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Warren Buffett to Buy Airport

captain dad

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Warren Buffett Is Close to Buying Regional Airport in Frankfurt
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By Nadja Brandt
Jan. 21 (Bloomberg) -- Billionaire investor Warren Buffett is close to buying the Egelsbach airport in Frankfurt, Germany, through his business-jet venture NetJets Inc.
The airport’s owners, including the cities of Offenbach and Langen as well as municipal utilities, have agreed to sell their stakes, the airport said in a faxed statement today. The city of Egelsbach, another shareholder, hasn’t made a decision yet. NetJets plans to hold talks with the city, Jan. 23.
The sale of the airport, which is Germany’s largest for private and business flights, is driven in part by the need for investment in its infrastructure. A total of about 30 million euros ($38.6 million) would be necessary for such measures, including a runway extension, the airport said in a statement in November.
“The entry of private investors would be an ideal way to maintain the airport as a prime location for business flights and to develop it further,” the airport said in November.
NetJets would take into consideration neighboring communities and would limit noise pollution as well as traffic to a maximum of 100,000 planes a year, the airport said in the statement today.
To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net
Last Updated: January 21, 2009 15:00 EST
 

captain dad

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Warren Buffet plan smacked down by local shareholders

Calcutta News.Net
Sunday 25th January, 2009​
A bid by investor Warren Buffett to upgrade a landing strip near a small town in Germany is meeting resistance from townsfolk.

The airstrip at Egelsbach was to be altered to accept business jets from Buffet’s business-jet venture NetJets.

Buffet had offered to pay 3.7 million-euros for the unprofitable airfield.

Egelsbach is the only shareholder that hasn't agreed to sell to the US billionaire, who wants more private jet clients in Germany.

Local residents have said the noise and pollution from the jets would make the town un-livable with take-offs and landings being pushed up to 100,000 a year.

The 10,000-strong community of Egelsbach, which controls 11 per cent of the airport, wants more time to examine the proposal, but currently intends to block the sale.

A sale requires the agreement of each stakeholder.

The other shareholders, the city of Offenbach, the town of Langen and local municipalities have said they are willing to sell.

Egelsbach airport was originally built in the early 1950s after being originally used as a competition site for model planes.
 

Mike Jenvey

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Been there quite a few times, provided a lot of the information for our OM briefing.......

I'm sure that there will a compromise - it's a very intensive GA/training airport, but it's not best situated right in the vicinity of Frankfurt Main EDDF! There are lots of C152 & similar doing touch & goes (a high % of the total movements I would guess), & if you look at the map, the arrival/departure routes don't touch a lot of the built-up areas.

[I made the comments below on our company forum]

Personally, I think that the handling capacity for the FBO would "bulk" out waaaaay before saturation of movements. If you consider parking spaces, fuelling***, FBO/AIS staff handling, Frankfurt Zone ATC capacity, etc, etc, then perhaps something like 4 - 6 jets/hr would be realistic?? Oh the fun on an easterly landing, staying east of the north/south A5 autobahn (avoiding EDDF Rwy 18 departures), over the 700 ft high power cables.......

*** even on the mighty H800, with pax, if my memory is correct, the maximum landing mass (JAR) didn't give you that much fuel to play around with (especially Rwy 27, displaced threshold), so for a departure flight of any distance, it was a fair bet that you had to refuel most times.

For those that haven't been there before, the airport website link, on the English version, click on PILOT INFO. You can look at all the charts & other local information, including webcam & virtual representations of arrivals/departures. The high performance aircraft guidance is here.
 

On Your Six

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Been there quite a few times, provided a lot of the information for our OM briefing.......

I'm sure that there will a compromise - it's a very intensive GA/training airport, but it's not best situated right in the vicinity of Frankfurt Main EDDF! There are lots of C152 & similar doing touch & goes (a high % of the total movements I would guess), & if you look at the map, the arrival/departure routes don't touch a lot of the built-up areas.

[I made the comments below on our company forum]

Personally, I think that the handling capacity for the FBO would "bulk" out waaaaay before saturation of movements. If you consider parking spaces, fuelling***, FBO/AIS staff handling, Frankfurt Zone ATC capacity, etc, etc, then perhaps something like 4 - 6 jets/hr would be realistic?? Oh the fun on an easterly landing, staying east of the north/south A5 autobahn (avoiding EDDF Rwy 18 departures), over the 700 ft high power cables.......

*** even on the mighty H800, with pax, if my memory is correct, the maximum landing mass (JAR) didn't give you that much fuel to play around with (especially Rwy 27, displaced threshold), so for a departure flight of any distance, it was a fair bet that you had to refuel most times.

For those that haven't been there before, the airport website link, on the English version, click on PILOT INFO. You can look at all the charts & other local information, including webcam & virtual representations of arrivals/departures. The high performance aircraft guidance is here.

Thanks for the interesting perspective. You always share some great European information! Enjoy that pretty Falcon!
 

Amish RakeFight

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Sounds like a good example of starting with a large fortune to make a small one in aviation. heh.
 

jppt2000

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Sounds like a good example of starting with a large fortune to make a small one in aviation. heh.

Hooray!, another unrecognized genius discovered on FlightInfo.
I can't wait till you come up with another unique, insightful comment, on the business acumen of W.B..
 

Mike Jenvey

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[Ignoring the children.......]

<<<< Thanks for the interesting perspective. You always share some great European information! Enjoy that pretty Falcon! >>>>

Aw shucks! :0

Fingers crossed, the latest, slightly more positive news (Babelfish translation, the Germans don't really talk like that!!):

28.1.2009, the municipality Egelsbach the sale of their portions of the airfield Egelsbach agreed. Mayor Rudolf Moritz (non-party) confirmed on Wednesday on strip packing-inquires that the Gemeindevorstand had communicated this resolution about a representative the Hessian airfield to GmbH Egelsbach (HFG). The agreement is a further step on the way to the privatization of the largest German airport for private and business machines.

Egelsbach had not delivered a voice in the company meeting on 21 January, since a new appraisal had raised new questions. The municipality holds approximately eleven per cent of the portions. The four other HFG partners - the city and public utilities being enough, the circle and public utilities Offenbach - had already agreed the sale of their portions on 21 January. The final decision over the privatization of the airfield is incumbent on now the committees of the partners.

The airfield Egelsbach has liquidity problems” according to data of the HFG “. Only in the year 2008 the partners had to supply 500,000 euro at additional funds. The partners explained thereupon to make no further payments. As alternative to the insolvency of the airfield from there a concept was compiled for the entrance of private investors. The assumption of the Egelsbacher of airfield by airline Netjets of the US billionaire Warren buffet is according to HFG “on the goal straight line”.

Day One of Tour today, off to play with my Falcon - ending up in Farnborough - snippet of the day, for all those who watched the latest James Bond movie, the Farnborough FBO is the one that was shown!! ;)
 

FastJP4

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Buffet (obviously) is a pretty intelligent guy when it comes to creating a profit. I highly doubt his interest is limited to the narrow band of buying one airport. I would imagine he has a much larger gameplan in mind - and this is but a small part - a beginning point for another phased growth.

Personally I think the idea of an american buying up some foreign soil is pretty cool - I sure get tired of seeing how much american soil is owned by foreigners. Hope he does it, and is able to employ his masterplan.....whatever that may be.

I wonder if he'll leave any other scraps for the other fracs?
 

Mike Jenvey

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Never mind some teenie-weenie ads prior to the Super Bowl, this is (hopefully) the confirmed deal:

1 February 2008 -- Press Release


NETJETS EUROPE SIGNS AGREEMENT TO ACQUIRE EGELSBACH AIRPORT
  • Completion pending approval of full shareholder parliaments in March 2009
  • Pledges to exclude airliners and other large aircraft
Europe’s leading business aviation company, NetJets Europe, today confirmed that it has signed an agreement with shareholders of Hessische Flugplatz GmbH Egelsbach (“HFG”), the operator of Frankfurt Egelsbach airport in Germany, to acquire the company. The agreement is subject to approval by the municipal parliaments of each shareholder at meetings to be held in March 2009. If ultimately approved, the acquisition would be the first of its kind for NetJets. It would increase the company’s presence in a major financial market within Germany while providing its customers with access to an alternative airport to Frankfurt Main which is dominated by scheduled airlines.

In connection with the proposed acquisition, NetJets agreed a series of operating conditions with the shareholders for the comfort and benefit of communities surrounding the airport. Such conditions include the observance of current air traffic movement limitations, maintaining current airport operating hours and banning of airliners and scheduled flights from the airport. In consideration, the municipality shareholders agreed to support NetJets development of Frankfurt Egelsbach airport into a modern business aviation centre serving general aviation and NetJets fleet of 6 to 14 seat passenger jets.

NetJets will meet residents in the communities of Egelsbach and Langen on 11-12 February to answer questions about NetJets’ planned airport investment. To foster open dialogue and ongoing relations with the local residents, the company plans to create an Airport Advisory Council consisting of community and company representatives.

NetJets expects to bring significant economic benefits to Egelsbach and the Frankfurt Rhine Main Region including jobs at the airfields as well within the service and airport development sectors. Additionally, more than €100 million of previously announced commercial property development near the airport is dependent on Egelsbach’s evolution into a sophisticated business airport.

Scott Forbes, Director of Corporate Strategy NetJets Europe said: “We are committed to being a good neighbour and local partner to Egelsbach and the surrounding communities. We are actively engaging in extensive consultation with local business, civic and environmental leaders to ensure that local concerns are addressed.

We are in a unique position to invest in airfield improvements, without needing to increase flight movement capacity. Unlike most airport operators, the NetJets business model is not dependent on increasing traffic numbers. The proposed acquisition demonstrates our willingness to invest for the benefit of our fractional owners while providing a service for other business aviation customers seeking to do business in the Frankfurt Rhine Main Region.”
 

Semore Butts

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To put it into perspective

Isn't Buffet buying an airport like a person making 100K a year buying a 5 gallon aquarium?
 

CALRepublic

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I have a feeling it was Santulli's idea to buy this airport. My guess, Buffet gave the "go ahead", but I'm sure Santulli is behind this, and I'm sure he's got his reasons
 

fischman

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I highly doubt Mr. Buffett had ANYTHING at all to do with the actual aquisition of the airport.

My understanding is that he wants little to do with the day to day operations of the companies owned by BH. Why mess with a good thing? Let the leaders do their jobs.
 

CALRepublic

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I wonder if Mr. Buffett even knows he's about to buy an airport in Germany.
 

jehtplane

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I have a feeling it was Santulli's idea to buy this airport. My guess, Buffet gave the "go ahead", but I'm sure Santulli is behind this, and I'm sure he's got his reasons


Yes he has his reasons. NJ europe can't get the 2/3'rds of the departure and arrival slots they request, so they invest in an airport to guarantee the slots.

Ok, I know this whole thread is about Captain Dad trying to make everyone know that his company is the master of the universe, that's nice. Yes NJ's is the greatest and we are all totally impressed, yipee.
My question is


WHO CARES THAT NJ EUPOPE BOUGHT AN AIRPORT IN FLIPPIN GERMANY?
 

Mike Jenvey

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<<<< who Cares That Nj Europe Bought An Airport In Flippin Germany?>>>>

No need to shout!

To answer the question, I do! And if they do lengthen the runway to allow larger jets, then perhaps NJI might also care, as they could be going there a lot!

It's not everyday that a company buys an airport, so it's significant aviation news.
 

CALRepublic

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Ok, I know this whole thread is about Captain Dad trying to make everyone know that his company is the master of the universe, that's nice. Yes NJ's is the greatest and we are all totally impressed, yipee.


If Xojet, CS or FX were buying an airport in Europe, and one of their pilots posted it here, would that bother you as much??? probably not

There's a thread going on "Xojet reports good".. what would happen if one of us started a thread "Netjets reports good"??
 
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