Fractional ownership of aircraft is an arrangement in which multiple owners share the use and costs of purchasing and operating an aircraft. Several management companies provide fractional ownership programs for aircraft, including NetJets , Flexjet , Cirrus Aviation Services , and AirSprint . Alternatively, owners can join together to purchase their aircraft , independently of any management company.
90-423: NetJets Inc. is an American company that sells fractional ownership shares in private business jets . Founded as Executive Jet Airways in 1964, it was later renamed Executive Jet Aviation . NetJets became the first private business jet charter and aircraft management company in the world. It launched its fractional ownership business in 1986 and became a subsidiary of Berkshire Hathaway in 1998. The company
180-475: A 17-year-old 737-800W will be worth $ 9.5 million and leased for $ 140,000 per month. As of May 2019, Boeing had delivered 4,979 737-800s, 116 737-800As, and 21 737-800 BBJ2s, and has twelve 737-800 unfilled orders. The 737-800 is the best-selling variant of the 737NG and is the most widely used narrow-body aircraft. Ryanair , an Irish low-cost airline , is among the largest operators of the Boeing 737-800, with
270-427: A 171,000-pound (78,000 kg) MTOW , but with a cargo payload capacity significantly decreased from 966 to 165 cu ft (27.4 to 4.7 m ), trading payload for increased range of 5,775 nmi (10,695 km; 6,646 mi). The first was delivered on February 16, 2007, to ANA with 24 business-class and 24 premium-economy seats only. A 737-700 can typically accommodate 126 passengers in two classes. It
360-565: A 2006 Halogen Guides Jets survey, not one company boasted of sustained bottom-line profitability. Even Warren Buffett 's NetJets lost $ 80 million in 2005, attributed to foreign expansion and U.S. efficiency losses (specifically, paying for higher-cost charter flights when owner demand outstripped capacity). During the recession of 2007 to 2009, the largest fractional providers saw significant downturns in their business. NetJets, Flexjet, and Flight Options have all reported significant subsequent growth and have added to their fleets. But CitationShares,
450-630: A 5.5% fuel savings per aircraft compared to 3.3% savings for the blended winglets. Southwest Airlines flew their first flight of a 737-800 with Split Scimitar winglets on April 14, 2014. The wing was redesigned with a new thinner airfoil section, and a greater chord and increased wing span (by 16 ft [4.9 m]) increased the wing area by 25%, which also increased total fuel capacity by 30%. New quieter and more fuel-efficient CFM56-7B engines are used. Higher MTOWs are offered. The 737NG includes redesigned vertical stabilizers, and winglets are available on most models. The 737NG encompasses
540-528: A 737-800 fuel burn of 4.88 US gal (18.5 L) per seat per hour, compared to 5.13 US gal (19.4 L) for the A320. In 2011, United Airlines — flying a Boeing 737-800 from Houston to Chicago—operated the first U.S. commercial flight powered by a blend of algae-derived biofuel and traditional jet fuel to reduce its carbon footprint . In early 2017, a new 737-800 was valued at $ 48.3 million, falling to below $ 47 million by mid-2018. By 2025,
630-492: A 737-800 results in 0.5% reduction in fuel burn. Delta Air Lines received the first Next-Gen 737 model with this brake package, a 737-700, at the end of July 2008. The CFM56-7B Evolution nacelle began testing in August 2009 to be used on the new 737 PIP (Performance Improvement Package) due to enter service mid-2011. This new improvement is said to shave at least 1% off the overall drag and have some weight benefits. Overall, it
720-454: A MTOW of 174,100 lb (79,000 kg). In 2015, Boeing launched the 737-800SF passenger to freighter conversion program with Aeronautical Engineers Inc (AEI). The conversion can be completed by AEI or third parties such as HAECO . GECAS was the initial customer. It has a 52,800-pound (23,900 kg) payload capacity, and a range of 2,000 nautical miles (3,700 km; 2,300 mi). It received its supplemental type certificate from
810-468: A business that leased helicopters to service providers of offshore oil operations. When Santulli became chairman and CEO of the corporation, he closely examined 22 years of pilot logbooks, and began to envision a new economic model where several individuals could own one aircraft. In 1987, the NetJets program was officially announced becoming the first fractional aircraft ownership format in history. Around
900-416: A fleet of over 400 of the -800 variant serving routes across Europe, Middle East, and North Africa. In February 2016, Boeing launched a passenger-to-freighter conversion program, with converted aircraft designated as 737-800BCF (for Boeing Converted Freighter). Boeing started the program with orders for 55 conversions, with the first converted aircraft due for late 2017 delivery. The first converted aircraft
990-419: A full 100 percent share typically equating to 800 annual hours of usage. Most shares are sold at the 1 ⁄ 16 (50 hours) or 1 ⁄ 8 (100 hours) level. Although the aircraft is shared, owners are guaranteed access with 4–48 hours notice, depending on the provider and plan. Providers can offer this service on such short notice, by having a fleet of similar aircraft, which are interchanged amongst
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#17327720896321080-533: A lawsuit on behalf of the U.S. government, claiming that dozens of 737NG contained defective structural elements supplied by airframe manufacturer Ducommun , allegations denied by Boeing. The federal judge presiding the case sided with Boeing, and a subsequent court of appeal also ruled in favor of the company. A 2010 documentary by Al Jazeera alleged that in three crashes involving 737NGs— Turkish Airlines Flight 1951 , American Airlines Flight 331 , and AIRES Flight 8250 —the fuselage broke up following impact with
1170-566: A lifetime of 90,000 flights. Boeing reported the issue to the FAA at the end of September 2019, and more planes showed similar cracking after inspection. The cracks were found in an airliner with more than 33,500 flights, when it was stripped down for conversion to freighter. Aircraft with more than 30,000 flights (15 years at 2,000 flights per year) should be inspected within one week, while those with over 22,600 flights (11 years) should be inspected within one year. The FAA Airworthiness Directive (AD)
1260-406: A new -700 stayed around $ 35 million from 2008 to 2018. A 2003 aircraft was valued for $ 15.5 million in 2016 and $ 12 million in 2018 and will be scrapped for $ 6 million by 2023. The 737-700C is a convertible version where the seats can be removed to carry cargo instead. There is a large door on the left side of the aircraft. The United States Navy was the launch customer for the 737-700C under
1350-403: A particular trip can be accommodated with minimal deadheading. In reality, it is not clear how many aircraft are required to reach an efficient scale, whether it is 50 aircraft or 400 aircraft, or whether it ever happens. According to Halogen Guides, which covered the industry, the initial assumptions underestimated the complexity, overhead costs and peak demands. This has been further impacted by
1440-479: A portfolio of solutions, tapping each alternative depending on the cost profile of each trip. Certain trips can be most economically served by fractional, card or charter. If a client gets to cherry-pick for each trip, the fractional provider typically absorbs the least efficient travel. Partly in response to this, the larger fractional companies now position themselves as "solution providers", and offer fractions, cards, charter and full aircraft management. According to
1530-589: A result of these orders NetJets became Cessna 's largest business jet fleet owner. In September 2014, NetJets acquired approval to launch its aircraft charter service in China , having worked with Chinese authorities since 2012 to secure the operating certificate. In 2015, the company's pilots picketed the Wynn resort in Las Vegas where company owner Warren Buffett was hosting some of his wealthiest customers. The event
1620-417: A share of an aircraft, instead of the entire aircraft itself. The price for this share is pro-rated based on the market price of a full aircraft. As a result of this purchase, owners have guaranteed, limited access to the plane or a similar one in the operator's fleet, proportional to the size of their share. Monthly maintenance fees and occupied hourly operating fees are required of fractional owners. Typically,
1710-628: A subsidiary, the American Contract Company, which he was president of. EJA initially began operations in 1964 with a fleet of ten Learjet 23 aircraft. The company soon moved to acquire competitors and larger aircraft, including two 707 jets and two 727 jets from Boeing , but these could not be operated without approval from the Civil Aeronautics Board . The Pennsylvania Railroad argued its majority stake in EJA
1800-479: A total of 5,205 aircraft. Boeing stopped assembling commercial 737NGs in 2019 and made the final deliveries in January 2020. The 737NG is superseded by the fourth generation 737 MAX , introduced in 2017. When regular Boeing customer United Airlines bought the more technologically advanced Airbus A320 with fly-by-wire controls, this prompted Boeing to update the slower, shorter-range 737 Classic variants into
1890-487: A unit of aircraft manufacturer Cessna , stopped selling fractional shares in 2012. Avantair , operator of a fleet of 57 Avanti Piaggio P180s, filed for bankruptcy in June 2013. One strategic thrust has been the introduction of efficiency incentives to better align client behaviour with operating efficiency. Some companies have resisted these programs. If fractional ownership's appeal is the simplification of flight, that appeal
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#17327720896321980-413: A variety of configurations, depending on their tax and financial profile. The "fair market value" calculation is a key consideration and can dominate the overall cost-benefit analysis of the fractional ownership format. Many fractional owners were burned by the volatile market and geopolitical conditions of the early 2000s and the recession in the late 2000s. All contracts should outline an appeals process if
2070-484: Is also encouraging its customers to buy carbon offsets for their flights. The company will also buy its own offsets for its administration and training flights. As of November 2020, almost half of the company's fleet was manufactured by Textron, and the rest by Bombardier Inc. and Embraer . After reducing its delivery target for 2021 by more than half, due to decreased demand caused by the COVID-19 pandemic in 2020,
2160-479: Is available for the 737NG models and standard equipment for the 737-900ER. In July 2008, Boeing offered Messier-Bugatti-Dowty 's new carbon brakes for the Next-Gen 737s, which are intended to replace steel brakes and will reduce the weight of the brake package by 550–700 pounds (250–320 kg) depending on whether standard or high-capacity steel brakes were fitted. A weight reduction of 700 pounds (320 kg) on
2250-441: Is charged only when an owner or guest is on board, not for ferry flights . NetJets is the largest fractional aircraft provider. In 2021 its fleet flew 478,444 hours. For companies or individuals that require less than the minimum 50 flight hours and the five-year commitment of fractional ownership, they can buy flight hours in 25-hour increments via the NetJets jet card programs. Due to a surge in demand for private aviation during
2340-434: Is claimed to have a 2% improvement on fuel burn on longer stages. This short-field design package is an option on the 737-600, -700, and -800 and is standard equipment for the new 737-900ER. These enhanced short runway versions could increase pay or fuel loads when operating on runways under 5,000 feet (1,500 m). Landing payloads were increased by up to 8,000 lb on the 737-800 and 737-900ER and up to 4,000 lb on
2430-404: Is depleted for actual hours of occupied flight, plus taxiing, with a 1– to 2–hour minimum. Owners are not charged for any non-occupied flight time that may be required to get the aircraft to them and return to its home base. This is called variously "deadhead," "positioning," "ferry," or "empty leg" depending on the company. In addition to the "owned" plane, customers gain access to other planes in
2520-502: Is one of the key benefits of fractional ownership over full ownership. Owners are not stranded when their plane is undergoing maintenance, and they can upgrade or downgrade to other fleet aircraft for special trip requirements. Fractional agreement terms are typically five years, after which owners sell their share back to the company for the then-current fair market value, less a "remarketing fee", typically around 7%. The fee may be waived for renewals. Customers may also lease their share in
2610-414: Is reduced when accompanied by a host of special pricing adjustments and incentive programs. Despite this marketing challenge, cost concerns have resulted in numerous efficiency-driven programs. Boeing 737-700 The Boeing 737 Next Generation , commonly abbreviated as 737NG , or 737 Next Gen , is a twin-engine narrow-body aircraft produced by Boeing Commercial Airplanes . Launched in 1993 as
2700-639: Is similar to the Airbus A319LR . The Boeing 737-800 is a stretched version of the 737-700. It replaced the 737-400 and competes primarily with the Airbus A320 . The 737-800 seats 162 passengers in a two-class layout or 189 passengers in a one-class layout. The 737−800 was launched on September 5, 1994. Launch customer Hapag-Lloyd Flug (now TUI fly Deutschland ) received the first one in April 1998. Following Boeing's merger with McDonnell Douglas,
2790-632: The Airbus A319 . In long-range cruise, it burns 4,440 lb (2,010 kg) per hour at Mach 0.785 (450 kn; 834 km/h) and FL410, increasing to 4,620–4,752 lb (2,096–2,155 kg) at Mach 0.80 – Mach 0.82 (459–470 kn; 850–871 km/h). As of July 2018, all -700 series on order, 1,128 -700, 120 -700 BBJ, 20 -700C, and 14 -700W aircraft, have been delivered. By June 2018, around one thousand were in service: half of them with Southwest Airlines , followed by WestJet with 56 and United Airlines with 39. The value of
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2880-589: The COVID-19 pandemic , NetJets suspended its card program in August 2021. Sales restarted in March 2023. This program features "blackout" days, when service is not available due to expected high demand, such as on holidays or during major sporting events. NetJets is the largest private jet operator in the world. The data below is limited to aircraft registered on the United States operating certificate. Additional aircraft not included in this data exist within
2970-407: The FAA in early 2019. In March 2019, the first AEI converted aircraft was delivered to Ethiopian Airlines on lease from GECAS. The Civil Aviation Administration of China cleared it in January 2020. Aircraft lessor Macquarie AirFinance ordered four 737-800SFs in March 2021. Boeing later introduced the 737-900, an even longer variant stretched to 138 ft 2 in (42.11 m). Because
3060-422: The -600, -700, -800, and -900 with improved performance and commonality retained from previous 737 models. The wing, engine, and fuel capacity improvements combined increase the 737's range by 900 nautical miles [nmi] (1,700 km; 1,000 mi) to over 3,000 nmi (5,600 km; 3,500 mi), permitting transcontinental service. The Speed Trim System, introduced on the 737 Classic, has been updated for
3150-615: The 737-500 and is similar to the Airbus A318 . Winglets were not an option. WestJet was to launch the -600 with winglets, but dropped them in 2006. In November 1993, Southwest Airlines launched the Next-Generation program with an order for 63 737-700s and took delivery of the first one in December 1997. It replaced the 737-300, typically seating 126 passengers in two classes to 149 in all-economy configuration, similar to
3240-627: The 737-600 and 737-700. Takeoff payloads were increased by up to 2,000 lb on the 737-800 and 737-900ER and up to 400 lb on the 737-600 and 737-700. The package includes: The first enhanced version was delivered to Gol Transportes Aéreos (GOL) on July 31, 2006. At that time, twelve customers had ordered the package for more than 250 airframes. Customers include: GOL, Alaska Airlines , Air Europa , Air India , Egyptair , GE Commercial Aviation Services (GECAS), Hapagfly , Japan Airlines , Pegasus Airlines , Ryanair , Sky Airlines and Turkish Airlines . In 2005, three ex-Boeing employees filed
3330-512: The 737-800 also filled the gap left by Boeing's decision to discontinue the McDonnell Douglas MD-80 and MD-90 aircraft. For many airlines in the U.S., the 737-800 replaced aging Boeing 727-200 trijets . The 737-800 burns 850 US gallons (3,200 L) of jet fuel per hour—about 80 percent of the fuel used by an MD-80 on a comparable flight, while carrying more passengers. The Airline Monitor, an industry publication, quotes
3420-522: The 737-800, and has increased range (through the use of extra fuel tanks) over the other various 737 models. The first BBJ rolled out on August 11, 1998, and flew for the first time on September 4. A total of 113 BBJ1s were delivered to customers. On October 11, 1999, Boeing launched the BBJ2. Based on the 737-800, it is 19 ft 2 in (5.84 m) longer than the BBJ1, with 25% more cabin space and twice
3510-532: The 737NG to include a stall identification function. Originally inhibited in high alpha scenarios, STS operates at any speed on the 737NG. STS is triggered by airspeed sensor and commands Airplane Nose Down as the airplane slows down. The flight deck was upgraded with modern avionics, and passenger cabin improvements similar to those on the Boeing 777 , including more curved surfaces and larger overhead bins than previous-generation 737s. The Next Generation 737 interior
3600-678: The Air Mission Squadron, an air taxi service for the Air Force. The idea was to run a similar service for private companies, with a pool of corporate jets providing transportation instead of each company having to purchase and maintain their own plane. The founding members of the board of directors included US Air Force generals Curtis E. LeMay and Paul Tibbets , Washington lawyer and former military pilot Bruce Sundlun , and entertainers and pilots James Stewart and Arthur Godfrey , with Lassiter serving as president and chairman of
3690-514: The Boeing Converted Freighter design because the operational economics are attractive due to the low operating costs and availability of certified pilots on a robust airframe. Modifications to the 737-800 airframe include installing a large cargo door, a cargo handling system, and additional accommodations for non-flying crew or passengers. The aircraft is designed to fly up to 1,995 nmi (3,695 km; 2,296 mi) at
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3780-476: The IRS assessments were unlawful. In 2019, a former NetJets pilot filed a lawsuit alleging that in March 2017, the company violated US Civil Right and Ohio anti-discrimination law when she was fired for being too short (5 feet 2 inches (157 cm)) to properly control the rudders of an Embraer Phenom 300. She states that male pilots who were too tall were reassigned to different aircraft, while her employment
3870-492: The NetJets Europe, and Executive Jet Management fleet. The NetJets fleet as of 31 July 2024: As of March 2024, NetJets' global fleet included more than 750 aircraft. During the investigation, the pilot of the glider stated that glider's transponder was off in order to preserve the batteries for radio use. Fractional ownership of aircraft Fractional aircraft ownership allows individuals to purchase
3960-568: The NetJets fleet. On 11 June 2012, NetJets placed the largest aircraft order in private aviation history totaling US$ 17.6B. The company placed a firm order for 30 Bombardier Global 5000/6000 jets, 25 Bombardier Challenger 650 jets, 75 Bombardier Challenger 350s, 25 Cessna Citation Latitudes and 50 Embraer Phenom 300s. As a part of this purchase agreement, it also placed conditional orders for an additional 40 Bombardier Global 5000/6000s, 50 Bombardier Challenger 650, 125 Bombardier Challenger 350s, 125 Cessna Citation Latitudes and 75 Embraer Phenom 300s. As
4050-477: The US in-service fleet of 1,930. By early November, 1,200 aircraft were inspected, with cracks on about 60 (5%). Cracks were discovered near fasteners outside the original area in four airplanes. On November 5, Boeing recommended expanding the checks to include them, to be mandated in a November 13 FAA AD . Aircraft below 30,000 cycles were to be reinspected within 1,000 cycles, within 60 days above. About one-quarter of
4140-606: The board. Shortly after its founding, EJA began receiving regular investments from the Pennsylvania Railroad , which were managed by accountant David Bevan. In June 1965, the railroad purchased a majority of shares in EJA, despite the fact that rail carriers were barred from owning air carriers by the Federal Aviation Act of 1958 . To hide the investments from the PRR board, Bevan made the payments through
4230-591: The company expected to take delivery of 40 new aircraft in 2021 in anticipation of industry recovery. In February 2021, the company purchased a stake in WasteFuel, a business that will convert landfill waste into sustainable aviation fuel (SAF). NetJets plans to purchase 100 million gallons of SAF from WasteFuel over the next 10 years as part of the deal. In March 2021, NetJets announced that it had ordered 20 Aerion AS2s supersonic business jets. The memorandum of understanding between NetJets and Aerion called for
4320-409: The delivery on May 15, 2001. The type proved unpopular, with only 52 delivered, before being replaced by the improved 737-900ER. The 737-900ER (Extended Range), which was called the 737-900X before launch, was the final and largest variant of the Boeing 737 NG line. It was introduced to fill the range and passenger capacity gap in Boeing's product offerings after the 757-200 was discontinued, address
4410-406: The dramatic popularity of fractional card programs. The card programs place even more owners against each plane; each owner enjoying fully guaranteed access with as little as a single-year, 1 ⁄ 32 share commitment. Finally, the burgeoning diversity of structural offerings (fractional ownership, fractional cards, charter cards, ad-hoc charter) creates an environment where clients may employ
4500-697: The environmental issues of private jet transport, but NetJets President of Sales, Marketing and Service, Patrick Gallagher noted in May 2020, that the health risks associated with flying on commercial airlines during the pandemic had trumped those concerns. The company introduced regular employee COVID-19 testing to try to contain the risks of an outbreak on its aircraft. In October 2020, the company made initial moves to reduce its carbon footprint . The company committed to buying "up to 3 million gallons" (11.4 million litres) of sustainable aviation fuel to be used at two of its bases, San Francisco and Columbus, Ohio. The company
4590-475: The factory for test flights on Day 10. Boeing stopped assembling passenger 737NGs in 2019. The last aircraft assembled was a 737-800 registered PH-BCL delivered to KLM in December 2019; the last two deliveries were to China Eastern Airlines on January 5, 2020. Production of the P-8 Poseidon variant continues. The FAA has proposed a fine of approximately $ 3.9 million for Boeing's alleged installation of
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#17327720896324680-555: The fleet. When desired, they may switch to larger or smaller planes on a set "interchange" formula. Access to a smaller aircraft may be guaranteed, but larger aircraft access may be conditional on the shares owned. The size of a share may provide additional benefits including: In the United States , fractional owners and operators are subject to Federal Aviation Regulations , FAR Part 91, Subpart K. Private air travel advisors can be of assistance with navigating and negotiating
4770-569: The fuselage. A total of 505 -900ERs were delivered. In the late 1980s, Boeing marketed the Boeing 77-33 jet, a business jet version of the 737-300. The name was short-lived. After the introduction of the next generation series, Boeing introduced the Boeing Business Jet (BBJ). The BBJ (retroactively referred to as the BBJ1) was similar in dimensions to the 737-700 but had additional features, including stronger wings and landing gear from
4860-707: The global NG fleet of 6,300 aircraft were to be inspected. Following the contained engine failure of the Southwest Airlines Flight 1380 on April 17, 2018, the National Transportation Safety Board (NTSB) recommended on November 19, 2019, to redesign and retrofit its nacelle for the 6,800 airplanes in service. Boeing was to increase 737 production from 31.5 units per month in September 2010 to 35 in January 2012 and to 38 units per month in 2013. Production rate
4950-421: The ground because of the defective structural components that were the subject of the 2005 lawsuit. However, the accident investigations in all three cases did not highlight any link between post-impact structural failures and manufacturing issues. During an inspection of a 737NG in 2019 that had 35,000 flights, fatigue cracks were found on a fuselage-to-wing attachment known as a "pickle fork", designed to last
5040-411: The guarantee represents holidays and other worst-case situations. To close this gap in the guarantee, the company relies on "supplemental lift" from charter—either from affiliated companies or trusted third-party charter operators. As more client-owners join, a network effect results in a reduction of expensive empty legs : with a critical mass of customers, the theory is that it becomes more likely that
5130-407: The latter is charged only when an owner or guest is on board, not during the plane's travel to a pickup point or its return to its home base after a flight. For shared aircraft that are part of a large management company fleet, owners have access to the full fleet of planes and may upgrade or downgrade for specific flights. Ownership contracts are typically for five years. At the end of the contract,
5220-492: The military designation C-40 Clipper . Boeing launched the 737-700ER (Extended Range) on January 31, 2006, with All Nippon Airways as the launch customer. Inspired by the Boeing Business Jet , it features the fuselage of the 737-700 and the wings and landing gear of the 737-800. When outfitted with nine auxiliary fuel tanks, it can hold 10,707 US gallons (40,530 L; 8,915 imp gal) of fuel with
5310-561: The more efficient, longer New Generation variants. In 1991, Boeing initiated development of an updated series of aircraft. After working with potential customers, the 737 Next Generation (NG) program was announced on November 17, 1993. The first NG to roll out was a 737−700, on December 8, 1996. This aircraft, the 2,843rd 737 built, first flew on February 9, 1997, with pilots Mike Hewett and Ken Higgins. The prototype 737−800 rolled out on June 30, 1997, and first flew on July 31, 1997, piloted by Jim McRoberts and again by Hewett. The smallest of
5400-520: The new variants, the −600 series, is identical in size to the −500, launching in December 1997 with an initial flight occurring January 22, 1998; it was granted FAA certification on August 18, 1998. The flight test program used 10 aircraft: 3 -600s, 4 -700s, and 3 -800s. In 2004, Boeing offered a Short Field Performance package in response to the needs of Gol Transportes Aéreos , which frequently operates from restricted airports. The enhancements improve takeoff and landing performance. The optional package
5490-405: The owner can sell their share either back to the company or to another owner waiting for a position. Most fleet management companies charge a "re-marketing fee" for the final sale. In some cases, several individuals purchase and operate their chosen aircraft as an independent group without going through a commercial operator. If one individual then decides to sell their share, it may be purchased by
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#17327720896325580-445: The owner disputes the end-of-contract valuation. The original formula for fractional flight is similar to its present incarnation: customers purchase proportional shares of aircraft that are guaranteed to be available. The provider then purchases an additional 26 per cent of capacity (over and above the fleet purchased by clients) to fulfil that guarantee. These extra planes bring the guarantee to 98 per cent statistically. The last 2% of
5670-468: The owner's aircraft is unavailable for some reason, another aircraft of the same type, or a larger aircraft, will be provided. Fractional owners pay monthly maintenance fees for a minimum of 50 annual flight hours and a five-year commitment, as well as operating fees by the hour for use of aircraft. Alternatively, customers may buy flight hours in 25-hour increments by way of jet card programs. Fractional owners also pay an occupied hourly operating fee, but it
5760-408: The owners. In addition, to purchase costs, owners pay a monthly management fee to cover the cost of maintenance, upgrades, hangar space, pilot salaries, and training. When using the aircraft, owners also pay for the flight hours and a nominal amount for taxiing. The final cost component is fuel, which has a surcharge above the hourly fee to compensate for price volatility. An owner's share allotment
5850-422: The pivoting bins, thus allowing a 737-800 to hold 174 carry-on bags . Boeing also offered it as a retrofit for older 737NG aircraft. The 737-600 was launched by SAS in March 1995, with the first aircraft delivered in September 1998. A total of 69 have been produced, with the last aircraft delivered to WestJet in 2006. Boeing displayed the 737-600 in its price list until August 2012. The 737-600 replaces
5940-471: The plant on Day 1. Electrical wiring is installed on Day 2 and hydraulic machinery on Day 3. On Day 4 the fuselage is crane-lifted and rotated 90 degrees, wings are mated to the airplane in a six-hour process, along with landing gear , and the airplane is again rotated 90 degrees. The final assembly process begins on Day 6 with the installation of airline seats , galleys , lavatories , overhead bins , etc. Engines are attached on Day 8 and it rolls out of
6030-466: The remaining owners or sold outside the group to another individual. The details will vary from group to group as it is subject to whatever terms were in the original contract. In the commercial system, customers purchase or lease a fraction of an aircraft, alongside numerous other anonymous individuals. Depending on the company, the aircraft may be split into 16ths or even 32nds of a fractional share. These fractions translate to several hours per year, with
6120-631: The same faulty components of the 737 MAX on some one hundred and thirty-three 737 NGs. From 2006, Boeing discussed replacing the 737 with a "clean sheet" design (internally named " Boeing Y1 ") that could follow the Boeing 787 Dreamliner . A decision on this replacement was postponed, and delayed into 2011. In 2011, Boeing launched the 737 MAX, an updated and re-engined version of the 737NG with more efficient CFM International LEAP -1B engines, and aerodynamic changes with distinctive split-tip winglets . The first 737 MAX performed its first flight in January 2016. The fourth generation 737 MAX supersedes
6210-416: The same time, painted on every NetJets US aircraft is a registration ending with QS, symbolizing the concept of selling quarter shares of an aircraft—a feature that is still representative of the NetJets brand today. In 1998, Berkshire Hathaway acquired EJA and NetJets Inc from Richard Santulli for US$ 725 million, half of which was paid in stock. NetJets soon expanded to Europe and then Russia, and by 2006, it
6300-553: The search for a buyer continued. Penn Central and EJA were ultimately fined $ 70,000 by the CAB in 1969. In 1970, the trustee for Penn Central's EJA shares voted to oust Lassiter and replace him with Bruce Sundlun . On July 1, the day before he was voted in as president, Sundlun led a midnight raid on EJA's corporate offices with the assistance of Pinkertons . Lassiter attempted to retake the office with armed guards of his own shortly after, but they were stopped by Sundlun's guards. Lassiter
6390-477: The shortcomings of the 737-900, and to directly compete with the Airbus A321 . Up to two auxiliary fuel tanks in the cargo hold and standard winglets improved the range of the stretched jet to that of other 737NG variants, while an additional pair of exit doors and a flat rear pressure bulkhead increased maximum seating capacity to 220 passengers. Airlines may deactivate (plug) the additional exit doors if
6480-449: The so-called "boilerplate" fractional contract. Owners rarely fly the specific aircraft in which they hold shared titles. More likely, they will travel on identical planes in the company's fleet. This is a natural consequence of the fractional model since many owners "pull" on the same plane. Often the plane is either in use by another owner, or another plane is positioned in a more convenient location for deployment. This fleet flexibility
6570-487: The third generation 737NG. Split Scimitar winglets became available in 2014 for the 737-800, 737-900ER, BBJ2 and BBJ3, and in 2015 for the 737-700, 737-900 and BBJ1. These resemble the 737 MAX's split winglet, though they are not identical. Split Scimitar winglets were developed by Aviation Partners , the same Seattle-based corporation that developed the blended winglets; the Split Scimitar winglets produce up to
6660-493: The third generation derivative of the Boeing 737 , it has been produced since 1997. The 737NG is an upgrade of the 737 Classic (–300/–400/–500) series. Compared to the 737 Classic, it has a redesigned wing with a larger area, a wider wingspan, greater fuel capacity, and higher maximum takeoff weights (MTOW) and longer range. It has CFM International CFM56-7 series engines, a glass cockpit , and upgraded and redesigned interior configurations. The series includes four variants,
6750-454: The total configured capacity of the plane is 189 passengers or less. The first 737-900ER was rolled out of the Renton, Washington , factory on August 8, 2006, for its launch customer, Lion Air , an Indonesian low-cost airline . The airline received this aircraft on April 27, 2007, in a special dual paint scheme combining Lion Air's logo on the vertical stabilizer and Boeing's livery colors on
6840-735: The two companies to operate a larger "Aerion Connect" network. Aerion abruptly announced its closure on 21 May 2021, due to the inability to raise the needed capital to continue. The company announced in March 2022, that it would partner with Lilium GmbH to establish an eVTOL network in Florida . NetJets will buy 150 Lilium Jets and operate them under a FAR Part 135 charter operation. NetJets announced in September 2023, that it will be purchasing up to 1,500 Cessna Citation jets from Textron Aviation . Deliveries for this 15-year deal are expected to begin in 2025. NetJets Europe, also known by its corporate legal name, NetJets Transportes Aéreos, S.A.,
6930-472: The –600/–700/–800/–900, seating between 108 and 215 passengers. The 737NG's primary competition is the Airbus A320 family . As of September 2024 , a total of 7,126 737NG aircraft had been ordered, of which 7,112 had been delivered, with remaining orders for two -700, two -800, and 10 -800A variants. The most-ordered variant was the 737-800, with 4,991 commercial, 191 military, and 23 corporate, or
7020-453: The −900 retains the same exit configuration of the -800, seating capacity is limited to 189, although aircraft equipped with a typical 2-class layout will seat approximately 177. The 737-900 also retains the MTOW and fuel capacity of the −800, trading range for payload. Alaska Airlines launched the 737-900 in 1997, the 737-900 made its first flight on August 3, 2000, and Alaska Airlines accepted
7110-589: Was 42 units per month in 2014, and was planned to reach rates of 47 units per month in 2017 and 52 units per month in 2018. In 2016, the monthly production rate was targeted to reach 57 units per month in 2019, even to the factory limit of 63 units later. A single airplane was then produced in the Boeing Renton Factory in 10 days, less than half what it was a few years before. The empty fuselage from Spirit AeroSystems in Wichita, Kansas , enters
7200-500: Was also adopted on the Boeing 757-300 . This improved on the previous interior of the Boeing 757-200 and the Boeing 737 Classic variants, the new interior became optional on the 757-200. In 2010, new interior options for the 737NG included the 787 -style Boeing Sky Interior. It introduced new pivoting overhead bins (a first for a Boeing narrow-body aircraft), new sidewalls, new passenger service units, and LED mood lighting. Boeing's newer "Space Bins" can carry 50 percent more than
7290-423: Was delivered to West Atlantic in April 2018. At the 2018 Farnborough Airshow , GECAS announced an agreement for 20 firm orders and 15 option orders for the 737-800BCF, raising the commitment to 50 aircraft. Total orders and commitments include 80 aircraft to over half a dozen customers. Since early 737NG aircraft become available on the market, they have been actively marketed to be converted to cargo planes via
7380-413: Was founded in 1964 and originally known as Executive Jet Airways . The name was later changed to Executive Jet Aviation (EJA), and again in 2002 to NetJets, after Berkshire Hathaway purchased it in 1998. NetJets was the first private business jet charter and aircraft management company in the world. The idea came from retired Air Force Brigadier General Olbert F. "Dick" Lassiter, who had experience running
7470-455: Was issued on October 3, 2019. Of the 500 first inspected aircraft, 5% (25) had cracks and were grounded; Boeing expected to repair the first aircraft three weeks after the issuance of the directive, serving as the template for the resulting Service bulletin . Of the 810 examined aircraft over 30,000 cycles, 38 had structural cracks (4.7%), leaving 1,911 737NGs over 22,600 cycles to be inspected within their next 1,000 cycles, i.e., nearly all of
7560-502: Was later sued for his role in diverting $ 21 million of PRR money into EJA, much of which had gone to his personal expenses. Sundlun, Robert L. Scott Jr. and Joseph S. Sinclair bought out the Penn Central interest in EJA in 1972 and stabilized the company's finances. Paul Tibbets became president in 1976. In 1984, Executive Jet Aviation was purchased by mathematician and former Goldman Sachs executive Richard Santulli who owned
7650-597: Was launched by NetJets in October 2019 with "tiered security packages" based on passenger needs and threat level at destination. Initially only available at Paris Le Bourget and in Mexico, future plans include worldwide coverage by 2023. NetJets sells fractions of specific aircraft, chosen from several available types at the time of purchase. Owners then have guaranteed access (50–400 hours annually, depending on share size) to that aircraft with as little as four hours' notice. If
7740-699: Was launched in 1996 as a sister company of NetJets and is now a subsidiary. It is based in Oeiras, Portugal , and serves more than 5,000 airports globally. Also among NetJets subsidiaries is Executive Jet Management (EJM), based in Cincinnati, Ohio, which offers aircraft management and charter services. QS Partners is the whole-aircraft brokerage arm of NetJets, launched in 2016 and officing in Columbus, Ohio; Boulder, Colorado; and London; it also exclusively resells used aircraft from NetJets' fleet. QS Security Services
7830-563: Was legal as it consisted of non-voting stock, and anticipating approval from the CAB, EJA licensed its larger jets to foreign airlines. When the CAB instead ruled against EJA, the company now found itself deeply unprofitable, and the Pennsylvania Railroad attempted to sell off its stake. However, potential buyers lost interest after corporate spies for Pan Am acquired and leaked information on EJA's illegal interests. The Pennsylvania Railroad merged into Penn Central in 1968, and
7920-500: Was symbolic of deteriorating labor relations within the company at this time. The Internal Revenue Service (IRS) had sought back taxes and penalties of $ 643 million from NetJets for periods beginning in 2003, including on its maintenance and service fees. NetJets filed a lawsuit challenging the IRS assessments. In January 2015, the United States District Court issued a decision in NetJets' favor, holding that
8010-422: Was terminated without the opportunity to fly a different plane. An Ohio federal judge ruled in favor of NetJets in 2022, citing the plaintiff's failure to prove sex discrimination. In the spring of 2020, the company saw a boom in demand, as wealthy individuals sought to avoid the risks of airline flying during the COVID-19 pandemic . Previously, many potential customers had concerns about the optics of opulence and
8100-674: Was the largest operator of business jets in Europe. The company operated a fleet of nine Boeing 737-700 Boeing Business Jets in the mid-2000s, since then sold off. In early August 2009, Santulli resigned as CEO and was replaced by David Sokol . Shortly afterward, NetJets moved its corporate headquarters from New Jersey back to its original home in Columbus, Ohio . In 2010, NetJets acquired Marquis Jet from founders Jesse Itzler and Kenny Dichter . The prepaid Marquis Jet card allowed customers to purchase 25 hours of guaranteed flight time on
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