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NetJets Overview

NetJets Overview. History of NetJets. 1964 - Executive Jet established as a private charter company. 1986 - Created fractional aircraft ownership program. 1998 - Berkshire Hathaway purchased Executive Jet. 2002 - Executive Jet became NetJets Aviation. Aviation Pyramid. 91. OWN YOUR

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NetJets Overview

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  1. NetJets Overview 1

  2. History of NetJets • 1964 - Executive Jet established as a private charter company. • 1986 - Created fractional aircraft ownership program. • 1998 - Berkshire Hathaway purchased Executive Jet. • 2002 - Executive Jet became NetJets Aviation. 2

  3. Aviation Pyramid 91 OWN YOUR OWN JET • NetJets – Worldwide Leader FRACTIONAL 91K / 135 ‘OWN A PIECE, ACCESS A FLEET’ • Market Leader Access to NetJets 25 hours at a time 135 • EJM US Market Leader 135 CHARTER & BLOCK-CHARTER SCHEMES 121 COMMERCIAL 3

  4. Fractional Market GrowthTotal Shares Owned * • Not including leases 4

  5. NetJets Today – The Leader • NetJets’ annually flies over 390,000 flights and 230,000,000 miles to more than 170 countries. • NetJets flies over 1,200 international trips per month. • NetJets is ranked as the 2nd largest Commercial Operator in the world. 5

  6. NetJets Today – The Leader • NetJets’ fleet of 870 aircraft under management is equal in size to that of the world’s second largest airline. • 7,946 Employees Worldwide • 4,308 Pilots • 512 Flight Attendants • 895 Maintenance Technicians • 157 Dispatchers As of May 1, 2008 As of July 1, 2009 6

  7. NetJets Corporate Structure NetJets Inc. NetJets Europe NetJets Large Aircraft NetJets Aviation NetJets International Executive Jet Management NetJets Middle East Marquis Jet 7

  8. Owner Profile • 50 percent of NetJets Owners are private companies using NetJets to help grow their businesses. • 25 percent of NetJets Owners are public companies using NetJets to supplement their existing fleets, or as their primary business aviation tool. • 25 percent of NetJets Owners are private individuals who use NetJets to enhance their quality-of-life. Some of our NetJets Owners include: Aetna, Dow Chemical, General Electric, Gillette, Prudential Insurance, Annika Sorenstam, Andre Agassi, Pete Sampras and Tiger Woods. NetJets respects our Owners privacy so we do not share their names unless we have been given permission to do so. 8

  9. 870 Aircraft Under Management U.S. , European, and Middle East Fleet Light cabin Midsize cabin Large cabin • 18 Citation Bravos • 45 Citation V Ultra • 59 Hawker 400XP • 30 Citation Encore • 149 Citation Excel/XLS • 56 Falcon2000/2000EX/LX • 37 Gulfstream 400/IV-SP • 18 Gulfstream 450 • 2 Falcon 7X • 8 Gulfstream V • 16 Gulfstream 550 • 2 Boeing Business Jet • 12 Hawker 750XP • 84 Hawker 800XP • 10 Hawker 900XP • 45 Citation Sovereign • 70 Citation X • 38 Gulfstream 200 171 additional aircraft managed by EJM 3 managed by NetJets Middle East 3 Managed by NetJets Europe * Aircraft no longer offered for sale - transitioning out of fleet 1. Current model designation – G IV SP, G 400 and G V included in fleet 9 Data as of 07/01/09

  10. In 2008, NetJets... • Paid $59 million into the FAA System through FET, Segment Fees, Fuel Taxes and Other Assessments • Purchased over7,000hours of charter time. • Consumed 119 million gallons of jet fuel. • Spent over $37 million on catering (Owner/Crew). • Arranged 130,000 cars/limos. • Landed at over 1,500 airports in the U.S. • Spent $71 million on pilot training (FSI). • Required over 1.8 million maintenance man-hours. • Purchased $70 million airline tickets for flight crew movement. • Purchased $60 million hotel rooms for flight crew RON’s. 10

  11. What is Fractional Aviation

  12. What Is Fractional Aircraft Ownership? • An undivided interest in a specific, serial numbered aircraft based on the number of hours the owner flies in a year 12

  13. NetJets Fractional Ownership • Access to Entire Fleet • Undivided Lien Free Interest • Guaranteed Availability & Costs • Liquid Investment,Guaranteed Buy Back • Depreciable Asset, Tax Benefits as Applicable • Owner accepts operational control in Part 91k operations 800 Total Occupied Hours 1/16 = 50 hrs 1/8 = 100 hrs 1/4 = 200 hrs 1/2 = 400 hrs 13

  14. NetJets Fractional Ownership • Random access on demand (4 – 10 hours) • Each owner’s share is put into a pool with all other owners’ shares • The pool of aircraft “free float” according to scheduling demands • Aircraft are dispatched to each requested departure point and remain at the arrival point until assigned another trip • Owners are charged only for occupied flight time, not for positioning • Crews are airlined where needed, and airlined home at the end of their tour • All heavy scheduled maintenance is completed at manufacturer authorized service centers 14

  15. Aircraft Acquisition (One-time Cost) Monthly Management Fee (MMF) Covers fixed costs (pilot salaries, insurance, training, hangaring, administration, etc.) Occupied Hourly Fee (OHF) Covers variable costs (fuel, maintenance, catering, landing fees, etc.) Federal Excise Tax on OHF (7.5%) Fuel Variable Cost Components 15

  16. NetJets Provides Guaranteed Availability  The NetJets fleet of more then 871 aircraft is blanketed across the U.S., Europe and the Middle East  Each worldwide NetJets Owner is guaranteed interchange within each of the other fleets  NetJets guarantees a response time of between 4 and 10 hours in the US and 10 and 48 hours for European travel  NetJets owns “core fleet” to be able to meet Owner demand  NetJets will subcontract when necessary with vendors that meet NetJets strict operating standards 16

  17. Marquis Jet is NetJets25 Hours at a time • 25 Hour pre-paid lease • Marquis Private Jet Card programs in U.S. and Europe 17

  18. Card Growth Since Inception 18

  19. Safety Is The Mission • Management Commitment • Operational Command and Control • Aircrew Qualifications • Aircrew Training and Management • Aircraft Maintenance • Security – Aircraft and Passengers “Spend whatever it takes to be the safest and most secure. Then spend whatever it takes to stay that way.” - Warren Buffett 19

  20. Safety Enhancement – Aircrew Qualifications • New hires – 2,500 hrs. minimum before consideration • Average new hire – over 6,000 • Total average hours – over 8,000 • FlightSafety International – 2x’s per year - 20 days of training • New hires remain on probation for one year • Fly an average of 75 hours per month 20

  21. “Leave nothing to chance.” - Richard Santulli Q&A 21

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