The U.S. government claims that NetJets owes the Internal Revenue Service (IRS) nearly $643 million in federal excise taxes, assessed penalties and interest. The amount is just $125 million less than the $768 million in pre-tax earnings that NetJets parent Berkshire Hathaway reported in its last financial report for the “other” category of subsidiaries that includes NetJets, FlightSafety International and other businesses.
Business aviation in the Middle East is expected to keep growing at a faster rate than that seen in North America and Europe, but slower than the more dynamic expansion now being seen in the emerging markets of Asia. This is the broad consensus among manufacturers and service providers for a region that is now emerging from a somewhat unsettled two-year period that has seen some fall-out from wider economic problems and the so-called Arab Spring political unrest.
When CitationAir founder and CEO Steve O’Neill left the company at the beginning of November, the transition in leadership was expected to be nearly seamless, especially since the man who was promoted to succeed him had been with the fractional provider as long as O’Neill himself.
William (Bill) Schultz, previously the company’s executive vice president, was named to the top position in September, two months before O’Neill’s departure.
West Star Aviation has named John Hayes general manager at its Dallas Love Field facility. Hayes has more than 33 years’ experience in the aviation industry and was most recently director of maintenance with Business Jet Access in Dallas. Before that he held positions with NJI, Executive Jet International, Net Jets Middle East, Saudi Arabian Airlines and Gulfstream.
Teddy Forstmann, the man who was credited with turning around Gulfstream Aerospace in the 1990s, died Sunday, reportedly from brain cancer. His investment firm, Forstmann Little, acquired Gulfstream in 1990 for $800 million.
Four of NetJets’ subsidiaries–NetJets Aviation, NetJets International, NetJets Large Aircraft and Executive Jet Management (EJM)–are suing the U.S. government over a $642.7 million IRS tax bill for past federal excise taxes (aka “ticket tax”) and assessed penalties and interest.
Dubai-based business aviation services group ExecuJet Middle East and NasJet, the private aviation arm of Saudi Arabia’s National Air Services (NAS), are to jointly operate a new FBO at King Khalid International Airport in Riyadh. The facility will occupy some 16,000 sq ft in the airport’s private aviation terminal.
Jet Aviation has appointed Abdullah Al-Ghamdi as customer relations manager and sales representative for the company’s aircraft management and charter services in Saudi Arabia and the Gulf Cooperation Council (GCC) states. Al-Ghamdi, who is based in Jeddah, has held various positions for Jet Aviation Saudi Arabia over the past 20 years, including public relations, sales and business development.
Third-quarter pre-tax earnings at Berkshire Hathaway’s “other services” division, which includes FlightSafety International and NetJets, climbed 15 percent, to $281 million, from a year ago thanks to stronger demand for pilot training at FlightSafety and higher revenues at fractional provider NetJets.
NetJets terminated its franchise agreement for Middle East fractional aircraft services with National Air Services (NAS) of Saudi Arabia this week. NAS CEO Sulaiman Al-Hamdan conveyed the news to NAS employees in an email on Monday, while promising that the company’s business would continue as is.