“A few years ago NetJets was my number-one worry–its costs were far out of line with revenues, and cash was hemorrhaging,” Warren Buffett, chairman of NetJets and FlightSafety International parent company Berkshire Hathaway, wrote in his latest annual letter to shareholders, released on Saturday. “These problems are now behind us,” with NetJets delivering $227 million in pre-tax earnings last year, up $20 million from 2010.
Milestone Aviation Group (Booth No 7010), a helicopter financing company, made a splash at Heli-Expo this year, announcing a $480 million deal with Eurocopter (Booth No. 1917) for 16 EC225s, a contract with Sikorsky Aircraft (Booth No. 6148) for three S-92s (terms not disclosed), and a $125-135 million leasing agreement with major operator Bristow Group for five large helicopters.
NetJets Europe launched the first direct financing product for the fractional industry in Europe, providing new clients with an alternative financing method with rates comparable to those offered by major financial institutions.
Bombardier Aerospace and NetJets celebrated the rollout of the fractional provider’s first Global-series jet today, in this case a Global 6000 (neé XRS). Last March, NetJets placed an order for 50 Globals worth $2.8 billion, as well as options for an additional 70, breaking the fractional provider’s tradition of buying only Gulfstreams for its large-cabin jet fleets.
AIN Publications, AINonline’s parent company, publishes Business Jet Traveler and many other magazines, including on-site airshow dailies in seven countries.
Lufthansa announced yesterday it will introduce its Lufthansa Private Jet service to the North American market on February 1 through an expanded relationship with fractional provider NetJets. The new service will build on the existing Lufthansa Private Jet service in Europe, which is done in conjunction with NetJets Europe.
The U.S. government claims that NetJets owes the Internal Revenue Service (IRS) nearly $643 million in federal excise taxes, assessed penalties and interest. The amount is just $125 million less than the $768 million in pre-tax earnings that NetJets parent Berkshire Hathaway reported in its last financial report for the “other” category of subsidiaries that includes NetJets, FlightSafety International and other businesses.
Business aviation in the Middle East is expected to keep growing at a faster rate than that seen in North America and Europe, but slower than the more dynamic expansion now being seen in the emerging markets of Asia. This is the broad consensus among manufacturers and service providers for a region that is now emerging from a somewhat unsettled two-year period that has seen some fall-out from wider economic problems and the so-called Arab Spring political unrest.
When CitationAir founder and CEO Steve O’Neill left the company at the beginning of November, the transition in leadership was expected to be nearly seamless, especially since the man who was promoted to succeed him had been with the fractional provider as long as O’Neill himself.
William (Bill) Schultz, previously the company’s executive vice president, was named to the top position in September, two months before O’Neill’s departure.
West Star Aviation has named John Hayes general manager at its Dallas Love Field facility. Hayes has more than 33 years’ experience in the aviation industry and was most recently director of maintenance with Business Jet Access in Dallas. Before that he held positions with NJI, Executive Jet International, Net Jets Middle East, Saudi Arabian Airlines and Gulfstream.