If Warren sells NJA, is that a good thing?

[doh]

Are you sure that applies to a new owner, or just to another entity of NetJets or Berkshire? This is not my area of expertise, but I find it interesting that a buyer from the outside would be required to honor our contract.

Company A buys company B, are they still obligated to pay the bills company B accrued? Of course! Obligations to stockholders and creditors are in force even though ownership has changed hands. All contracts are still in force. You really didn't know this??

 

[imacdog]

I wouldn't worry too much about ol' G. The fud campaign has had its effect on him.

 

[pilotyip]

Company A buys company B, are they still obligated to pay the bills company B accrued? Of course! Obligations to stockholders and creditors are in force even though ownership has changed hands. All contracts are still in force. You really didn't know this??

unless of course it is an asset sale, like Lorenze (sp?) did with EAL assets to CAL. Sell at 10 cents on the dollar as a business decision and make the entity purchased worthless while building the other company he owned. All the EAL people became unemployed. A strike by ALPA had no effect on the liquidation of EAL. Read "Hard Landing" for further details

 

[ghostrider64]

Best thing that would happen after a sale, the evisceration of the current EMT. I'm all for it.

 

[FamilyGuy]

In 2009, we are very lucky we weren't threatened with dissolution if deep salary cuts were not agreed to, or an outright firesale. I am amazed Warren kept us afloat. I would not have done so in his position. And he now has a pretty obstreperous workforce trying to embarass him. Hmmm.
By the way, someone said we are "wildly profitable." I wish that were true.

I wouldn't go that far. Operationally the company was profitable. But we did have a liquidity crisis that could have forced the company into BK without WB's backing. WB tends to take the long term view and I think he knew it was still a profitable company in the long run.

Your point about NJ not being 'wildly profitable' is correct. NJ is a marginal business at best. Compare its results to the other companies in the BRK portfolio and you'll see that NJ is one of the weaker companies in BRK.

I've never had too many concerns about WB selling NJ. One of his principles and selling points to people looking to sell their businesses is that he will keep them for the long term. I've long thought that the more likely scenario for a sale is when someone replaces WB. That individual will want to show that they can deliver similar results to WB. One of the easiest ways to do that is to cull the herd and shed the weaker players in the portfolio.

 

[ghostrider64]

That individual will want to show that they can deliver similar results to WB. One of the easiest ways to do that is to cull the herd and shed the weaker players in the portfolio.

Unfortunately for us, G4dude is a "union member" and can't be culled, he's the weakest of all Netjets employees.

 

[G4dude]

Unfortunately for us, G4dude is a "union member" and can't be culled, he's the weakest of all Netjets employees.

Or the least gullible.

 

[G4dude]

Company A buys company B, are they still obligated to pay the bills company B accrued? Of course! Obligations to stockholders and creditors are in force even though ownership has changed hands. All contracts are still in force. You really didn't know this??

I am not an expert, or even competent, on the subject of labor law.

 

[imacdog]

Or the least gullible.

The company sure seems to have you hook, line, and sinker.

 

[ghostrider64]

He's a self proclaimed scab wanna be....not much else needs be said about him or his proclaimed 80% that agree with him in the G. Best case is we get sold, and the G's get parked. He'd love life being displaced into the phenom.

 

[G4dude]

He's a self proclaimed scab wanna be....not much else needs be said about him or his proclaimed 80% that agree with him in the G. Best case is we get sold, and the G's get parked. He'd love life being displaced into the phenom.

Phenom flying would be fine with me. Looks good on the ramp.

 

[gutshotdraw]

In 2009, we are very lucky we weren't threatened with dissolution if deep salary cuts were not agreed to, or an outright firesale. I am amazed Warren kept us afloat. I would not have done so in his position. And he now has a pretty obstreperous workforce trying to embarass him. Hmmm.
By the way, someone said we are "wildly profitable." I wish that were true.

1) NetJets was NEVER in danger of folding the tent, even at the absolute bottom of the downturn. The potential civil liability for the Breach of Contract class action lawsuit ran into the multi-BILLIONS. It was WAY cheaper for Berkshire to throw a couple billion dollars at the operation (since paid back, WITH interest) rather than face a courtroom full of lawyers and a jury that LOVES to mine a deep pocket.

2) NetJets IS wildly profitable based on RETURN ON INVESTED CAPITAL. NO aviation business ever posts big numbers on RETURN ON REVENUE which is what the EMG and BH are demanding. 4% Is HUGE in this business. BH has roughly a billion dollars presently invested in NetJets. Last year's profit was north of $225 million. That is an AWESOME return on invested capital which is the TRUE measure of the success of an investment. Not to mention the contributions NJ makes to the bottom line of BH's FlightSafety subsidiary and whichever BH insurance company covers our airplanes.

Uncle Warren and the rest of the EMT rely on the economic ignorance of many of its employees in order to shape the argument to their advantage.

 

[ghostrider64]

Gutshots, scabs are like evangelicals. They pretend to listen to you, but while you speak they go into a trance and pray for your soul. They actually hear nothing you say.

He's a scab, and they only see what's best for themselves. It's time to marginalize anything he and his ilk espouse.

 

[nordo_2]

Gutshots, scabs are like evangelicals. They pretend to listen to you, but while you speak they go into a trance and pray for your soul. They actually hear nothing you say.

He's a scab, and they only see what's best for themselves. It's time to marginalize anything he and his ilk espouse.

Is g4 a scab? G4 are you a scab?

 

[G4dude]

Best thing that would happen after a sale, the evisceration of the current EMT. I'm all for it.

I certainly agree with you on that!! Fire all department heads and keep the hard worker bees. We finally agree on something.