NetJets names new CEO in midst of labor dispute with pilots

  • By Josh Funk Associated Press
  • Monday, June 1, 2015 1:38pm
  • Business

OMAHA, Neb. — Berkshire Hathaway’s NetJets unit named new leaders Monday in the midst of an ongoing contract dispute with its pilots union.

NetJets, which sells partial ownership interests in business jets, said Jordan Hansell is stepping down as chairman and CEO.

A group of NetJets pilots protested outside Berkshire Hathaway’s annual meeting in May because they object to the concessions NetJets has been seeking since 2013 in contract talks.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Previously, Berkshire’s CEO Warren Buffett had praised Hansell’s cost-cutting leadership of NetJets since 2011. Buffett didn’t immediately respond Monday to questions about the changes.

Hansell had been NetJets’ general counsel before he took over the top job at the firm in the wake of David Sokol’s sudden resignation in 2011. Sokol had been one of Buffett’s top executives before questions were raised about him buying stock in a company Berkshire later acquired.

Hansell continued the tight cost controls Sokol established at NetJets because the demand for private jets fell during the recession. Hansell also helped NetJets gain access to the Chinese market.

“NetJets is very well positioned for future success and to grab hold of the opportunities before it,” Hansell said in a statement that didn’t address his plans.

The NetJets pilots union said the benefit cuts the company is demanding from it 2,700 pilots are unwarranted because NetJets is more profitable now that the economy has improved. The union and NetJets are meeting with a federal mediator to try and resolve the dispute.

Union President Pedro Leroux said he’s optimistic about the change, but it won’t be clear immediately whether NetJets’ position on contracts will shift.

“I think it’s a good change for NetJets and the employee groups,” Leroux said.

The union has had good relationships with both of the new leaders in the past, and Leroux said he appreciates their background in operations.

Berkshire said NetJets contributed to a nearly 10 percent jump in revenue from its service businesses last year, but it didn’t break out NetJets results in detail. Berkshire said NetJets’ earnings improved in 2014 because revenue grew and it had lower restructuring, aircraft impairment and finance charges.

Buffett said at Berkshire’s annual meeting that he’s confident NetJets will eventually reach a contract agreement with its pilots. Buffett said NetJets pilots’ compensation is competitive and plenty of pilots from other companies want to join the company.

NetJets said Adam Johnson will become chairman and chief executive of the Columbus, Ohio, firm. Bill Noe will be president and chief operating officer. Both men are longtime NetJets executives.

“NetJets has been my passion for nearly two decades,” Johnson said. “I am truly humbled — and excited — about the opportunity to lead this extraordinary company and its people and to contribute to its success.”

NetJets is one of more than 80 companies Omaha, Nebraska-based Berkshire Hathaway owns. NetJets has a global fleet of more than 700 aircraft and nearly 6,400 employees.

Berkshire eclectic mix of companies includes Geico, General Re, BNSF railroad, Dairy Queen and others. Berkshire also holds big investments in companies like the Washington Post Co., Wells Fargo &Co., International Business Machines Corp. and American Express Co.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

FILE — Jet fuselages at Boeing’s fabrication site in Everett, Wash., Sept. 28, 2022. Some recently manufactured Boeing and Airbus jets have components made from titanium that was sold using fake documentation verifying the material’s authenticity, according to a supplier for the plane makers. (Jovelle Tamayo/The New York Times)
Boeing adding new space in Everett despite worker reduction

Boeing is expanding the amount of space it occupies in… Continue reading

Hundreds wait in line to order after the grand opening of Dick’s Drive-In’s new location in Everett on Thursday, June 12, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Dick’s Drive-In throws a party for opening day in Everett

More than 150 people showed up to celebrate the grand opening for the newest Dick’s in Snohomish County.

Patrick Russell, left, Jill Russell and their son Jackson Russell of Lake Stevens enjoy Dick’s burgers on their way home from Seattle on Friday, Sept. 22, 2023 in Edmonds, Washington. The family said the announcement of the Dick’s location in Everett “is amazing” and they will be stopping by whenever it opens in 2025. (Olivia Vanni / The Herald)
Dick’s Drive-In announces details for Thursday’s grand opening in Everett

Dick’s will celebrate its second Snohomish County location with four days of festivities.

Katie Wallace, left, checks people into the first flight from Paine Field to Honolulu on Friday, Nov. 17, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Executive order makes way for Paine Field expansion planning

Expansion would be a long-range project estimated to cost around $300 million.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.