FlexJet and a slow death.

[BlueNose]

http://www.aviationweek.com/Article.aspx?id=/article-xml/awx_09_05_2013_p0-613283.xml

Ken Ricci buying Flexjet

Here's a new nugget from the article:

Also as part of the sale, Bombardier is selling its 49% stake in Flexjet partner Jet Solutions, which held the Part 135 certificate and contracted to provide charter flights for Flexjet. The 51% stakeholders of Jet Solutions, including President Dennis Keith, are buying the remaining portion of their company, but will maintain their strategic relationship with Flexjet, says Flexjet President Deanna White.
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So that answers the question of who operates the 135 flights, at least for a while. Flex maintains its relationship with Jet Solutions, and Directional does not have majority interest in a competing air carrier, which avoids the 1109 scope LOA.

 

[shanes123]

The Grim Reaper has visited Flex Jet.. R.I.P.

 

[el raton]

The Grim Reaper has visited Flex Jet.. R.I.P.

Just curious, do you believe $183 million was spent just to shut Flexjet down?

 

[doylehargraves]

Just curious, do you believe $183 million was spent just to shut Flexjet down?

Probably not BUT, now we know the REAL number of what Flexjet was worth. You figure it was maybe at most making a 8 percent profit(and that is generous). So, figure around 11 million a year coming in. That's some nice leverage for credit for, hmm, other things. Yea they ordered airplanes but, the math doesn't add up to me: $1.5 billion dollars (up to $5.1B) for aircraft purchases for a 200 million dollar company? That's like someone making a $100,000 a year and buying a $1.5 million dollar house. To me, I would be nervous right now at Flexjet. I'm certain all the ACP's are putting out fires right now assuring everyone that "this is a good thing". Be careful, that's all I'm going to say.

 

[SDCFI]

Remember Flexjet's assets are limited to the core fleet and any property (Waterview). The majority of the aircraft belong to the fractional owners. So the ? isn't how can a 183 million dollar company buy over a billion dollars worth of aircraft but can the company find enough customers to fill those positions. And the next question is if those customers don't materialize when the aircraft come online is the holding company going to front the purchase money and for how long? We're now playing the "if you order it they will come" game, and if we lose I doubt the new owners will be as willing as Bombardier to take some losses while they wait for things to turn around, if they even do.

 

[shanes123]

Just curious, do you believe $183 million was spent just to shut Flexjet down?

If I need to explain it..Then you wouldnt understand it!

 

[el raton]

If I need to explain it..Then you wouldnt understand it!

I see you excel at being an ass.

 

[Sparse]

Fractionals buy far fewer aircraft than they order. I flew a Sovereign that was originally a NJ Sovereign. Paint scheme and everything. The transaction history shows it was transferred to a new owner at 11 hours. Those 11 hours were test and proving flights. NJ never flew it. You get big press when you order aircraft, not when you take delivery. The fractional model is not what it used to be. It will be interesting to see how this plays out.

 

[DirtyBeech]

The new order is pretty much what Flex was going to do anyway. The options and possible Globals or G's is something Flex was never going to have the wherewithal to do.

 

[doylehargraves]

My guess is the only reason the word "global" is being used in this whole thing is to calm those with big-plane-itis. How about space shuttles? There's a few of those laying around isn't there?