David Sokol: Berkshire Hathaway's NetJets unit will succeed

November 24, 9:59 AMWarren Buffett ExaminerWilliam Freehling

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David Sokol

AP

Berkshire Hathaway's NetJets unit is poised to succeed as the economy recovers, NetJets CEO David Sokol told The Columbus Dispatch in an interview that ran Sunday.

Sokol, 53, took over leadership of the Columbus, Ohio-based NetJets earlier this year after company founder Richard Santulli announced he was stepping down. Sokol is frequently mentioned as a likely successor to Warren Buffett at Berkshire.

Sokol has taken over at NetJets at a tough time. Demand for the company's fractional private aircraft ownership service has decreased in the wake of a weak economy, leading to millions of dollars of losses. Hundreds of employees have been laid off. 

But Sokol sees good long-term potential in NetJets, he told the Columbus paper. He thinks the company will break even or turn a profit next year. He said it has a big competitive advantage over its peers, a fantastic safety record and a service that people want. Success is mostly a matter of cutting costs back in line with revenue.

Sokol also said he expects another 12 months of flat economic conditions followed by a rebound caused in part by an improvement in real estate conditions.

Sokol said he expects NetJets to enter the Chinese market at some point in the next five years.