Some Owners Have Gripes too (And Sympathy for Crews)

[magoo112]

I have been reading this forum for a while now.
For a quick history, I am a former NetJets owner (G-IV) and FlexJet owner (CL-604). Honest-to-truth. I like to know the ins and outs of what I get into and I can admit that I wish this board existed when making my purchases--both of which I now regret. At first, I only chartered a plane for work, such as a small lear when I needed to visit multiple cities in one day. This made jet travel easy for me as I wouldn't have to leave my family for days at a time. After the jet programs really "took-off" I purchased my first large share (CL-604) at FlexJet in the 90s. Prior to this, I had been chartering different large a/c. If I were thinking with my head I would have realized that FlexJet sales is basically like having a car dealer come to you. If I want to hear that a Mercedes will do XYZ, I'll be told it will. FlexJet told me the works... I'll never be given a chartered plane -- well less than xx% of the time with x hours notice (as if all of Manhattan wasn't already planning on going to SXM or EGE for Christmas). I can upgrade/downgrade to a different sized plane if my needs require it, ANYWHERE I want to go, it can be done. Flight Crew is always rested, aircraft are always maintained, the works...
My eventual sale in my favorite a/c (CL-604) was the cause of many bad incidents here are a sampling:
During a 7 stop trip in one day (9a - 7p) which the pilots were under the impression they were flying me and my team on beginning to end. Dispatch called the plane and had them pick up another pax requiring me to wait in the FBO for 2 hours after I was supposed to leave (we were following the itinerary to the letter) with NO warning to me.

Scheduling an X-mas trip to EGE 2 months out, only to be given an 80's shag carpet (I kid you not) 600 which seemed so old it even freaked out our FA. This same plane was given to us on BOTH LEGS (even though the plane returned to its base). So much for equal or better aircraft! Here's the kicker, SkyJet was using a FlexJet 604 on the same route leaving an hour after us for a charter!

"Short notice" always required me to double the minimum time required.

I was even placed with the same charter operator I used to use on several occasions.

Getting a feeling that I was the problem---although I was very understanding.


After 24 months I had it and moved "up" to a G-IV at NetJets
Got the same schtick but insisted that it be written into my contract that "Equal or better" in the event of charter means that the airplane has to have "equal or better" amenities, baggage, range, and (vintage!) They said it wasn't a problem and getting a smaller a/c for just me would be no problem. They kept praising the laurels of Warren Buffet owning them and Tiger Woods owning a share, etc as if I was going to base my decision on someone who would make money off my purchase and another who was probably getting a significant discount for letting his name be used.

Didn't like the G-IV as much. I get the sense one is a Gulfstream person or they aren't. I found the cabin narrower and not as comfortable for long trips, but my family and employees were happy so I was... for a time!

In an outrageous scenario, I got my first chartered a/c despite having a confirmed tail on my 5th flight. It WAS NOT "equal or better" it was a Falcon 50. I was pissed. I wasn't even informed of it before getting to the airport, but I figured that I would call when I got to LAX. On the runway an engine shut down. Something broke and we needed an new plane. I called NetJets and explained my displeasure at the broken charter a/c and was told they would "call me back soon." 30 minutes later I was told that the “best they could do” is to charter me a new plane in two hours, if I wanted to wait they could fly a new one to me in four. If I were in ASE or EGE I could understand the time it would take. But I was in TEB flying to LAX for a meeting followed by a commercial flight to Tokyo that night. I was spending two days in Tokyo then had to come back to the US and go on a roadshow. I couldn’t miss my flight and to the best of my recollection, NetJets doesn't state that they will hold up an ANA 747! They informed me that there "were no aircraft capable of my trip in TEB so I should sit there and wait as they find a plane in a surrounding airport". I said that I was sure something was available in TEB, and explained my situation. They informed me that they searched “high and low” and took an aggressive tone and said “look, if you can find a plane then go ahead as there are none available to get you to LAX even with a fuel stop, but you are only making the problem worse”. After I hung up, I drove over to Jet Aviation and lo and behold they had a G-IV, and a G-III free that could do the trip. I was in the air in 45 minutes (I still held an account with JetAviation). I called "owners support" from the plane, informed them of whose aircraft I was in and that I would be sending them the bill.

Then there was the situation which involved an authorized passenger (my wife) traveling with her mother, our 5 kids, and friends out of SXM. I had to leave vacation early to work, however as my wife was authorized and NetJets was given the passport info for all passengers in advance I was told "not to worry". A 3 hour mess ensued at SXM in which the manifest had my name on it, not my wife's and I was on a plane to Beijing unaware of this situation and unable to tell them "yes, it was me who told you my wife is authorized to fly without me present." They actually removed her from being the lead passenger and from the manifest completely! It should be noted dispatch would not let the pilots leave. They were totally sympathetic letting my family sit in the plane as it burned fuel rather than the unairconditioned terminal and mentioned that they "wished they never called to make sure things were kosher."

When NetJets was having labor issues you should have heard owner services. Apparently EVERYTHING was the fault of the Pilots. Even the fact that my parent’s Kosher catering was replaced with a seafood platter (no joke) was your fault. In all honesty, I was upset there was no strike! I paid a good sum for my share in a G-IV. I could care less what the maintenance fees and hourly’s are. They are nothing compared to the acquisition cost and depreciation the plane will endure. Concessions would not have led to me paying so much more would have had to sell my share right there.

Alas, with the Owner's Services being a real joke and feeling as if I were one step away from being bounced to some call center in India I threw in the towel. Sold the damn share. Now I charter at a reputable charter operator that I have used for years at negotiated rates and I get what I want without any aggravation or anxiety.

Let me say that I found the flight attendants with both operators to be kind to my family and I, and always helpful. On a 10 hour trip, I am sure that their jobs must suck and be worse than being a waitress at a Denny’s. I know some people like elaborate meals, we just care for cold cuts, diet coke, and a box of Dunkin Donuts. I can imagine that with the meals I know some passengers get, the FA’s job must be rough. The pilots on both operators were also the best. I know there are some pain in the ass owners out there (I know a few myself) but by and large we all appreciate you guys. Why you don't get paid more is always perplexing to me. I am not flying Delta. I am flying a Fracjet operator. I am paying for service. More importantly than hiring incompetent phone operators or sleazy salesmen, I care that the people charged with the safety of flying my family aren't overworked, underpaid, tired, abused, and are happy! I don’t want the pilot worrying about his car payments, mortgage, and trying to find a time to nap as we are on final approach. I think you all should be paid more than anyone at the majors. It's a lot more work. I’ve seen you guys clean toilets, pick up after previous pax, and somehow find time to fly the plane. There’s more passenger interaction; these are passengers who will let your boss know the second they feel they have been slighted. ALWAYS I have called to tell the operator if I had a good crew or experience. After buying the jet, the only person I will actually interact with is the Pilot and FA (if there is one). They are the people I care are happy as they are the face of the company. You should really make this clear with your superiors. I think people are crazy if they wake up today and want to be a pilot. It's a stressful job made worse by unrealistic demands and mismanagement. Thumbs up to all of you for entering this formerly fun field, and I think you deserve what you can get. If management tells you that an owner of a share in a BBJ actually cares about a 1500k increase in monthly costs or a 15% rise in hourly costs, they are dead wrong. They are the wrong type of passenger for you and the wrong kind of client for the operator. They are the ones who will complain about EVERYTHING To this day, I have no idea what those fees were and I don't believe I ever asked...

They need you a hell of a lot more than you need them. What, are the call center folks going to fly the jet?

 

[Corona]

I think people are crazy if they wake up today and want to be a pilot. It's a stressful job made worse by unrealistic demands and mismanagement. Thumbs up to all of you for entering this formerly fun field, and I think you deserve what you can get.

Great post, magoo112. It's interesting that as someone successful enough to buy an NJ or Flex share realizes how important it is to have the right people in the job, and that they be fit for duty at all times while at work. It has always amazed me that nearly all managers in this field don't realize that.

If management tells you that an owner of a share in a BBJ actually cares about a 1500k increase in monthly costs or a 15% rise in hourly costs, they are dead wrong. They are the wrong type of passenger for you and the wrong kind of client for the operator. They are the ones who will complain about EVERYTHING To this day, I have no idea what those fees were and I don't believe I ever asked...

Yes, yes, yes!!! Again, I have been amazed in the corporate world at how charter, fractional and management companies go overboard for the worst customers; yet ignore their high-quality bread-and-butter, low-maintenance customers. Then again, I suppose those with sucker-shaped mouths always drift towards the slime on the bottom...

They need you a hell of a lot more than you need them. What, are the call center folks going to fly the jet?

That about says it all. Cheers!

C

 

[netjetwife]

Excellent post, Mr. Magoo! Thanks for sharing your experiences and insights. I'm sorry that fractional ownership didn't work out for you. I know pilots that share your frustration with Owner Services, and I share your opinion that the harder working frac pilots should be paid more than those in the majors.

Best of luck to you and your family.
Netjetwife

 

[pamed19]

Same experience that I am having at FLOPS.We have been forced to litigate.Great crews,however.PM me if you want particulars

 

[On Your Six]

One of the better posts I have read in a long, long time. Just shows how investing in the right people and providing effective, timely communication to your customers is so critical these days. Owners will leave if they are not happy (although you can't please everyone all of the time - nobody should have those super-high expectations).

Cutting corners on employee hiring and compensation in a high-touch service business like this never leads to a good outcome - Flight Options will see more owners departing soon if things don't change.

 

[TORCH67]

There was never labor problems with the G-crews as far as I know! Why would Owner services blame it on pilots when the fair haired chosen ones have been loyal to RTS?

 

[gunfyter]

Excellent post Magoo112.


I would not lay it all on the Sales and Owner reps people. I would go higher. People are given tasks or jobs and not the support or authority required.

Systemic flaws in the design of the operation require someone with the proper level of management authority to Identify and Fix.

OR they need to Delegate that authority ... which means you must PAY more for the quality of individual with the education experience and talent to make Executive decisions.

 

[NotFurloughed]

Thank you.

Thanks so much for the insightful post. It’s good to hear it from the horse’s mouth – so to speak. Let me tell you that such an experience is more the norm than the exception.

I have been at the table during owner negotiations and heard the old line, “you need to go how far? With how many people? Yes, X aircraft can do that, all day, everyday, with full pax, full fuel, 99% Boeing winds, from ASE at ISA +20. We’ll go ahead and put that in the contract.” Sure you will….

The “comparable aircraft” clause always cracks me up. Especially when it comes to the larger cabin aircraft. You need an aircraft equal to or better than to your Citation Ultra. No problem, they are a dime a dozen and they can always give you a bigger aircraft to appease you. BUT, when you get to the large aircraft classes such as the Falcon 900/200, Challenger and G’s you have a challenge on your hands. So and so’s G450 is unavailable so what do you do? Get them a GIV from Jet Aviation or TAG. Nope, not going to happen unless you are a “special circumstance customer”, after all that’s an expensive aircraft from an expensive company and we can’t get a break n the price. So the company calls the charter broker/company who they have a deal with to find a large cabin aircraft. They have nothing nearby that size. So what does the owner hear on the phone? “We’ve tried everyone in the area and the best we can do is a (insert inferior aircraft here).” You know why? Because that’s the best price they can get on an aircraft for the least amount of effort. Period. What do most owners do? They complain and eventually take the plane and go on their merry way. Very few owners take it upon themselves to verify that there are indeed no aircraft available in the area. Why should they? After all, aren’t they paying a premium to a fractional company to be the aviation experts?

If you are a lucky customer, you may only have this happen to you a few times a year. But it’s going to happen.

Pretty soon the company has made so many promises that they can’t keep that the people in scheduling, customer support, etc. get a barrage of (rightfully) upset customers on the other end of the phone. AND, due to the fact that there are so many people involved in one particular flight (dispatch, customer support, wx planning, reservation, FBO personnel and on and on) that it’s easy to just blame the pilots. The pilots forgot the catering, the pilots didn’t check on transportation, etc.

In my experience in the fracs it’s interesting that it’s never anybody’s fault when something goes wrong. Very rarely do you get someone on the phone to say “hey, I dropped the ball and I am very sorry….” Usually you get the runaround. It’s like trying to get a hold of a real person at your credit card company. The only people you see face-to-face that can help you are the pilots, so they usually get the brunt of the cleanup work.

The best-case scenario is that some concession is made for the owner as more of a temporary bandaid. Worst case, as was already mentioned, is things come down to litigation – and that gets ugly fast.

The fractional world looks great on paper. It’s an easy sell, usually, but a nightmare to manage. Remember, profits in fractional come from sales. Period. In order to make money a fractional operator has to continue to sell, sell, sell. There is no margin in management fees, no matter what the surcharges are. Operations sucks the cash flow out of an operator at an alarming rate. Anyone who says different has their information wrong, or worked as an accountant for Enron.

The higher-ups at these companies know the financials, and if sales are made, things will keep rolling. Current customers are lame-ducks as far as profit. The money has been made, and the contract signed. Next please. This is a sad fact of a capitalistic society. Add to that the always profitable aviation industry (smile) and you have a cut-throat business. The biggest incentive that the upper-level management has to insure day-to-day operations run smoothly is to minimize losses. This leads to a trend. As sales begin to dip, more attention is paid to the operations side. As sales pick up, less attention is given. If it aint broke don’t fix it.

During Netjets negotiations the crews threw a wrench into that theory when they started to increase the daily operating costs. Although sales were still strong, operations became more expensive for a number of reasons that have already been discussed on this board. In this specific instance Netjets size was its biggest downfall. The company had to step in the form of a decent contract, that got operations back to its normal costs – and on we go. A contract that, in reality, cost the company MUCH LESS than a continued slow down would have.

The crews, and employees in general, are underpaid – plain and simple. This is NOT the airline business. Companies aren’t selling tickets. They are selling aircraft – damn expensive aircraft – and premium services to some of the wealthiest people in the country. Pilots aren’t flying from LGA to HOU twice a day for 15 days a month. They don’t get to close the door and not interact with the people in the back. They do much, much more than fly the airplane. And as already stated are the only ones that the customer really sees after the contract is signed.

They should be kept happy…and I think more companies are going to find that out the hard way….

 

[magoo112]

There was never labor problems with the G-crews as far as I know! Why would Owner services blame it on pilots when the fair haired chosen ones have been loyal to RTS?

Why blame it on the pilots? Because they can. Blaming the problem on the guy standing in front of me is a hell of a lot easier than saying “Yolanda in Owner Services” screwed up big time.

 

[magoo112]

The “comparable aircraft” clause always cracks me up. Especially when it comes to the larger cabin aircraft. You need an aircraft equal to or better than to your Citation Ultra. No problem, they are a dime a dozen and they can always give you a bigger aircraft to appease you. BUT, when you get to the large aircraft classes such as the Falcon 900/200, Challenger and G’s you have a challenge on your hands. So and so’s G450 is unavailable so what do you do? Get them a GIV from Jet Aviation or TAG. Nope, not going to happen unless you are a “special circumstance customer”, ...QUOTE]

Couldn't agree more. The issue of Charter subs is misrepresented.
Time and again both operators created disasters. On charter substitutes in December (a common occurance) I booked two months out and said “I need a plane with room for 4 pairs of skis and luggage as I am going to EGE." When I found out I was getting a charter substitute I asked them to verify the luggage capacity would be OK. Guess what, it wasn't. What did we have to do? Put them in the aisle. The FA on that flight found this rather amusing, but I did not.
It is as if I went to Hertz and rented a Ford Expedition. I needed a lot of room. Instead of an expedition to carry our bags and seat 8, I for an Explorer which seats 5 and carried bags for less. Now, if I won’t take that s*** from Hertz, why would I take it from a company managing my share in a plane?

The crews, and employees in general, are underpaid – plain and simple. This is NOT the airline business. Companies aren’t selling tickets. They are selling aircraft – dang expensive aircraft – and premium services to some of the wealthiest people in the country. Pilots aren’t flying from LGA to HOU twice a day for 15 days a month. They don’t get to close the door and not interact with the people in the back. They do much, much more than fly the airplane. And as already stated are the only ones that the customer really sees after the contract is signed.

They should be kept happy…and I think more companies are going to find that out the hard way….

Pay your people what they deserve! You are spot on, with Fracs (especially large cabin) flying some of the wealthiest people in the world, many of their housekeepers make more than their Frac pilots. I do know that when I was with the Fracs, my driver was making more than the pilots I met. He only has to worry about driving a car, NOT a 35 million dollar aircraft. All it will take is one crash in a FracJet program carrying a billionaire and his family being flown by an overworked, underpaid crew to cause the industry to fold in on itself. It is their WORST NIGHTMARE. No matter how much management gets paid, they will never be able to solve that problem.

My business partner owns a G-V. He used to be in NJ but needed a full plane (downgraded to a NJ Hawker when it is just him). I use the plane occasionally and compensate the fuel and fbo costs. I have talked with him and have a general idea of what the whole setup costs. He will be the first to acknowledge the disadvantages of owning the plane outright, but he said to me “I can pay them what I want, and it is a hell of a lot more than what the fractionals pay. Why would I risk the life of my grandchildren in 50 million dollar plane when the guy flying it is paid .2% the cost of the plane annually. If I need more pilots I’ll hire more pilots. Last thing I want them to be both exhausted and to worry about a mortgage payment in bad weather.”

To drive the point home further, the Captains of those 60m yachts worth 50+ million new easily are paid 250K annually at the low end—and he has a crew of 12 assisting him. Now, if the risk of death in a plane is so much greater with pilots being stressed to the max, why not give them a fair shake?

 

[magoo112]

Yes, yes, yes!!! Again, I have been amazed in the corporate world at how charter, fractional and management companies go overboard for the worst customers; yet ignore their high-quality bread-and-butter, low-maintenance customers. Then again, I suppose those with sucker-shaped mouths always drift towards the slime on the bottom...

Thank you! I see junkets all the time for operators trying to entice people to buy a share in a jet. They make overblown simplified promises and spend millions on ad campaigns to bring in “penny pincher” owners who will complain about service and treat the crews as if they were slaves. I think that there should probably be some more owner input given to how crews are compensated. I know that it wouldnt burn a hole in my pocket to have higher operating costs to help out the guy in the front seat charged with keeping me alive. You are also right that that the only time I EVER got a concession from either operator was by screaming. Well guess what, I did not sign on so that I could have another headache in my life but the opposite. I don't like to yell. If thats who operators are looking for as customers, then I was in the wrong game.

Thankfully now I charter from an operator who knows me, gets me the same plane, and takes responsibility for screwups (which are less prevalent when there arent 50 people meddling on 1 task).

As to the promises made by frac jet operators that their planes are "mansions in the sky." They need to get off their high horse. It's a damn plane. If I wanted a home in the air, I'd put wings on my house. I'm in this game for the convenience of Private Jet travel only. Not for hearing promises which cant be met and dealing with headaches I dont need. By appealing to people who want 5 star meals in the air, you are dealing with people who should probably own their own plane and who have way too unrealistic reservations. After all, most people flying in a G-V won't end up next to the toilet when they dine at Balthazar.

 

[Cautious Belly]

Wow! Maybe a FracJet manager will read your post and give us all $200K raises!!

 

[Diesel]

Interesting that you were owning a GIV that wasn't even in contract negotiations and the pilots were being blamed. They are non union on the Gwhiz stuff.

While I think what you say is dead on most owners don't have your view and I can't even prove you are an owner much like you can't prove I'm a pilot.

Your points are dead on but hey it's the internet everyone is right!

 

[cjdriver]

What did we have to do? Put them in the aisle. The FA on that flight found this rather amusing, but I did not.

Wow, never let them put anything in the aisle, your life may depend on it.

 

[magoo112]

Interesting that you were owning a GIV that wasn't even in contract negotiations and the pilots were being blamed. They are non union on the Gwhiz stuff.

Well, when owners read the WSJ and see the words "union" and "NetJets" in the same article, they automatically assume the worst. Do I love the idea of a union? No. But it is at times necessary. Pilot demands weren’t unreasonable and owners, unlike commercial passenger, are willing to pay to give the pilots what they want. More and more corporations are moving to a frac strategy as corporate flight departments have become incredibly unpopular as of late. It was management’s failed business strategy of always depending on new customers to generate profit which caused the NetJets muckup in the first place. Customer service, trying to use scare tactics, were playing to the lowest common denominator. It worked. I had dinner with who just invested in a share of a GV thought the glory days of private jet travel were over and it was a push to Delta Airlines misery. Customer service and management was under the assumption that passengers were going to “storm the cockpit” and scare a pilot out of demanding more money.

While I think what you say is dead on most owners don't have your view and I can't even prove you are an owner much like you can't prove I'm a pilot.

Well although you may not think I am a (former) owner, you should know that my view is more prevalent than you would believe on the owner side. It doesn't matter to use, we think you guys deserve what the market demands. Obviously NetJets caving ultimately was a tacit admission that their customers would be most unhappy if their holidays and meetings were ruined by massive charter substitutions followed by a rapid sell-off of shares.

Yes, this is the internet. No, I don't always agree with pilots. But when a company such as NetJets, FlexJet, or FLOPS asserts that we (owners) own the jet and the "company" works for us, then we demand results. Otherwise, just as if we owned the plane free and clear, we can change who manages our planes for us.

I'll go a step further, although management and the call centers will attempt to pretend as if they don’t work for owners and only the pilots do, management is ultimately responsible for the collective. If they want to piss us off, go ahead--but be prepared to run a bevy of ad campaigns to replace formerly satisfied customers.

This isn't the airlines, we are willing to pay for service (read: convenience). We aren't willing to pay for airline-style BS. The flight crews are first rate, but management cannot maintain quality customer care.

More and more I know friends who enter into joint agreements where three or more people will jointly own a large, medium and small jet and have the plane managed. They allot time for use and compensate each other for extended use (or lease an additional plane). If the need for private aircraft travel is great enough, these plans are working quite well--with the added benefit of knowing the people who fly you and the plane you fly on.

I will say this though. Many owners do read this, just as many CEO’s read about what is said about them on Yahoo bulletin boards and chatrooms. I can assure people on here that management at the fracs read this. It makes the gold that was once a focus group look like pure drivel. If things got better, I’d go back. But I would need to see real change first.

 

[2EASYPilot]

More and more corporations are moving to a frac strategy as corporate flight departments have become incredibly unpopular as of late.


While I certainly appreciate your POV, I believe what is giving corporate aircraft ownership a black eye is the abuse of egocentic CEO's. My management does not believe in personal use of the aircraft, only business. Given we have a very high utilization rate the fractional model does not work for us. I know, we hired a consultant to do the numbers for us, in excess of a million more. Not a good option unless you merely are interested in keeping a low profile. What was pointed out to us was be careful of the fine print in fractional contracts, it will drive the costs right off the chart.
The best to you in your travels.

 

[Corona]

Yes, this is the internet. No, I don't always agree with pilots. But when a company such as NetJets, FlexJet, or FLOPS asserts that we (owners) own the jet and the "company" works for us, then we demand results. Otherwise, just as if we owned the plane free and clear, we can change who manages our planes for us.

I'll go a step further, although management and the call centers will attempt to pretend as if they don’t work for owners and only the pilots do, management is ultimately responsible for the collective. If they want to piss us off, go ahead--but be prepared to run a bevy of ad campaigns to replace formerly satisfied customers.

This isn't the airlines, we are willing to pay for service (read: convenience). We aren't willing to pay for airline-style BS. The flight crews are first rate, but management cannot maintain quality customer care.

I will say this though. Many owners do read this, just as many CEO’s read about what is said about them on Yahoo bulletin boards and chatrooms. I can assure people on here that management at the fracs read this. It makes the gold that was once a focus group look like pure drivel. If things got better, I’d go back. But I would need to see real change first.

OK magoo112; your posts have piqued my interest. I'm guessing that by what you've said here about owning corporate jets that you are successful in the business world.

Do you think you (or someone like you) could personally manage NJ (or Flex/Flt Options) and implement your suggested improvements while maintaining profitability and capacity for growth? This is a serious inquiry here; no flame intended...

C

 

[jetwash]

[COLOR=black
[COLOR=black]Well although you may not think I am a (former) owner, you should know that my view is more prevalent than you would believe on the owner side. /SIZE][/FONT]

After reading Magoo112's posts I have to say that he is for real.
The give away was that the posts were well thought out and the spelling and grammer were correct.:laugh:

How many pilots can write like that:0

 

[JustInfo]

Pffffffffft, Jetwash, that was fluid coming out my nose as I read your post! Now that was funny, thanks!

 

[magoo112]

OK magoo112; your posts have piqued my interest. I'm guessing that by what you've said here about owning corporate jets that you are successful in the business world. C

Well, I certainly thank you for your praise.
For some background, I actually am the CEO of a public company that does not have an extensive need for travel and cannot justify (although my employees may feel we should) owning a private aircraft. I feel shareholder responsibility is crucial; thus if I needed a jet, I would own one. If I have to charter a jet I will. However if I have to get to Tokyo, there are 7 flights per day from JFK-NRT that can carry me comfortably and luxuriously. If I need to go from JFK-LAX and am not on a set schedule, why should I have my company spend 70k to charter me a plane to get me there and satisfy my ego? The answer is, I don’t. On the other hand, if a mid-level employee is visiting Dahlonega, GA, Nashville, Waco, and other spots off the track of the commercial airline “Riviera” than he or she can charter a small jet to do their work in one day so he doesn’t miss four days of work.

For personal travel, I will say I prefer the Private Aircraft as my family enjoys it and it’s convenient for our changing schedules and destinations. NEVER would I behave as a Tyco or an Enron CEO and have the shareholders of my company pay for a dog to be sent to NYC to be groomed and sent to us on a vacation in one day. Nor does my company pay for ANY personal travel. I feel sad this is not the norm, but I was raised to be honest. I feel such CEOs are irresponsible and their actions will (and usually do) lead to their downfall. Case in point, we acquired a company centered on one region of the USA (three states to be exact). All of their outfits were near major airports and their home office was near a hub for a major carrier. Yet somehow, through the magic of “creative accounting”, they were able to justify buying a G-III that was mainly used by the CEOs wife. Well, that plane was the first extravagant asset sold off.

Do you think you (or someone like you) could personally manage NJ (or Flex/Flt Options) and implement your suggested improvements while maintaining profitability and capacity for growth? This is a serious inquiry here; no flame intended...

I appreciate your answer. I am guessing you have/had a position at one of the fracs and feel as I do.
It is inevitable that someone with responsibility turns frac outfits around. One of the beauties of the concept is that ideally an owner should be able to logon to a website or pick up a phone and get a plane with no hassle. Sadly, this turns out not to be what occurs. The outfits have seemed to require owner input in managing the planes constantly. Further they don’t follow through on promises. Look, anyone who can afford a share is smart enough to realize that a Falcon 50 is NOT suitable replacement for a G-IV, nor is a vintage 601 for a 604. There is no recourse for an owner when he or she constantly gets charter replacements, even on trips booked in advance. The fracs have FAILED here. Don’t lie (which is what they are doing), don’t tell an owner that their plane will have range to go from TEB-EGE if you are assuming there is light baggage, two pax, and there are perfect conditions for flight, don’t make the customer mad. The more spent on these deals, the more angry an owner will be when he or she doesn’t get what is promised.

The “worse case” scenario for fracs is something they must not believe can happen. Pilots must be well rested, paid and happy. End of story. G-d forbid a plane crashes with Tiger Woods or a billionaire and his young family and it is due to pilot fatigue or getting a charter replacement with sub-standard pilots, owners will leave like rats on a ship. The only option would be to switch to a Marquis Card / charter model as there will be a surplus of aircraft. This can all be avoided.

How? RAISE the costs of entry, the operating costs, and the hourlies. SAY NO. Hey, if the plane can’t do something, it will be a pain for them and for me if I find out on my first vacation rather than hearing “Sorry Mr. xxx, this plane cant do that. We have another aircraft that may be better suited for yoru needs.” TELL the owners what goes on. I don’t want to find out from a pilot or the WSJ or an internet forum they are unhappy. If pilots have real concerns, there is an obvious solution. As management should ideally be managing my aircraft, they should tell me what goes on. There is currently NO TRANSPARENCY. There should be annual or quarterly reports (similar to a Berkshire Hathaway shareholder letter) with a “state of the program” letter. Maybe there should be a way for owners to vote on KEY ISSUES like pilot pay. We aren’t cheap, we know you guys have kids to put in school, kitchens to remodel, mouths to feed; I would be surprised if an owner couldn’t acknowledge this. In addition, if costs are only recouped by new owners entering the program, well then it is the frac’s responsibility to rectify the situation. Their lack of planning DOES BECOME my problem. Considering there are only so many people in the country able to buy a share or a card, it seems logical to raise fees for current owners. My co-op fees rise, my parking garage fees rise, hell, taxi fees rise. There is no reason why the people who manage our aircraft aren’t ensuring that in the event of a lack of new owners that fees can cover a good portion of payroll and bills. My co-op isn’t going to say that our only source of income will be new owners. It would be dumb (for lack of any better adjective). Why should fracs operate differently?

So the answer you are looking for is yes, I think I could do a better job. Would I desire to? No. Do I think that management at any of these outfits will do a thing until they either A.) Go bankrupt, B.) Suffer a fatigue related crash, or C.) Are crippled by a strike? No. It seems that there is a lack of communication and they will keep adding more owners to the deck of cards until it crumbles. But it can be done, and one of the three fracs will disappear and deal with a s***load of unhappy owners before the other two wake up and smell the Starbucks.