NetJets

NetJets Inc. is an American company that sells fractional ownership shares in private business jets.[3]

Founded as Executive Jet Airways in 1964, it was later renamed Executive Jet Aviation. NetJets became the first private business jet charter and aircraft management company in the world. It launched its fractional ownership business in 1986 and became a subsidiary of Berkshire Hathaway in 1998.[4][5]

History

1960s

The company was founded in 1964 and originally known as Executive Jet Airways. The name was later changed to Executive Jet Aviation (EJA), and again in 2002 to NetJets, after Berkshire Hathaway purchased it in 1998. NetJets was the first private business jet charter and aircraft management company in the world.[4]

2010s

In 2010, NetJets acquired Marquis Jet from founders Jesse Itzler and Kenny Dichter.[15] The prepaid Marquis Jet card allowed customers to purchase 25 hours of guaranteed flight time on the NetJets fleet.

On 11 June 2012, NetJets placed the largest aircraft order in private aviation history totaling US$17.6B. The company placed a firm order for 30 Bombardier Global 5000/6000 jets, 25 Bombardier Challenger 650 jets, 75 Bombardier Challenger 350s, 25 Cessna Citation Latitudes and 50 Embraer Phenom 300s. As a part of this purchase agreement, it also placed conditional orders for an additional 40 Bombardier Global 5000/6000s, 50 Bombardier Challenger 650, 125 Bombardier Challenger 350s, 125 Cessna Citation Latitudes and 75 Embraer Phenom 300s. As a result of these orders NetJets became Cessna's largest business jet fleet owner.[16]

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.

In 2015, the company's pilots picketed the Wynn resort in Las Vegas where company owner Warren Buffett was hosting some of his wealthiest customers. The event was symbolic of deteriorating labor relations within the company at this time.[17]

The Internal Revenue Service (IRS) had sought back taxes and penalties of $643 million from NetJets for periods beginning in 2003, including on its maintenance and service fees. 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.[18]

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 (5 ft) to properly control the rudders of an Embraer Phenom 300. She stated that male pilots who were too tall were reassigned to different aircraft, while her employment was terminated without the opportunity to fly a different plane.[19] An Ohio federal judge ruled in favor of NetJets in 2022, citing the plaintiff's failure to prove sex discrimination.[20]

2020s

In the spring of 2020, the company saw a boom in demand, as wealthy individuals sought to avoid the risks of airline flying during the COVID-19 pandemic. Previously, many potential customers had concerns about the optics of opulence and the environmental issues of private jet transport, but NetJets President of Sales, Marketing and Service, Patrick Gallagher noted in May 2020, that the health risks associated with flying on commercial airlines during the pandemic had trumped those concerns. The company introduced regular employee COVID-19 testing to try to contain the risks of an outbreak on its aircraft.[21]

In October 2020, the company made initial moves to reduce its carbon footprint. The company committed to buying "up to 3 million gallons" (11.4 million litres) of sustainable aviation fuel to be used at two of its bases, San Francisco and Columbus, Ohio. The company is also encouraging its customers to buy carbon offsets for their flights. The company will also buy its own offsets for its administration and training flights.[22]

As of November 2020, almost half of the company's fleet was manufactured by Textron, and the rest by Bombardier Inc. and Embraer. After reducing its delivery target for 2021 by more than half, due to decreased demand caused by the COVID-19 pandemic in 2020, the company expected to take delivery of 40 new aircraft in 2021 in anticipation of industry recovery.[23]

In February 2021, the company purchased a stake in WasteFuel, a business that will convert landfill waste into sustainable aviation fuel (SAF). NetJets plans to purchase 100 million gallons of SAF from WasteFuel over the next 10 years as part of the deal.[24]

In March 2021, NetJets announced that it had ordered 20 Aerion AS2s supersonic business jets. The memorandum of understanding between NetJets and Aerion called for the two companies to operate a larger "Aerion Connect" network.[25][26] Aerion abruptly announced its closure on 21 May 2021, due to the inability to raise the needed capital to continue.[27]

The company announced in March 2022, that it would partner with Lilium GmbH to establish an eVTOL network in Florida. NetJets will buy 150 Lilium Jets and operate them under a FAR Part 135 charter operation.[28] In October 2024 Lilium filed for insolvency.

NetJets announced in September 2023, that it will be purchasing up to 1,500 Cessna Citation jets from Textron Aviation. Deliveries for this 15-year deal are expected to begin in 2025.[29]

airline	NetJets Aviation
iata	-
icao	EJA
callsign	EXECJET
headquarters	Columbus, Ohio, United States
founded	May 21, 1964 United States
aoc	DXTA401D
key people	Chairman and CEO: Adam Johnson President of NetJets Aviation: Patrick Gallagher
parent	Berkshire Hathaway
destinations	Point to point
subsidiaries	NetJets Aviation, Inc. NetJets Europe QS Partners QS Security Services‡R1R‡
fleet size	792 total, 668 Netjets US, 124 Netjets Europe (April 2025)‡R2R‡
num employees	7,000

History

1960s

1980s

1990s

2000s

2010s

2020s

Subsidiaries

Business model

Fleet

Accidents and incidents

See also

External links

References