Fractional sales increase 108% at Flex! Really?

[gret]

From today's AIN Alerts-

Fractional provider Bombardier reported an 83-percent rise in new business growth in the first quarter versus a year ago. During this period, its fractional sales reportedly climbed by 108 percent, while new jet card sales rose by 48 percent. During the Easter travel weekend, Flexjet recorded flying hours at levels not seen since the height of the market in 2007. As a result, Flexjet said it is currently hiring pilots to satisfy the increasing demand. ​

Something smells here.

Saying you increased fractional sales by 108% would mean you need twice as many planes as you had last year.

If you sold 2 last year and then 4 this year, you have increased "new" business by 100%.

Which one is it?

Do we have some slight of hand in wording similar to NetJets statement of a couple of weeks ago?

 

[imacdog]

If you sold two shares last year and four this year, and are managing several hundred shares total, that would be a doubling of sales but not mean a doubling of needed airplanes.

 

[Rouge Warrior]

See what happens when you put an accountant in charge, jk
This will help with selling Flex

 

[gret]

A more accurate and useful reporting would be revenue flight hours.

The headlines don't tell us how sales are measured...was it-

• the number of shares or equivalent "whole " aircraft?
• the amount the shares were sold for?...could be very misleading if you sold 10 Lear shares last year and 5 Lears and 5 Challengers this year.
• the revenue flight hours?...no way...you would have to double the fleet by assuming normal utilization both years

Who knows...guessing it is the year over year increase in new owners that signed up (which is a very low base to measure from) and not the total number of owners.

If sales drop 50% in one year, they have to increase 100% the next to get you back where you were...the 100% increase sounds great, but not really meaningful unless you know the whole story

Numbers...without explanation can be very misleading.

 

[OPECJet]

Numbers are like people. If you torture them long enough, they'll tell you anything you want to hear.

Hope this means some upgrades and recall for you guys though!

 

[exagony]

It may have something to do with the new president not allowing the sales dept to make excuses for not meeting sales goals... If so, its a long overdue and welcome change

 

[gunfyter]

No Gret.

Increase in new sales is useful too. As long as we understand what we are talking about.

What I believe it means in NEW owners joining the program. That portion of business increased 108%. This is a good thing.

 

[Propilot77]

no gret.

Increase in new sales is useful too. As long as we understand what we are talking about.

What i believe it means in new owners joining the program. That portion of business increased 108%. This is a good thing.

right

 

[gret]

No Gret.

Increase in new sales is useful too. As long as we understand what we are talking about.

What I believe it means in NEW owners joining the program. That portion of business increased 108%. This is a good thing.

I agree that it is probably the increase in new owners that signed up year over year and not the total book of business.

The point is that so many companies are now being clever with their headlines to make their point. Our government does it all the time with the unemployment figures. The headlines scream that the unemployment rate fell and things are getting better...then when you go to the details the rate fell because so many people left the workforce and gave up trying to find a job.

Whatever measuring tool that is important to you, all factors should be considered.

BTW, here is a link to the actual press release if anyone is interested-

http://www.flexjet.com/news-and-events/press-releases/269/

 

[X-rated]

The point is that so many companies are now being clever with their headlines to make their point. Our government does it all the time with the unemployment figures. The headlines scream that the unemployment rate fell and things are getting better...then when you go to the details the rate fell because so many people left the workforce and gave up trying to find a job.

A better example is the term "deficit reduction" which all know really means insignificantly reducing the rate at which we continue to expand the deficit.