$100 dollar barrel of oil and Fractionals

[MALSR]

How does $100 barrels of oil affect the fractionals vs. the airlines. I know you guys pass some of the cost onto owners but will that discourage them too? Lets face it, oil prices are going to keep climbing with global industrialization and such. I'd like to figure out if this could be good or bad for those of us considering jumping from 121 jobs to fractionals. Thanks in advance.

 

[Sparse]

How does $100 barrels of oil affect the fractionals vs. the airlines. I know you guys pass some of the cost onto owners but will that discourage them too? Lets face it, oil prices are going to keep climbing with global industrialization and such. I'd like to figure out if this could be good or bad for those of us considering jumping from 121 jobs to fractionals. Thanks in advance.

I heard the CEO of CS say, with my own ears, that price was not the concern, but availability was.

 

[johnsonrod]

How does $100 barrels of oil affect the fractionals vs. the airlines. I know you guys pass some of the cost onto owners but will that discourage them too? Lets face it, oil prices are going to keep climbing with global industrialization and such. I'd like to figure out if this could be good or bad for those of us considering jumping from 121 jobs to fractionals. Thanks in advance.

I am no expert, but don't the fractionals still get hit on the repositioning flights that they have to pay for????

I really doubt that an owner who can afford a share in a $10-30 million airplane would care that much about the incremental fuel cost... They may notice the difference (business people, for example, will notice the bottom line), but that would not be enough to avoid flying fractional - anything to avoid flying commercial with all of the crowds and TSA hassles...

 

[Murphy]

When I interviewed with NJI, their sales pitch was that when the economy was good, business was good because people had money to try fractional flying who hadn't tried fractionals before.

When the economy was down, corporations shutdown/reduced their corporate flight departments and turned to fractionals because they still had travel requirements.

Fractional sales pitch to the interviewees was that it was a win-win situation for the fractional business model regardless of the state of the economy and a good reason to not do the Part 121 gig.

I didn't get hired by NJI and am doing the 121 gig. I've got friends at NJI and NJA and they have nothing but good things to say about the job.

 

[CA1900]

How does $100 barrels of oil affect the fractionals vs. the airlines. I know you guys pass some of the cost onto owners but will that discourage them too?

We have people who'll send a Falcon to pick up their dogs (and only their dogs) to fly them to get a haircut. I guess everybody has a limit, but I don't think we're anywhere close to it.

I'd like to figure out if this could be good or bad for those of us considering jumping from 121 jobs to fractionals. Thanks in advance.

I think it'll have a much, much stronger impact on 121 carriers than fractionals.

 

[Freight Dog]

Fractionals pass the buck to their customers - a novel idea that most airlines haven't figured out.

My former boss owned a 2004 King Air 350. When I interviewed for the job, price of oil was $55/barrel. I asked him what would happen if oil hit $80-90/barrel, he said - not a thing, it's the cost of doing business.

Well, oil hit almost $100/barrel. He sold his King Air 350, and bought a brand new Hawker 900XP.

People worth that money simply don't care what it costs - they don't want security lines, they don't want to be poked by TSA, they don't want to take their shoes off, they don't want bitchy flight attendants, they don't want to fly sandwiched on some regional jet, they don't want to sit next to smelly NASCAR fans on SWA or Skybus, or some brat kicking their seat all the time without the parent doing a thing about it, and they're willing to pay for it.

 

[GSXR600]

How does $100 barrels of oil affect the fractionals vs. the airlines. I know you guys pass some of the cost onto owners but will that discourage them too? Lets face it, oil prices are going to keep climbing with global industrialization and such. I'd like to figure out if this could be good or bad for those of us considering jumping from 121 jobs to fractionals. Thanks in advance.

You have to remember that this is not the kind of people that go on travelocity.com and look for the cheapest fare........if the can afford a share of a 20 million dollar airplane, I think a fuel increase will not be a problem....they need to get where they need to get regardless of what the cost is!!.....soo to answer your question NO it should not be a problem.

 

[Buckeye]

Warning

FREIGHT DOG THIS IS YOUR ONE AND ONLY WARNING....LEAVE US NASCAR FANS ALONE!!!!

WE ARE TO BUSY :beer: TO WORRY ABOUT PERSONAL HYGEINE :laugh: .

 

[RNObased]

I heard the CEO of CS say, with my own ears, that price was not the concern, but availability was.

And how was he concerned with availability??? Or did he say??

 

[208starcheck]

If gas was $100 a barrel, would you stop driving?