Nonstop Flights
“We’re finding that the market is a little more resilient on the larger side,” Hansell said. VistaJet’s order confirms “the aircraft choice we made.”
NetJets’ Global 6000s have a customized cabin, can accommodate 13 passengers and fly nonstop on routes such as New York-Moscow or Los Angeles-Hong Kong.
Sales of ownership shares in the new aircraft may help buoy a business that Hansell said is “picking up” in the U.S. In Europe, sales are still “softer,” he said, as the region grapples with a debt crisis that has cut spending.
NetJets is also looking for growth in China, where Boston Consulting Group says the number of millionaire households soared 16 percent in 2011 to 1.4 million to trail only the U.S. and Japan. The Berkshire unit formed a joint venture with China investors to focus initially on aircraft-management services while it studies whether a fractional model makes sense in the country, Hansell said.
China’s Potential
With airspace under military control, short-notice civilian flights are difficult in China, Hansell said. The country has fewer than 200 business jets, compared with more than 11,000 in the U.S., according to aviation consultant Ascend.
“No one knows how sharp the market will really take off in China,” said Daniel Hall, an analyst at Ascend. “There’s certainly a lot of potential there when you look at the number of billionaires.”
As NetJets competes with VistaJet for China business, Hansell is relying in part on the company’s connection to Berkshire and its chairman.
Buffett, the world’s fourth-richest person, built his firm during more than four decades as CEO through stock picks and acquisitions. The takeovers have transformed Berkshire from a failing textile maker into a business with operations in manufacturing, energy, freight, insurance and retail.