Friday, September 03, 2010
   
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Net Jets Reveiwed by Financial Times

The Financial Times reviewed the latest results and happenings at fractional jet industry leader Net Jets.

The FT quotes UBS analysts David Strauss and Cristina Fernandez who wrote in a note to clients last month “We still think the business jet market is characterised by significant oversupply, weak pricing and tight financing,”. “While our key indicators indicate the market is stabilizing at lower levels, we still see risk of an extended downturn.”

Berkshire Hathaway recently reported large losses and revenue down 40% at its subsidiary Net Jets, saying “The declines, reflected an 81 per cent decline in aircraft sales as well as a 22 per cent decline in flight operations revenues primarily due to lower flight revenue hours.

The FT goes on to wonder if Net Jets will buy its partner MarquisCard that offers a jet card using the Net Jets fleet. The two are currently separate companies, but both dominate their respective parts of the private aviation market.

All this means that there are some amazing deals at the moment if you have the financial and social gumption to fly privately. It seems that the public pressure on the private flying is as much of an issue as financial concerns these days.

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