Let the rumours FLY ....

[Willy21]

I bet the compnay in question is Flex. That's why Fred has been lashing costs all year so as to make the balance sheets look attractive to a potential buyer. As a condition of the sell, Bombardier gets the exclusive rights to all new NetJets aircraft purchases for a predeterminded number of years, plus a big launch customer for the Lear 85 in 2012. There won't be a pilot issue because NetJet's current staffing levels can absorb the demand(that's just my guess), and if they do need more pilots in the future, they just furloughed more than Flexjet has on their entire roster. So, they just bring those guys back instead of stapling the Flex guys to the bottom of the NetJet's senority list.
Then again I could just be full of sh^t !!!

I think you may be on to something here. The manufacturers are looking for ways to sell airplanes. I wouldn't be surprised if this deal came with a large order or exclusive deal for aircraft in certain segments of the market, ie mid-size and entry level. NetJets just dumped the Cessna and Hawker/Beech orders. To me that says Flex or Options may be the targets. (I believe that Embrear and F/O have some ties correct?)

It will be interesting and hopefully that will allow our 482 brothers and sisters to come back soon.

 

[jetwash]

And I haven't seen a recent balance sheet for FX, CS, or FLOPS - but I would guess FLOPS probably has more debt than the others, since Bombardier and Textron can absorb the debt themselves.

When Raytheon sold Flight Options to HIG almost all the debt was wiped off then so HIG started with a clean slate. All the debt occurred in the last 2 years was probably off set by the selling off the aircraft during our "right sizing" which ended last year when Ricci bought in and took majority control with his managers.

The little man has too big of an ego to sell FLOPS to Netjets.

 

[DirtyBeech]

There was an AIN article that referenced a merger that was pointed out to me be a Flex management pilot. He was adamant that I read the paragraph regarding the merger with little other comment. Just a thought. Could be nothing.

 

[Club ORD FO]

I doubt it is flex. The quote implied skokal would take the customers not the airplanes. The fleets are too different, challenger owners would not be happy about switchin to another plane.

Maybe they are buying a charter/jet card outfit? Easier paperwork there

 

[CRJFlyer]

Interested to see how this one plays out...

A large glut of new customers through agreement, increased flying through perceived economic prosperity, plus less loss of current owners, plus any potential new owners/sales...The economy will get better and there will be new owners...If this all comes to fruition it may shorten my 2 yr. prediction before the first recall..

My prediction..first recall will happen in time to have those pilots online by Fall of 2011 (first recall maybe around summer 2011 or so?) We should be very very busy by then. Depending on any catastrophes that may occur between now and then...Management will want to save some face and not have any call backs within atleast a 12-18 month timespan...Only regional airlines like to have the egg on their face....

 

[gunfyter]

Maybe they are buying a charter/jet card outfit? Easier paperwork there

And they could go straight to EJM

 

[clydefastly]

Just a wild guess, but what about Sentient, or a similar comany with a customer base and no aircraft?


Edit: I just looked up one, sorry

 

[Flex-ible]

Note that it says taking the customers, not the crews, assets and debt. It most likely involves buying up existing contracts, giving the customers an option they may not have right now.
.

Ouch, but good point. That really makes me think FLOPS is the likely candidate - and from what I read it's not beyond their management to yank the rug out from ALL of their employees simultaneously!

 

[jonjuan]

Just a wild guess, but what about Sentient, or a similar comany with a customer base and no aircraft?


Edit: I just looked up one, sorry

IMO, most sentient charter users certainly won't pay 25-30% more if they are "switched." I am assuming the costs and aircraft would have to be nearly the same, i.e. citationshares, otherwise, they won't stay around long.

 

[LAZYB]

I doubt it is flex. The quote implied skokal would take the customers not the airplanes. The fleets are too different, challenger owners would not be happy about switchin to another plane.

Maybe they are buying a charter/jet card outfit? Easier paperwork there

I don't think it's Flex either.

So how goes it my friend?

FLOPS doesn't have the money to buy out their owner's contracts...

and may have difficulty fulfilling their obligations.

 

[jonjuan]

gimme an EM....

 

[gret]

One has to wonder if the reporter wasn't reading more into his comments than they deserve. Everyone likes to hear good things, especially in Columbus, and I doubt that this guy would divulge anything regarding a potential transaction.

NetJets hasn't sold all their excess inventory yet and why would they want to acquire another company with even one a/c.

They were looking at smaller a/c mgmt companies before he took over and most of the survivors are barely holding on. Nobody would have the size, let alone profits, to justify a transaction that would materially impact the company. Sentient and Jet Aviation are shadows of their former selves and the other fraxs, except FLOPS, need their operations to feed product to (plus they can' afford to dispose of them because the ongoing buyback obligations) and it is doubtful that NetJets would ever commit themselves to buying a/c the way they did in the old days.

The debt on NetJets books seems extremely large. Why do they have so much debt? Way to much for just core a/c. Probably includes the amount incurred to buyback shares from owners.

 

[gutshotdraw]

One has to wonder if the reporter wasn't reading more into his comments than they deserve. Everyone likes to hear good things, especially in Columbus, and I doubt that this guy would divulge anything regarding a potential transaction.

NetJets hasn't sold all their excess inventory yet and why would they want to acquire another company with even one a/c.

They were looking at smaller a/c mgmt companies before he took over and most of the survivors are barely holding on. Nobody would have the size, let alone profits, to justify a transaction that would materially impact the company. Sentient and Jet Aviation are shadows of their former selves and the other fraxs, except FLOPS, need their operations to feed product to (plus they can' afford to dispose of them because the ongoing buyback obligations) and it is doubtful that NetJets would ever commit themselves to buying a/c the way they did in the old days.

The debt on NetJets books seems extremely large. Why do they have so much debt? Way to much for just core a/c. Probably includes the amount incurred to buyback shares from owners.

Which is why, it seems to me, reading between the lines of the Sokol quotes in the story, Netjets only wants the CUSTOMERS of whichever company might be in play. More customers spread over the existing but currently idle aircraft and voila: you have eliminated a competitor and taken another step closer to operational profitability with existing equipment and manpower by increasing monthly management fees and occupied hourly fees.

If it happens this way, there will be some convoluted exchanges of owner contracts and aircraft ownership, out clauses for owners that don't want to go to Netjets, etc. End result: a couple hundred new owners at NJA but no transfer of aircraft to NJA and, sadly, a few hundred employees left behind in the rubble. It sucks, but that's the only scenario I see with any financial advantage to Sokol.

 

[T-1GUY]

Just a guess.. Buying out options remaining customers... Options repositions itself as a charter outfit.. Does options still have owners ??

 

[CRJFlyer]

Which is why, it seems to me, reading between the lines of the Sokol quotes in the story, Netjets only wants the CUSTOMERS of whichever company might be in play. More customers spread over the existing but currently idle aircraft and voila: you have eliminated a competitor and taken another step closer to operational profitability with existing equipment and manpower by increasing monthly management fees and occupied hourly fees.

If it happens this way, there will be some convoluted exchanges of owner contracts and aircraft ownership, out clauses for owners that don't want to go to Netjets, etc. End result: a couple hundred new owners at NJA but no transfer of aircraft to NJA and, sadly, a few hundred employees left behind in the rubble. It sucks, but that's the only scenario I see with any financial advantage to Sokol.

Which begs the question...who is keeping tabs on the # of a/c at NJA???

For instance we furloughed 500..(which is the 5 per a/c of the 100 we want to dispose of) but did we actually dispose of any? Are they on the certificate? How many a/c are there?

I don't care if an a/c is sitting in Carson City for weeks..It's still a NJA a/c.
Now say we get a crap load of owners from another frac. And say they get into some of these 100 a/c. How do we know the status of any of the a/c...I'm more inclined to think that they'll just try to overwork the rest of the guys..

Can any union guys explain how it will/can be done. (without relying on figures given from the company to us)