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NetJets Inc., a subsidiary of Berkshire Hathaway, is an American company that sells part ownership or shares (called fractional ownership) of private business jets.[6] NetJets was founded in 1964 as Executive Jet Aviation. It was the first private business jet charter and aircraft management company in the world.[7]

NetJets
NetJets Logo.png
IATA ICAO Callsign
1I EJA EXECJET
Founded21 May 1964
(55 years ago)
 (1964-05-21)
United States[1]
AOC #N60F996F[2]
SubsidiariesExecutive Jet Management, Inc.
NetJets Aviation, Inc.
Marquis Jet Partners, Inc.
QS Partners
NetJets Europe
Fleet size700[3]
DestinationsPoint to point
Parent companyBerkshire Hathaway
HeadquartersColumbus, Ohio, United States
Key peopleAdam Johnson (Chairman and CEO)[4]
Mario Pacifico (CEO of NetJets Europe)[5]
Employees6,000[3]
Websitewww.netjets.com

HistoryEdit

 
NetJets HQ in Columbus, Ohio
 
A NetJets Bombardier Challenger 350 at Westchester County Airport

NetJets Inc., formerly Executive Jet Aviation, was founded in 1964 as the first private business jet charter and aircraft management company in the world.[1] The founding members of the board of directors included US Air Force generals Curtis E. LeMay and Paul Tibbets Jr., Washington lawyer and former military pilot Bruce Sundlun, and entertainers and pilots James Stewart and Arthur Godfrey, with retired Air Force Brigadier General Olbert F. "Dick" Lassiter serving as president and chairman of the board.[1][8] EJA initially began operations in 1964 with a fleet of ten Learjet 23 aircraft.[9] Bruce Sundlun became EJA president in 1970 and Paul Tibbets became president in 1976.[10] By the late 1970s, EJA was doing business with approximately 250 contract customers and logging more than three million miles per year.

In 1984, Executive Jet Aviation was purchased by mathematician and former Goldman Sachs executive Richard Santulli who owned a business that leased helicopters to service providers of offshore oil operations. When Santulli became chairman and CEO of the corporation, he closely examined 22 years of pilot logbooks and began to envision a new economic model where several individuals could own one aircraft.

In 1987, the NetJets program was officially announced becoming the first fractional aircraft ownership format in history.[9] Around the same time, painted on every NetJets US aircraft was a three-digit tail number punctuated with QS, symbolizing the revolutionary concept of selling Quarter Shares of an aircraft—a feature that is still representative of the NetJets brand today.

In 1998, Berkshire Hathaway acquired EJA and NetJets Inc. NetJets soon expanded to Europe and then Russia, and by 2006 was the largest operator of business jets in Europe.[11]

In early August 2009, Santulli resigned as CEO and was replaced by David Sokol. Shortly afterward, NetJets moved its corporate headquarters from New Jersey back to its original home in Columbus, Ohio.[12]

In 2010, NetJets acquired Marquis Jet from founders Jesse Itzler and Kenny Dichter. The prepaid Marquis Jet card allowed customers to purchase 25 hours of guaranteed flight time on the NetJets fleet.[13]

In September 2014, NetJets acquired approval to launch its aircraft charter service in China, having worked with Chinese authorities since 2012 to secure the operating certificate.[14]

OperationsEdit

 
NetJets aircraft all wear this paint scheme, and those based in the US have the letters "QS" painted on the tail number signifying Quarter Share

NetJets sells fractions of specific aircraft, chosen from several available types at the time of purchase. 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.

For companies or individuals that require less than the minimum 50 flight hours and the five-year commitment of fractional ownership, they can buy flight hours in 25-hour increments via its Marquis Jet and NetJets jet card programs.[13]

FleetEdit

NetJets is the largest private jet operator in the world.[15]

NetJets Fleet (excluding NetJets Europe)
As of 23 October 2019
Aircraft ICAO code In Service Orders Passengers Ref
Bombardier Challenger 350 CL35 63 9 [16]
Bombardier Challenger 650 CL60 20 19 [16]
Bombardier Global 5000 GL5T 11 19 [16]
Bombardier Global 6000 GLEX 13 13 [16]
Cessna 550 Citation Bravo C55B 3 6 [16]
Cessna 560 Citation Encore C560 27 8 [16]
Cessna 560XL Citation Excel C56X 100 9 [16]
Cessna 680 Citation Sovereign C680 45 12 [16]
Cessna 680A Citation Latitude C68A 71 9 [16]
Cessna 750 Citation X C750 50 12 [16]
Dassault Falcon 2000 F2TH 31 10 [16]
Embraer Phenom 300 E55P 73 6 [16]
Gulfstream G200 Galaxy GALX 22 10 [16]
Gulfstream G550 GLF5 6 19 [16]
Gulfstream IV/G400/G450/4SP GLF4 31 16 [16]
Hawker 800XP H25B 38 8 [16]
Total 604

SubsidiariesEdit

 
Entrance to NetJets Aviation (KCMH)
Executive Jet Management, Inc.
Manages on-demand air charter services, charter aircraft management, and aircraft management services. Based in Cincinnati, Ohio, United States.
NetJets Aviation, Inc.
Operates all aircraft in the NetJets US fleet. Based in Columbus, Ohio.
Marquis Jet Partners, Inc.
Sells the Marquis Jet Card prepaid flight hours package. Became a wholly-owned subsidiary of NetJets in 2010.
QS Partners
Provides whole-aircraft brokerage services for individuals and businesses. QSP became an independent subsidiary of NetJets in 2016.
NetJets Europe
A wholly-owned subsidiary based in Lisbon, Portugal. In March 2018 former Prada executive Mario Pacifico was appointed CEO of NetJets Europe.[5]

Concerns and conflictsEdit

TaxesEdit

The Internal Revenue Service (IRS) sought back taxes and penalties of $643 million from NetJets for periods beginning in 2003. NetJets filed a lawsuit challenging the IRS assessments. In January 2015, the United States District Court issued a decision in NetJets' favor, holding that the IRS assessments were unlawful.[17][18]

Discrimination ComplaintsEdit

In 2019, a former NetJets pilot filed a lawsuit alleging that in March 2017, the company violated US Civil Right and Ohio anti-discrimination law when she was fired for being too short to properly control the rudders of an Embraer Phenom 300.[19]

Accidents and incidentsEdit

NetJets/Executive Jet Aviation reported incidents
Date Flight Aircraft Location Description Fatal Serious Minor Uninjured
9 May 1970 N434EJ[20]
(Flying as Executive Jet Aviation)
Learjet 23  
Pellston, Michigan
Controlled flight into terrain while landing at Pellston-Emmet County Airport (IATA: PLN, ICAO: KPLN, FAA LID: PLN). 6[20] 0 0 0
2 May 2002 N397QS[21][22] Cessna Citation 560  
Leakey, Texas
Arriving from Houston Hobby (IATA: HOU, ICAO: KHOU, FAA LID: HOU), the aircraft landed more than halfway down the runway at Real County Airport (FAA LID: 49R). The aircraft overran the departure end of the runway and collided with trees. A post-impact fire consumed the aircraft after the crew and four passengers were able to evacuate. 0 0 0 6
3 November 2003 N632QS[23] Cessna Citation 560  
Savannah, Georgia
NetJets Flight 632 (N632QS) was a flight from Chicago Executive Airport (IATA: PWK, ICAO: KPWK, FAA LID: PWK) to Beaufort County Airport (IATA: BFT, ICAO: KARW, FAA LID: ARW). During the flight, the crew experienced issues with malfunctioning landing gear. The aircraft was diverted to Savannah/Hilton Head International Airport (IATA: SAV, ICAO: KSAV, FAA LID: SAV) and landed with the nose gear retracted. 0 0 0 6
18 August 2004 N961QS[24] Cessna 750  
Jackson, Wyoming
Netjets Flight 961 was a flight from San Jose International Airport (IATA: SJC, ICAO: KSJC, FAA LID: SJC) to Jackson Hole Airport (IATA: JAC, ICAO: KJAC, FAA LID: JAC). After landing and slowing down to approximately 10 to 15 miles per hour (8.7 to 13.0 kn), the right main landing gear failed, causing minor damage to the aircraft. 0 0 0 4
26 September 2005 N669QS[25] Cessna Citation 560  
Columbus, Ohio
Netjets Flight 669 (N669QS) experienced a landing gear failure while taxiing for departure at Port Columbus International Airport (IATA: CMH, ICAO: KCMH, FAA LID: CMH). 0 0 0 2
5 January 2006 N391QS[26][27] Cessna Citation 560  
Woodruff, Wisconsin
Netjets Flight 391 (N391QS) was a flight from Chicago Executive Airport (IATA: PWK, ICAO: KPWK, FAA LID: PWK) to Lakeland Airport/Noble F. Lee Memorial Field (IATA: ARV, ICAO: KARV, FAA LID: ARV). During landing the right wing contacted the runway causing the aircraft to depart the runway and impact a snow bank. The NTSB found that the Captain failed to "maintain adequate airspeed during the landing which resulted in a stall."[26] 0 0 0 7
28 August 2006 N879QS[28][29] Hawker 800XP  
Smith, Nevada
Netjets Flight 879 (N879QS) was a flight originating from McClellan–Palomar Airport (IATA: CLD, ICAO: KCRQ, FAA LID: CRQ). While on approach to Reno–Tahoe International Airport (IATA: RNO, ICAO: KRNO, FAA LID: RNO), Flight 879 collided mid-air with a glider (N7729) 10 miles (16 km) west-northwest of Smith, Nevada, at an altitude of 16,000 feet (4,900 m) above sea level. Flight 879 landed safely with only minor injuries on board; the pilot of the glider parachuted to safety, but sustained minor injuries after landing.

During the investigation, the pilot of the glider stated that glider's transponder was off in order to preserve the batteries for radio use.[28]

0 0 2 + 1[28] 3[28]
27 May 2011 N749QS[30][31] Gulfstream G200  
Newburgh, New York
NetJets Flight 749 (N749QS) was a flight originating from Greenville–Spartanburg International Airport (IATA: GSP, ICAO: KGSP, FAA LID: GSP) bound for Westchester County Airport (IATA: HNP, ICAO: KHNP, FAA LID: HNP). During the flight, the crew experienced issues with the landing gear. The aircraft was dirverted to Stewart International Airport (IATA: SWF, ICAO: KSWF, FAA LID: SWF). After an emergency landing, the right main landing gear collapsed. 0 0 0 3
23 July 2014 N731QS[32][33] Gulfstream G200  
Aspen, Colorado
NetJets Flight 731 was a flight originating from Dallas Love Field (IATA: DAL, ICAO: KDAL, FAA LID: DAL). Upon landing at Sardy Field (IATA: ASE, ICAO: KASE, FAA LID: ASE) the aircraft experienced a loss of control event upon landing. The airplane came to rest on the runway, sustaining minor damage. 0 0 0 3
19 September 2014 N322QS[34][35] Embraer Phenom 300  
Conroe, Texas
NetJets Flight 322 was arriving from Nashville International Airport (IATA: BNA, ICAO: KBNA, FAA LID: BNA) when it departed the end of the runway at Lone Star Executive Airport (IATA: CXO, ICAO: KCXO, FAA LID: CXO) and impacted a ditch. The area had recently been inundated by the remains of Hurricane Odile.[36][37] There were no injuries but the airplane was substantially damaged. The first officer's use of the emergency brake system during landing was found to be the cause by the National Transportation Safety Board.[34] 0 0 0 2

See alsoEdit

ReferencesEdit

  1. ^ a b c Padfield, R. Robert (21 May 2014). "NetJets Celebrates 50th Anniversary of Ancestor's Founding". ainonline.com. AINonline. Archived from the original on 2 July 2019. Retrieved 20 October 2019. Executive Jet Airways was founded on May 21, 1964, by a group of retired World War II U.S. Air Force generals led by Brigadier General O. F. "Dick" Lassiter.
  2. ^ "Federal Aviation Administration - Airline Certificate Information - Detail View". faa.gov. Federal Aviation Administration. 2 August 2002. Archived from the original on 23 June 2004. Retrieved 20 October 2019.
  3. ^ a b "March 2018 NetJets Fast Facts" (PDF). amazonaws.com. NetJets. 1 March 2018. Archived (PDF) from the original on 20 October 2019. Retrieved 20 October 2019.
  4. ^ "NetJets: Leaders in private avaition". netjets.com. 5 October 2018. Retrieved 20 October 2019.
  5. ^ a b Reid, David (21 March 2018). "Warren Buffett's vision for NetJets is now the company mantra, new Europe CEO says". CNBC. Archived from the original on 21 March 2018. Retrieved 20 October 2019. Mario Pacifico has joined NetJets after spells at Eni, Prada, and Luxottica.
  6. ^ Simon, Hermann (19 July 2009). Hidden Champions of the Twenty-First Century: The Success Strategies of Unknown World Market Leaders. Springer Science+Business Media. p. 13. ASIN B008BBJDB2. ISBN 978-0387981468. LCCN 2009928014. OCLC 889696178. OL 24537760M. NetJets poineered the fractional ownership concept for private jets.
  7. ^ Catalano, Robin (20 January 2018). "NETJETS COMPARED TO WHEELS UP". sherpareport.com. SherpaReport. Archived from the original on 2 July 2019. Retrieved 20 October 2019. NetJets, founded by three retired military pilots in 1964 as Executive Jet Aviation, is the granddaddy of fractional ownership and private jets. Since its inception, it has grown from a fleet of ten Learjet 23 aircraft to 10 types of planes and nearly 700 aircraft worldwide—the world’s largest private jet fleet.
  8. ^ The Penn Central Failure and the Role of Financial Institutions: Staff Report of the Committee on Banking and Currency, House of Representatives, 92d Congress, First Session. United States Congress House Committee on Banking and Currency. Arno Press. 1972. p. 58. ISBN 978-0405003745. OCLC 1020583347. OL 22227843M.CS1 maint: others (link)
  9. ^ a b Worrells, D. Scott; NewMyer, David A.; Ruiz, Jose R. (1 December 2001). "The Evolution of Fractional Ownership: A Literature Review" (PDF). Journal of Aviation/Aerospace Education & Research. Embry–Riddle Aeronautical University. 10 (2): 41–59. doi:10.15394/jaaer.2001.1277. eISSN 2329-258X. ISSN 1065-1136. OCLC 990400903. Archived from the original on 21 July 2018. Fractional ownership in its current form was launched in 1987. It evolved from a program that began in 1964 when the Pennsylvania Railroad put up the capital to finance Executive Jet Airways. Ten Learjet 23's were purchased with the mission to sell "blocks of usage" providing customers with business jet transportation wherever they wanted to go.
  10. ^ Freeze, Di (1 June 2003). "Paul Tibbets: A Rendezvous with History (part 3)". airportjournals.com. Airport Journals. Archived from the original on 11 February 2015. Retrieved 21 October 2019. On April 21, 1976, Tibbets became president of Executive Jet Aviation, Inc.
  11. ^ Holden, Henry M. (6 November 2006). "NetJets And Dassault Ink $1.1 Billion Deal". airportjournals.com. Airport Journals. Archived from the original on 8 January 2017. Retrieved 21 October 2019. Founded in 1996, NetJets Europe is the largest operator of business jets in Europe, with 100 jets and more than 1,200 customers.
  12. ^ "Cuts at NetJets delay expansion plans in Ohio". Springfield News-Sun. Columbus, Ohio: Springfield News-Sun. Associated Press. 12 September 2009. ISSN 0744-6101. Archived from the original on 6 May 2011. Retrieved 20 October 2019. Sokol became CEO and chairman of NetJets in early August upon the abrupt resignation of longtime CEO Richard Santulli. Investor Warren Buffett, who controls parent company Berkshire Hathaway Inc., selected Sokol to help orchestrate a turnaround at NetJets.
  13. ^ a b "Berkshire's NetJets buys Marquis Jet card company". Reuters. New York: Reuters. 4 November 2010. Archived from the original on 25 November 2017. Retrieved 20 October 2019. NEW YORK (Reuters) - NetJets Inc, the corporate aircraft unit of Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N), said on Thursday it bought Marquis Jet, which has a program that sells flight time on NetJets planes. Terms of the sale were not disclosed.
  14. ^ Lopez, Luciana (23 September 2014). "NetJets wins approval to launch China service". Reuters. New York: Reuters. Archived from the original on 11 December 2018. Retrieved 20 October 2019. NEW YORK (Reuters) - NetJets Inc [BRKNT.UL], the private aircraft charter company owned by Warren Buffett's Berkshire Hathaway Inc (BRKa.N), said on Tuesday that it had acquired approval to launch its aircraft charter service in China.
  15. ^ Sarsfield, Kate (15 October 2018). "NBAA: NetJets in deal for 325 Cessna Longitude and Hemisphere jets". flightglobal.com. FLIGHT DAILY NEWS. Archived from the original on 3 November 2018. Retrieved 21 October 2019 – via FlightGlobal. NetJets is the largest business aircraft operator in the world with a fleet of over 520 aircraft.
  16. ^ a b c d e f g h i j k l m n o p "NetJets (1I/EJA) Fleet, Routes & Reviews — Flightradar24". flightradar24.com. Flightradar24. Retrieved 23 October 2019.
  17. ^ "11-1023 - NetJets Large Aircraft, Inc. et al v. United States of America". govinfo.gov. United States Government Publishing Office. United States District Court Southern District of Ohio. 26 January 2015. Archived from the original on 21 October 2019. Retrieved 21 October 2019.
  18. ^ Stempel, Jonathan (27 January 2015). "Berkshire's NetJets defeats $500 million IRS tax claim". Reuters. New York: Reuters. Archived from the original on 6 December 2017. Retrieved 20 October 2019. NEW YORK, Jan 27 (Reuters) - NetJets Inc, the private jet-sharing company owned by Warren Buffett's Berkshire Hathaway Inc, has defeated a U.S. Internal Revenue Service lawsuit attempting to recoup more than $500 million of unpaid taxes, penalties and interest.
  19. ^ Weiker, Jim (15 August 2019). "Pilot says NetJets fired her because of her height". The Columbus Dispatch. ISSN 1074-097X. Archived from the original on 15 August 2019. Retrieved 20 October 2019. After passing the initial flight test, Drerup "struggled to maintain control" of an Embraer Phenom 300 plane during a flight simulation. Her instructor told her she was too short, at 5 feet 2 inches, to properly control the rudders.
  20. ^ a b Accident description for ASN Aircraft accident Learjet 23 N434EJ Pellston-Emmet County Airport, MI (PLN) at the Aviation Safety Network. Retrieved on 2019-10-26.
  21. ^ "NTSB: FTW02LA136 (Full Narrative)(N397QS)". ntsb.gov. National Transportation Safety Board. Archived from the original on 6 May 2017. Retrieved 21 October 2019.
  22. ^ Accident description for ASN Aircraft accident Cessna 560 Citation Ultra N397QS Leakey, TX at the Aviation Safety Network. Retrieved on 2019-10-22.
  23. ^ "NTSB: ATL04IA048 (Full Narrative)(N632QS)". ntsb.gov. National Transportation Safety Board. Archived from the original on 15 December 2014. Retrieved 21 October 2019.
  24. ^ "National Transportation Safety Board Aviation Incident Final Report: DEN04IA126". ntsb.gov. National Transportation Safety Board. 13 September 2005. Retrieved 21 October 2019.
  25. ^ "National Transportation Safety Board Aviation Incident Final Report: DEN04IA126". ntsb.gov. National Transportation Safety Board. 26 March 2007. Retrieved 22 October 2019.
  26. ^ a b "National Transportation Safety Board Aviation Incident Final Report: CHI06LA058". ntsb.gov. National Transportation Safety Board. 26 March 2007. Retrieved 22 October 2019.
  27. ^ Accident description for ASN Aircraft accident Cessna 560 Citation Ultra N391QS Minocqua-Noble F. Lee Airport, WI (ARV) at the Aviation Safety Network. Retrieved on 2019-10-22.
  28. ^ a b c d "National Transportation Safety Board Aviation Incident Final Report: LAX06FA277A". ntsb.gov. National Transportation Safety Board. 20 March 2008. Retrieved 22 October 2019.
  29. ^ Accident description for ASN Aircraft accident Raytheon Hawker 800XP N879QS Carson City, NV at the Aviation Safety Network. Retrieved on 2019-10-22.
  30. ^ "National Transportation Safety Board Aviation Incident Final Report: ERA11IA316". ntsb.gov. National Transportation Safety Board. 8 March 2012. Retrieved 22 October 2019.
  31. ^ Incident description for Incident Gulfstream Aerospace/IAI G-200 N749QS, 27 May 2011 at the Aviation Safety Network. Retrieved on 2019-10-22.
  32. ^ Incident description for Incident IAI Gulfstream G200 N731QS, 23 Jul 2014 at the Aviation Safety Network. Retrieved on 2019-10-22.
  33. ^ Curet, Jordan (24 July 2014). "Plane skids off Sardy Field runway on landing". Aspen Daily News. Archived from the original on 11 December 2018. Retrieved 22 October 2019. Sardy Field was closed for a portion of Wednesday night after a private jet with three people on board skidded and then spun off the runway upon landing earlier in the evening. No one was injured.
  34. ^ a b "National Transportation Safety Board Aviation Incident Final Report: ERA11IA315". ntsb.gov. National Transportation Safety Board. 19 April 2017. Retrieved 22 October 2019.
  35. ^ Incident description for ASN Aircraft accident Embraer EMB-505 Phenom 300 N322QS Conroe-Lone Star Executive Airport, TX (CXO) at the Aviation Safety Network. Retrieved on 2019-10-22.
  36. ^ "Netjets Aviation #322 ✈ 19-Sep-2014 ✈ KBNA - KCXO". FlightAware.com. Retrieved 19 September 2014.
  37. ^ "Plane slides off runway at regional airport in Conroe". Conroe, Texas: KPRC-TV. 19 September 2014. Archived from the original on 8 November 2017. Retrieved 20 October 2019. CONROE, Texas - A plane slid off the runway at the Lonestar Regional Airport in Conroe.

External linksEdit