NetJets 2nd Qtr Earnings

[gret]

For the second quarter and first half of 2010, NetJets’ revenues increased 16% and 17%, respectively, over 2009 which was primarily attributable to an increase in worldwide flight revenue hours, partially offset by lower management fees due to fewer aircraft in the NetJets program. NetJets generated pre-tax earnings of $114 million in the first six months of 2010 compared to a pre-tax loss of $349 million in 2009, which included $255 million of asset writedowns and other downsizing costs. Such costs in the first half of 2010 were relatively minor. On January 1, 2010, Berkshire began charging NetJets a guarantee fee related to the level of its outstanding commercial paper and other borrowings. For the first six months of 2010, the guarantee fee was $18.7 million and was charged against NetJets’ earnings. A corresponding credit was included as a component of "Other" earnings in the table on page 22. Had a similar fee been charged in 2009, NetJets’ pre-tax loss of $349 million would have increased by $38.2 million. The improvement in earnings was attributed to the increase in revenues and to an overall reduction in flight operations and administrative costs, partially offset by higher fuel costs. NetJets continues to own more aircraft than is required for present operations and we expect to continue to dispose selected aircraft over time. NetJets’ operating cost structure has been reduced to better match customer demand, and we believe that NetJets will continue to operate profitably in the future.

 

[doh]

All good news is welcome on our side of the airport!

 

[fischman]

Up is good. More up is more good. We need some more quarters like this so we can get our 495 back to work.

 

[CRJFlyer]

I hope so, but unfortunately all I can predict is BKH gaining that few extra $50million per year by not having us back anytime soon.

The sooner they have to train, pay, benefit us..the sooner that will cut into the quarterly earnings report.

Squeezing as much juice out of the turnip as possible is the way it may be for awhile...Unless alot of the "go getters" stop bending over backwards everytime the BB goes off...Not saying there are alot of them, but there are plenty of them out there.

 

[fischman]

I hope so, but unfortunately all I can predict is BKH gaining that few extra $50million per year by not having us back anytime soon.

The sooner they have to train, pay, benefit us..the sooner that will cut into the quarterly earnings report.

Squeezing as much juice out of the turnip as possible is the way it may be for awhile...Unless alot of the "go getters" stop bending over backwards everytime the BB goes off...Not saying there are alot of them, but there are plenty of them out there.

I agree with you till a point. When the service starts getting effected, and owners start complaining recalls will occur.

From what I've been witnessing on the road, I'm hoping it will be sooner rather than later.

 

[gunfyter]

I think if this economy would decide which way it wants to go ... that would solve the issue. You know they don't want to recall only to furlough again.

 

[imacdog]

I agree with you till a point. When the service starts getting effected, and owners start complaining recalls will occur.

From what I've been witnessing on the road, I'm hoping it will be sooner rather than later.

The service has already been affected.

 

[fischman]

The service has already been affected.

Service gets positively and negatively effected every day. Our (pilot) owner satisfaction numbers are still impressively high. If you're referring to "food tools" and the brand of water we serve, that is nothing an owner is going to leave the program for.

 

[imacdog]

No, I talk to owners and associates of owners on a somewhat-regular basis at my current job. Just passing on what's been told to me. Besides, an owner's experience isn't soley based on the pilots. Don't drown in the kool-aid, Fisch.

 

[captjim]

Glad to hear of the profit guys, hopefully there will be no more furloughs and hopefully some recalls. Congratulations guys, I hope this continues!