Netjet Profit 143 million

[FLYLOW22]

Yes, its pricey at $3,644 per share, but with that increased paycheck and retro you could probably pick up a couple shares.

HA!! 1st of all we never got "Retro". We voted yes on a signing bonus.

I wouldn't characterize what we make now as at a level that would allow us to take "discretionary income" and buy BRKHTH B. Not at all.

 

[gutshotdraw]

If $2B invested then $143M is 7% return.

If $1B invested then $143M is a 14% return...PLUS the Appreciation of the asset from $1B to $2B if $1B was invested and the company is now worth $2B. Someone could probably figure out what the appreciation has been.

My house appreciated more than the total of alll the mortgage payments in the last 3 yrs but I have not received any income from it.... But I still think I am getting a good return.

I think Stocks trade normally at a company valuation of 15... up to 20 times earnings.

That would make NJ worth 143M X 15 = $2.1B to 143M X 20 = $2.8B.

If we could push profits to $200M to $250M ... then at 15 times earnings the company could be worth $3B to $3.75B.

BRK could increase in value $1B to 1.75B on NJ in just one yr. 50 to 80% Asset appreciation! PLUS the $200M in Income! Thats A LOT better than the 25% Berkshire returned on average!

I think this increase is achievable because there is a lot of inefficiency that can and will be reduced. I wish there was a NJ stock.... I could buy.

Mad Money KRAMER says BUY BUY BUY!

If memory serves (a dubious proposition at best), Uncle Warren paid less than $800 million for the company. Toss in a couple hundred mill for losses and the NJE start up, I'd say BH is in about 1.2 Bill. Company now worth north of 2 Bill and net earnings of $143 mill for 2006 and 150-200 mill for 2007....yeah, I'd say that's a pretty fair ROI.

 

[wolfpackpilot]

Its about time for flexjet pilots to come aboard the union of 1108 train.

Unions have very very little to do with a company's ability to make money. You cant install good management through a union.

Regardless of going union or not.... FLOPS will live or die by the actions of the management.

WPP

 

[fischman]

Unions have very very little to do with a company's ability to make money. You cant install good management through a union.

Regardless of going union or not.... FLOPS will live or die by the actions of the management.

WPP

I HIGHLY disagree with this. In my opinion, 1108 has a HUGE say in how much money NJA makes, or doesn't make.

 

[NETFLIER]

Wolfpack,

you couldnt be more INcorrect. Yes 1108 did get us more money and a better schedule ect. But they have also been the spearhead in alot of cost savings, from ideas on crewfood to proper scheduling of pilots to not pay overtime.

Unions work correctly for both workers and companies, but you must be a union first, and stand strong. We got 143 million to show for it. Are we perfect, certainly not, but we are now collectively striving for it.

Flexjet pilots need to bond and not continue to fall prey to their management. PBS, please. 18 hour duty days, come on. Calling you durring rest, barf! pilots paying for their benefits, yada-yada bogus.

A better future is just a click away www.ibt1108.com

 

[FLYLOW22]

A better way to describe IBT 1108s effect on profits is better done by the statement, "A union has allowed the company to waste less money on inefficiencies in spite of it's (NJAs) own incompetence."

It isn't a question of how much money was made. The same amount will be made by revenue opportunities. Waste... waste (expenses) is the key here.

 

[captain dad]

I flew nearly 40 hours in the seven days over President's day. I know there are sell offs but with more A/C and pilots comes even better coverage. Just look at any Signature ramp and it is evident that NJA is and is going to be the biggest and the best for a long time to come.

You do get what you pay for. At least with NJA it's true. Safe transportation is a foregone conclusion. The most highly trained pilots in the industry that NetJets created back in 1964. People pay a premium here to get premium service and flexability in a 14+ type, 400+ A/C fleet. Add to the fact that people like to go with a winner doesn't hurt the cause either. It is what it is and it is only going to get better.imp:

Are you kidding me? It seems every Peak day there is a meltdown across the system with very high sell-off rates. Take a look at the recent Presiden'ts weekend, for example? Do you fly on Peak days? How often are you chartered?

 

[netjetwife]

I am disappointed FamilyGuy and YipPilot and Publishers have not chimed in with their comments....

Probably thought we would forget their predictions of gloom and doom.

Dish up that crow GF and I'll pass it out... Many of us kept insisting that the money was always there. There's a big difference between "can't" and "won't" pay professional pilots the wages they rightly deserve because they darn well earn it. Kudos to GuitarGuy for giving credit where credit is due.

My posted prediction about the brighter future if/when Management learned to set ego aside and work with the Union to solve problems has arrived ... Change hasn't been as quick as we'd all like but it is happening slowly but surely. Especially in training....
Regards,
NJW

 

[netjetwife]

I HIGHLY disagree with this. In my opinion, 1108 has a HUGE say in how much money NJA makes, or doesn't make.

I totally agree. Other examples were given by NF, but the greatest savings that is also producing a superior product while cutting costs is in the overhaul of training. In the interest of giving credit where credit is due that is largely because of the efforts of the highly talented and very hard working Union Training Committee that has worked jointly with Management to affect positive change.

Aside from that, it's generally agreed by experts in labor relations (not to mention common sense) that well respected and fairly compensated employees are more productive. When the workforce is united in its goal the impact is even more noticeable.

Way to look sharp in those polo shirts NJ pilots...
Netjetwife

 

[hammer2]

Instead of Warren finding a new CEO he should hand BH over to the Teamsters!

 

[FamilyGuy]

Huh?

Wolfpack,

you couldnt be more INcorrect. Yes 1108 did get us more money and a better schedule ect. But they have also been the spearhead in alot of cost savings, from ideas on crewfood to proper scheduling of pilots to not pay overtime.

So now the union was spearheading the efforts on crew food?

If that's the case, then why all the bitching about crew food on these boards?

Stop drinking the kool-aid. Crew meals are what keep the airplanes moving and keep the cash rolling in all day. The crew meals suck period! Quality and quantity are way down. Looking forward to a side salad with your meal? you will get some lettuce stuffed into a water cooler sized dixie cup. Some of the stuff isn't safe for human consumption. Lots of cases where there have been moldy food or spoiled food because it sits at the caterers for weeks on end. But hey, that's what you get when you only pay a caterer $10 for breakfast, $15 for lunch, and $20 for dinner. Did I mention that delivery is included? What kind of quality do you think we are getting when the caterers are taking a hit just for doing business with Netjets? Stevies on the West coast is losing big bucks on us. It's not only our food, but the customers food as well that is looking bad.

If you want a good meal you have to order two or three selections at a time, and it is not just for a decent selection, it is to keep from going hungry. If one meal sucks you have a nalternate to get you through to the next leg to order yet another two or three meals.

Yeah great, another bean counter figured out a way to save a few pennies. This business is all about customer care, that was thrown out the window with the new contract. Funny thing is that a bean counter can't figure out that the company really does need to take care of the pilots in order to keep the planes moving. When we start to park them and go get a decent meal then maybe they will figure it out.

We can thank Dick for the food fiasco. Those in the know know whom I am talking about.

 

[learflyer]

The most highly trained pilots in the industry that NetJets created back in 1964. People pay a premium here to get premium service and flexability in a 14+ type, 400+ A/C fleet. Add to the fact that people like to go with a winner doesn't hurt the cause either. It is what it is and it is only going to get better.imp:

Are u saying that Netjets pilots are the most highly trained pilots?

 

[FamilyGuy]

A better way to describe IBT 1108s effect on profits is better done by the statement, "A union has allowed the company to waste less money on inefficiencies in spite of it's (NJAs) own incompetence."

What??

I'll let you split hairs on the retro/signing bonus description, but the above statement goes beyond the pale.

An organization who just 18 months ago was encouraging its members to write planes up, break equipment, DNIF, and anything else you can think of to inflict financial pain on the company so that you can pressure them to cave into your demands can not make an audacious claim like that.

A better description of the union's effect on profits would be "we resumed performing our duties and allowed the business model to generate the profits it was designed to do from the beginning, instead of throwing wrenches in the gears to show our frustration"

It isn't a question of how much money was made. The same amount will be made by revenue opportunities. Waste... waste (expenses) is the key here.

This is very true.

Future profits will be tied to our ability to wring more waste out of the system.

 

[fischman]

An organization who just 18 months ago was encouraging its members to write planes up, break equipment, DNIF, and anything else you can think of to inflict financial pain on the company so that you can pressure them to cave into your demands can not make an audacious claim like that.

A better description of the union's effect on profits would be "we resumed performing our duties and allowed the business model to generate the profits it was designed to do from the beginning, instead of throwing wrenches in the gears to show our frustration"

First off, IBT 1108 never encouraged pilots to intentionally break NJA aircraft. That would be both unprofessional and immoral. We did what we were told to do in the FOM by writing up broken items on the aircraft when we found them. Just like we still do. It is our job to keep aircraft looking and flying great.


Secondly, IBT 1108 never encouraged pilots to abuse the DNIF system.

We "resumed" our duties? Help me out here... Did anybody stop performing our duties? I didn't. I did what I was told. To the letter...

 

[RNObased]

What??

An organization who just 18 months ago was encouraging its members to write planes up, break equipment, DNIF, and anything else you can think of to inflict financial pain on the company so that you can pressure them to cave into your demands can not make an audacious claim like that.

A better description of the union's effect on profits would be "we resumed performing our duties and allowed the business model to generate the profits it was designed to do from the beginning, instead of throwing wrenches in the gears to show our frustration"

Family Guy,
Paint it anyway you want to, I'm sure YOU would have issues if YOU talked to someone for FOUR years and they didn't listen. Maybe you would even resort to trying to get their attention???

The business model would work even better if someone would get their hands around some of the willy-nilly ferrying and other crap that goes on. Maybe you can pass this little information along to someone in CMH, JET FUEL COSTS MONEY. The way they do stuff I don't believe they know that.