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.

 

[SeaSpray]

Help's to look in the right place, huh?

It's a complete mystery to me why something published by the National Business Aviation Association wouldn't be wildly supportive of unions.

SS

 

[FraxJockey]

Netjets sucks because it has a Union... but Flexjets rocks ..with its 424 (non-union ) pilots.

Now that I have read the article, where exactly does it say that?

 

[gunfyter]

Read the whole series of articles written by the same author.

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


http://www.nxtbook.com/nxtbooks/mh/shownews101906/

 

[FraxJockey]

I read all the articles and all I saw was mention that there were 420 non-union pilots. Was this your interpretation of the article?:

"Netjets sucks because it has a Union... but Flexjets rocks"

Flex had a good year last year and this year seems to be going extremely well. No flame here. I'll let everyone read the articles and let them draw their own conclusions.

 

[gunfyter]

Yes. When you read the series of articles ... knowing that the statements on NJ financial performance from Buffet statements early in the spring about 2005 .... were deceitfully inserted so as to appear this is breaking news from NBAA convention...

You see a purpose and a pattern to the series. Even worse the article on NJ was displayed prominently at competitors booths at the convention.


This was a HIT. I hope the writer was paid off well.

 

[RTRHD]

As a former Chief Pilot I wonder what it would be like to have serial number 003 of that Tilt Rotor.

 

[RTRHD]

Hey GV how are tilt rotors in a hover or transitioning from level flight to a hover?

 

[RNObased]

As a former Chief Pilot I wonder what it would be like to have serial number 003 of that Tilt Rotor.

Can you imagine how much that beast would cost to operate???

 

[RTRHD]

Can you imagine how much that beast would cost to operate???

No joke, you probably just throw it away at a major inspection.

 

[Diesel]

Sir we have a problem. One of the giant blades has a small chip in it. UUUGH

 

[Thunderbolt]

Single Carrier Lawsuit?

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

 

[Thunderbolt]

Single Carrier Lawsuit?

I wasn't aware that a single Carrier Lawsuit was " PENDING ".
My understanding was that the Union Boy had agreed NOT to file a singleCarrier lawsuit until after Nov 2008.

Then it is still only their OPTION, after all they could have filed a single Carrier suit anytime during the last 10 YEARS!

 

[Pervis]

I wasn't aware that a single Carrier Lawsuit was " PENDING ".
My understanding was that the Union Boy had agreed NOT to file a singleCarrier lawsuit until after Nov 2008.

Then it is still only their OPTION, after all they could have filed a single Carrier suit anytime during the last 10 YEARS!

The previous contract would not allow the union to file single carrier. The new one does, after three years from the date of ratification. I've wondered why three years and have come up with an idea, based upon the recent events with new orders for NJE and several G's that were going to NJI but went to NJE. I have a hard time believing NJE can sell a couple dozen Falcon 7X's. Way too small a market, much less territory, to justify all the long range equipment.

RTS is no dumbass. If he thinks he'll lose, what's to stop him from dumping NJI altogether, sending the assets to NJE and flying all 91k international flights, and farming off the 135 flights to EJM? He has three years to set up any contingency plans. He avoids cabatoge (sp) and prevents the big bad union from getting any more class 4 jets. Read the article in Aviation Week dated 10-02-06 and see his words regarding large cabin jets for the US market.

I don't think it matters even if NJI folks joined 1108. RTS sent the NJI offices to GA for a reason. I may be wrong, but if Georgia is a right to work state and before NJA/NJI is considered single carrier, what's to stop the man from doing just that and dumping most if not all NJI pilots before single carrier is ruled upon? Unions can't prevent that in right to work states. I know, he promised to take good care of NJI. I wouldn't bet my life on that. I'll bet Ichan and Lorenzo said something similar.

I'm not trying to be contentious here, rather throwing out what ifs to consider. Joining 1108 or not won't stop this from happening if that's his intention. I just have a real hard time trusting any management lately. They make their fortune and dump on the working stiffs when their goose stops laying the golden egg.

 

[cosmotheassman]

I read all the articles and all I saw was mention that there were 420 non-union pilots. Was this your interpretation of the article?:

"Netjets sucks because it has a Union... but Flexjets rocks"

Flex had a good year last year and this year seems to be going extremely well. No flame here. I'll let everyone read the articles and let them draw their own conclusions.

hey Frax,

We're doing so well this year that none of us will get a raise out of it or any work rule changes to our benefit. Keep on drinkin.

 

[gutshotdraw]

Pervis,

1. It's not Georgia, it's South Carolina and yes it is a right to work state.

2. There is not enough Gulfstream lift at EJM to cover the domestic Gulfstream flying. The NJE aircraft are all registered in Portugal. Under current DOT regulations, foreign registered aircraft can only fly 6 charter flights to, from, and within the U.S. each year (AIN article this month). Many of the domestic Gulfstream flights are Marquis and therefore Part 135. Hence, NJE couldn't cover them.

3. I believe a sale of one division or the other would happen before a single carrier decision by the NMB and I give that about 4-1 against. The infrastructure and the customers at NJI are sufficient to make it a stand-alone business should it come to that.

4. NJI pilots, as a group, will not voluntarily join 1108. That horse has left the barn.

 

[Pervis]

Pervis,

1. It's not Georgia, it's South Carolina and yes it is a right to work state.

2. There is not enough Gulfstream lift at EJM to cover the domestic Gulfstream flying. The NJE aircraft are all registered in Portugal. Under current DOT regulations, foreign registered aircraft can only fly 6 charter flights to, from, and within the U.S. each year (AIN article this month). Many of the domestic Gulfstream flights are Marquis and therefore Part 135. Hence, NJE couldn't cover them.

3. I believe a sale of one division or the other would happen before a single carrier decision by the NMB and I give that about 4-1 against. The infrastructure and the customers at NJI are sufficient to make it a stand-alone business should it come to that.

4. NJI pilots, as a group, will not voluntarily join 1108. That horse has left the barn.

I thought NJI moved to Savanah-my mistake. As far as NJE covering trips, I'll bet most international flying is part 91k. Saw a 900EX, G450 and G550 in TEB this tour, all NJE. Lots more out there not including the 24 Falcon 7Xs RTS just ordered, and a couple of new Gs that were pegged for NJI went to NJE, according to one of your pilots. NJI stand alone? Maybe. A significant percentage of G owners fly in my jet. Several revenue flights per tour are NJI owners flying NJA jets. We cover each other more than many people care to believe. I agree that domestic coverage is one thing that gives NJI security though.

I do agree that a sale or some other option will happen before single carrier is heard at the NMB. The question is, what will happen to NJI pilots. I carry no ill will for any of us. I just have a feeling this will get very ugly. As far as NJI joining 1108, that's not my call. I will say that there are those in the opinion that any merger without dues paying memebers will result in the least favorable seniority rights that the union can get past the arbitrator. That is not my opinion at all, but I am but one dough head.

You folks over there do what you feel is best, and I wish you the best. There's a big enough pie for all of us to nibble on. All I'm saying is things are happening that may suprise all of us, and not something that makes us simple line guys feel very good.

 

[FraxJockey]

hey Frax,

We're doing so well this year that none of us will get a raise out of it or any work rule changes to our benefit. Keep on drinkin.

That's right Cosmo keep on spewing it....