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NetJets CEO Jordan Hansell on the company’s deal for the largest private aviation purchase in history and the company’s long-term growth and expan...
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All right let's talk about private -- to fly private -- I'm sure now the -- camp because they'll all get great contracts if you are about to have a lot more options.
You need to look at net jets they've just announced the largest private aviation purchase in history.
Why are they so confident about the global economy here to explain their latest high priced investments net -- chairman and CEO.
Jordan Hansel and I -- nine point six billion dollar deal 425.
New jets.
Bombard -- Cessna that's right.
What do you see that indicates that you will have a gigantic number of customers who will be buying your fractional jet ownership.
Well one thing to remembers -- this is a long term investment for us we make long term capital decisions.
And this is a ten year.
Fifteen year capital decisions so in the future we're optimistic about -- -- private aviation market -- to eastern United States but around the world want guess what I'm looking for from view is is the CEO of a company that deals with high net worth people -- people who have some money.
Do you start to see things come back from where you sit -- the CEO of -- tests are our market has remained relatively strong particularly in the United States a little less so in Europe and we're starting to expand in the China so we're on a global basis we're seeing much more movement okay let's talk about that expansion into China may be a year ago it started to look like there were obvious.
Billionaires brand new billionaires in China but right now there appears to be a little bit of a slowdown again I'm assuming you look long term at this prospect we -- Asia we very much do and we we are optimistic about what's going to be happening in China they've got to.
Some way to go -- a private aviation perspective but we think they're gonna get there with you can even get there have been way there was a point where your predecessor Dave Sokol -- that Europe would be a real opportunity and there was -- I'm sorry his predecessor right.
Built up in Europe and then we really didn't see that come to fruition is there a risk that that might happen in China.
Well there's always a risk and that's what we're paid to do assess those risks and make decisions.
And I think we made the right -- in this case well it was -- Sokol had been cut.
By about 20% the number of -- and orders and things like that do you do you anticipate or do you plan for something like that where.
You might figure that you have to cut off some of these orders.
Where do that as or something in the clause of the order contract -- they give us some flexibility we -- firm orders and we and we make an agreement for options as well.
And that gives us the flexibility you're talking about to make sure that.
Whatever the economic conditions are the time we can respond responsibly what's the most popular jet that -- an average client is ordering up now.
Well they're like a lot of them I would say the the falcon is if there's a favorite that gulfstream 455 if you were really making a lot of headway in the 5006 thousands of global some phenom 300 what's -- -- -- I confess I'm not lucky fifty foot and a gulfstream lately.
Oh they're just they're they're both movement the global -- 5006000.
In the gulf stream for one -- -- aircraft they offer seating for up to fourteen folks.
Club seating got techno club seating is when you can swivel chairs around and look at each other that's right you've got enough space to stretch out at a analysts say you know they they call this a risky expenditure with returns that are far from guaranteed.
So what would you say that.
Well I think we've been proven particularly of late that we can make a good return in this business and that run responsibly and with some discipline it's a good business to be and.
When you from the business and you're hiring are you hiring first of all.
We have been doing some hiring what kind of programs particularly in the IT department we've got a lot of proprietary and information technology that runs our business.
And we got a fair amount of on shoring recently are we brought jobs back from in the United States.
You know reassuring resource saying is we -- not outsourcing let's understand why is it less expensive to do business here in the United States or more efficient we found that some of the -- has become more expensive and less efficient and when you put those two things together it's better to be here where -- your operations offshore there -- -- -- -- OK and now you're moving it back here where -- in Columbus Columbus, Ohio.
Which is our corporate and that's right go bucks Buckeyes what is -- -- let's talk basically about the fact that you are deficient of Berkshire Hathaway.
You work for Warren Buffett there's a huge amount of cash there and mr.
Buffett it's often said.
-- would you rather fly with a company that doesn't have a bunch of cash behind it or us.
We have the cash to make sure that these planes are maintained for safety that's exactly right OK so what what is it that you do differently from other fractional jet ownership companies if you were making the pitch to me that I should buy from you well first and foremost we take the baseline FAA regulations and we do beyond and above wouldn't think they require we have twice that.
Training for our pilots.
Our average of second command has flown 80500 hours are average kept in this form 101500 hours.
Those statistics that -- far away above and beyond anybody else noticed all of the turmoil in commercial aviation which has showed all of the pilots from united and continental.
-- testing and and picketing and it saddens me because I don't ever want to cheap out on a pilot for a surgeon.
Does that the two people you -- to pay to make sure they get it right because they're so highly skilled.
Are you finding -- commercial jet pilots are now applying to work for you instead that's been true for some time I talk to our piles on a regular basis and I hear routinely from them that we're the best place and -- an aviation to work and we try to make sure that's the case nine billion in orders Jordan -- with the chairman and CEO of net jets thank you very much thank you very much we'll be watching for the first delivery of those deaths wonderful.
Now.
