NJA Struggling?

[starcheckdriver]

I am hearing rumors trickle out of Netjets that furloughs are just around the corner. Is there any truth to this or is this just rumor based on what happened at FLOPs recently? I do not work for NJA so all of this is hearsay.

 

[Fozzy]

I have heard nothing of the sort. Could it happen, sure. Is it imminent? I don't think so.

 

[Diesel]

Trust me even if NJ had to furlough they wouldn't. Remember this game is as much about appearance as it is about profit. NJ wants to show that they are stronger by not furloughing. Especially if CS hasn't furloughed.

Remember Furloughs show that a company might be weak and the owners who are investors might feel that their investment is not sound.

In the grand scheme of things the pilots are really part of the smallest costs out there unlike the airlines.

 

[fischman]

It is a rumor. I spoke with an NJASAP eboard member last week and he said at this time the company has no intention in coming to the union for furloughs. He also said NJA management has been doing some impressive cost saving measures proactivly. What they are? I have no clue.

 

[fly4funcrj]

It is a rumor. I spoke with an NJASAP eboard member last week and he said at this time the company has no intention in coming to the union for furloughs. He also said NJA management has been doing some impressive cost saving measures proactivly. What they are? I have no clue.

They have asked the magic 8 ball "Magic eight ball, are we saving money?"

Magic 8 ball "yes"

Now a vp of something has just saved his job

So far, furloughs are a figment of someone's imagination. However, I believe if netjets was looking at prolonged (over 8 months-1 year) of decreased flight demand, they probably would furlough. If they feel this could only last for 6 months or less, the cost of retraining and stuff would exceed the savings of furlough.. Just an opinion..

 

[gutshotdraw]

Diesel is correct (I always hate to admit that :bawling: ). As long as the company isn't bleeding owners (and therefore their monthly management fees), Netjets does just fine when airplanes don't move. Some would tell you it is actually more profitable for the airplanes to sit. That's not exactly true because the company makes most if its money by selling airplanes.

I don't know what our current churn rate is but I do know that we have picked up two Fortune 500 clients in recent weeks as they closed down their flight departments because of depressed stock prices. They don't want to risk complaints from shareholders about the company owning airplanes. They still aren't going back to the airlines but a fractional share or flight card solves lots of PR problems for huge companies.

How much longer do you think it will be before Ford or GM (both?) close their departments down after the PR beating they took last week?

 

[hydrarkt]

I heard that Ford is seriously considering closing their flight department. And I don't think that they'll be flying on Northwest!

 

[Diesel]

Its nice to hear a captain say he's wrong. I don't hear it nearly enough.

Remember the crews are really the cheapest part of the Fractional model.

Relax everything will be fine. Everyone is in a downturn but there are 5 year contracts.

 

[F/O]

How much longer do you think it will be before Ford or GM (both?) close their departments down after the PR beating they took last week?

Dunno, but this quote from David Axelrod didn't sound too good for them:

"I hope that they will come back to Washington in early December — on commercial flights — with a plan,"

http://news.aol.com/article/obama-intensifies-focus-with-economy-in/257320

 

[jonjuan]

Relax everything will be fine. Everyone is in a downturn but there are 5 year contracts.

Not according to this...

http://www.fractrade.com/

 

[brokeflyer]

its just rumor, I spoke to "dad" last week and this came up. If we woulda hired another 300 this year THEN MAYBE a few would have to be let go.

I think that is a big part of the slow down in hiring. Since the demand is so great to work here they know they wont have trouble finding anyone. So its better relax the staffing for growth to prevent a lay-off.

 

[o2bflyn]

Not according to this...

http://www.fractrade.com/

It looks like its a company that trades contracts. It does not necessarily mean the contracts go away. Actually a pretty innovative idea. I don't think you are going to see a drop in existing contracts because of it. Maybe for other reasons, but not because of this company.

Pretty ironic that its run by an Ex-Netjets/EJM employee.

 

[jppt2000]

It is amazing to see the Netjets haters

It's impressive to see the Netjets-fractional-haters come out of the woodwork.

Why does someone from Netjets and/or other fractionals always reply to threads like this as if they're obligated to defend their company's financial position on an anonymous internet messageboard?
It's amusing to read the conjecture from anonymous pilots who allegedly "are in the know" about the financial health of our company.

I also now see junior folks I fly with worried about an impending layoff based on rumors.
Wow, imagine what their families, loved ones, must be going through if they bring these venom-based rumors home.

Why generate fear, uncertainty and doubt by reacting to unsubstantiated rumors posted by anonymous messageboard posters?

Why not use our union messageboard for rumor control.
Let the (NJA-frac-haters ) look for their entertainment elsewhere.

PS: this is pretty much true for all businesses:
Paraphrasing uncle Warren:
You have to wait for the tide to go out before you learn who has been swimming naked.

 

[Diesel]

An Ex employee that was thrown out of his office and just fell off the face of the earth.

 

[o2bflyn]

An Ex employee that was thrown out of his office and just fell off the face of the earth.

ah.....did not know that.

 

[Trash8Mofo]

I also now see junior folks I fly with worried about an impending layoff based on rumors.
Wow, imagine what their families, loved ones, must be going through if they bring these venom-based rumors home.

Because when it comes to furloughs, reacting to FACTS is too late.

There certainly are lots of NJA haters out there; probably due to jealous. Jonjuan for example, seems like he prays that NJA would furlough so it proves how "insightful" he has been.

But the basis for these fears are not rumor. The market has dropped to 12 year low. Which means if your monies had been making a conservative 6% return year after year, you would have been even-steven. If you had put your money in CD or money market and made lower returns, you are now better off stuffing em inside the mattress in the first place. Scary.

 

[NachoMamma]

I don't know what our current churn rate is but I do know that we have picked up two Fortune 500 clients in recent weeks as they closed down their flight departments because of depressed stock prices. They don't want to risk complaints from shareholders about the company owning airplanes. They still aren't going back to the airlines but a fractional share or flight card solves lots of PR problems for huge companies.

This is a potentially HUGE source of new revenue for the fractional industry in general. Just another reason that I wouldn't worry about furloughs quite yet.

It's amusing to read the conjecture from anonymous pilots who allegedly "are in the know" about the financial health of our company.
I also now see junior folks I fly with worried about an impending layoff based on rumors.
Wow, imagine what their families, loved ones, must be going through if they bring these venom-based rumors home.
Why generate fear, uncertainty and doubt by reacting to unsubstantiated rumors posted by anonymous messageboard posters?
Why not use our union messageboard for rumor control.
Let the (NJA-frac-haters ) look for their entertainment elsewhere.

Excellent post.

 

[AvroJockey]

I'm new at NetJets, and I can tell you that the only time I worry about being furloughed is when I come to FI.

One of things that blew me away was how much money this company throws around. If things got tight there's many places the company could save $$$ before they start furloughs.

Seriously, I would give up my free Patagonia jacket and coffee mug I just got to save a few jobs!

All the fear mongering is what is making our economy worse! Sometimes I wish pessimism was banned.



On another note...Is it too early to crown Favre as the league MVP? That guy is awesome!!!

 

[glasspilot]

I'm new at NetJets, and I can tell you that the only time I worry about being furloughed is when I come to FI.

One of things that blew me away was how much money this company throws around. If things got tight there's many places the company could save $$$ before they start furloughs.

Seriously, I would give up my free Patagonia jacket and coffee mug I just got to save a few jobs!

All the fear mongering is what is making our economy worse! Sometimes I wish pessimism was banned.

Giving up a jacket the company already bought doesn't really solve anything does it? Future expenditures are what's required to be reduced to save money.

If I were a NetJet dude I would be thinking about better utilization (read not sitting at an FBO all day but remain on rest at the hotel even if it means I have to answer the phone), and maybe even a few fewer crew meals. Personally it makes me sick when I know the company that's going to pay for my kids college paid $60.00 for something that I could have got INSIDE THE SAME BUILDING for $4.50.

enjoy that 4th crew meal of the day ya'll. What are the odds that career FO's are on property as we speak? My guess is some of 'em may be in the left seat now...

Believe it or not I wish every pilot the best of luck in these very uncertain times.

 

[jppt2000]

If I were a NetJet dude I would be thinking about better utilization (read not sitting at an FBO all day but remain on rest at the hotel even if it means I have to answer the phone), and maybe even a few fewer crew meals. Personally it makes me sick when I know the company that's going to pay for my kids college paid $60.00 for something that I could have got INSIDE THE SAME BUILDING for $4.50.

enjoy that 4th crew meal of the day ya'll. What are the odds that career FO's are on property as we speak? My guess is some of 'em may be in the left seat now...

This is an example of a misinformed individual, who clearly knows not what he's talking about.
I don't think you're generally interested in our well being or I'd explain to you why we can't sit on rest at the hotel and answer the phone if called.

Great, giving "advice" when you have no clue what you're talking about.
Thanks for your concern