At NetJets, the inventor of fractional-ownership of jets, we also remain the unchallenged leader.
We now operate 487 planes in the U.S. and 135 in Europe, a fleet more than twice the size of that
operated by our three major competitors combined. Because our share of the large-cabin market is
near 90%, our lead in value terms is far greater.
The NetJets brand – with its promise of safety, service and security – grows stronger every year.
Behind this is the passion of one man, Richard Santulli. If you were to pick someone to join you
in a foxhole, you couldn’t do better than Rich. No matter what the obstacles, he just doesn’t stop.
Europe is the best example of how Rich’s tenacity leads to success. For the first ten years we
made little financial progress there, actually running up cumulative losses of $212 million. After
Rich brought Mark Booth on board to run Europe, however, we began to gain traction. Now we
have real momentum, and last year earnings tripled.
In November, our directors met at NetJets headquarters in Columbus and got a look at the
sophisticated operation there. It is responsible for 1,000 or so flights a day in all kinds of weather,
with customers expecting top-notch service. Our directors came away impressed by the facility
and its capabilities – but even more impressed by Rich and his associates.
These increases derived from significantly improved operating results of NetJets, as
well as increases in revenues and earnings for FlightSafety and the inclusion of the results of Business Wire. NetJets’ revenues
in 2006 increased $759 million as compared to 2005 and pre-tax earnings in 2006 were $143 million compared to a pre-tax loss
of $80 million in 2005. In 2006, occupied flight hours increased 19% and average hourly rates increased as well. The
improvement in operating results at NetJets also reflected a substantial decline in the cost of subcontracted flights that were
necessary to meet peak customer demand.
We now operate 487 planes in the U.S. and 135 in Europe, a fleet more than twice the size of that
operated by our three major competitors combined. Because our share of the large-cabin market is
near 90%, our lead in value terms is far greater.
The NetJets brand – with its promise of safety, service and security – grows stronger every year.
Behind this is the passion of one man, Richard Santulli. If you were to pick someone to join you
in a foxhole, you couldn’t do better than Rich. No matter what the obstacles, he just doesn’t stop.
Europe is the best example of how Rich’s tenacity leads to success. For the first ten years we
made little financial progress there, actually running up cumulative losses of $212 million. After
Rich brought Mark Booth on board to run Europe, however, we began to gain traction. Now we
have real momentum, and last year earnings tripled.
In November, our directors met at NetJets headquarters in Columbus and got a look at the
sophisticated operation there. It is responsible for 1,000 or so flights a day in all kinds of weather,
with customers expecting top-notch service. Our directors came away impressed by the facility
and its capabilities – but even more impressed by Rich and his associates.
These increases derived from significantly improved operating results of NetJets, as
well as increases in revenues and earnings for FlightSafety and the inclusion of the results of Business Wire. NetJets’ revenues
in 2006 increased $759 million as compared to 2005 and pre-tax earnings in 2006 were $143 million compared to a pre-tax loss
of $80 million in 2005. In 2006, occupied flight hours increased 19% and average hourly rates increased as well. The
improvement in operating results at NetJets also reflected a substantial decline in the cost of subcontracted flights that were
necessary to meet peak customer demand.
