Charter & Fractional
NetJets’ fortunes take a positive turn in 2006
A “much improved situation is emerging at NetJets,” according to Warren Buffett, chairman of parent company Berkshire Hathaway.

A “much improved situation is emerging at NetJets,” according to Warren Buffett, chairman of parent company Berkshire Hathaway. In his annual letter to stockholders, published February 28, Buffett said NetJets has “never had a problem growing. But profits had been erratic.”

NetJets’ move into Europe, which began in 1996, was “particularly expensive.” After five years of operation there, “We had acquired only 80 customers. And by mid-year 2006, our cumulative pretax loss had risen to $212 million.” Buffett’s letter reported that the company’s fortunes have been turned around, largely thanks to a dramatic increase in sales; European demand “has now exploded,” with a net of 589 customers added in 2005 and 2006, bringing the number of European customers to more than 1,300.

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