NetJets 2nd Qtr Earnings

[RP170]

Ha. Yes... in that you can see:

1) Standing by contract commitments with Berkshire money.
2) Mission accomplished for "Mr. Fix it."
3) Something else materializing that isn't for me to comment on yet.

You forgot to mention:

1) 70% market share. That's a big number chief.
2) Several haters who were ushered off the property who can't help but take shots to feel better about their own failures.
3) Stabilized numbers showing positive trends tied to the GDP.

Not such great news there. The GDP is shrinking again.

 

[FLYLOW22]

Not such great news there. The GDP is shrinking again.

It'll do what it'll do.

Oh well. Almost everyone is tied to the GDP in this biz.

 

[NJAowner]

I wish I flew with the company DS speaks of in this interview and in the quarterly reports to owners. Quite frankly -- this interview pisses me off. Years ago, I knew and was very confident that WB and his family and others at BH flew just like me - same a/c, same catering, same service, same delays. We were treated equally. I know for sure they do not deal with what I deal with. Yes we just have a "measley 125 hours". Like sevreal have you said (other than very safe pilots). I have made my feeling known to NJ and new management -- yes. Have I had any response -- NO!!!

PS -- do not buy into the fact that NJ stood behind its repurchase obligations. If you saw the prices they paid you would laugh for a real long time. But if you are an owner and do not want to litigate against NJ and BH you do not have much choice than to accept the number. Plus you still need to pay the monthly management fee during the process unless you ultimately prevail. If you think your share is worth $1MM and NJ says $600k and you need to fork over $200k per year during the term of the litigation (assuming you don't fly -- approx. 2x if you do), you are not inclined to fight. And they know that.

 

[gret]

This is really sad as you have been a pretty good pro-NetJet client in the past.

In times of mgmt turnover, it is usually the customer who suffers and it only take 5 minutes to burn many months of hard work in building a solid relationship.

One does have to question the remarkable numbers they are turning in such a short time and with really no improvement in the overall aviaiton industry. I'm not saying they aren't real, but I simply don't know how things could get this much better in such a short amount of time. It had to come out of somebody's hide.

 

[Xcorporate]

So they treat owners as badly as they treat furloughed scum? Wow.

 

[FLYLOW22]

So they treat owners as badly as they treat furloughed scum? Wow.

Flight info alert!

I've been nothing but busy. The Owners have been happy.

Sorry... No drama here.

What goes on in sales/accounting/ etc.... Who can say.

 

[OPECJet]

Flight info alert!

I've been nothing but busy. The Owners have been happy.

Sorry... No drama here.

What goes on in sales/accounting/ etc.... Who can say.

NJAOwner brought out some points I'm sure none of us are happy to hear. I'm sure you're giving 120% to the owners you fly, as are most crews. The question is whether the remainder of the company is doing so as well. The pilots alone can't shoulder the entire responsibility of owner satisfaction, just the time they spend with us (or you).

 

[NJAowner]

I believe that the pilots are giving 120%. I believe that most other departments are giving 120%. But I know in the past year several heads are no longer on my OS team and my OS team has become responsible for significantly more owners in the name of efficiency. So what happens when I put in a flight request -- they get many other calls -- and it takes 2 or 3 revisions to get it right and the turn around time may be hours. Earlier today I called twice about an upcoming flight and waited 2 minutes on hold each time listening to the recording about how valued I am and to wait for the next available representative. That is now common. Until recently I think the last time I was on hold like that was the Blizzard of Feb 2003 (or was it 2004) when they were in full scramble mode (and we understood that). Wait times like that may be acceptable for cusotmer service at Geico but not at NJ. But then again, if waiting 15 minutes save me 15% on my NJ fees I may think about staying on hold.

 

[rajflyboy]

NJAOwner brought out some points I'm sure none of us are happy to hear. I'm sure you're giving 120% to the owners you fly, as are most crews. The question is whether the remainder of the company is doing so as well. The pilots alone can't shoulder the entire responsibility of owner satisfaction, just the time they spend with us (or you).

I think you are on to something here.

 

[FLYLOW22]

Still have to beg to differ here though...

Pilots are usually the first to hear about Owner frustrations as they see us more than any other employee of NetJets. Owners expect us to provide feedback to the company, and we do.

I've flown some pretty happy Owners for some time now. I think most don't really care about the changes to the company. Little wrinkles like 2 minute holds will work themselves out over time with feedback.

In fact, the last time I flew Owners on a consistent basis that were not happy was back in 2004. Most of the managers who knew why that was are gone now.

I would hope that any Owner not feeling that their NetJets experience was up to par would voice their concerns. We all encourage it. The Owners are why we are here. Period.

Again, I just don't see unhappy people in the back. They are thrilled that they own, they are thrilled they are not on an airline, they are thrilled to be on a QS tail.

I know that's not the response some were looking for but it's my observation.

 

[NJAowner]

Flylow -- yes you are correct. Owners are thrilled to be in the back and flying privately. But while many owners never even considered alternatives before, the past year at NJ has made many open their ears and listen to alternatives. I can only speak for the 50 or so owners I know, most of which are long term owners. If you paraphrase Ronald Reagan and ask owners "Do you think your overall ownership experience with NetJets is better than it was 2 years ago?", you may be surprised to hear the answer, it probably won't be an overwhelming YES.

 

[Helmsalee]

Flylow,
What NJOwner writes worries me. I am a furloughed NJ pilot but, given my age, will probably never fly a NJ plane again. Still I am proud to have worked there. I spent 32 years in the airlines, watching the service levels go from pretty good to what they are now, Greyhound in the sky. My apologies to Greyhound. While wait times will mostly be suffered by assistants, it is still unacceptable in a luxury business like NJ. NJ commands a premium and must earn that premium or the owners will go to our competitors. This needs to be addressed.
Helm

 

[av8trinabarrel]

Flylow,
What NJOwner writes worries me. I am a furloughed NJ pilot but, given my age, will probably never fly a NJ plane again. Still I am proud to have worked there. I spent 32 years in the airlines, watching the service levels go from pretty good to what they are now, Greyhound in the sky. My apologies to Greyhound. While wait times will mostly be suffered by assistants, it is still unacceptable in a luxury business like NJ. NJ commands a premium and must earn that premium or the owners will go to our competitors. This needs to be addressed.
Helm

Aint gonna happen until the head is chopped off in CMH. Sad but true!! His 6 remaining months can't end fast enough

 

[fischman]

Still have to beg to differ here though...

Pilots are usually the first to hear about Owner frustrations as they see us more than any other employee of NetJets. Owners expect us to provide feedback to the company, and we do.

I've flown some pretty happy Owners for some time now. I think most don't really care about the changes to the company. Little wrinkles like 2 minute holds will work themselves out over time with feedback.

In fact, the last time I flew Owners on a consistent basis that were not happy was back in 2004. Most of the managers who knew why that was are gone now.

I would hope that any Owner not feeling that their NetJets experience was up to par would voice their concerns. We all encourage it. The Owners are why we are here. Period.

Again, I just don't see unhappy people in the back. They are thrilled that they own, they are thrilled they are not on an airline, they are thrilled to be on a QS tail.

I know that's not the response some were looking for but it's my observation.

Does that mean they liked the curtains we picked out for the Ultra?:nuts:

 

[OPECJet]

Aint gonna happen until the head is chopped off in CMH. Sad but true!! His 6 remaining months can't end fast enough

What did you expect from an energy exec with no aviation or luxury industry experience bringing all the personality of an earthworm to the table?

 

[FLYLOW22]

Flylow -- yes you are correct. Owners are thrilled to be in the back and flying privately. But while many owners never even considered alternatives before, the past year at NJ has made many open their ears and listen to alternatives. I can only speak for the 50 or so owners I know, most of which are long term owners. If you paraphrase Ronald Reagan and ask owners "Do you think your overall ownership experience with NetJets is better than it was 2 years ago?", you may be surprised to hear the answer, it probably won't be an overwhelming YES.

Sir/Ma'am,

All any of us can do is simply to ask you for the patience over a year or so to allow NetJets to adjust and adapt to it's new form. The principles we have always held true such as safety and service will continue as our cornerstone. There are many travel options out there, some safe, most.. well... are "FAA approved". You will not find another company out there to fly you and your loved ones with professional flight crews that have as much authority to affect safety in such a positive manner as NetJets. You just will not.

All successful businesses and organizations go through changes during their life cycle. While this period has been one of the more noticeable periods of change to the observer, I can assure you that from a flight operations standpoint, your flight crew is looking out for you.

The rest will shake out on the other side.

I've said it before and I'll say it again... "The most important part of my day it the time spent with Owners."

Best Wishes.

 

[glasspilot]

Sir/Ma'am,

You will not find another company out there to fly you and your loved ones with professional flight crews that have as much authority to affect safety in such a positive manner as NetJets. You just will not.

Yeah,

Umm...NetJetOwner, you will find many companies out there able to "fly you and your loved ones with professional flight crews that have as much authority to affect safety in such a positive manner as NetJets."

Whatever that means...

In fact, many companies have pilots who can write coherent thoughts as well as fly you safely while delivering top notch service.

Just sayin...

 

[NJAowner]

Flylow -- I will be fine. My concern is actually for you guys. Remember in business somene is "always tring to build a better mousetrap". If you do not stay at the top of you game, adapt and improve and instead rest on your laurels, the business will perish.

 

[RP170]

Flylow -- I will be fine. My concern is actually for you guys. Remember in business somene is "always tring to build a better mousetrap". If you do not stay at the top of you game, adapt and improve and instead rest on your laurels, the business will perish.

Excellent points. NJA has done nothing to "adapt and improve" recently. The kool-aid drinkers will argue that they are adding "Wi-Fi" to the aircraft. Big deal. This was announced by all the other competitors prior to NJA making the announcement. NJA seems to be following and not leading anymore. Seems to be a slippery slope that the company is heading down especially when combined with an aging fleet with no aircraft on order.

 

[amaineiac]

Sir/Ma'am,

All any of us can do is simply to ask you for the patience over a year or so to allow NetJets to adjust and adapt to it's new form.

For the amount of money NJA charges, I think asking for a years worth of patience is a bit much. A month maybe, but a whole year?

The 2 minutes on hold is one thing, but for nobody to get back to him after a complaint is inexcusable.

I loved NetJets and thought it delivered a superior product, but you're chugging a lot of kool-aid if you think owners aren't looking elsewhere. And more and more will if Bridgeway doesn't get its act together soon.