I've discovered Netjets 10 year plan!

[jonjuan]

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.

Yes, but don't you work Sundays?

 

[OPECJet]

Reliable sources said RTS offered Buffett fair market value to buy Nyetjets back. Warren refused. If that is in fact true, Warren obviously has some interest in it.

Doesn't explain why the caddy is still running the show, but I'm sure his days are numbered.

 

[CA1900]

Doesn't explain why the caddy is still running the show...

:laugh:

 

[mtnrunner]

Ego, not shareholder interests...

What do you think FMV for NetJets is today? Any reasonable valuation would be less than WEB paid 13 years ago. If you know the debt, asset values, what the assets are valued at on the books, what FMV for those assets are in today's market (especially when you flood the market with used high time airframes), and the run rate on the strength of future earnings based on recent historical performance (such as net negative sales for 3 years running)... Some may say WEB would have to pay RTS to take.

Don't think for a minute RTS doesn't understand the DLS effect on NetJets. If anyone does, he does. Just an educated guess here, but, WEB would most likely need to pay RTS to take the problem of WEB's hands.

It would take a large capital infusion to right the ship. Anyone investing that sort of capital expects a return. WEB knows he's not getting a return on any new capital invested, so I highly doubt he'll be doubling down.

WEB is hanging on because of ego, not shareholder interests. Years ago WEB was a guy who would blast ceo's for such behavior. My how times have changed.

My point? Don't feel bad about what WEB has done. He let the company down, you didn't let him down. Do your job, take the check, and enjoy the ride. The losses are his doing and his alone.

 

[gunfyter]

Yes, but don't you work Sundays?

I got 3 weeks of jury duty in September and then a vacation in November.... This year I think I'll catch more than half the season with Sundays at home...:beer:

 

[gret]

What do you think FMV for NetJets is today? Any reasonable valuation would be less than WEB paid 13 years ago. If you know the debt, asset values, what the assets are valued at on the books, what FMV for those assets are in today's market (especially when you flood the market with used high time airframes), and the run rate on the strength of future earnings based on recent historical performance (such as net negative sales for 3 years running)... Some may say WEB would have to pay RTS to take.

Don't think for a minute RTS doesn't understand the DLS effect on NetJets. If anyone does, he does. Just an educated guess here, but, WEB would most likely need to pay RTS to take the problem of WEB's hands.

It would take a large capital infusion to right the ship. Anyone investing that sort of capital expects a return. WEB knows he's not getting a return on any new capital invested, so I highly doubt he'll be doubling down.

WEB is hanging on because of ego, not shareholder interests. Years ago WEB was a guy who would blast ceo's for such behavior. My how times have changed.

My point? Don't feel bad about what WEB has done. He let the company down, you didn't let him down. Do your job, take the check, and enjoy the ride. The losses are his doing and his alone.

You understand business and numbers.

BH would have to pay somebody to take over NJ. The major reasons are the liability to owners who want don't extend their contracts, the worthless fleet, unhappy customers (see NJAowner comments), and the need for major capital expenditures in a no growth business.

When they bought it in 1996 (?), it was a growth business and the core fleet had young legs so they were worth something. Not so much today.

It's cheaper to manage it down to a reasonable size and hope someday the market returns.

 

[mtnrunner]

You understand business and numbers.

BH would have to pay somebody to take over NJ. The major reasons are the liability to owners who want don't extend their contracts, the worthless fleet, unhappy customers (see NJAowner comments), and the need for major capital expenditures in a no growth business.

When they bought it in 1996 (?), it was a growth business and the core fleet had young legs so they were worth something. Not so much today.

It's cheaper to manage it down to a reasonable size and hope someday the market returns.

I agree. But I don't believe Berkshire wants NetJets anywhere near the size it once was. First, they simply don't have a strong enough management team. Second, with the aircraft returns Berkshire will always get stuck with significant exposure to residual values on the down side. Third, no future purchaser of NetJets could reasonably accept the potential billions of dollars in liabilities and risk exposure. Shrink it so WEB's successor can at least have the option to sell it later.

My bet is Berkshire wants 200-250 planes at EJM and 200-250 planes at NJA. In 2007 EJM managed approx 80 airplanes. Now the manage nearly 200. That is clearly where they are shifting a lot of the NJA pilots' work.

That's why management wants relief from Sect 1.5 (downsizing). Organizing EJM will eventually be part of the conversation.

 

[NJAowner]

I would not count on RTS's return. He has made commitments to his investors at Milestone and I assume he will honor those and not put his efforts to NJA. He is an entrepreneur and is looking forwards not backwards. Just my opinion.

 

[BentOver]

So which former exec are you and what have ya been up to since? And why is the General still there?

And isn't "recent historical performance" kind of an oxymoron? To be historical wouldn't it have to be part of history and not part of the present?

 

[mtnrunner]

So which former exec are you and what have ya been up to since? And why is the General still there?

And isn't "recent historical performance" kind of an oxymoron? To be historical wouldn't it have to be part of history and not part of the present?

Just a KD fan. He understands the biz and would have and could have done a lot of good.

And no, its not an oxymoron; its just recent history.