In 1986, NetJets founder Richard Santulli created the fractional airline ownership business model. Today his airline flies over 390,000 flights annually to more than 173 different countries.
With 800 planes under its management, NetJets is the second largest airline in the world.
Be prepared to discuss the following concepts and questions in class:
• Concepts 

• First mover

• Reputation 

• Segmentation 

• Industry competitive dynamics 

• Standard-cycle markets 

Questions 

1. Think about the airline industry in terms of standard-cycle markets. What does being in this type of industry mean for most aviation transportation competitors?
2. Think through the benefits to being a first mover. Why is this many times not a sustainable advantage?
3. Why do you think Continental Airlines or American Airlines did not invent the concept of fractional ownership?