NetJets - Woodbridge, New Jersey, United States

http://www.netjets.com/

You don't get to be big without attracting the attention of "certain somebodies," and NetJets is no exception. Last year, the company concluded labor negotiations with the Teamsters after a five-year negotiation featuring the customary pageantry: pickets at airports and owner Bershire Hathaway's annual meeting, internal power struggles, competing representation and balloting irregularities, even guys sitting around in chairs at full payrate (and complaining about it). Under the deal, NetJets' pilots gained a 40-60% wage increase, depending on aircraft and (don't act surprised) seniority. After the deal, Flight Options' pilots filed for Teamsters representation.

Now the fight has moved down the foodchain to mechanics, aircraft fuelers, cleaners and stock clerks. The Teamsters and NetJets have been negotiating since last year, and the most recent discussions broke down last month. Terms are what you'd expect: wages, work rules and health benefit costs. According to the Teamsters, a particular sticking point is NetJets' use of outsourced non-union workers.

There are two big question if you're considering NetJets:

1) How will this impact operations in the short term? Probably not much. "Informational picketing" is just that: walking around with signs grousing about The Man. It's not a strike, so technically operations should be unaffected. NetJets hasn't responded to our questions about how it would address more aggressive labor action.

2) How will this impact the business long-term? You can expect the predictable unionization outcome - higher labor costs and the occasional threat of labor disruption.

NetJets is the only fractional provider with a union contract for pilots, and will likely be the first in other sectors. Flight Options is next on the docket, but rest assured that the Teamsters have heard about CitationShares and Flexjet. Buying a fractional share is a long-term decision, and demands scrutiny of the company's composition and operations. Ask your prospective provider about labor situation and the impact on costs. If you're just getting a feel for private aviation, try a jet card from the fractional provider you're gravitating toward. For CitationShares, purchase their 20-hour Vector Jet card; for Flexjet, get a Flexjet 25 card, for Flight Options, consider their JetPASS Ultimate Travel card and for NetJets, try the Marquis Jet Card.

With each of these fractional card programs, you can simply walk away at any time without having to contemplate the more complex criteria of a full fractional ownership program. Regardless of whether you try a jet card or go directly to ownership, make sure you know what questions to ask.