Richard Santulli
Encyclopedia
Richard T. Santulli is an American entrepreneur and philanthropist. He is best known for pioneering the concept of fractional jet ownership with NetJets
, a successful company he developed in 1986. Santulli was once considered by analysts as a possible successor to Warren Buffett
at Berkshire Hathaway
. He currently serves as chairman of his latest venture, Milestone Aviation Group, a helicopter and business jet leasing company.
. He then moved to Goldman Sachs
writing computer-based modeling programs. After becoming head of the leasing unit and on the verge of being named partner, Santulli left Goldman Sachs in 1979 to start RTS Capital Services, Inc., which would become the leader in helicopter leasing in the 1980s.
In 1984, Santulli purchased Executive Jet, a charter service company, as a wholly owned subsidiary of RTS Capital Services. Santulli spent months analyzing Executive Jet’s charter service data and bringing the 'time-share' concept of fractional ownership so often seen in resort properties to business jets. In 1986, Santulli introduced the NetJets fractional ownership concept at the annual National Business Aviation Association conference. He then made a $4 million down payment on eight Cessna Citation IIs and spent heavily to staff the new enterprise.
The NetJets concept was to sell fractions of specific aircraft, chosen from several available types at the time of purchase. When purchasing a fraction of an aircraft, the purchaser was considered an "owner." Being an owner offered customers the convenience, access, and time advantages of flying point to point in private jets. This also allowed the owner access to more, often smaller, airports; possibly shortening travel to both arrival and departure point. Arrival and departure points along with departure time were chosen by the customer for each individual trip. Costs were higher than flying commercial carriers but lower than purchasing, staffing and the maintenance of a similar private jet.
In July 1998, Warren Buffett's Berkshire Hathaway Inc. announced that it was buying NetJets for $725 million in stock and cash. Called 'the most astute investor of the 20th century' and the world's second richest man after Bill Gates
, Buffett had been an avid NetJets customer since 1995. Berkshire Hathaway's superior credit rating lowered NetJets' interest rates, and the company joined an esteemed portfolio including The Coca-Cola Company
, Gillette, and The Walt Disney Company
. Santulli and his older brother, Vincent, who joined Executive Jet in 1996 after starting and taking public Porta Systems Corp, an electronics company, agreed to continue to run the business. Santulli stayed on as chairman and CEO until his resignation in August, 2009. He remained a consultant for the company through August, 2010.
In December 2009, Santulli joined Loan Value Group as chairman of the board. Loan Value Group works with mortgage owners and servicers to provide incentive-based programs to responsible homeowners. The Responsible Homeowner Reward, a program designed by Loan Value Group to reward mortgage owners with cash incentives for making timely monthly mortgage payments, was named as one of the top 50 inventions of 2010 by Time
.
In August 2010, Santulli launched Milestone Aviation Group, a helicopter and business jet leasing company where he currently serves as chairman. The company, headquartered in Dublin, announced at the annual Helicopter Association International Heli-Expo in March 2011 that it had completed $205 million in lease financing since its launch.
Santulli currently acts as the more active partner in Jayeff B Stables, a thoroughbred racehorse breeding business he founded in 1982. Santulli is a trustee of the New York Racing Association, a steward of the Jockey Club and a member of the Breeders’ Cup’s board of directors.
board of directors and chairman of the board for The Intrepid Fallen Heroes Fund. The Fund recently completed a new project to assist wounded warriors who suffer from Traumatic Brain Injury. The Fund constructed the National Intrepid Center of Excellence to support the research, diagnosis, and treatment of TBI. The Center serves veterans injured in previous conflicts as well as those wounded in the current operations in Iraq
and Afghanistan
. Previous projects include The Center for the Intrepid, a $40 million world-class state-of-the-art physical rehabilitation center at Brooke Army Medical Center
in San Antonio, Texas. The Center serves military personnel who have been catastrophically disabled in operations in Iraq and Afghanistan, and veterans severely injured in other operations and in the normal performance of their duties. Prior to that, the Fund provided close to $20 million to families of United States and British military personnel lost in performance of their duty, mostly in service in Iraq and Afghanistan.
Santulli serves as the director of Mercy Home for Children, a non-profit organization that provides residential, supportive and respite programs for individuals with developmental disabilities. In 1989, the Richard T. Santulli Residence was established in Brooklyn, New York, to provide a residence with full-time care and support services to 15 people with disabilities.
Santulli has played an integral part in the success of the Andre Agassi Foundation for Education, an organization dedicated to transforming U.S. public education for underserved youth. The Foundation drives reform by engaging in practice, policy and partnerships that provide quality education and enrichment opportunities. Santulli currently serves as a director on the advisory board and is actively involved in the annual “Grand Slam for Children” benefit show. Since the inception of the Andre Agassi Foundation for Education in 1994, $150 million dollars has been raised to benefit the mission of the Foundation including $92 million from the Grand Slam for Children fundraising event.
NetJets
NetJets, a subsidiary of Berkshire Hathaway, offers fractional ownership and rental of private business jets.-History:NetJets Inc., formerly Executive Jet Aviation, was founded in 1964 as one of the first private business jet charter and aircraft management companies...
, a successful company he developed in 1986. Santulli was once considered by analysts as a possible successor to Warren Buffett
Warren Buffett
Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway. He is...
at Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
. He currently serves as chairman of his latest venture, Milestone Aviation Group, a helicopter and business jet leasing company.
Early Life
Richard T. Santulli was born in Brooklyn, New York on August 14, 1944. Santulli studied at the Polytechnic University of New York, earning B.S. and M.S. degrees in mathematics.Career
Santulli’s first professional job was with Shell Oil CompanyShell Oil Company
Shell Oil Company is the United States-based subsidiary of Royal Dutch Shell, a multinational oil company of Anglo Dutch origins, which is amongst the largest oil companies in the world. Approximately 22,000 Shell employees are based in the U.S. The head office in the U.S. is in Houston, Texas...
. He then moved to Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
writing computer-based modeling programs. After becoming head of the leasing unit and on the verge of being named partner, Santulli left Goldman Sachs in 1979 to start RTS Capital Services, Inc., which would become the leader in helicopter leasing in the 1980s.
In 1984, Santulli purchased Executive Jet, a charter service company, as a wholly owned subsidiary of RTS Capital Services. Santulli spent months analyzing Executive Jet’s charter service data and bringing the 'time-share' concept of fractional ownership so often seen in resort properties to business jets. In 1986, Santulli introduced the NetJets fractional ownership concept at the annual National Business Aviation Association conference. He then made a $4 million down payment on eight Cessna Citation IIs and spent heavily to staff the new enterprise.
The NetJets concept was to sell fractions of specific aircraft, chosen from several available types at the time of purchase. When purchasing a fraction of an aircraft, the purchaser was considered an "owner." Being an owner offered customers the convenience, access, and time advantages of flying point to point in private jets. This also allowed the owner access to more, often smaller, airports; possibly shortening travel to both arrival and departure point. Arrival and departure points along with departure time were chosen by the customer for each individual trip. Costs were higher than flying commercial carriers but lower than purchasing, staffing and the maintenance of a similar private jet.
In July 1998, Warren Buffett's Berkshire Hathaway Inc. announced that it was buying NetJets for $725 million in stock and cash. Called 'the most astute investor of the 20th century' and the world's second richest man after Bill Gates
Bill Gates
William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...
, Buffett had been an avid NetJets customer since 1995. Berkshire Hathaway's superior credit rating lowered NetJets' interest rates, and the company joined an esteemed portfolio including The Coca-Cola Company
The Coca-Cola Company
The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia...
, Gillette, and The Walt Disney Company
The Walt Disney Company
The Walt Disney Company is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into...
. Santulli and his older brother, Vincent, who joined Executive Jet in 1996 after starting and taking public Porta Systems Corp, an electronics company, agreed to continue to run the business. Santulli stayed on as chairman and CEO until his resignation in August, 2009. He remained a consultant for the company through August, 2010.
In December 2009, Santulli joined Loan Value Group as chairman of the board. Loan Value Group works with mortgage owners and servicers to provide incentive-based programs to responsible homeowners. The Responsible Homeowner Reward, a program designed by Loan Value Group to reward mortgage owners with cash incentives for making timely monthly mortgage payments, was named as one of the top 50 inventions of 2010 by Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
.
In August 2010, Santulli launched Milestone Aviation Group, a helicopter and business jet leasing company where he currently serves as chairman. The company, headquartered in Dublin, announced at the annual Helicopter Association International Heli-Expo in March 2011 that it had completed $205 million in lease financing since its launch.
Santulli currently acts as the more active partner in Jayeff B Stables, a thoroughbred racehorse breeding business he founded in 1982. Santulli is a trustee of the New York Racing Association, a steward of the Jockey Club and a member of the Breeders’ Cup’s board of directors.
Philanthropic Involvement
Santulli serves as co-chairman of the Intrepid Sea-Air-Space MuseumIntrepid Sea-Air-Space Museum
The Intrepid Sea-Air-Space Museum is a military and maritime history museum with a collection of museum ships in New York City. It is located at Pier 86 at 46th Street on the West Side of Manhattan. The museum showcases the World War II aircraft carrier USS Intrepid, the submarine , a Concorde...
board of directors and chairman of the board for The Intrepid Fallen Heroes Fund. The Fund recently completed a new project to assist wounded warriors who suffer from Traumatic Brain Injury. The Fund constructed the National Intrepid Center of Excellence to support the research, diagnosis, and treatment of TBI. The Center serves veterans injured in previous conflicts as well as those wounded in the current operations in Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....
and Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...
. Previous projects include The Center for the Intrepid, a $40 million world-class state-of-the-art physical rehabilitation center at Brooke Army Medical Center
Brooke Army Medical Center
Brooke Army Medical Center at Fort Sam Houston, San Antonio is part of the United States Army Medical Command. It is a University of Texas Health Science Center and USUHS teaching hospital and contains the Army Burn Center....
in San Antonio, Texas. The Center serves military personnel who have been catastrophically disabled in operations in Iraq and Afghanistan, and veterans severely injured in other operations and in the normal performance of their duties. Prior to that, the Fund provided close to $20 million to families of United States and British military personnel lost in performance of their duty, mostly in service in Iraq and Afghanistan.
Santulli serves as the director of Mercy Home for Children, a non-profit organization that provides residential, supportive and respite programs for individuals with developmental disabilities. In 1989, the Richard T. Santulli Residence was established in Brooklyn, New York, to provide a residence with full-time care and support services to 15 people with disabilities.
Santulli has played an integral part in the success of the Andre Agassi Foundation for Education, an organization dedicated to transforming U.S. public education for underserved youth. The Foundation drives reform by engaging in practice, policy and partnerships that provide quality education and enrichment opportunities. Santulli currently serves as a director on the advisory board and is actively involved in the annual “Grand Slam for Children” benefit show. Since the inception of the Andre Agassi Foundation for Education in 1994, $150 million dollars has been raised to benefit the mission of the Foundation including $92 million from the Grand Slam for Children fundraising event.