Interesting Blog on Netjets

[flyjetspeed]

From the author of The Snowball
http://aliceschroeder.com/blog/sympathy-sokol

 

[kf4amu]

Off Topic but that book sucked. Big, with a lot of information but it was poorly written. Amateur hour.

"This person did this...and then this person did this...and that person said this to this person and the response was this..."

That being said I'm glad I read it.

 

[OPECJet]

Maybe there are others outside of the 800+ out of work NJA employees who think that Sokol is an asshat.

 

[HazMat]

I believe she wrote the only authorized Buffett book. He opened up all his writings to her and trusted her. Her claim to fame is as a journalist she got closer to Buffett than anyone. She was a big Santulli fan. The book is worth reading

 

[jonjuan]

Nothing but a bunch of netjet haters who wrote the comments on her website. They are all wrong.

 

[OPECJet]

Some might be wrong, but not all. Sokol has gone through execs at a rapid pace. Could be for the reason mentioned or he could be weeding out non-hackers. A couple of them NEEDED to go, but there a couple still lurking who ought to go.

 

[VGerect]

A couple of them NEEDED to go, but there a couple still lurking who ought to go.

"Are we communicating ? "

 

[sshrae]

"Are we communicating ? "

Your kidding me! I'm obviously out of the loop now but he's still there? That guy is the biggest doosh I've ever met.

 

[glasspilot]

Ya'll think there are "haters" here? Here's a post from the blog referenced above. I read through the lot and it looks like it's all non-pilots and possibly investors or ex-execs who are posting. They are all authored from "anonymous" but they all seem to have knowledge. To me it seems bad tidings for the entire frac industry as whats bad for NetJets is bad for us all.

From the above blog posted under "anonymous" 5/27/2010:

NetJets customers, employees

NetJets Customers, employees, and vendors deserve sympathies, not Sokol.

A leader and individual must always be accountable for their decision-making and actions. When it comes to NetJets Warren has failed the Berkshire shareholders and David has failed Warren.
Since 1998 Warren approved and championed the NetJets growth plan. He approved all aircraft orders, increasing fleet size to an optimal global operating scale, and infused all the necessary capital and approved all debt with Berkshire guarantees that encapsulated all NetJets inherent risks and liabilities.

As Alice pointed out in another blog thread, Buffett and Santulli spoke multiple times a day and Warren was very aware of all dealings at NetJets. Warren enthusiastically embraced the NetJets strategic direction and its leadership team. I was present for a number of the phone calls between Warren and Santulli. After one call in May of 2009 I recall one of Santulli’s lieutenants saying “Rich always remember Warren loves you, he just loves himself more.” Santulli loved Warren and Berkshire; he would have done anything for them right up to the point Warren lied to Santulli and unleashed Sokol.

If Santulli is guilty of anything it is too much trust in Warren. The last week of July 2009 Sokol went to Columbus, OH, to lead a Berkshire Hathaway board of directors requested review of NetJets business operating practices. The Board got involved after two NetJets executives were enticed to write letters implicating indiscretions and wrong doing by Santulli’s leadership team. In my opinion Sokol had already decided he was going to do everything possible to unseat Santulli, a previously named by Warren possible successor, as Sokol was talking to one of the authors of those letters weeks before Sokol was called to Columbus to begin his “review.” Warren told Santulli it was “only a white wash review to make the Board comfortable.”

After a week of running an inquisition in Columbus, on August 4, 2009, Sokol showed up at NetJets headquarters in Woodbridge, NJ, to force Santulli’s hand. Santulli told Warren there was no way he would ever report to Sokol because Sokol was an “asshole who would dismantle the best brand in the world and a company having a very difficult year as a result of a financial crisis and economic downturn.”

If anyone believes Sokol is a victim here they are being naive. Sokol invaded NetJets. He saw Warren’s ass was hanging out there on NetJets and he presented himself as the solution.

If Sokol truly puts Berkshire and NetJets first, he will remove himself because he is clearly causing the shrinking of what was a truly exceptional brand and company. A very complicated luxury business Sokol has demonstrated he cannot manage, let alone turn around.

The best way to demonstrate the brand loyalty hit and eroding durable competitive advantage is customer behavior. Out of roughly 600 airplanes at NetJets globally, NetJets is short owners for roughly 1/3 of its total fleet. And as much as I hate to point this out, if NetJets had an aircraft accident today (such as 879QS glider midair collision) the company would quickly die on the vine as a result of the customer exodus. 18 months ago the brand was clearly strong enough to withstand such an unfortunate event.

Under Sokol's leadership NetJets will continue to "limp along" at best.

 

[NJAowner]

Actually I think the posts are accurate with regard to "tarnishing the brand". Owner sentiment, from the few dozens owners I know, is quite low. Many are looking at alternatives to NJ when they would have never thought about leaving before. And it is not because of price. In business it is much easier to retain existing customers/clients than attact a new one. New management has also eliminated many of the avenues of owner feedback -- probably because they do not want to hear it. But to the pilots -- thanks for keeping us safe!