicated facilities, such as the FlightSafety International center. The company maintains a dedicated Safety Management System (SMS) and its safety record is consistently audited by independent organizations like ARGUS International.

Market position and competition

It is the world's largest fractional ownership company by fleet size and revenue, holding a dominant position in the private aviation sector. Its primary competitors in the fractional market include Flexjet, owned by Directional Aviation, and Flight Options. The company also competes with jet card providers and traditional air charter companies like Wheels Up and VistaJet. The backing of Berkshire Hathaway provides a significant financial advantage for fleet acquisition and long-term stability. The broader competitive landscape includes commercial aviation first-class services and the burgeoning urban air mobility sector, though the company's model remains focused on the premium corporate and high-net-worth individual travel market.

Category:Aviation companies of the United States Category:Companies based in Columbus, Ohio Category:Berkshire Hathaway subsidiaries Category:Private jet companies