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Fractional growth for 2006

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Guitar Guy

Charvel - San Dimas
Joined
Oct 14, 2004
Posts
1,770
From the latest AINalerts e-letter:

Fractionals Poised for Growth in 2006
The major U.S. fractional providers appear to be poised for growth this year, if estimates of pilot hiring and aircraft delivery intake are accurate. NetJets recently said it plans to hire 450 pilots this year, and New York-based analyst UBS Investment Research predicts that the New Jersey-based fractional provider will take delivery of 76 business jets by year-end. Dallas-based Bombardier Flexjet plans to hire 135 pilots in 2006, and a source close to the company said it will take delivery of 20 Learjets and Challengers this year. UBS estimates that Flight Options and CitationShares, which didn’t provide pilot-hiring expectations for 2006, will take delivery of five and 24 business jets, respectively. Avantair, which sells shares in Piaggio Avanti twin turboprops, told AIN that it plans to hire 80 to 100 pilots and take delivery of 24 Avanti IIs by year-end. Atlanta-based aviation employment consultant AIR Inc. projects that fractionals will hire 1,000 pilots this year.
 
Guitar Guy said:
From the latest AINalerts e-letter:

Fractionals Poised for Growth in 2006
UBS estimates that Flight Options and CitationShares, which didn’t provide pilot-hiring expectations for 2006, will take delivery of five and 24 business jets, respectively.

Yup...doesn't sound too broke to me....;)
 
Exactly! And ....A RISING TIDE SHOULD LIFT ALL BOATS.....too...
 
Every time I undergo yet another TSA "gate rape", or wedge my standard- sized 40R frame into a CRJ (or ERJ) "size 29R lawn-furniture" seat, I'm reminded of why fractionals will continue to grow for quite some time.
 
Are you people on drugs? The fractionals have lost money since their existence and you all all thinking everything is fine. No business can go on indefinitely without showing a profit. Run a search on the WSJ or Business Week about the frac business. Wall Street is not sold on the business model since it has not shown a profit. Show me in black and white where NJ, CS, Flex or Flops is making money.
 
And you believe that?! You really think that WB bought a failing, unprofitable business?? And NJ Inc started all the other NJ companies around the world just to pour more money down the drain, did they? The NJA pilots know the business made lots of money. The profits just weren't kept in America. I have no doubt that the other frac companies are equally adept at hiding profits from pilots. After all, poor companies don't order new planes.
 
netjetwife said:
And you believe that?! You really think that WB bought a failing, unprofitable business??

FWIW-

WB had a large amount of USAir stock a few years ago...... he got out while it was sinking & took a fairly large loss.

320AV8R
 
320AV8R said:
FWIW-

WB had a large amount of USAir stock a few years ago...... he got out while it was sinking & took a fairly large loss.

320AV8R

...and that's why he probably wouldn't make the same mistake. Fool me once...

WB owns USAIG and through several of his insurance companies has a significant interest in Global Aerospace - 2 of the big 3 aviation insurance companies. http://www.namesline.com/ubb/Forum2/HTML/000076.html

We're talking cash flow, leverage, and the time value of money. The Av insurance companies also make a profit.

Google Buffet, the USAIR deal doesn't make him a net loser...;)
 
Who makes $$$

The business models are all different. Flex and CS never need to "make money" on paper since they are not stand-alone businesses and have very valuable business reasons to be "loss leaders" -- i.e., sell planes and intorduce future customers to product.

FLOPs doesn't make money and the reasons can be discussed for a while. It is not a true shill for Ratheon aircraft (note 2 of the 4 remaining fleets are not Raytheon product).

NJA is a different story. Even though the rest of the industry may have trouble, now there will always be a need for fractional jets. The industry may grow at a slower rate, or even contract in time, but will not contract significantly nor go away. There are many customers, like myself, who do not need nor want an entire aircraft, and are not thrilled about the great majority of 135 operators.

Fly safe.
 
NJAowner said:
The business models are all different. Flex and CS never need to "make money" on paper since they are not stand-alone businesses and have very valuable business reasons to be "loss leaders" -- i.e., sell planes and intorduce future customers to product.

FLOPs doesn't make money and the reasons can be discussed for a while. It is not a true shill for Ratheon aircraft (note 2 of the 4 remaining fleets are not Raytheon product).

NJA is a different story. Even though the rest of the industry may have trouble, now there will always be a need for fractional jets. The industry may grow at a slower rate, or even contract in time, but will not contract significantly nor go away. There are many customers, like myself, who do not need nor want an entire aircraft, and are not thrilled about the great majority of 135 operators.

Fly safe.

Do tell how you got into that positon NJAOwner ;-)
 

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