NetJets, FlightSafety Gained Steam in 2014

Improved fractional sales and flight services revenues at NetJets helped lead the services business of parent Berkshire Hathaway to a 9.5-percent improvement in 2014, Berkshire Hathaway reported on February 28. Also contributing to that gain was NetJets’ affiliate company FlightSafety International, which reported gains in simulator training hours for the year.

Berkshire Hathaway did not break out NetJets' 2014 results, but the revenue growth followed a revenue gain of 7.5 percent, or $288 million, in 2013. NetJets' revenues in that year were close to $3.85 billion, or more than 40 percent of the services businesses’ total revenue.

The NetJets improvements also contributed to a 10-percent gain in the pre-tax earnings of Berkshire Hathaway’s service businesses in 2014. The combined services businesses accounted for $1.2 billion in earnings last year.

Berkshire Hathaway attributed the improved earnings at NetJets to lower aircraft impairment and restructuring charges and financing expenses, along with the revenue gains. But NetJets also faced higher depreciation expenses, maintenance costs and subcontracted flight expenses in 2014.

The improved results come as NetJets remains locked in a labor dispute with its pilots’ union over proposed compensation cuts.