Buffett teams up with Lenovo founder to invest in private jets   

Warren Buffett stands beside the logo of NetJets Business Aviation. (Photo: China Daily)

(ECNS) -- NetJets Business Aviation, a joint venture between US investor Warren Buffett and Lenovo founder Liu Chuanzhi, has kicked off flight operations in China, Beijing Times reported. 

The business obtained an operating license from the Civil Aviation Administration of China three months ago, with two of the company's Hawker 800 corporate aircraft commencing flights in Shanghai and Beijing last Sunday. 

Buffett, who bought the NetJets corporate aircraft service in 2004, this year decided on a joint venture with a local business to enter the Chinese market. 

Current shareholders include NetJets, Hony Capital and Fung Capital, the latter two being subordinates of Liu Chuanzhi's Legend Holdings and a private investment corporation associated with Victor and William Fung's family. 

The main business focus will fall on providing private aircraft charter services, managing aircrafts for clients and selling flight vouchers, said Huang Weilin, NetJets vice-president. 

A flight voucher of 25 hours per year would sell at $380,000 abroad, or at $15,266 per hour. 

Huang said these vouchers are now sold across China, but are subject to specific restrictions. 

He added that limited infrastructure and limitations on airspace are the two main constraints in developing the Chinese aviation market. 

In 2013, the number of corporate aircraft reached 367 in China, increasing at an annual rate of about 23%, according to official statistics. 

It is predicted that China would become the third largest corporate aircraft market worldwide and that deliveries of new planes could reach 2,225 between 2014 and 2033 in the Greater China region.