The US Department of Transportation has tentatively approved an application by Executive Jet Management (EJM), the on-demand charter subsidiary of fractional-ownership company NetJets, to operate scheduled passenger services using business jets from its managed fleet. EJM plans to operate 30 flights a week between White Plains, New York and Chicago Midway and 10 a week between New York and Los Angeles, beginning in September.
EJM plans to dry lease aircraft from owners of business jets in the company’s 100-aircraft managed charter fleet. The aircraft will have 10 or fewer seats. Service is planned to begin on 1 September using existing EJM personnel, with forecast revenues in the first 12 months of $31.2 million and net income of $2.85 million.
EJM is wholly owned by NetJets, for which it provides charter back-up and which, in turn, is owned by billionaire Warren Buffet’s investment firm Berkshire Hathaway. The plan is backed by a $4.5 million letter of credit from Bank of America to underwrite the first three months of operations.
Source: Flight International