Let the rumours FLY ....

[gunfyter]

http://www.dispatch.com/live/content...0.html?sid=101

NetJets sees a bit of blue sky
Chairman expects a profitable year, with stable staffing, perhaps growth through acquisition
Monday, January 18, 2010 2:58 AM
By Marla Matzer Rose
THE COLUMBUS DISPATCH

Eric Albrecht | Dispatch

NetJets' David Sokol

...

NetJets Chairman and CEO David Sokol predicted last week that the Columbus-based company will be profitable this year and that staffing levels will remain stable.

...

Growth in other ways remains somewhat of a possibility for NetJets.

Sokol said he's been approached by a number of smaller competitors interested in selling their businesses to NetJets. He said there's only "one potential deal" that's being worked on, and it could occur in the coming weeks. He said that deal would involve NetJets taking on the customers of the other company.

Other deals would have involved taking on more debt, something that's not in NetJets' plans.

...

"I feel really good about NetJets. I think we're on a really solid foundation," Sokol said. "I'm very happy with Columbus and the fact that we consolidated operations and brought the headquarters here."

The company always has had its operational base in Columbus but had maintained its administrative headquarters in New Jersey until last fall.

A number of smaller competitors have approached NetJets about selling their businesses, he said.​

 

[OPECJet]

Interesting, but I'd prefer not to be recalled at someone else' expense (if this would even start recalls).

 

[William Holiday]

Hmmm, that's very interesting.

 

[Jack Campbell]

Even if this deal doesn't go through, it shows Sokol is looking to capture market share in a slower market, which is exactly what a strong company needs to do now. This is gonna be interesting.

 

[DUATS]

How about this scenario: NetJets buys Flight Options. Then Bombardier and Cessna spin off Flexjet and CitationAir into a new company better positioned to compete with the 800 pound competitor.....

 

[jetmaster727]

Flex is the one worth buying!

 

[gunfyter]

Flex is the one worth buying!

I don't think we want any more airplanes (or more TYPES of airplanes) ... we have too many. Or more pilots ... we just furloughed. And the article said it won't involve taking on Debt... So is Bombardier wanting to give Flex away for free?

Its kind of hard to figure this one out.

 

[Flex-ible]

I don't think we want any more airplanes (or more TYPES of airplanes) ... we have too many. Or more pilots ... we just furloughed. And the article said it won't involve taking on Debt... So is Bombardier wanting to give Flex away for free?

Its kind of hard to figure this one out.

I agree that Netjets probably doesn't want any more types of aircraft; they need to continue consolidating.

Any purchase would probably be some type of stock swap to keep Netjets and Berkshire-Hathaway from issuing new debt. I would guess the debt mentioned in the article is existing company debt. And I haven't seen a recent balance sheet for FX, CS, or FLOPS - but I would guess FLOPS probably has more debt than the others, since Bombardier and Textron can absorb the debt themselves.

 

[Pervis]

Note that it says taking the customers, not the crews, assets and debt. It most likely involves buying up existing contracts, giving the customers an option they may not have right now.

Merging two companies would create too many problems right now. What would happen to the pilots still employed with the Frac that gets absorbed by Netjets while Netjets has 482 pilots furloughed? Merging two groups by date of hire works with the NJA/NJI situation because we have always been part of the same outfit. The furloughs affect both units. Any other acquisition would be like the USAir debacle. Way too many bad feelings would create a very unhealthy environment right now.

 

[Jack Campbell]

The article talked about Netjets taking on the customers of another outfit, not buying another company. They seem to be looking for a way to increase traffic, perhaps through some sort of fractional version of a code-share? What they DON'T need now is more aircraft types, or to open discussions on how to merge seniority lists after almost 500 of us are trying to find new jobs. They DO need more traffic, though.

 

[gret]

ARGUS lowered the November flight activity numbers and they were flat with 2008. December 2009 was 5% less than 2008.

http://www.traqpak.com/

 

[imacdog]

This thread really doesn't have significance until General Lee gives his opinion.

 

[RJ Bum]

This thread really doesn't have significance until General Lee gives his opinion.

lmfao

 

[smartelephant]

I bet the compnay in question is Flex. That's why Fred has been lashing costs all year so as to make the balance sheets look attractive to a potential buyer. As a condition of the sell, Bombardier gets the exclusive rights to all new NetJets aircraft purchases for a predeterminded number of years, plus a big launch customer for the Lear 85 in 2012. There won't be a pilot issue because NetJet's current staffing levels can absorb the demand(that's just my guess), and if they do need more pilots in the future, they just furloughed more than Flexjet has on their entire roster. So, they just bring those guys back instead of stapling the Flex guys to the bottom of the NetJet's senority list.
Then again I could just be full of sh^t !!!

 

[BeenThereDoneIt]

A friend at Avantair told me that NJ was talking about buying out Avantair. Makes senses...........the payroll expense would actually go DOWN! LOLOLOL Or, it could just be a rumor.

 

[Willy21]

I bet the compnay in question is Flex. That's why Fred has been lashing costs all year so as to make the balance sheets look attractive to a potential buyer. As a condition of the sell, Bombardier gets the exclusive rights to all new NetJets aircraft purchases for a predeterminded number of years, plus a big launch customer for the Lear 85 in 2012. There won't be a pilot issue because NetJet's current staffing levels can absorb the demand(that's just my guess), and if they do need more pilots in the future, they just furloughed more than Flexjet has on their entire roster. So, they just bring those guys back instead of stapling the Flex guys to the bottom of the NetJet's senority list.
Then again I could just be full of sh^t !!!

I think you may be on to something here. The manufacturers are looking for ways to sell airplanes. I wouldn't be surprised if this deal came with a large order or exclusive deal for aircraft in certain segments of the market, ie mid-size and entry level. NetJets just dumped the Cessna and Hawker/Beech orders. To me that says Flex or Options may be the targets. (I believe that Embrear and F/O have some ties correct?)

It will be interesting and hopefully that will allow our 482 brothers and sisters to come back soon.

 

[jetwash]

And I haven't seen a recent balance sheet for FX, CS, or FLOPS - but I would guess FLOPS probably has more debt than the others, since Bombardier and Textron can absorb the debt themselves.

When Raytheon sold Flight Options to HIG almost all the debt was wiped off then so HIG started with a clean slate. All the debt occurred in the last 2 years was probably off set by the selling off the aircraft during our "right sizing" which ended last year when Ricci bought in and took majority control with his managers.

The little man has too big of an ego to sell FLOPS to Netjets.

 

[DirtyBeech]

There was an AIN article that referenced a merger that was pointed out to me be a Flex management pilot. He was adamant that I read the paragraph regarding the merger with little other comment. Just a thought. Could be nothing.

 

[Club ORD FO]

I doubt it is flex. The quote implied skokal would take the customers not the airplanes. The fleets are too different, challenger owners would not be happy about switchin to another plane.

Maybe they are buying a charter/jet card outfit? Easier paperwork there

 

[CRJFlyer]

Interested to see how this one plays out...

A large glut of new customers through agreement, increased flying through perceived economic prosperity, plus less loss of current owners, plus any potential new owners/sales...The economy will get better and there will be new owners...If this all comes to fruition it may shorten my 2 yr. prediction before the first recall..

My prediction..first recall will happen in time to have those pilots online by Fall of 2011 (first recall maybe around summer 2011 or so?) We should be very very busy by then. Depending on any catastrophes that may occur between now and then...Management will want to save some face and not have any call backs within atleast a 12-18 month timespan...Only regional airlines like to have the egg on their face....