Avantair dumping?

[jonjuan]

http://finance.yahoo.com/q?s=AAIR.OB
Marketcap of $15mil? Yikes...

 

[BentOver]

What I haven't been able to figure out, and this is not a knock against Avantair or any of the fractionals...

If NJA is losing soo many owners etc.. It doesn't appear they are heading directly to the other fractionals.. Otherwise I think we'd be seeing mass hiring at those places?

As it stands, no fractional is doing much of anything besides maybe some very limited hiring....

opinions/theories?

 

[ditchpilot]

Its the same cycle that Doomed timeshare condos vacation clubs....
Owners who can afford to buy those who cant rent.

 

[cldsfr79]

What I haven't been able to figure out, and this is not a knock against Avantair or any of the fractionals...

If NJA is losing soo many owners etc.. It doesn't appear they are heading directly to the other fractionals.. Otherwise I think we'd be seeing mass hiring at those places?

As it stands, no fractional is doing much of anything besides maybe some very limited hiring....

opinions/theories?

There's no big boom going on at the fractionals because the owners who are bailing are either going to just charter or they are buying their own planes. With used private jets still at a historic low prices, owners can buy their own aircraft instead of paying for a share at a fractional.

Yes, NJA is rumored to be losing owners. Speculation among the pilots is that NetJets inc. is cannibalizing its customers. Instead of having an owner renew a contract, they are selling them a whole used plane and then placing the plane on EJM's certificate. The owner gets to now have their own plane and make money off of side charter. NJA shrinks, EJM grows and NetJets Inc cashes in and NJA pilots lose. Just rumor though....

 

[BentOver]

There's no big boom going on at the fractionals because the owners who are bailing are either going to just charter or they are buying their own planes. With used private jets still at a historic low prices, owners can buy their own aircraft instead of paying for a share at a fractional.

Yes, NJA is rumored to be losing owners. Speculation among the pilots is that NetJets inc. is cannibalizing its customers. Instead of having an owner renew a contract, they are selling them a whole used plane and then placing the plane on EJM's certificate. The owner gets to now have their own plane and make money off of side charter. NJA shrinks, EJM grows and NetJets Inc cashes in and NJA pilots lose. Just rumor though....

It sounds like a valid rumor.... My only dissent from that opinion is that there are only so many un-occupied planes. With multiple owners per plane even if 2 or 3 owners were up for renewal, the fleet of available a/c would diminish very quickly, leaving partially owned a/c that cannot be just sold and put on EJM's certificate.

If 8 peeps owned an a/c and 1 or 2 left, what a/c are they going to be sold if there are not all that many left to be sold?

 

[rajflyboy]

Avantair needs to get some King Airs. They will be able to sell this aircraft much better than the Piaggio.

 

[AftCG182]

Avantair needs to get some King Airs. They will be able to sell this aircraft much better than the Piaggio.

Yeahhhh... The King Air joke has pretty much run its course. I've got tons of time in various Beech products, so I'm speaking with affection when I say that we're not a King Air.

We're not having any trouble selling shares. What we are having trouble with is keeping up with demand. Some of it's seasonal, some not.

I'm sure that you've noticed that although the economy has improved overall, we're still a long way from where we (the Fractional industry) needs it to be.

Again, I love the King Air. I'm a turboprop guy to the core. The Avanti and the King Air are two very different animals.

 

[G4dude]

There's no big boom going on at the fractionals because the owners who are bailing are either going to just charter or they are buying their own planes. With used private jets still at a historic low prices, owners can buy their own aircraft instead of paying for a share at a fractional.

Yes, NJA is rumored to be losing owners. Speculation among the pilots is that NetJets inc. is cannibalizing its customers. Instead of having an owner renew a contract, they are selling them a whole used plane and then placing the plane on EJM's certificate. The owner gets to now have their own plane and make money off of side charter. NJA shrinks, EJM grows and NetJets Inc cashes in and NJA pilots lose. Just rumor though....

The other reason is we are still in a very weak and precarious economy, so prospective owners are waiting to see if we go into another recession or worse.

 

[fischman]

The other reason is we are still in a very weak and precarious economy, so prospective owners are waiting to see if we go into another recession or worse.

The DJIA has been averaging over 11,000 for about a year. Unemployment is at 8.6%, and every other fractional is growing. I wonder when we can stop using the weak economy excuse and start using the real excuse of piss poor management?

 

[Gators]

Avantair needs to get some King Airs. They will be able to sell this aircraft much better than the Piaggio.

What?