CS selling off shares?

[208starcheck]

I just heard a bunch of guys in the crew lounge talking about CS trying to sell off some of their shares to other companies. Any truth to this or just gossip?

 

[flagshipper]

I honestly don't get what you are asking. They can outside charter owner flights but they can't just "sell off" shares to other companies. It is not wall street.

 

[DO-82 driver]

I cannot comment of the above post but I can state that I did a static demo last week in the greater BOS area and 3 of the 4 people who showed up were CURRENT CS owners.

The NJ sales rep was very pleased.

 

[208starcheck]

I honestly don't get what you are asking. They can outside charter owner flights but they can't just "sell off" shares to other companies. It is not wall street.

Your confusion is exactly my question. I didn't get it either. The discussion was not about individual flights being sold off. They were talking about reselling the share to competitors. I asked a bunch of questions and when others heard what was being said, they confirmed it.

 

[johnsonrod]

I think I read that CS recently hired someone who has great relations with corporate flight departments (I can't remember his previous organization). Perhaps those pilots were referring to attempts to sell shares to corporate flight departments to provide extra/supplemental lift...

 

[tdwnds1]

From another forum there is talk about CS chaning its name to CitationAir. I looked it up and that business name has been filed in Greenwich with the CS address.

Really dont know what it all means, but maybe there are trying to reposition themselves and thier business plan since no fractional that I know of, at this time is taking delivery of new aircraft (therefore new shares).

Could be they are going to exclusively sell the jet cards as that would be the only area that I see any growth for the moment.

 

[GSXR600]

I think I read that CS recently hired someone who has great relations with corporate flight departments (I can't remember his previous organization). Perhaps those pilots were referring to attempts to sell shares to corporate flight departments to provide extra/supplemental lift...

If this is their new idea to get more business, they are 110 years behind their competitors. I believe NJ, XOJet, for sure FXJT, don’t know about FLOPS, had been doing it for a while now. Couldn't tell ya how successful the program had been.

 

[brokeflyer]

yeah you hit that opne right. Netjets has ben doing that since day one. Many of our biggest sales was from corporations that ALREADY had a flight dept. It still works well and it didn't take long for the rest of fractionals copied what we did and expanded.

This isnt a suprise.

 

[bailout]

I cannot comment of the above post but I can state that I did a static demo last week in the greater BOS area and 3 of the 4 people who showed up were CURRENT CS owners.

The NJ sales rep was very pleased.

I can say the same thing about doing CS demos with current NJ owners showing up. Thats common ground. There are a small percentage of owners who constantly swap back and forth for some reason.

 

[Sparse]

If this is their new idea to get more business, they are 110 years behind their competitors. I believe NJ, XOJet, for sure FXJT, don’t know about FLOPS, had been doing it for a while now. Couldn't tell ya how successful the program had been.

CS is doing anything it can do to generate business. They are being aggressive in block time and aircraft management. About 10% of the fleet is indivually owned but CS managed. Lot's of news coming down in Sept. New name is just one aspect of it.

 

[fly4funcrj]

This is the time that all fractionals are having to re-evaluate certain aspects of the business and make adjustments.. Lets hope for the best.

 

[ArtVandalay]

If CS sold their shares wouldn't they just be called Citation?

 

[tdwnds1]

Well that would make sense...by getting out of the shares business ..CitationShares becomes..CitationAir by Cessna.

 

[flagshipper]

They are not get getting out of the shares business. They use to refuse to do one time charter request. A minimum investment was a 25 hour card but the way I understand it in addition to managing wholly owned aircraft, selling and managing shares, and jet cards they will actually do one time charter requests as well. The name change is to better reflect their wide range of services available because most think they only sell shares. Every fractional is desperate now and they like the airlines want butts in the seats.

 

[Humphreybogart]

I cannot comment of the above post but I can state that I did a static demo last week in the greater BOS area and 3 of the 4 people who showed up were CURRENT CS owners.

The NJ sales rep was very pleased.

I too have done demo's for CitationShares where the owners were currently with NetJets. Some went with us, some stayed at NJ. These days smart business people weigh their options. I'm sure your sales rep was pleased, he should be pleased with ANY leads he gets. Believe me, your not discovering fire here.

 

[bunman45]

I was told that at the last recurrent class, our chief pilot at flex commented that we were trying to negotiate a purhchase of another fractional. Maybe there is some truth to it.

 

[gunfyter]

I cant see Bombardier buying Citations.

Maybe XOJet

 

[cherry20's]

I cant see Bombardier buying Citations.

Maybe XOJet

That would be more Citations... Don't think that one will happen!

 

[tdwnds1]

While consolidation in the fractional market looks like a good idea on paper, I dont see it happening soon. I dont think any of the fractionals are in the financial position to buy another.

I think what you will see first is a change in the way each fractional does business. In a pretty much saturated market, its all a matter of "putting butts in seats" as someone here said. If that means going back to an on-demand charter model in some part of the business than so be it, if it increases revenue.

Until things recover, its about survival.

 

[cherry20's]

Sounds a lot like the XOJET model.... Hmmmm

I could definitely see some consolidation in the Fractional/Charter world, but who would buy who???