Berkshire Hathaway’s most recent quarterly financial report notes that revenues at its NetJets subsidiary grew by 18 percent compared with the first quarter of 2009, generating positive pre-tax earnings of $57 million in the first quarter versus a pre-tax loss of $96 million in the same period last year.
NetJets Europe has introduced a new range of recyclable packaging for in-flight catering as part of its ongoing effort to reduce the carbon footprint of its services. The fractional ownership provider now gives passengers their meals in a box made from sustainable source bamboo, along with wooden cutlery and porcelain containers–all of which can be reused. The lids are biodegradable.
NetJets lost $711 million last year and is so debt-laden that without parent-company Berkshire Hathaway’s guarantee of this debt, “NetJets would have been out of business,” Berkshire Hathaway chairman Warren Buffett said in his annual letter to shareholders on Saturday. In 2008, the fractional aircraft provider recorded $213 million in pre-tax earnings.
Data on the U.S. fractional share industry show that last year was extremely challenging for the big four fractional operators–NetJets, Flexjet, Flight Options and CitationAir–and for smaller but healthier Avantair.
NetJets Europe is on track to become completely carbon neutral by October 2012, according to the fractional’s first environmental progress report, issued on November 9.
The Lisbon-based company, which has been busy adapting to reduced demand, has stepped up wide-ranging efforts to improve efficiency and counter its negative environmental effects, and the negative views many have of business jets.
Revenues at NetJets, Berkshire Hathaway’s fractional jet share company, dropped $471 million (41 percent) in the third quarter of 2009 and $1.495 billion (42 percent) for the first nine months of 2009, compared with 2008 results, according to the parent company’s November 6 quarterly report. The decline in revenues stems from a 79-percent drop in aircraft sales, according to the report, and a 24-percent reduction in flight revenue hours.
Fractional provider NetJets late last week announced that it will furlough up to 495 pilots from its North American fractional operations, mostly from NetJets Aviation but also a “small number” from NetJets International, the division that flies Gulfstreams. The furloughs will take effect on January 15.
NetJets Europe yesterday released its first environmental progress report, in which it claims to be on track to become completely carbon-neutral by October 2012. The Lisbon-based fractional provider said it has stepped up wide-ranging efforts to improve efficiency and counter its negative environmental effects, as well as the less than positive views many have toward use of business jets.
New NetJets chairman and interim CEO David Sokol has begun making changes at NetJets Europe, appointing a new boss to run the business and implement job cuts at its headquarters. Eric Connor has been appointed the new CEO and chairman of NetJets Europe following the October 4 resignation of CEO William Kelly “to pursue his own interests.”
Marquis Jet’s Randy Brandoff said his jet card company is well positioned to take advantage of the shifting sands of the corporate jet market. Brandoff, the newly appointed executive vice president and chief marketing officer for Marquis Jet (Booth No. 291), said the company’s business is down slightly for the year, but demand is actually on the rebound.