"Ten years down the road, we see the same growth prospects in Europe, the Middle East, Asia and Latin America, as in the U.S., and we plan to be the first into those markets," said Warren Buffett, chairman and CEO of Berkshire Hathaway, which owns Executive Jet and its NetJets, the world's biggest fractional jet program. "We have the resources and the desire to develop NetJets around the world just as fast as we can," Buffett said. "Europe is our main project now."

Approximately 1,100 of the 9,000 business jets owned worldwide are based in Europe, and Buffett predicted that NetJets would lift European ownership to 20% of the world's total.

Bombardier's Business Jet Solutions is also positioning its FlexJet fractional program in Europe. "We have progressed in a very methodical and thorough fashion to ensure that our program is well suited to the evolving needs of European business leaders," said Bombardier Aerospace president and COO Michael Graff.

Bombardier's European operations will be based in Copenhagen, Denmark, co-located with ExecuJet Scandinavia, which offers service and maintenance of Bombardier aircraft. Sales and administration will be based in London.

Raytheon, relatively new to the fractional business with its Travel Air program, also is putting stock into international markets. "We are confident the Travel Air concept can expand internationally," said Raytheon Aircraft strategic planning VP Doug Mahin.

The following examines the fleets and recent orders from the world's three largest fractional ownership companies.

Executive Jet NetJets

Chairman and CEO Richard Santulli founded the fractional jet market with NetJets in 1986. Warren Buffett's Berkshire Hathaway bought the company in mid-1998 for $725 million.
The latest large order for NetJets was this past summer for 50 Hawker Horizon super-midsize jets, plus 50 options, worth $2 billion. Deliveries begin in 2002.

In the past 3 1/2 years, Executive Jet has ordered 587 new aircraft for the NetJets program, accounting for almost 40% of the world's business jets, from Boeing, Cessna, Dassault Falcon, Gulfstream and Raytheon. Total value of all those aircraft is $9.75 billion. Executive Jet currently has 461 aircraft on order.

Bombardier Business Jet Solutions

Bombardier's FlexJet fractional program currently includes 64 aircraft, including the Learjet 31A, 45, 60 and Canadair Challenger. Bombardier plans to add 20 long-range Global Express jets and 25 Continental business jets to the portfolio. Two Global Express aircraft previously ordered will be delivered in the first half of 2000, and will enter the FlexJet fleet during the third quarter. FlexJet will offer a transition program for current Challenger aircraft owners who wish to upgrade.

Raytheon Travel Air

This fractional ownership program specializes in business aircraft built by Raytheon Aircraft. Travel Air has 45 aircraft in its fleet, more than 200 pilots, 300 employees and 275 aircraft shareowners. By the end of this year, Travel Air expects to grow to 60 aircraft, 240 pilots, 375 employees and more than 350 shareholders.

The company's portfolio of aircraft include Hawker 800XP mid-size jets, Beechjet 400A light jets and King Air B200 twin turboprops. The Hawker Horizon super-midsize as well as the Premier I (22 ordered) will join the fleet when available. Raytheon Travel Air recently introduced a leasing option, to complement its cash or financing terms.

Other fractional players include Gulfstream and Flight Options, a subsidiary of Cleveland, OH-based Corporate Wings.

Gulfstream Shares

Aircraft flown by Gulfstream Shares carry N-numbers ending in "Quarter Shares."

This G-IVSP is the first of two "core" aircraft for Gulfstream Shares' Middle East program.

Gulfstream Shares will also be the recipient of 14 more G-IVSPs, 10 Gulfstream Vs, plus 12 G-V options over the next several years. The first G-V will be delivered in third quarter of 2000.

Flight Options now has about 40 aircraft in its portfolio, including the Citation II, Beechjet 400A and Challenger 601. The fleet will grow to about 50 within the next year, not including Flight Options' order of 25 Fairchild Envoy 7 aircraft. Flight Options specializes in selling shares in aircraft that are at least five to seven years old. Consequently, shares in aircraft are generally priced 35% less than shares in the same aircraft from other fractional ownership programs, according to the company.