NetJets may be ubiquitous with the concept of fractional ownership, and by far the dominant player in the market, but the big question remains, is the unit of Berkshire Hathaway worth a premium?
(Updated April 23, 2022) – There’s no question NetJets is the biggest player in the private aviation sector, three times bigger than Directional Aviation’s Flexjet, the second-largest player. It’s also one of the most purchased programs by the over 3,000 subscribers to Private Jet Card Comparisons. And since I get to talk to you every day, it’s safe to say I have more day-in-day-out contact with private aviation consumers than any other journalist. And if there is one company that comes up more than others, it’s NetJets.
Columbus, Ohio-based NetJets is a subsidiary of Warren Buffett’s Berkshire Hathaway. It is the inventor of the fractional private jet ownership concept by founder and former chairman Richard Santulli who sold the company to Berkshire Hathaway in 1998 for $725 million.
NetJets then entered the jet card space with its 2010 acquisition of Marquis Jet partners (Review private jet fractional and membership company M&A activity with our PRIVATE AVIATION DEAL BOOK.).
Until 2021, it branded its jet card under the Marquis Jet banner. Today, the company’s offerings include private travel solutions from fractional ownership and leasing to an extensive line-up of jet cards and whole aircraft sales. About 50% of fractional and lease customers start with its jet card program.
NetJets currently flies the Embraer Phenom 300, Textron Aviation Citation XLS, Citation Sovereign, Citation Latitude, Citation Longitude, Gulfstream 450, Challenger 350, Challenger 650, Global 5000, 5500, 6000, and 7500.
It flies around 700,000 passengers and 37,000 pets annually.
NetJets is included in the Private Jet Card Comparisons’ database of over 50 jet card and fractional ownership providers, enabling you to compare programs in minutes.
When was it founded?
The predecessor company of NetJets, Executive Jet Aviation, was founded in1964. In 1987 then CEO Richard Santulli launched the first fractional ownership program for private jets and renamed the company as NetJets.
Who owns NetJets?
Who is the CEO?
How areaircraft sourced?
Its fractional ownership fleet and off-fleet approximately 3% of the time via Executive Jet Management and vetted third-party charter operators.
There are no initiation and membership fees for its jet card programs
What is theentry-level program?
Jet cards start at 25 hours with the entry-level Embraer Phenom 300. 25-hour leases start at $10,205 per hour based on a 3-year contract. Jet cards on the Phenonom 300 are $11,156 per hour as of November 2022. .It also offers the Citation Excel/XLS, Sovereign, Latitude, Challenger 350, and Challenger 650 in the U.S. jet card program. In 2021, NetJets Europe launched a pay-as-you-go membership option, that is currently on hiatus.
Do NetJets cards provide guaranteed availability?
Yes, with 45 blackout days in the U.S. for 25-hour leases and jet cards, and 90 blackout days in Europe on jet cards. Fractional ownership has just 10 peak days.