Grim Reaper
Well-known member
- Joined
- Aug 17, 2002
- Posts
- 139
This is from AIN. I do not normally read the rag but a bud at NJA told me 'bout this one.
There’s no doubt that the economic downturn has hurt sales of both new and used aircraft throughout the industry. (General Aviation Manufacturers Association figures for the first nine months of 2002 show new business jet sales down 12 percent and turboprop sales down 40 percent.)
This has hurt the fractionals–some more than others–because sales of new airplane shares have always accounted for most of their revenue.
The operational side of the business (flight hours and monthly management fees) has not been nearly as profitable as new share sales. In fact, for most frax providers, according to Riegel, it has not been profitable at all. “Before about 18 months ago,” he said, “volume sales of aircraft up front were offsetting losses from operations. Now they’re not.”
There’s no doubt that the economic downturn has hurt sales of both new and used aircraft throughout the industry. (General Aviation Manufacturers Association figures for the first nine months of 2002 show new business jet sales down 12 percent and turboprop sales down 40 percent.)
This has hurt the fractionals–some more than others–because sales of new airplane shares have always accounted for most of their revenue.
The operational side of the business (flight hours and monthly management fees) has not been nearly as profitable as new share sales. In fact, for most frax providers, according to Riegel, it has not been profitable at all. “Before about 18 months ago,” he said, “volume sales of aircraft up front were offsetting losses from operations. Now they’re not.”
Hey we have to shoot high at NJA. Were so low I could make more $$ at McDonalds. Whats really sad is our owners (or at least the ones I talk to if they bring it up) think we make 100-200K to fly them. They think that because of what there being charged by NETJETS in management fees. Someone is makeing out and at the moment it sure isnt the pilot group. I just flew a couple whos net worth is 14 BILLION. He owns a company, I wont mention here but its the largest world wide for what they do. We can debate all night long what we all think were worth. So I let you tell me what is a Citation X capt worth? We at netjets(on the X) fly to Europe, Hawaii, Central America, Mexico and lets not forget every mountain airport possible in the lower US. I find it funny that lots of people who post here slam us on our pay and what we need. I made more money tossing bags for UAL in 1989 then I do now flying a 20 million dollar jet.
