I've discovered Netjets 10 year plan!

[BentOver]

At FLOPS were doing a hell of a lot more flying, than last year.

:beer:

Hope my rant on NJA wasn't taken as an attack on the other fractionals....... Any increase in business in the fractional industry is great in my book. Who knows, some day I may be slinging gear for you at FLOPS!!

Any idea how sales are at FLOPS? Heard they were obviously better than last year. Have ya heard if they are drastically better these last few months?

 

[CA1900]

Two things:

I don't for one second believe NJA lost that much in '09.. Those writedowns are obviously skewed towards the firing of RTS...

Yep, exactly. I have no question in my mind that after he was brought in, he massaged those numbers leading to RTS's firing, then he showed Buffett that his miraculous management technique was responsible for the next year's amazing turnaround.

 

[BentOver]

Yep, exactly. I have no question in my mind that after he was brought in, he massaged those numbers leading to RTS's firing, then he showed Buffett that his miraculous management technique was responsible for the next year's amazing turnaround.

Should have clarified, I totally agree with you. Just was trying to elaborate a bit more on my view of things..... The turnaround wasn't as drastic because NJA wasn't experiencing as much of a loss as stated by Dookie Sokol... Totally think NJA is making some kind of profit recently.

I've found it interesting that of all the "other" companies at BHK... TTI, FSI and NJA seem to rule the report......Buffalo news, Pampered Chef et all. Get very little play.

 

[hangarrat]

:beer:

Hope my rant on NJA wasn't taken as an attack on the other fractionals....... Any increase in business in the fractional industry is great in my book. Who knows, some day I may be slinging gear for you at FLOPS!!

Any idea how sales are at FLOPS? Heard they were obviously better than last year. Have ya heard if they are drastically better these last few months?

I agree More business is good for all of the frac companies. The recent market hits and the whitehouse demonizing aircraft ownership has me worried about the future.

 

[gunfyter]

Response to gunfyter's links


Response to gunfyter's links

Response to gunfyter's links

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[BentOver]

I agree More business is good for all of the frac companies. The recent market hits and the whitehouse demonizing aircraft ownership has me worried about the future.

Here's to hoping it's just a short term blip due to fear an uncertainty... I was all set for a nice 13,000 pt high by December:crying:

 

[rajflyboy]

Netjets is fine

The future plan is top notch.

 

[CALRepublic]

I hate all this freaking lawyer lingo, it really bothers me

" we are doing great this year, unfortunately blah blah blah. On the upside we are way ahead of last year, on the downside blah blah blah. Fortunately we are meeting all of our goals for the year but the problem is blah blah blah. We are on the right path, however blah blah blah".

I feel like I'm reading something written by foghorn leghorn, it was the best of times, Ah said worst of times

 

[CALRepublic]

Also, (VERY IMPORTANT), Berkshire seems to be quite satisfied with FSI's performance over the years, FSI is constantly profitable. But Netjets/EJM play a HUGE part in that....

When you send 2600 pilots ( + however many EJM employs) twice a year for recurrent, well.........

 

[T-1GUY]

There is not enough information here to discern the true profitability of Netjets' operations. You would need individual income statements, balance sheets and most important, a cash flow statement.

Berkshire can manipulate these numbers all day between business entities. Example: I would love to see what Netjets is paying FSI.

Contract talks are around the corner...

 

[mtnrunner]

So easy a caveman...

My opinion, which should be quite visible to any objective person at this point in time, is that WEB has all but abandoned ship. WEB and Berkshire could install a visionary growth oriented chief exec, disciplined management team, and invest the capital needed to rebuild 'NetJets' back to the quality 'Only NetJets' it once was; almost as simply as WEB could order a Cherry Coke and Dilly Bar...

WEB and Berkshire can attract great talent and have nearly endless resources. Yet, WEB and Berkshire are leaving a nobody chief exec and lackluster management team to "manage" one of Berkshire's most difficult operating businesses. And, they are refusing to reinvest any new or real capital after DLS did significant damage to a once great company.

That's all you need to know about WEB and Berkshire's 10 year plan. The NetJets management team's 10 year plan is not the real plan and is truly scary if you understand the business model. A 40 year old 'business virgin' with a only a law degree wouldn't know any better.

At the end of the day WEB stuck-out; STRIKE 1) RTS tells WEB 'good luck with DLS', STRIKE 2) DLS bamboozled WEB, and STRIKE 3) the 40 year old business virgin. That's what's truly hurting NetJets. And WEB clearly isn't willing to admit it or correct it. Under current ownership and leadership NetJets best days are well behind it.

At this point the Berkshire-NetJets 10 year plan is so easy a caveman can do it! Shrink it. The only question is who's willing to admit it?

 

[imacdog]

A whole new operations building and orders for hundreds of aircraft doesn't count as "reinvest any new or real capital after DLS did significant damage to a once great company."?

 

[mtnrunner]

Looking for real talent and capital...

A whole new operations building and orders for hundreds of aircraft doesn't count as "reinvest any new or real capital after DLS did significant damage to a once great company."?

Public reports and disclosures make it clear the new CMH airport building is a simply a lease agreement with escape clauses and is a cheaper lease than the existing location. The new building is paid for and being built by a local developer.

Also, public reports and disclosures make it clear the airplane "orders" are for all intents and purposes simply pricing, configuration, and service agreements. Not fixed purchase agreements with progress payments and delivery schedules set in an OEM's backlog (shareholder sales disclosure for future revenues and earnings). Berkshire has refused to allocate any real, new, or fixed capital and agreements for new aircraft. Remember public and shareholder disclosure is critical to the OEM's investor relations. And, all the NetJets aircraft agreements have inexpensive escape clauses. I don't consider $10 mill incremental cash-flow commitments or escape clauses real capital to the scale a $3 bill, $4 bill, or $5 bill enterprise. An enterprise that scale needs a number of true billion dollar commitments simply for sustainability.

Therefore, Berkshire has not made any real capital commitments. I'm not saying it's bad business for Berkshire. I'm saying Berkshire clearly isn't reinvesting in NetJets. In otherwords, Berkshire is no longer as committed to NetJets as it once was.

Ask yourself one or two simple questions. Would Berkshire buy a company with NetJets existing chief exec and management team? My opinion, not a chance! And, does anyone really think OEM's are banking on JH and team to sell a lot of airplanes (like they did RTS)? Again, not a chance! Planes will sell, but never again like before.

If ownership won't invest in leadership or capital they aren't serious (confident) in the business.

But this is just one person's opinion.

 

[FLYLOW22]

Never knew we were loved so much. Haha.

 

[Pervis]

But this is just one person's opinion.

This is the only thing you said I will agree with.

 

[jonjuan]

Public reports and disclosures make it clear the new CMH airport building is a simply a lease agreement with escape clauses and is a cheaper lease than the existing location. The new building is paid for and being built by a local developer.

Also, public reports and disclosures make it clear the airplane "orders" are for all intents and purposes simply pricing, configuration, and service agreements. Not fixed purchase agreements with progress payments and delivery schedules set in an OEM's backlog (shareholder sales disclosure for future revenues and earnings). Berkshire has refused to allocate any real, new, or fixed capital and agreements for new aircraft. Remember public and shareholder disclosure is critical to the OEM's investor relations. And, all the NetJets aircraft agreements have inexpensive escape clauses. I don't consider $10 mill incremental cash-flow commitments or escape clauses real capital to the scale a $3 bill, $4 bill, or $5 bill enterprise. An enterprise that scale needs a number of true billion dollar commitments simply for sustainability.

Therefore, Berkshire has not made any real capital commitments. I'm not saying it's bad business for Berkshire. I'm saying Berkshire clearly isn't reinvesting in NetJets. In otherwords, Berkshire is no longer as committed to NetJets as it once was.

Ask yourself one or two simple questions. Would Berkshire buy a company with NetJets existing chief exec and management team? My opinion, not a chance! And, does anyone really think OEM's are banking on JH and team to sell a lot of airplanes (like they did RTS)? Again, not a chance! Planes will sell, but never again like before.

If ownership won't invest in leadership or capital they aren't serious (confident) in the business.

But this is just one person's opinion.

Agreed-very astute.

 

[BentOver]

Public reports and disclosures make it clear the new CMH airport building is a simply a lease agreement with escape clauses and is a cheaper lease than the existing location. The new building is paid for and being built by a local developer.

Also, public reports and disclosures make it clear the airplane "orders" are for all intents and purposes simply pricing, configuration, and service agreements. Not fixed purchase agreements with progress payments and delivery schedules set in an OEM's backlog (shareholder sales disclosure for future revenues and earnings). Berkshire has refused to allocate any real, new, or fixed capital and agreements for new aircraft. Remember public and shareholder disclosure is critical to the OEM's investor relations. And, all the NetJets aircraft agreements have inexpensive escape clauses. I don't consider $10 mill incremental cash-flow commitments or escape clauses real capital to the scale a $3 bill, $4 bill, or $5 bill enterprise. An enterprise that scale needs a number of true billion dollar commitments simply for sustainability.

Therefore, Berkshire has not made any real capital commitments. I'm not saying it's bad business for Berkshire. I'm saying Berkshire clearly isn't reinvesting in NetJets. In otherwords, Berkshire is no longer as committed to NetJets as it once was.

Ask yourself one or two simple questions. Would Berkshire buy a company with NetJets existing chief exec and management team? My opinion, not a chance! And, does anyone really think OEM's are banking on JH and team to sell a lot of airplanes (like they did RTS)? Again, not a chance! Planes will sell, but never again like before.

If ownership won't invest in leadership or capital they aren't serious (confident) in the business.

But this is just one person's opinion.

So building new Globals sims (to be put in CMH), having a Phenom show up on propert for owners to admire early 2012, advertising Phenoms and Globals in the quarterly owner update, getting ready for a mid cabin announcement, having a building built right next door to the current HQ's, installing WiFi in 250+ a/c, going into a deal with Signature for a new terminal in PBI seperate from everyone else... All within a year....

These are not forward thinking moves, or capital expenditures? Man what's a company have to do??? Other than actually being able to sell a ton of shares, I'd have thought NJA was atleast making an effort......

Current management is obviously not ideal... But seriously, Eyer has been at NJI/NJA since 1993, others have been there for a very long time. Everyone except Hansell atleast has some pretty healthy aviation experience. And IMO Hansell is just a figurehead. What does he actually do operational or sales wise. He is just there to keep watch over everyone, but I don't think he's in the mix making important decisions about staffing, fleet planning etc...... He gets told the data, nods his head and reports to BHK what is going on......

Planes may not sell like before, but that's because alot of people learned a lesson, and hopefully there are less Bernie Madoffs than before. We don't need customers who are only rich becasue they scammed a lot of other people. We want customers who can really afford to fly NJA.

 

[BentOver]

"Business jet indicators, although mixed, are generally showing a positive trend.The May 2011 General Aviation Manufacturers Association (GAMA) shipment report clearly showed Bombardier Aerospace as the market leader in the business aircraft market categories in which it competes, in both revenues (40%) and units delivered (39%), during the first three months of calendar year 2011. The group continued to experience an increasing level of business aircraft orders with 77 net orders, including an order from NetJets Inc. for 50 aircraft of the Global family, for a value of $2.8 billion based on list prices, compared to 6 for the same period last fiscal year."



From the Bombardier 4/30/2011 first quarter IRS report....I know no a/c purchase is final until it shows up on property...but how much more does one need to realize that a company has ordered a product!!!


Even our union was/is skeptical about the order actually showing up.... But along with the order, sims are being designed and positioned in CMH, a static display put in at the BHK annual meeting in OMA..... And sometime next year there will have to be a bid and training set up many months prior to the first delivery. I guess then we'll know the true status of the deliveries?

 

[NJAowner]

Firstly, I must continue to disagree with JonJuan (we just can never agree with each other). Others do not provide the same service as NJ but at a lower cost -- (other than pilots), others now provide a better overall owner experience than NJA at a lower cost. I do not know everyone, but I do not know anyone who has become a new NJA owber in the past 12 months. I do know soe who are new to private aviation who have gone elsewhere. I know quite a few (some very long term) NJ owners who have left and several others who are in the process. I can tell you that even after owners have given notice to NJ, no attempt has been made by their sales contacts to keep them. IN the old days I am sure that a phone call would have been received within hours and the sales VP would be on the other side of the owner's desk within days. But in those days owner's drank the kool-aid as well and would not have even considered leaving.

It has been more than 1-2 rough recoveries -- stranded would be more like it. And a few rough recoveries on top of that -- on top of other large glitches.

All this seems to work quite well into the program to downsize/right size the company. That is my only guess as to why no (or extremely little) attempt is being made to retain owners wishing to exit the program.

 

[gunfyter]

You should have seen the work over I got from AT&T when I switched my TV to DirecTV....

FREE NFL Sunday Ticket from DirecTV ... I was not going to be retained.