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Great frac article

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excellent post. i'm pretty sure the "sales lady" who talked to my new hire class mentioned they don't negotiate price! which based on this article means the "remote" owner is getting one hell of a deal and the east coast owner is getting screwed. i wonder if this will change in the future?
 
www.aia-aerospace.org/pdf/smc_wp-fractionalaviation.pdf

It containes some really good insights into the industry. Well worth the read.

This article reminded me why I left my MBA behind to go fly airplanes - only an accountant can really love all those numbers.

N.B. Flexjet has become profitable since the article was written in '06. I imagine at least one other fractional is also profitable.
 
I imagine at least one other fractional is also profitable.

Like maybe NetJets.

Oh, and also Flight Options - no wait they achieved 'profitability' by firing pilots and selling off airplanes and all their other stuff so I don't think it's very long-term.
 
www.aia-aerospace.org/pdf/smc_wp-fractionalaviation.pdf

It containes some really good insights into the industry. Well worth the read.

Wow - this was a great article. Gives you a sense of why these fractionals need to build their fleets quickly to reduce repositioning times. That has been Avantair's achilles heal for a long time until recently - you need the coverage on high-demand days or you will pay through the nose...
 

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