Julian Moxon/PARIS
Executive Jet intends its NetJets business jet fractional ownership scheme to "go global within five or six years". Studies into the regulatory, airport and cultural aspects of fractional ownership in Asia and South America are under way, with plans to start operations in both regions as soon as studies are completed and suitable local operators have been identified, says Executive Jet president Richard Santulli.
In Paris for a European "roadshow" aimed at selling the concept, Santulli said the next NetJets operation, in the Middle East, will begin in July with the delivery of the first customer-owned aircraft - a Gulfstream IVP.
A deal for up to 12 Dassault Falcon 2000s is also being negotiated. "We expect that to be confirmed in the next couple of months," says Santulli.
The aircraft will be purchased by NetJets' partner in the region, National Air Services, bringing fractional orders for the Falcon 2000 to around 50. Santulli says the company will need "around 10 a year for the next 10 years". He adds: "Dassault is our major non-US supplier and the Falcon 2000 is an excellent aircraft for this programme."
The European NetJets operation will receive the first Falcon 2000 in January 2000. The European fleet comprises four Cessna Citation IIs, three Citation IIIs and three Raytheon Hawker 800SPs, with four more of the latter to be delivered this year.
"We're looking at two further types at the high and low end of the range," says Santulli. The operational centre of NetJets Europe is in Portugal, where all European aircraft operated by the company are registered.
The NetJets operation was purchased last year by investor Warren Buffett, whose own company, Berkshire Hathaway, is worth around $75 billion. He makes no secret of the "virtually unlimited" cash resources for investment in NetJets. He admits the initial losses on setting up in a new area are "very significant, but the profits are also very high. You have to take a long term view in this business. I am confident it is a winner".
• The fractional ownership business is growing so fast that by 2005 "30% of all business jet sales will be in this area", says Jean-Francois Georges, president of Dassault's civil aircraft division. But there are no plans to increase production of Falcon business jets beyond the current 70 a year, he says.
Source: Flight International
