B/CA Show News - NBAA 2007 Day 1 - (Page 14) d1p14 Intell final 9/24/07 1:05 PM Page 1 N BA A 2007 NetJets Puts ‘Erratic’ Profits Behind It, Says Warren Buffett: Even Europe’s Making Money “A much improved situation is emerging at NetJets,” Warren Buffett told Berkshire Hathaway investors earlier this year, crediting Rich Santulli and NetJets Europe chief Mark Booth for a turnaround even in the longchallenging European market. “This company has never had a problem growing,” Buffett wrote in his annual letter. “Revenues from flight operations have increased 596% since our purchase in 1998. But profits had been erratic.” NetJets tackled Europe in 1996 but after five years Warren Buffett. had only 80 customers, and “by mid-year 2006 our cumulative pre-tax loss had risen to $212 million. “But European demand has now exploded,” according to Buffett, “with a net of 589 customers having been added in 2005-2006. Under Mark Booth’s brilliant leadership, NetJets is now operating profitably in Europe, and we expect the positive trend to continue. “Our U.S. operation also had a good year in 2006, which led to worldwide pre-tax earnings of $143 million at NetJets last year. We made this profit even though we suffered a loss of $19 million in the first quarter. “Credit Rich Santulli, along with Mark, for this turnaround.” “The value of the fleet we manage is far greater than that managed by our three largest competitors combined,” Buffett wrote. “NetJets is the runaway leader. NetJets aircraft are an indispensable business tool. Once you’ve flown NetJets, returning to commercial flights is like going back to holding hands.” This past summer, Berkshire Hathaway reported that fractional sales and flight operations revenues for the first six months of 2007 increased $474 million over 2006. NetJets pre-tax earnings for the first six months of this year were $109 million compared to $29 million in 2006. Operating margins increased reflecting higher aircraft utilization rates as revenue flight hours increased approximately 15%. 14 Sentient Is Now the Sentient Flight Group Sentient Flight Group is the new name of Massachusetts-based Sentient Jet Inc. and JetDirect, which merged in April. “We’ve created a national company with the operational expertise and experience to meet and exceed all the needs of a private flyer through a variety of convenient, safety-focused programs,” said chairman and CEO Gregory Campbell. Programs include Sentient Jet Membership, JetDirect Charter, JetDirect Aircraft Management and JetCorp Technical Services. Subsidiary operators include JetDirect Aviation, Atlantic Aviation Flight Services, JetCorp, Presidential Jets, Regal Jets, Spirit Aviation, Summit Jet, and Sunset Aviation. Steven Hankin is president and COO. Sentient Flight is at Booth 6833. Baldwin ‘Teaches Them to Fish’ Hilton Head-based Baldwin Aviation is promoting a new safety mentoring program for existing and start-up flight operations. It’s “based on our flight department start-up model and provides participants with a trusted partner who works with them,” says founder Don Baldwin. “Our approach is to ‘teach them to fish’ rather than simply provide them with a single fish dinner.” Baldwin, who has headed both the Texaco and Coca-Cola flight departments and is a former chairman of the NBAA board, will detail the mentoring program here this week. Baldwin Aviation Safety & Compliance is at Booth 2840. The 7X Enters Service in France; Where Else? The first Falcon 7X entered service at the Paris Air Show on June 14. The aircraft flew nonstop to Le Bourget from Dassault Falcon’s Little Rock completion center. Taking delivery was Gilbert Chagoury, founder and chairman of Africa’s Chagoury Group. Chagoury became the first order holder for the Falcon 7X (s.n. 05) in November 2001. A second Falcon 7X (s.n. 04) was delivered at Paris to Serge Dassault. The 7X is priced at $40.6 million. M. Dassault’s 7X is on display here this week. Airbus A318 Elite Is NBAA Debutante The Airbus A318 Elite, newest member of the Airbus Corporate Jetliner (ACJ) family, is at NBAA for the first time. The Elite on show at Fulton County Airport is the first production airplane. It was delivered to Swiss VVIP charter operator Comlux in May, and has since been in strong demand for flights worldwide in its 18-passenger cabin styled by Lufthansa Technik. With 4,100 nmi range with eight passengers, the A318 Elite can fly nonstop from London to New York, transcontinental within the U.S., from Europe to the Middle East, and throughout Asia. Airbus is at Booth 4339. Backers in Sight for Kestrel? Geoffrey Galley, CEO and major shareholder in Farnborough Aircraft, says he is in negotiation with potential financing parties to bring his single-engine turboprop Farnborough F1 Kestrel business aircraft to production. He is hoping to get investment by first quarter 2008, if not sooner. The company still has links with the Middle East but is looking at other options, and Galley would like to see as much manufacturing as possible in the UK. It is not clear whether the “Gulf Partnership” which is/was a collaborative venture between Abu Dhabi-based Gulf Aircraft Maintenance Company (Gamco) and Farnborough Aircraft is still in place. Jetscape, Frost Partner in FLL FBO Expansion Jetscape Services has joined forces with the Frost Group to expand the FBO at Fort Lauderdale/ Hollywood International Airport (FLL). Jetscape is one of four FBOs at FLL and is celebrating its fifth anniversary this month. “There is no limitation to what we can accomplish together with our Jetscape Services team and with our new investors at Frost Group,” said Jetscape’s chairman John Evans. Long-term plans include acquiring FBOs in additional domestic and international markets. September 25, 2007 www.aviationweek.com/shownews http://www.aviationweek.com/shownews
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