Are the fractionals recession proof?

[7777]

Thoughts?

 

[Count]

NO, do you think there are any Bear Stearns people at Netjets?

 

[cush]

Looks like we're going to find out! But, what tends to happen is we lose a few owners out the bottom, but gain others as they sell their fully owned aircraft for shares.

 

[realityman]

NOTHING is fully recession proof. However, I do believe the fractionals have a better chance at successfully weathering bad economic conditions than most companies that cater to the average Joe.

 

[CALRepublic]

NOTHING is fully recession proof. However, I do believe the fractionals have a better chance at successfully weathering bad economic conditions than most companies that cater to the average Joe.

I second that. A reccesion is going to hit everyone. NOBODY is recession proof....

 

[Some guy]

The people who are truly rich will always have money.

There are more millionaires in the United States today than there has even been.

No, we are not recession proof but I don't think we get hit nearly as hard as other industries. I think if oil hit $250 a barrel today, that would hurt more than a recession.

SG

 

[glasspilot]

I don't know the answer but I suspect the above posts are correct that nothing / nobody is recession PROOF.

I do know that I'm glad I fly a plane that goes just shy of 500 miles in one hour on less than 100 gallons of gas. I'm hoping that makes me furlough proof.

 

[StarHustler]

Not recession proof, but perhaps, recession resistant...

 

[BlueandWhite]

I've always assumed that frac's would do better than airlines in times of recession, but have data to back that up.

My assumption: Fuel would be a higher percentage of the cost of an average airline ticket than it would be for for the cost of owning a frac share. Frac customer pays more for fuel, but a lot more for just owning part of a jet. I might be way off, but I'd love to see if anyone can provide more hard #'s.

 

[CALRepublic]

I've always assumed that frac's would do better than airlines in times of recession, but have data to back that up.

My assumption: Fuel would be a higher percentage of the cost of an average airline ticket than it would be for for the cost of owning a frac share. Frac customer pays more for fuel, but a lot more for just owning part of a jet. I might be way off, but I'd love to see if anyone can provide more hard #'s.

Don't forget one thing, If the airlines raise their ticket prices to counter the price of oil, NetJets still has to buy 200,000 airline tickects (or whatever the amount is). Let's not just look at it as how much we're paying for fuel, is everything