Interesting Blog on Netjets

[jppt2000]

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.

Another passive aggressive post.

 

[glasspilot]

Not at all. I hate to see it. I did say what's bad for NetJets is bad for us all.

This isn't my thread. I just read what someone else posted, copied a post from that reference and expressed concern for us all.

I am NOT a NetJet hater, or even a passive aggressive hater.

If my post makes me a "hater" then NJOwner is a hater too. Anyone here got the ballz to call him out as a "hater"? I think not.

gp

 

[jppt2000]

Not at all. I hate to see it. I did say what's bad for NetJets is bad for us all.

This isn't my thread. I just read what someone else posted, copied a post from that reference and expressed concern for us all.

I am NOT a NetJet hater, or even a passive aggressive hater.

If my post makes me a "hater" then NJOwner is a hater too. Anyone here got the ballz to call him out as a "hater"? I think not.

gp

Closet Netjets Hater

 

[NJAowner]

I am not a hater. Now I just feel like another customer of a company that is not overly concerned with customer satisfaction. As the company has decreased its loyalty to is owners the reverse it also true. For many, many years if someone asked for a referral it was tough to shut me up. Now, yes it is a great service, but there are now competitors. Previously, most owners did not believe there were any true competitors. Were we drinking management kool-aid delivered to the owners -- maybe. And I do not think many owners (other than ones who are significant BRK shareholders) believe that the switch to Dasani was becuase the surveys showed that was the preference of the owners. I do not think that current management understands that most owners run or have run highly successful business and know how to spin information to make it look good to customers/employees. Most owners have been able to see through the BS which has been sent our way in the past 10 months.

 

[charley varrick]

I am not a hater. Now I just feel like another customer of a company that is not overly concerned with customer satisfaction. As the company has decreased its loyalty to is owners the reverse it also true. For many, many years if someone asked for a referral it was tough to shut me up. Now, yes it is a great service, but there are now competitors. Previously, most owners did not believe there were any true competitors. Were we drinking management kool-aid delivered to the owners -- maybe. And I do not think many owners (other than ones who are significant BRK shareholders) believe that the switch to Dasani was becuase the surveys showed that was the preference of the owners. I do not think that current management understands that most owners run or have run highly successful business and know how to spin information to make it look good to customers/employees. Most owners have been able to see through the BS which has been sent our way in the past 10 months.

Have you told this to Sokol? I would hope that owners are expressing their displeasure with some of the value-added cuts he has made. Goodness knows he doesn't listen to the pilots on such matters.

 

[glasspilot]

Closet Netjets Hater

Just because you think something doesn't make it true. Go argue with NJOwner for awhile. He's an actual customer with somthing to say. I'm just "some dude" who flies for another company.

If I were on the ramp and in front of me were A) my pax complaining about something, and B) some pilot from another company complaining about something I would focus on... MY PASSENGER!

You, on the other hand, blow off the passenger and engage me. Great, keep it up.

Once more for the retarded: I don't hate NetJets. In the open or in the closet.

 

[jppt2000]

I am not a hater. Now I just feel like another customer of a company that is not overly concerned with customer satisfaction. As the company has decreased its loyalty to is owners the reverse it also true. For many, many years if someone asked for a referral it was tough to shut me up. Now, yes it is a great service, but there are now competitors. Previously, most owners did not believe there were any true competitors. Were we drinking management kool-aid delivered to the owners -- maybe. And I do not think many owners (other than ones who are significant BRK shareholders) believe that the switch to Dasani was becuase the surveys showed that was the preference of the owners. I do not think that current management understands that most owners run or have run highly successful business and know how to spin information to make it look good to customers/employees. Most owners have been able to see through the BS which has been sent our way in the past 10 months.

Never said you were a hater. Sorry if it you took it that way.
You pay my salary, and my family along with 3000+ others thank you for your business.
In my short tenure at NJA, IMHO I'm mostly considered by management as an asset that safely operates the aircraft from point A to B.
My opinion of how the company is run is valued a tiny bit more than Glasspilot's.
I am convinced, your opinions get listened to and acted on.
Many posters here on FI throw mud/crap at each other's company and hope that as much as possible sticks.

 

[sshrae]

Closet Netjets Hater

Exactly, look at any netjets thread and you will see him on every one taking little shots. Whatever, it will come back to his company soon enough. It always does. If he doesn't realize that he is obviously very new to this industry.

 

[glasspilot]

Whatever... both of you. Got a problem? Post a quote. Otherwise stfu.

I know peeps at NJ and wish 'em the best. At one time I was seriously thinking of going to NJ. Many many former colleagues work at NetJets. I know several folks on furlough from NetJets. If you think I secretly want NetJets to do bad in or out of the closet then you are a fuc!ing idiot.

One more time for the SUPER retards: I am NOT a NJ hater.

Fly safe everyone,

gp

 

[glasspilot]

Oh, and here's a guy saying first hand negative stuff about NJ. Maybe I mention in a few posts that y'all get too many crew meals...whatever, small potatoes. This guy is posting from authority, first hand style specific complaints and you don't have a word to say to him. No, just pile on me as a "hater". Great.

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!