Better first quarter for NetJets
[nonmember]Berkshire Hathaway says the world’s largest fractional jet company was profitable in the first quarter of 2010. But still owns too many aircraft.::join::[/nonmember][ismember]
NetJets generated pre-tax earnings of $57 million in the first quarter of 2010 compared to a $96 million loss for the same period in 2009.
Berkshire Hathaway says that revenues increased by 18% with flight hours up 7%. Management fees fell because there were less aircraft in the fleet.
“NetJets continues to own more aircraft than is required for present operations and we expect to continue to dispose selected aircraft over time,” said Berkshire Hathaway in its 10Q filing. “NetJets’ operating cost structure has been reduced to better match customer demand, and we continue to believe that NetJets will operate profitably in the future.”
David Sokel, NetJets chairman, who was appointed in June 2009 to turn the business around has cut administrative and flight costs, although higher fuel costs hid some of these savings. The company cut staff by
The 2009 loss also included $50 million in aircraft write-downs. NetJets made a $45 million in the first quarter of 2008.