In the video contained in this post, CNBC’s David Faber interviews Andrew Zarrow, V1 Jets International CEO. It seems like many of the trends discussed by Richard Santulli earlier in the week are confirmed in this interview in terms of the drop off in flight hours in Q4 2008 and Q1 2009. What I found particularly interesting was Zarrow’s comments regarding Q2 shaping up as a “record” quarter for his business. Read this article and watch the video for more details.
In 1989, Warren Buffett spent $6.7 million to purchase a corporate jet for Berkshire Hathaway that he named The Indefensible, perhaps being somewhat embarrassed by an expense that nearly any company the size of Berkshire had long justified as essential for doing business productively. In 1995, Buffett purchased his first share of a NetJets aircraft and in 1998, he purchased the entire company. Read this article for more information and a CNBC interview of Richard Santulli, NetJets’ founder and CEO.
In today’s economic and political climate, few businesses seem less attractive than fractional aviation. Companies are under constant pressure to cut costs particularly in areas that could be perceived as frivolous executive benefits during a deep recession. Executives everywhere have noted the political criticism facing those who would dare to fly on corporate aircraft to Congressional hearings. Who in their right mind would purchase a corporate jet or even a fractional share in this environment? Despite the political environment, fractional aviation can make economic sense and has a bright long term future. Read this article for more details.