Top Stories
Top Stories

Low oil a boom for private jet business?

Phil Han, Special to
Why low oil is good for NetJets

As the price of oil continues its bumpy ride, the broadly lower cost per barrel could present a new business opportunity for the world's largest private jet company.

NetJets, a subsidiary of Berkshire Hathaway which offers fractional ownership and private jet rental, told CNBC that low oil prices – now down around 50 percent from highs last summer -- could boost their business.

"If you are an oil company and you're invested in a fleet of your own private jets, clearly this is the moment where you'll look back at your investments and your assets and think: 'Was this the best decision?'," NetJets' Head of European Sales Marine Eugene said. "I think this is a tremendous opportunity for us."

Eugene noted that a number of oil and gas companies had sold their aircraft in recent years, and moved to fractional ownership plans.

The company currently offers an aircraft transition program, which enables owners of private jets to sell their aircraft, take a portion of the profits and transition to a fractional model.

A Gulfstream G650 private jet
Source: Gulfstream

Eugene went on to say that low oil prices would also be passed onto their customers, who pay for the fuel used on each flight.

It's not just NetJets which is expecting to get a boost from lower oil prices. Last month, private jet charter company Magellan Jets said it was cutting fees for all contracts made after the middle of January by 16 percent.

Read MorePrivate jet charter cuts member fees on cheaper fuel

The NetJets comments come as the company unveiled one of their newest planes, the Embraer Phenom 300, at London City Airport, where it has received certification to operate.

But while this certification and low oil prices may provide growth opportunities for the company, the weak European economic recovery has tempered its forecasts.

"Clearly the European markets have a very contrasting performance, so some of these European markets aren't growing at all," Eugene added.

"When you see a European market that doesn't have the same strengths where there are headwinds and challenges, it will have an impact on people's flying."