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Fractional growth for 2006

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Crossky said:
""Here's looking at you Kid . . . ""

Granted regionals hire FO's at less experience but RJ CA's usually have as much experience as Fractional CA's and make 30K less annually.


Kid, you're gonna have to show me the data on that one...I know Captains at Regionals who have topped out, and miss the mark by (roughly) 20K from Frac pilots. Again, generalities - not proven details. This is why we'll drive metal for our whole life.
 
I have no objection to overseas expansion, as long as, it doesn't come at the expense of the pilots and their families. Frac companies should pay the pilots they already have on staff, like the professionals they are, before hiring others.
 
gunfyter said:
Yes it is in Black and White in the Berkshire annual reports that NJA has made profits.

from the Bershire Hathaway 2004 annual report (the latest one available at berkshirehathaway.com):

NetJets earned a modest amount in the U.S. last year. But what we earned domestically was largely offset by losses in Europe. We are now, however, generating real momentum abroad. Contracts (including 25-hour cards that we ourselves market in Europe) increased from 364 to 693 during the year. We will again have a very significant European loss in 2005, but domestic earnings will likely put us in the black overall.

The 2005 annual report will be posted at their web site later today.
 
In other words, NJA was carrying NJE. Their European counterparts were being subsidized by the American pilots that were paid less, although they generated more profit for the company. How much do you suppose a conglomerate like BH considers to be a "modest" amount? :rolleyes:

I won't be surprised if NJA is free to report a greater profit now that the contract dispute is settled. If they don't, it's not because they aren't. It will mean that NJ Inc is still using NJA to carry their other companies. It should be easy enough for them to continue that unfair practice. After all, not all of the NJ pilots receive the professional wages that are their due. It is my hope that Flt Ops pilots will be able to raise the bar for the FOs in the industry. If each frac group takes a turn pulling, eventually, you'll all be able to stand on the high ground together.
 
I believe over the course of the entire history of airlines in the United States there is a net loss....and that's with 50 years of government price regulation. I think running airplanes is one expensive business and that companies and individuals do it because those shiney jets are just so darn sexy!
 
Warren Buffett's Annual Letter to Shareholders

netjetwife said:
The NJA pilots know the business made lots of money. The profits just weren't kept in America.

From Warren Buffett's Annual Letter to Shareholders (28 Feb 06):

Operating results at NetJets were a different story. I said last year that this business would earn money in 2005 – and I was dead wrong.

Our European operation, it should be noted, showed both excellent growth and a reduced loss. Customer contracts there increased by 37%. We are the only fractional-ownership operation of any size in Europe, and our now-pervasive presence there is a key factor in making NetJets the worldwide leader in this industry.

Despite a large increase in customers, however, our U.S. operation dipped far into the red. Its efficiency fell, and costs soared. We believe that our three largest competitors suffered similar problems, but each is owned by aircraft manufacturers that may think differently than we do about the necessity of making adequate profits. The combined value of the fleets managed by these three competitors, in any case, continues to be less valuable than the fleet that we operate.

Rich Santulli, one of the most dynamic managers I’ve ever met, will solve our revenue/expense problem. He won’t do it, however, in a manner that impairs the quality of the NetJets experience. Both he and I are committed to a level of service, security and safety that can’t be matched by others.

Nixon
 
Nixon,

This is no surprise for 2005.

"...solve our revenue/expense problem."

DONE! All he had to do was settle the pilot's contract. As an examply I have already flown a many hours in the last 3 months since the contract was finished as I had for the 6 months prior. A 100% increase in pilot productivity. Flying 55 hrs last tour alone.
 
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