NetJets

NetJets Inc.
	File:NetJets logo.svg NetJets logo
Company type	Subsidiary
Industry	Private business jets, fractional ownership
Founded	1964
Founder	Olbert F. "Dick" Lassiter
Headquarters	Columbus, Ohio, United States
Area served	Worldwide
Key people	Adam Johnson (Chairman and CEO), Patrick Gallagher (President)
Products	Fractional ownership of private business jets, jet card programs, aircraft management, charter services
Owner	Berkshire Hathaway
Number of employees	7,000
Parent	Berkshire Hathaway
Website	netjets.com

NetJets Inc. is a United States-based firm that specializes in the fractional ownership of private business jets.

Established in 1964 under the name Executive Jet Airways and subsequently renamed Executive Jet Aviation, NetJets was a trailblazer in the private business jet charter and aircraft management sectors. The company introduced the concept of fractional ownership in 1986 and was later acquired by Berkshire Hathaway in 1998, becoming one of its subsidiaries.

Currently, NetJets boasts the largest private jet fleet worldwide, operating close to 700 aircraft across the globe. It serves a diverse clientele through its various branches, including NetJets Aviation, Inc., NetJets Europe, QS Partners, and QS Security Services. The corporate headquarters are situated in Columbus, Ohio, with a workforce numbering around 7,000 employees. Leadership includes Chairman and CEO Adam Johnson and President Patrick Gallagher.

1960s

The company originated in 1964 as Executive Jet Airways, which was later renamed to Executive Jet Aviation (EJA). Following its acquisition by Berkshire Hathaway in 1998, it adopted the NetJets brand in 2002. The firm was a pioneer in private business jet chartering and aircraft management services. Retired Air Force Brigadier General Olbert F. "Dick" Lassiter conceived the idea by applying his military air taxi experience to develop a shared corporate jet ownership model that lowered costs for individual companies. The initial board featured prominent individuals such as Generals Curtis E. LeMay and Paul Tibbets, attorney and pilot Bruce Sundlun, as well as entertainers James Stewart and Arthur Godfrey, with Lassiter serving as president and chairman.

Initial capital was provided by the Pennsylvania Railroad under the oversight of accountant David Bevan, which secured a majority shareholding in 1965 despite regulatory limitations on rail companies owning air carriers. To navigate these restrictions, investments were funneled through a subsidiary entity. EJA commenced operations with ten Learjet 23 planes and gradually expanded its fleet to include larger jets like Boeing 707s and 727s; however, operation of these aircraft required approval from the Civil Aeronautics Board (CAB).

The CAB ultimately ruled against EJA’s utilization of larger jets that were licensed to foreign carriers, resulting in financial setbacks. Attempts to divest Pennsylvania Railroad’s stake were unsuccessful amid leaks of competitive information. After the Pennsylvania Railroad merged into Penn Central in 1968, EJA continued to experience financial difficulties and was penalized $70,000 by the CAB in 1969.

In 1970, following internal corporate disputes over control of EJA offices, Penn Central’s trustee replaced Lassiter with Bruce Sundlun as president. Lassiter later faced legal action for allegedly misappropriating $21 million of railroad funds for personal use. In 1972, Sundlun, together with Robert L. Scott Jr. and Joseph S. Sinclair, purchased Penn Central’s interest in EJA and restored the company’s financial stability. Paul Tibbets assumed the presidency in 1976 and further advanced the company’s business strategy.

1980s

In 1984, Executive Jet Aviation was purchased by Richard Santulli, a mathematician and former Goldman Sachs executive who brought his expertise from helicopter leasing in offshore oil fields. Serving as chairman and CEO, Santulli scrutinized extensive pilot data and introduced an innovative business approach that allowed multiple owners to share a single aircraft.

The NetJets program debuted in 1987 as the pioneering fractional aircraft ownership concept, with US registrations ending in "QS" to represent quarter shares—a branding feature that remains integral to NetJets today.

1990s

Berkshire Hathaway acquired both EJA and NetJets from Santulli in 1998 for $725 million, with half of the payment made in stock. Following this acquisition, NetJets expanded its operations into Europe and Russia, becoming the continent’s largest business jet operator by 2006.

2000s

During the mid-2000s, NetJets operated a fleet of nine Boeing 737-700 Business Jets before eventually divesting them. In August 2009, Santulli stepped down as CEO, with David Sokol taking over leadership. The company also shifted its headquarters back to Columbus, Ohio.

2010s

In 2010, NetJets acquired Marquis Jet from founders Jesse Itzler and Kenny Dichter, incorporating a prepaid jet card product that guaranteed 25 hours of flight time on its fleet.

On June 11, 2012, NetJets placed a historic $17.6 billion order encompassing Bombardier, Cessna, and Embraer jets, including both firm and conditional orders totaling several hundred aircraft. This move established NetJets as the largest operator of Cessna business jets.

By September 2014, after working with local regulators since 2012, NetJets obtained approval to commence charter services within China.

Labor relations worsened in 2015, highlighted by pilot demonstrations at events hosted by Warren Buffett. At the same time, NetJets successfully contested IRS claims demanding $643 million in back taxes related to maintenance fees.

In 2019, a former pilot filed a lawsuit against NetJets alleging height-based discrimination impacting her ability to operate certain aircraft; nevertheless, an Ohio federal court ruled in favor of NetJets in 2022 due to lack of sufficient proof of sex discrimination.

2020s

During spring 2020, demand for NetJets' services surged as wealthy clients shifted away from commercial airlines toward private jets amid the COVID-19 pandemic, prioritizing health safety over prior concerns about luxury and environmental impact. To reduce risk, the company implemented ongoing COVID-19 testing for employees.

By October 2020, NetJets launched initiatives aimed at lowering its carbon emissions by committing to purchase up to 3 million gallons of sustainable aviation fuel (SAF) for operations based in San Francisco and Columbus. The company also encourages customers to offset their carbon footprint and offsets emissions from administrative and training flights.

As of November 2020, nearly half of NetJets’ fleet consisted of Textron-manufactured aircraft, with the remainder supplied by Bombardier and Embraer. Following a decline in demand due to the pandemic, the company revised its 2021 delivery target downward to 40 aircraft while anticipating industry recovery.

In February 2021, NetJets invested in WasteFuel—a company that converts landfill waste into SAF—and committed to purchasing 100 million gallons over ten years. The following month, NetJets signed a memorandum of understanding to acquire 20 Aerion AS2 supersonic jets as part of developing an "Aerion Connect" network; however, Aerion ceased operations in May 2021 due to funding difficulties.

In March 2022, NetJets partnered with Lilium GmbH to establish an eVTOL network in Florida, agreeing to purchase 150 Lilium Jets for FAR Part 135 charter services. Despite this plan, Lilium filed for insolvency in October 2024.

In September 2023, NetJets revealed plans for significant fleet growth through a 15-year agreement with Textron Aviation to acquire up to 1,500 Cessna Citation jets, with deliveries expected to begin in 2025.

Subsidiaries

Founded in 1996, NetJets Europe—officially known as NetJets Transportes Aéreos, S.A.—functions as a crucial subsidiary headquartered in Oeiras, Portugal. It provides access to more than 5,000 airports worldwide.

Additional significant subsidiaries encompass Executive Jet Management (EJM) based in Cincinnati, Ohio, which specializes in aircraft management and charter operations. Established in 2016, QS Partners operates offices in Columbus, Boulder, and London, focusing on whole-aircraft brokerage and exclusively handling the resale of pre-owned NetJets aircraft. QS Security Services, launched in October 2019, delivers tiered security solutions customized to passenger requirements and threat assessments at various destinations. Initially active at Paris Le Bourget and Mexico, it aims to expand its global presence by 2023.

Business model

NetJets utilizes a fractional ownership framework where clients acquire shares in particular aircraft models, ensuring availability ranging from 50 to 400 flight hours annually with as little as four hours’ advance notice. In cases where the designated aircraft is not accessible, an equivalent or larger jet is provided. Fractional owners enter into contracts with a minimum duration of five years and are responsible for monthly maintenance charges along with hourly operational fees incurred only during flights. Alternatively, customers may purchase flight time in 25-hour increments through jet card programs.

As the leading provider of fractional aircraft ownership, NetJets logged 478,444 flight hours in 2021. The surge in demand amid the COVID-19 pandemic prompted a temporary suspension of the jet card program in August 2021; sales recommenced in March 2023 with blackout periods implemented during high-demand intervals such as holidays and major events.

This approach underpins NetJets’ competitive edge by merging assured availability with adaptable usage options, catering primarily to affluent individuals and corporations seeking streamlined private aviation services.

Fleet

NetJets commands the largest private jet fleet globally.

The following figures represent aircraft registered under the company’s U.S. operating certificate; additional jets are operated within the NetJets Europe and Executive Jet Management divisions. The U.S.-based fleet comprises:

Aircraft Type	Quantity
Embraer Phenom 300	96
Phenom 300E	24
Citation XLS/Ascend	47
Cessna Citation Sovereign	29
Cessna Citation Latitude	209
Cessna Citation Longitude	74
Challenger 350/3500	74
Bombardier Challenger 650	50
Bombardier Global 5000	12
Bombardier Global 5500	11
Bombardier Global 6000	23
Bombardier Global 7500	17
Total Fleet	666

By March 2024, NetJets’ worldwide fleet surpassed 750 jets, reinforcing its leadership position within private aviation.

Accidents and incidents

Significant NetJets incidents
Date	Flight	Aircraft Type	Location	Incident Summary	Fatalities	Severe Injuries	Minor Injuries	Survivors
1970-05-09	N434EJ (Executive Jet Aviation)	Learjet 23	Pellston, Michigan	Controlled flight into terrain during landing resulted in the deaths of UAW President Walter Reuther and others.	6	–	–	–
1999-01-22	N782QS (Executive Jet Aviation)	Cessna Citation III	Columbus, Ohio	Right main landing gear collapsed on landing during a training flight; no injuries reported.	–	–	–	4
2002-05-02	N397QS	Cessna Citation V	Leakey, Texas	Runway overrun after a delayed landing caused fire destruction of the aircraft; all occupants evacuated safely.	–	–	–	6
2006-08-28	N879QS (Flight 879)	Hawker 800XP	(Near) Smith, Nevada	Mid-air collision with a glider; Flight 879 landed safely with minor injuries sustained; glider pilot parachuted with minor injuries.	–	–	(3 total)	(3 total)

These events underscore operational hazards encountered within NetJets’ extensive global network.

External links