Is Santulli Out at NetJets?

[AvroJockey]

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]

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]

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]

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]

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]

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]

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]

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

 

[RNObased]

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

I would give you odds of a hundred to one that isn't going to happen.

 

[Pervis]

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.