RESEARCH TRIANGLE PARK – Well, the state of North Carolina and local partners didn’t announce a multi-million dollar package to lure at expansion of NetJets to Raleigh Durham International Airport today.
But just because no action took place at the Department of Commerce OFFICIALLY doesn’t mean some sort of deal is in the works.
While North Carolina and NetJets officials aren’t talking, others have – and the word continues to be that RDU is one of two finalists for the expansion of NetJets.
In fact, Robert Milbourne, president of the Columbus Partnership economic development group told the Columbus Dispatch newspaper that Raleigh-Durham is that city’s top competitor for the expansion project.
On Monday, the North Carolina Department of Commerce announced that the state’s Economic Investment Committee would meet Thursday morning. The committee, which is made up of Jim Fain, the secretary of commerce and four other state officials, must approve economic incentive packages such as job development investment grants, or so-called JDIG.
But at that meeting the committee voted to approve a JDIG for TransTech Pharma in High Point.
The group did go into executive session – to discuss what, no one would say. Asked about NetJets and all the talk about North Carolina, Commerce Secretary Jim Fain declined comment.
A JDIG would likely be a crucial part of any NetJets package.
In Columbus, meanwhile, talks were hot and heavy earlier this week as Ohio fights to keep NetJets from expanding – or possibly moving – elsewhere. The Dispatch reported that “a marathon of meetings” took place over several days.
NetJets Chairman and Chief Executive Officer Richard Santulli did issue a statement, although it was vague.
"NetJets will carefully weigh the information presented in the coming months as we complete our decision process," Santulli said, according to the Dispatch. The newspaper added that a spokesperson for the state’s lt. governor described the meetings as “very positive.”
While North Carolina and NetJets officials aren’t talking, others have – and the word continues to be that RDU is one of two finalists for the expansion of NetJets.
In fact, Robert Milbourne, president of the Columbus Partnership economic development group told the Columbus Dispatch newspaper that Raleigh-Durham is that city’s top competitor for the expansion project.
North Carolina recently awarded a JDIG to HondaJet worth nearly $7 million for the close to 300 jobs it would create at a facility to be built at Piedmont Triad International Airport.
The NetJets deal could be much bigger with hundreds if not thousands of jobs at stake.
NetJets is on record as saying it is considering an expansion effort. The airline recently recent a new contract with its union based in Ohio. Union officials have not returned phone calls from WRAL.com about the project. N.C. economic officials also have remained closed mouthed.
The airline provides fractional ownership of executive aircraft to jet setters and business executives along with virtually on-demand flight service. It is owned by Berkshire Hathaway, which is a Warren Buffett operation.
NetJets currently bases its main flight operations in Columbus, Ohio and employs some 2,000 pilots. Its corporate headquarters is based in New Jersey.
NetJets has been negotiating with economic development and airport executives from several different states for the best deal it can get to help underwrite the cost of the expansion.
RDU has been among the leaders in the competition for the project along with Orlando, Fla. and Fort Worth, Texas as well as Orlando.
WRAL.com has been told that RDU is one of two finalists, the other being Columbus.
The Dispatch newspaper in Columbus reported that Ohio officials put together an incentives package “certainly in excess” of a $57 million deal granted to startup SkyBus airlines in 2006. SkyBus recently picked Piedmont Triad for its first regional operation expansion outside of Columbus.
(Note: This column has been revised to reflect the fact that the Economic Investment Committee does meet on short notice when a deal is to be approved as part of a company’s commitment to contractual obligations, such as job creation and investment.)
