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Is Santulli Out at NetJets?

holden1

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Just heard a rumor that Rich Santulli is out at NetJets and some Insurance gent is taking over. Anybody hear anything?

AC
 

UnstableAviator

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I heard through the grapevine he resigned as CEO but will stay on as a consultant for 1 year.
 

HazMat

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Shocking but I guess Warren was going to sit idle and watch the losses mount. It reads like all the other CEO stepping down press releases. He will always be an icon in the fractional industry. All of the companies were born out of his great idea. We all owe him
 

JetsRfun

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Well, maybe he put in for the early-out package to pitch-in too in this difficult time...
Just kidding, trying to actually find a way to laugh now that I can breathe again :eek:
 

glasspilot

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Prediciton: Someone is coming to slash and burn costs in an effort to find profitability.

Then again, Berkshire Hathaway didn't get to where it is by making a bunch a knee jerk reactions. Then again, BH didn't get to where they are by losing a bunch of money either. This will be very interesting. I honestly have no idea which way the wind will blow.

Fly Safe,
GP
 

NJAPLT

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As everyone here can image, about 1,000 theories on what is going on have come up within the NetJets pilot community today. I am still shellshocked at the announcement myself. All I can say is I am glad that I have a Strong Union to help protect me in these uncertain times.

Hopefully after the dust settles this change will work out well for the pilot group, but as everyone else in the aviation industry knows by now, hope for the best but prepare for the worst.
 

Hogprint

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Shocking but I guess Warren was going to sit idle and watch the losses mount. It reads like all the other CEO stepping down press releases. He will always be an icon in the fractional industry. All of the companies were born out of his great idea. We all owe him

Well said Haz. We all owe a debt of gratitude.
 

AvroJockey

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Prediciton: Someone is coming to slash and burn costs in an effort to find profitability.

I don't know how they're going to save $$$$. In order to return to profitability they need to start selling new aircraft again.

I don't know how they're going to furlough anyone...I've been flying my butt off!

It would be interesting to see how much of NJAs losses were write-downs of aircraft. Over the last quarter I can see some operational losses, but not this quarter.

Maybe I'm just trying to stay positive because I'm at the bottom of the seniority list.
 
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brokeflyer

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Santulli can't run Netjets AND Berkshire at the same time....so he had to leave netjets.
 

AvroJockey

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OK...I read the BH 1stQ Financials.

It didn't give much insight, but I did find out that of the $96M, $55M of that was aircraft devaluation...which will go up in better times. When people say "We're loosing $1M a day" that's not really true.

I would love to get my hands on the last NJ 10-Q to see what the operating loss was, and what it is attributed to.

I think the bleeding has stopped, because I've seen a drastic change in my schedule over what it was this winter, and none of the early-out guys have left yet. I think next quarter financials will provide a better picture, unless they write down aircraft values again.
 

G200_PILOT

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Santulli can't run Netjets AND Berkshire at the same time....so he had to leave netjets.

That thought has popped up in my head a few times as well. IF that were the case, then we'd be in pretty good shape.
 

HazMat

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They wouldn't have had him step down as Chairmen as well if that were the case. Expecially when berkshire is releasing their earnings soon. If they were good it seems they would have waited. Could be wrong we will see very soon.
 

G200_PILOT

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They wouldn't have had him step down as Chairmen as well if that were the case. Expecially when berkshire is releasing their earnings soon. If they were good it seems they would have waited. Could be wrong we will see very soon.

Who's they? It seems that WB didn't expect this either. Of course, I'm going off of the email that RTS sent us but it seems that this wasn't WB's idea.
 

taxi1wire

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OK...I read the BH 1stQ Financials.

It didn't give much insight, but I did find out that of the $96M, $55M of that was aircraft devaluation...which will go up in better times. When people say "We're loosing $1M a day" that's not really true.

The $96M is real. Same as when you looked at your 401K last quarter and it made you sick.

The current aircraft value trends are even worse this quarter, Nothing is selling especially high time 5 year old aircraft. Lenders will not finance these planes. Period.

The first quarter loss from operations was $41M (96M-55m). This is also real. RTS is out for a reason. A great man an even greater vision.

Times are tough. You can expect 2nd Qtr to be as bad or worse. BH will not stand by silently and wait for the operation to return to profitability.

Berkshire has spoken!
 

fischman

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Who's they? It seems that WB didn't expect this either. Of course, I'm going off of the email that RTS sent us but it seems that this wasn't WB's idea.

Sooooooo, WB called Sokol up and said, "HEY! Feel like abandoning your current position at you extremely profitable energy company going to Columbus tomorrow for at least the next 12 months to run NetJets?"

"Sure! I hate making all this money!"

Don't think so. This has been a plan for at least a couple of weeks. WB wasn't the one suprised. RTS was.
 

gutshotdraw

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If I read the press release correctly, Mr. Sokol is the "interim" CEO of Netjets. This tells me he's here to do two major things:

1. Wear the black hat to cut costs, overstaffing, and other operational overhead to make operations at least break-even while we wait for a return of sales profitability down the line.

2. Evaluate talent within the organization to perhaps find the "permanent" CEO in-house.

Now, I'm not sure who it will be, but the bill has come due and I know there's someone in the company I would like to see get the job. I know we could do worse. If you know what I mean.





















Subliminal message alert
 

XTW

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Good luck to all the NJ pilots out there. I hope you do not have to endure what 25% of our group is going through right now. Let's hope this ship is turning around for all of us.:(



X
 

Pervis

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Amazing. I sincerely hope the vast majority who post here will never be a juror, lawyer, judge, or executioner. Many here play all four at once, based soley on rumor. What if he was diagnosed with cancer (God forbid) and wants to endure the hell with his family? Or his wife? Or his kids? There are boatload of reasons for him to resign that are not associated with today's economic conditions. If he feels the need to let us know, I'm sure he'll post it here first (TIC).

I doubt he was ousted due to performance in these harsh times. There are far more CEOs that deserve it than RTS, yet they just keep rolling along. His long term performance would buffer rash decisions, especially with WB in charge. WB is not known for his reactionary decisions.
 
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