Best Positioned Fractional

[Publishers]

Our experience is that most of the people who sold off during this downturn have not even used charter since the aircraft went away.
Most of them had a comfort level with crew and own aircraft not translateable to franctionals.

 

[ArtVandalay]

It's ironic that whoever YOU work for is doing "better" than the other. Dumb question.

 

[Publishers]

I think we would all be tremendously naive to think that the developments of this week are not taking a toll. Read the latest BCA or other rags and look at things like used aircraft inventory, fuel sales into business aircraft, business operations.
We are not insolated from this and the failure of credit markets would have a tremendous impact on everyone in it.
Dayjet did not fail because people did not like it. Not even because of the aircraft. They failed because money was no longer available. You may find that hte car lease you want or the purchase money is no longer there.

 

[LizardEyes]

Agreed!!

Publishers you hit it on the head. If you have never called your congressman or woman. DO IT!! Tell them to bite the bullet and vote for this. If the credit markets seize there may only be NETJETS left. When you are big you might have more flexibility to shrink. Don't get me wrong all the big four are equally exposed. IF you don't think credit is the engine of our industry think again. NJ just might get through. If this bill passes there are still gonna be some slim times until all this bad debt gets through the system. I hope I am wrong but furloughs are a possibility til the economy gets back to where it was 12 months ago.

 

[Publishers]

I was reading yesterday on the impact on the jet order board of people having difficulty financing the new purchases.

 

[blueridge71]

The way I see it, the fractionals may lose some owners due to financial difficulties.

On the other hand, that will probably be somewhat offset by people/companies who sell their single-owner aircraft for a share.

 

[Helmsalee]

OK, maybe it will hurt us. But look at what you are leaving for your kids! It's tragic that no one can take the long view. It is always "What does this do to ME NOW."

 

[Flex-ible]

I was reading yesterday on the impact on the jet order board of people having difficulty financing the new purchases.

The problem, which is affecting cars as well as airplanes, is the difficulty in establishing resale value. Three years ago, SUV's had pretty good resale value so lease payments were low. Now, the leasing agencies are getting these SUV's back and getting SLAMMED because of the poor resale value.

Financiers of aircraft are in the same boat. Many "owned" aircraft are actually leased (for various reasons, chiefly having to do with our complex and convaluted tax system). That money has dried up, at least in part because the leasing companies cannot determine what the residual value should be.

AIG is the largest aircraft leasing company in the world, owning many of the planes operated under 121. It was considered one of the valuable pieces of the company before the bailout - but they have not devalued their inventory yet.

 

[gunfyter]

Financiers of aircraft are in the same boat. Many "owned" aircraft are actually leased (for various reasons, chiefly having to do with our complex and convaluted tax system). That money has dried up, at least in part because the leasing companies cannot determine what the residual value should be..

Begin HiJack

All the more reason for the Fair Tax

End Hijack

 

[jonjuan]

Please post your reference.
Because as per our President, we are not the ones with unsold aircraft.

Someone's president was lying.