NBAA Show News

[GVFlyer]

Just read the day two Show News. I knew things weren't too rosy at Flight Options, but the daily rag says that there is still on-going union strife at NetJets. This is due in part to the 400 non-union pilots at NJI and the fact that the Falcon 7X will be going to non-union pilots at NetJets Europe, but also due to the inability of the local 243 mechanics to get a contract. Bill Olsen is quoted as saying that 1108 will support 243 when the time comes. Say it ain't so.

There is also an article where Warren Buffet says that NetJets is continuing to lose money, but that NetJets Europe is losing less this year and that Richard Santulli is the man to fix the revenue/expense problem at NetJets.

Finally, there is an article saying that the pilots at FLOPs are unhappy and that their attempt to get a contract is not going well, but we all sort of knew that.

The Show News is available online if anyone's interested.

GV

 

[RNObased]

There is also an article where Warren Buffet says that NetJets is continuing to lose money, but that NetJets Europe is losing less this year and that Richard Santulli is the man to fix the revenue/expense problem at NetJets.


GV

Well that if flipping funny, since we just got a page from the company two months ago talking about the money we made in the first two quarters of this year. They can't get their facts straight can they.

 

[GVFlyer]

You have to read this article carefully to separate what is a rehash from last year and what pertains to third quarter 2006. When I first read it I thought, "I've seen all this before."

I don't know if that was the intent or if it was just the writer fluffing up the piece.


GV

 

[RNObased]

You have to read this article carefully to separate what is a rehash from last year and what pertains to third quarter 2006. When I first read it I thought, "I've seen all this before."

I don't know if that was the intent or if it was just the writer fluffing up the piece.


GV

Yeah, the is a good point. Some of these guys just have to fill copy and love to state things over and over.

 

[squonk]

GV:

There is also an article where Warren Buffet says that NetJets is continuing to lose money, but that NetJets Europe is losing less this year and that Richard Santulli is the man to fix the revenue/expense problem at NetJets

He was refering to '05, if I read the article right.

 

[GVFlyer]

GV:



He was refering to '05, if I read the article right.

The article is confusing so I went to the Berkshire Hathaway 10Q. They've reported third quarter earnings, but haven't filed the third quarter 10Q yet. This is from the second quarter 10Q.

FORM 10-Q Q/E 6/30/06
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Manufacturing, Services and Retailing

Flight Services

Flight services revenues in the second quarter and first six months of 2006 increased $221 million (24%) and $373 million (22%) over 2005 periods. Revenues from NetJets’ fractional aircraft ownership business for the first six months of 2006 increased $347 million (26%) over 2005, reflecting a 23% increase in flight operations and management service revenues and increased fractional aircraft sales. In 2006, occupied flight hours increased 16% and average hourly rates increased as well. The number of aircraft managed within the NetJets program over the past twelve months has increased 12.6%. Revenues for the second quarter and first six months of 2006 from training (FlightSafety) increased 8% over the comparable 2005 periods. The revenue increases were primarily due to increased corporate aviation demand and price increases. In 2006, pre-tax earnings of the flight services businesses totaled $110 million in the second quarter and $131 million for the first six months compared to $51 million for the second quarter and $58 million for the first six months of 2005. The NetJets fractional ownership business generated a pre-tax gain of $48 million for the second quarter and $29 million for the first six months of 2006. In 2005, this business produced pre-tax losses of $1 million for the second quarter and $31 million for the first six months. The improvement in operating results at NetJets reflected a comparative decline in losses from subcontracted flights ($27 million decline for the first six months) which are necessary to meet peak customer demand, increased management and usage revenues and increased margins from fractional aircraft sales, somewhat offset by higher interest, depreciation and payroll expenses. Pre-tax earnings from FlightSafety training services for the first six months of 2006 increased $13 million versus 2005.

It appears to me that you can read this to say anything you want it to say.

GV

 

[gunfyter]

This article was poorly written. Did WB actually speak at NBAA? Everything was from the Letter to Investors from last April. But the unfamiliar would assume this is Hot News from the floor of the Convention.

It seems like a very biased report. Netjets sucks because it has a Union... but Flexjets rocks ..with its 424 (non-union ) pilots.

The way it is written seems very dishonest... I wonder if someone was paid off.

Something does not smell right.

 

[FLYLOW22]

Just read the day two Show News. I knew things weren't too rosy at Flight Options, but the daily rag says that there is still on-going union strife at NetJets. This is due in part to the 400 non-union pilots at NJI and the fact that the Falcon 7X will be going to non-union pilots at NetJets Europe, but also due to the inability of the local 243 mechanics to get a contract. Bill Olsen is quoted as saying that 1108 will support 243 when the time comes. Say it ain't so.

There is also an article where Warren Buffet says that NetJets is continuing to lose money, but that NetJets Europe is losing less this year and that Richard Santulli is the man to fix the revenue/expense problem at NetJets.

Finally, there is an article saying that the pilots at FLOPs are unhappy and that their attempt to get a contract is not going well, but we all sort of knew that.

The Show News is available online if anyone's interested.

GV

Hmmm. Please post the link.

This is all I could find.

http://www.aintv.com/home.asp?CATEGORY_ID=19&ID=55&FMT=WM

No quotes from Bill Olsen. No mention of the pending Single Carrier Lawsuit between NJA/I. No mention of NJE.

There was an informational picket manned by NJA mechanics represented by IBT Local 284 mentioned. There was an aerial informational picket event on behalf of the Flight Options pilots represented by IBT Local 1108 mentioned.

Click on the link above and then check out the video entitled:

From Tiltrotor to SSBJ
NBAA Highlights October 19, 2006

Looked like a good professional display to the industry.

 

[GVFlyer]

Hmmm. Please post the link.

This is all I could find.

http://www.aintv.com/home.asp?CATEGORY_ID=19&ID=55&FMT=WM

No quotes from Bill Olsen. No mention of the pending Single Carrier Lawsuit between NJA/I. No mention of NJE.

Sure, here a link to the whole magazine. In the format they're using, I'm not smart enough to give you a link to the specific article.

It's titled NetJets Labor Woes Continue and it's on page 42.

http://www.nxtbook.com/nxtbooks/mh/shownews101806/


GV

 

[FLYLOW22]

This periodical has an interesting slant on things... like any periodical.

This one seems a bit less pro labor than AIN.

This article is tactfully agressive at best.

Thanks for the link.