NetJets Inc, a business-jet operator owned by Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRKB), said it is forming a joint venture in China to tap into the rapidly growing popularity of private air travel in the country.
NetJets, which is based in Columbus, Ohio, said it will partner with Hony Jinsi Investment Management (Beijing) Ltd. and Fung Investments to create the joint venture, which is named NetJets China Business Aviation Ltd.
The Chinese aviation market has phenomenal growth potential and we believe that introducing the NetJets service in China will enhance our brand's global offering for customers around the globe, NetJets chairman and CEO Jordan Hansell said in a statement.
“Our aim is to introduce NetJets brand of unmatched standards for managing private aircraft and provide aircraft owners in China with the ultimate in safety, security and reliability,” he added.
Private air traveling has become increasingly popular in China as the number of wealthy people in the country grows. The Jing Daily reported recently that having private jets and pilot licenses have become status symbols for the wealthy in China.
It has been reported that private flights in China will have to undergo a long approval procedure, which involves extremely stringent regulations. However, in order to support the aviation industry, the authorities have announced that regulation will be relaxed in certain regions.