NetJets Aviation reveals that most private jet owners only log about 100 flight hours a year, typically using their jets for merely 50 days. To make private aviation more economical, NetJets offers fractional ownership, allowing multiple buyers to share operational costs. The model attracted Warren Buffett, leading to his acquisition of the company. In the wake of the pandemic, private jet travel has surged as former first-class airline passengers seek better service and flexibility, fueling growth in fractional jet ownership despite a broader industry slowdown.
"I would argue that for most people who own their own airplane, it really doesn't make financial sense for them," says Patrick Gallagher, president of NetJets.
"Airlines, in my opinion, have lost their first-class passengers, with the exception of some of the international carriers," says Janine K. Iannarelli.
The business model was so alluring to investor Warren Buffett that after he used the company's service for three years, his multinational conglomerate Berkshire Hathaway bought NetJets in 1998.
While the industry's growth has slowed over the past two years, private jet travel is still outpacing pre-pandemic levels. Fractional ownership continues to gain market share for the overall private jet market.
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