Fractional M&A's

[AftCG182]

Shared a van to the HGI with a Flexjet crew last night. They seemed convinced that Netjets is going to buy Flexjet so that they can get the Global Express. Said that there was a Netjets-sponsored static display up in Montreal recently that featured the Global.

Personally, I like what was said earlier about combining XOJet with Avantair. The types compliment each other perfectly.

Now, if we could just retrofit those Challengers with some props...

 

[x402]

Shared a van to the HGI with a Flexjet crew last night. They seemed convinced that Netjets is going to buy Flexjet so that they can get the Global Express. Said that there was a Netjets-sponsored static display up in Montreal recently that featured the Global.

Personally, I like what was said earlier about combining XOJet with Avantair. The types compliment each other perfectly.

Now, if we could just retrofit those Challengers with some props...

Why would NJA need to 'buy' Flex to get Globals ?

"Hi I have 30 mil can I buy an express????"

 

[jonjuan]

I said it before - XOJ and Avantair. They are the only ones without fleet overlap. XOJ needs a smaller light jet for efficiency in short or single pax missions and the piaggo may provide that. Avantair needs real long range jets for it's fleet that can handle Fla to Colorado, Chicago, etc. No overlap here and not 10 different fleet types. The combined 3 fleets handle what most people need.

It makes more sense. All the other have too much duplication and would be too expensive to just add owners.

And once again, you're wrong. Fleet types and their combination have little to do with synergies. You are ignoring balance sheets, debt levels, investor sentiment and other factors. Combining vastly different revenue sources is akin to mixing oil and water. What would the benefit be of combining companies in your estimation? One is a frax, the other a charter company.

 

[gret]

Jeez..I find NJAowner to be on target most of the time. Your points may be valid and right on, but you didn't elaborate.

Fleet types and their combination have little to do with synergies... They would seem to have everything to do with synergies.

You are ignoring balance sheets, debt levels, investor sentiment and other factors....I think he was talking about operations, not financial issues. Doesn't matter anyway as all the fractional operators have less than stellar balance sheets and the investors would be overjoyed if they got 10 cents on a dollar of their investment. This won't happen as the selling entity would have to come up with cash to pay the buyer for taking the business off their hands. The tail on the buyback obligations are astronomical. TravelAir had over $600 million when they combined with FLOPS and they only had about a 100 a/c and most were of the smaller cabin variety.

Combining vastly different revenue sources is akin to mixing oil and water...Isn't his called diversifying risk?

One is a frax, the other a charter company....All fraxs are charter companies. Didn't NetJets buy a charter company because they wanted to expand their charter business as their share sales sucked and had to salvage what they could from their biggest customer?

What is the fascination with XOJet? There are a/c mgmt companies out there with bigger fleets that would seem to be be better partners as they don't have debt laden balance sheets, or buyback obligations.

 

[X-rated]

disregard.

 

[SharkBait]

I have to agree xo+avantair. Never considered it but makes sense. I just hope XO+avantair does not equal xair...

On second thought, it won't happen. Southwest would never get a new fleet type.

 

[cherry20's]

I don't think XO would ever merge with Avantair... Not the marketshare we are looking for.

 

[cherry20's]

What is the most senior DOH at XO? Just curious

2005 I think... Why?

 

[t-bone]

Why?

Mergers...Acquisitions...merging of pilot lists??? Come on Cherry!

 

[X-rated]

2005 I think... Why?

9/29/02.

non management- 6/6/04