“If there had been a capitalist down there, the guy would have shot down Wilbur,” said Warren Buffett famously but despite his problems with US Airways in 1995 he was still tempted to invest in NetJets, the leading fractional aircraft company.
NetJets – like the rest of the business jet industry – is having a tough time. It has laid off some staff and is struggling to sell new jets. The next problem may be lack of financing.
CIT financed 90% of all NetJets’ transactions where customers financed their share. I am not sure what proportion of all customers chose to borrow or lease their aircraft shares but CIT closed $1.5 billion in NetJets share transactions in 2008.
CIT was also prepared to offer 100% financing for NetJets’s customers.
Buffet may be regretting the fact the capitalist missed.
Whyte on business jet and commercial aircraft finance 