A NeJets G-IV landing at Akron-Canton airport in 2011. Photo: Gary Starcher - OPShots Contributor
Higher revenues and lower aircraft maintenance costs are driving NetJets’ profitability despite slower aircraft sales, says NetJets parent company Berkshire Hathaway. NetJets reported pretax earnings were up 10% to $227 million in 2011, a performance that Berkshire Hathaway Chairman Warren Buffett says was particularly impressive because sales of new aircraft shares were slow during most of the year. NetJets did see an uptick in December “that was more than seasonally normal,” he says, but it’s still unclear whether that improvement is sustainable, Buffett says.
Along with still slow aircraft shares, revenue hours flown in 2011 were about the same as in 2010. But the Columbus, Ohio-based fractional ownership aircraft provider brought in higher revenues from adjustments to the aircraft operating costs that are passed on to the customers, along with slight increases in rates.
via NetJets Maintaining Profits With Lower Costs | AVIATION WEEK.
