NetJets: that elusive profitability

摘要

NetJets, the fully owned subsidiary of Berkshire Hathaway, continues to grow rapidly in terms of fleet and customers, but profitability is proving elusive. As the owner and seasoned NetJets user, Warren Buffett, puts it: "I said last year that this business would earn money in 2005 - and I was dead wrong". Flight Services, the division of Berkshire Hathaway that is made up of Flight Safety (aviation training) and NetJets made an operating profit of $120m in 2005, down from $191m in 2004 on revenues of $3.7bn, up from $3.2bn in 2004. While FlightSafety's operating profit earnings increased by around 10% compared to 2004, to $200m, NetJets incurred a pre-tax loss of around $80m, compared to pre-tax income of $10m in 2004.