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Best Positioned Fractional

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I'm just a 3 year guy at NJ and love it here, and I'm no business model guru, but the impression I get is that NetJets growth model is to fracs as SWA is to the airlines... growing steady and deep rather than fast and thin. The growing pains of sim delays etc would now appear to have a silver lining, by not saddling us with too much "excess" growth. Maybe I'll make career FO after all, but still not a bad gig vs accelerator/brake.

Clearly fracs in general are a better place to be than the airlines, and it would take a deep global recession to really hurt us. But of course, that's not out of the question in the next year or two- and good luck and at worst, soft landings to all.
 
notapilot said:
On the other hand Netjets has much higher unsold shares and higher crew ratios but can bleed losses for a longer period of time. The leader will end up being the company that continues to provide excellent customer service and provide a reliable value to the owner.
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Please post your reference. :confused:
Because as per our President, we are not the ones with unsold aircraft.
 
jonjuan said:
The longer range intl trips typically have lower margins than the shorter domestic trips, in part due to deadhead. It's not uncommon for many 6+ hour deadheads to pick up/drop off a G-V owner in Bali, for example.
If FlexJets or any other frax starts to operate the GLEX, many of their new owners will certainly come from NJI.
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If a deadhead is required outside of the standard coverage area, the owner has to pay for those re-positioning legs with all the fractional programs. And since NJ has a MUCH larger coverage zone, owners pay much lower international positioning fees with Netjets versus any of the others. And rich people are pretty good at advanced math.

Let's just say I'm sleeping pretty good at night about my job security. Even better every time I airline and get the double bend-over from the Thousands Standing Around.
 
johnnyride24 said:
XOJET
We all know they are the best!!!!:nuts:
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Appreciate your post and all, but I originally asked for no pom-poms or mine is bigger than your's types of posts. Let's keep this on track.

That being said, WHY do you think XO is the best and how do you feel they're positioned for a slow economy? Do you think their model of operations is better suited for a slow economy? Why?
 
jonjuan said:
The longer range intl trips typically have lower margins than the shorter domestic trips, in part due to deadhead. It's not uncommon for many 6+ hour deadheads to pick up/drop off a G-V owner in Bali, for example.
If FlexJets or any other frax starts to operate the GLEX, many of their new owners will certainly come from NJI.
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I agree with the Global aspect. I think if one of the Frac's ever gets into Globals - they could attract a tremendous amount of long haul type owners. My understanding is NJ is anti-Bombardier from something years ago with Santulli. That leaves Flex, as a Bombardier company the logical choice for a Global program - yet they don't seem like they can bring them in to their fold. That's why in an earlier post I referenced their hiring of Fred Reid. He has alot of int'l connections after establishing the Alliance program for Delta, connections and experience that could go along way if Flex ever recognized what the Global could do for them. Opinions???
 
The difficulty in this business is the deadheads. When you work some area like the east coast corridor, then things are fairly easy. With international, and, very remote areas like lets say Billings Montana and you have one client there who calls for his share of a Citation X to run to LAX, you tend to have more trouble locating and deadheading the aircraft. When you have a GV down in Russia and have to get a replacement, it costs through the nose. These are just some of the issues that make it very tough to make it profitible.
This is also what makes growth past a point hard.
 
FastJP4 said:
Appreciate your post and all, but I originally asked for no pom-poms or mine is bigger than your's types of posts. Let's keep this on track.

That being said, WHY do you think XO is the best and how do you feel they're positioned for a slow economy? Do you think their model of operations is better suited for a slow economy? Why?
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I think efforts to predict the long term future of aviation businesses are always futile....even in the fracs. I liken such endeavors to astrology.:D
 
If you take the time to read about many of the obstacles that NJ had to overcome to deal with Europe, you will learn that long haul and international are not any panacea or necessarily more profitible than an Excel on the east coast.
Of course the thing that will get hurt the most by the economy of the moment is the travel cards.
I personally think depending on the depth of the crisis, that Flops and others will have a real hard time going forth as projected. Jet fuel sales for the last month down 7.6% nationally.
 
Fozzy said:
Please post your reference. :confused:
Because as per our President, we are not the ones with unsold aircraft.
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Sorry for the delay in getting back to you. I will look for it. I think it was in AIN a few months ago. Also, I know Flexjets unsold aircraft number and I am certain it is less than Netjets. This is mainly because Flexjets low growth rate compared to Netjets. We typically don't get aircraft unless they are sold. Supporting open shares is an expensive proposition unless you can sell them fast. Netjets does seem to be good at that. Flexjet is about as lean as a fractional can be.

All that said, the present economy does not worry me.
 
brokeflyer said:
lol....right. Its running about a year waitlist for new owners right now.

Unless you think we need 400+ per year cause the rest of us are lonely.....hahaha
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Needing 400 per year might also have something to do with your crew ratio of 7 compared to our 4. The funny thing is you are arguing a point that allows you to enjoy many benefits others of us don't have. We are slimmer than you and that isn't something I am always proud of. I forgot Netjets does everything better.

As far as the 401k goes I am happy buying most of my fund shares for less than $30.
 
notapilot said:
Needing 400 per year might also have something to do with your crew ratio of 7 compared to our 4. The funny thing is you are arguing a point that allows you to enjoy many benefits others of us don't have. We are slimmer than you and that isn't something I am always proud of. I forgot Netjets does everything better.

As far as the 401k goes I am happy buying most of my fund shares for less than $30.
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im not arguing anything, im correcting your misinformation.
 
GSXR600 said:
lol.lol....u guys and this famous waiting list ah??
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So i've been told. I just flew an owner last week that said his partner finally got into the program after waiting for a XL for about 8 months.

But you could be right, he could be just lying to me.
 

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