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Old 22nd Aug 2009, 16:39
  #388 (permalink)  
Daifly
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We've all known the importance of reselling the aircraft to the NetJets business model for sometime (and to all fractional operations).

It's interesting that less than 12 months in to the massive fall in prices that NetJets have seen fit to rid themselves of Richard Santulli, the "Godfather" of fractional, who originally came up with and over time refined the business model. If he, and Buffett, can't refine it to the market and make it work, then nobody else has a hope either.

I note falcbis's comments about fractional being the way forward, but would respectfully point out that NetJets have effectively been selling charter on their aircraft (jet cards of 10 hours being available this summer IIRC) for years which have helped top up their coffers; when that fell off, combined with the fall in aircraft values, that has led to the current mire they find themselves in. We all should remember that Berkshire Hathaway would have had yet another good year if they didn't have NetJets (or at least, that's what Buffett said).