A lifelong aviation enthusiast who joined&nbsp;AIN&nbsp;in 2007, Curt came to&nbsp;the publication&nbsp;from the broadcast industry where he was a national science and technology television reporter and producer. He writes on the FBO field, aviation finance, and sustainable aviation and occasionally contributes to&nbsp;AIN&nbsp;sister publication&nbsp;Business Jet Traveler. Curt was a member of the AINtv reporting staff that won the 2008 Aerospace Journalist of the Year award for Best Airshow Daily. That same year, he was a finalist for another AJOYA award. He earned an AJOYA for Best Business Aviation Submission in 2018 and was a finalist in that category in 2021. He received the National Air Transportation Association’s&nbsp; Aviation Journalist Award in 2012 and won a Pegasus Sapphire Business Aviation Award for outstanding journalism in 2021.
Before joining AIN, Curt worked with&nbsp;Consumer Reports’ television division, CRTV, and for several local television news staffs. An honors graduate of the State University of New York at Stony Brook, he earned a master’s degree in broadcast journalism from Boston University in 1995. Curt lives in New York State with his wife and two young sons.

Business Aviation Services Editor

Curt Epstein

As the world’s largest provider of aircraft fractional ownership, NetJets is continually working to expand its customer base, and during that process it encounters potential clients who say they would sign up for fractional shares if they could sell their existing airplanes. In response, the Berkshire Hathaway subsidiary developed a solution for those whole-aircraft owners: it will help them sell their aircraft through its own brokerage services or even buy them outright, in exchange for fractional shares.

 


Quietly launched a year ago, NetJets Aircraft Transition Service is headed by John Odegard, the Columbus, Ohio-based company’s senior vice president of whole aircraft sales, and Seth Zlotkin, vice president of global strategic accounts. “For whatever reason, people may be flying less; their needs may have changed from what they bought the airplane for originally,” said Odegard, who is responsible for the disposal of NetJets aircraft fleets. “We just found more and more people were coming to us and saying, ‘You guys are buying more airplanes and disposing of more airplanes in the market than anyone else. Can we get access to those resources and expertise to help us in our situations?’”

 


Whereas in the past the company advised potential customers to come back once they had disposed of their aircraft, that stumbling block has been eliminated.

 


Getting Customers into a Fractional Share

 


NetJets considers each situation case by case to help customers make the transition. In some instances, it will act as an aircraft broker. “Because we are in the market every day with the buying and selling airplanes that we do as part of our normal course of business, I think our global resources and connections allow [aircraft owners] to realize the best value possible for their airplane,” Odegard told AIN.

 


With the time-on-market for business jets averaging 484 days, according to industry data provider JetNet, rather than wait it out some aircraft sellers may be motivated to unload their airplanes quickly. NetJets can now agree to acquire the aircraft and resell it, much as an aircraft manufacturer would for a customer trading in an older aircraft for a new model.

 


Using its in-house valuation service, NetJets bases its pricing on recent market transactions, current asking prices, its network of third-party sources and of course its own experience, but in the end the pricing isn’t the bottom line. “We’re not a typical dealer,” explained Odegard. “In a situation where a trade or inventory position is the right solution for someone, our motivation is not to be able to buy that airplane as cheaply as possible. Obviously we have to be smart, but our motivation is to do what we can to get someone into the NetJets program.” NetJets also takes into account the type of fractional aircraft under consideration by the customer and the size of the share. In cases where the value of the aircraft being disposed of is greater than the fractional share sought, NetJets either pays the balance to the customer in cash or credits the amount to his account to cover future payments.

 


As to what type of transaction is worked out, the company claims no preference, with the ultimate goal being the addition of another NetJets fractional owner in as simple and smooth a process as possible. “This isn’t point of action, ‘Let’s do a deal and then we’re done,’ which is sometimes common in this market,” Zlotkin said. “This is the beginning of what we hope is a long-term relationship with the customer. We’ll look at the situation, their timing and their motivations, and try to set something up that is tailor-made to them and transition them into whatever NetJets solution works best.” According to Odegard, the company is converting approximately one whole-aircraft owner a month into a fractional customer with this type of transaction.

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

NetJets in the Aircraft Brokerage Market

The fractional provider rolled out a program that makes it easier for whole-aircraft owners to unload their old airplanes and get into a new NetJets share.

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News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

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