NetJets

Founded 1986
Fleet size 800
Destinations Point to point
Parent company Berkshire Hathaway
Headquarters Columbus, Ohio
Key people Bruce Sundlun, Paul Tibbetts, Richard Santulli, Warren Buffett, David L. Sokol
Website http://www.netjets.com

NetJets, a subsidiary of Berkshire Hathaway, offers fractional ownership and rental of private business jets.

History

NetJets Inc. formerly Executive Jet Aviation, was founded in 1964 as one of the first private business jet charter and aircraft management companies. The founding members of the board of directors of Executive Jet Aviation Corporation (EJA), included Air Force generals Curtis E. LeMay, and Paul Tibbetts, Washington lawyer and former military pilot Bruce Sundlun, and entertainers James Stewart and Arthur Godfrey among others, with retired Air Force Brigadier General Olbert F. ("Dick") Lassiter as president and chairman of the board.[1][2] EJA initially began operations in 1964 with a fleet of ten Learjet 23 aircraft.[3] Bruce Sundlun became EJA president in 1970, and Paul Tibbetts became president in 1976. [4] By the the end late 1970s, EJA was doing business with approximately 250 contract flying customers and logging more than three million miles per year.

Executive Jet Aviation Corporation was purchased in 1984 by former Goldman Sachs executive Richard Santulli and he became chairman and CEO of the corporation. In 1986 the NetJets program was created by Santulli as the first fractional aircraft ownership program. In 1998, after being a NetJets customer for three years, Warren Buffett, Chairman & CEO of the Berkshire Hathaway company, acquired NetJets Inc.[5]

In early August of 2009 Santulli resigned as CEO and was replaced by David Sokol. [6]
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Services

NetJets sells fractions of specific aircraft, chosen from several available types at the time of purchase. When purchasing a fraction of an aircraft, the purchaser is considered an "owner." Being an owner offers customers the convenience, access, and time advantages of flying point to point in private jets. This also allows the owner access to more, often smaller, airports; possibly shortening travel to both arrival and departure point. Arrival and departure points along with departure time are chosen by the customer for each individual trip. Costs are higher than flying commercial carriers but lower than purchasing, staffing and maintenance of a similar private jet.
Fractional ownership — the price is pro-rated from the market price of a full aircraft. Owners then have guaranteed access (50-400 hours annually, depending on share size) to that aircraft with as little as four hours’ notice. If the owner's aircraft is unavailable for some reason, another aircraft of the same type, or a larger aircraft, will be provided. Fractional owners pay a monthly maintenance fee and an “occupied” hourly operating fee. The latter is charged only when an owner or guest is on board, not when the aircraft is flying to a pick up point, or flying to another location after completing a flight.
Marquis Jet Card — Marquis Jet is a separate company that exclusively offers NetJets aircraft under their "Marquis Card." This plan is aimed for people who need fewer than the minimum of 50 flight hours with fractional ownership plans and do not want the usual 5 year commitment of fractional ownership. All costs would be paid upfront and are sold in 25 hour increments.