NetJets, FlightSafety Gain in First-half 2014
Revenue at Berkshire Hathaway’s service business, which includes NetJets and FlightSafety International, rose by $507 million, to $4.9 billion, during the first half of the year, while profits climbed by $72 million, to $605 million. NetJets accounted for nearly a third of this revenue increase, thanks to higher flight services revenue attributable to more flight hours, as well as better rates and product mix changes. FlightSafety’s revenue also climbed due to increased simulator training activity. On the earnings side, NetJets benefitted from lower financing expenses, which were somewhat offset by increased aircraft impairment charges, depreciation expense, maintenance costs and subcontracted flight expenses.