Article on NetJets & Bombardier

[Starman]

http://www.glgroup.com/News/Bombard...play-involving-NetJets--Bombardier-52825.html

Here is an interesting part:

"The future of Flexjet?

As for Flexjet, the NetJets order for Globals (and the prospect of a follow-on order from Bombardier a very real likelihood) does not look bode well for their future. It begs the question: what benefit would Bombardier have in sustaining Flexjet if they’re selling aircraft to other fractional providers? The answer is not much. Furthermore, if NetJets, the industry’s largest fractional provider was losing money from operations, it’s a safe bet to assume that Flexjet is not a major contributor to Bombardier Aerospace’s earnings whose current EBIT margin is mired at 5%. Flexjet also never lived up to the promise of migrating fickle fractional customers into traditional aircraft buyers (but to be fair, no fractional ownership provider did, including NetJets). It is therefore well within the realm of possibilities that a potential NetJets mid range aircraft order from Bombardier for L85s and CL300 could have Flexjet as a throw-in."

 

[208starcheck]

Didn't take long for someone to lob this hand grenade in here.:bomb:

 

[ArtVandalay]

I speculate Netjets is looking for a single-point seller, and found it in Bombardier. Lets be realistic here, Cessna is a virtual dead company right now. No new product innovation and barely staying alive for the last few years and no future new aircraft on the horizon. Raytheon, well, we all know that is a dead horse. That leaves Embraer and Bombardier, obviously Gulfstream is out of the picture now. They will buy Phenoms from Embraer and everything else from Bombardier. Now, Bombardier will finally get what it wants, what it couldn't and can't get from Flexjet, aircraft sales on record orders.

What happens to Flexjet?? It is Netjets biggest profitable competitor and Bombardier is not going to let a profitable entity choke to death. IF this goes down,(the continued sale of multiple aircraft types to Netjets), Flexjet WILL be acquired and, it's that simple.

 

[doh]

This is a very real possibility.

 

[G200_PILOT]

Didn't take long for someone to lob this hand grenade in here.:bomb:

Ha!!!! And it wasn't me!!!!

 

[SpaceBall 1]

NetJets will cancel the orders. That way they can have screwed every aircraft manufacturer! :laugh:

 

[johnsonrod]

Sounds like classic Sokol: kill two birds with one stone. Get some great pricing deals on good aircraft while killing off a competitor.

I bet Fred GREED will end up with a real nice payday...

 

[Willy21]

Fred will probably join the ranks of NetJets as the Executive Vice President of NetJets Express. That subsidiary will create a new market segment using 50 seat RJs to feed the Globals. How can that idea miss?

 

[G4dude]

I don't think the Global announcement will affect Flexjet at all. They are not players in the ultra long range market.

 

[Helmsalee]

G4, the key is not the Globals. It depends on whether this order leads to other orders in the midsized fleets.

 

[BARNSTORM]

The Lear 85 is the only thing that will save Flexjet. Bombardier already screwed flex by selling their best plane,(Challenger 300), to their competitor. Now Bombardier took Fred Reeds one and only vision for flex, (Globals), and trashed it. What's left?

 

[superfly]

Flexjet

I would have to agree Flex is ok for now, but if NJA orders 120 LRJ85's and C300's look out. Expect a no compete clause on the 85 and Platinum C300 (exclusive NJA).

Time to dust off that logbook, SWA's app window is open...

 

[johnsonrod]

I would have to agree Flex is ok for now, but if NJA orders 120 LRJ85's and C300's look out. Expect a no compete clause on the 85 and Platinum C300 (exclusive NJA).

Time to dust off that logbook, SWA's app window is open...

Jet Blue, Allegiant and VA are also hiring...

 

[wolfpackpilot]

NetJets management has stated numerous times the recent aircraft purchases are replacements and that there is no 'net' growth from these orders. Furthermore, the CEO has said they see NetJets growing financially stronger, by becoming smaller.

I fail to see how a FlexJet purchase could add to NetJets bottom line... and don't trust me, trust the CEO who has said; "if it doesn't make a profit, we don't do it".

 

[LAZYB]

NetJets management has stated numerous times the recent aircraft purchases are replacements and that there is no 'net' growth from these orders. Furthermore, the CEO has said they see NetJets growing financially stronger, by becoming smaller...

That's all in "context".

The possibilities suggest potential change in "context".

ymmv