Netjets Announces Aircraft Order

[imacdog]

True. The difference is that we prospered through a superior product, combined with an efficient, publically traded, transparent business model. We didn't bully our way to domination thanks to the bottomless pockets of a financial backer.

Is your internal D-bag filter MEL'd or something?

 

[RP170]

The phrase "out of left field" comes to mind... As in "what the heck are you talking about"? I'm fairly certain RP has worked at NJA

Yeah I'm confused there as well since I did work for NJA.

 

[jtf]

Any word on how many airframes get turned into Bombardier/Cessna for each new aircraft delivered?

No word on that or if there are no compete clauses or owner swaps or anything else. As far as turn ins goes, they never really announced the whole agreements with Embraer or Bombardier on the Phenom or Global orders. All we know for sure is that Embraer has taken 25 Ultras and Bombardier has taken ownership of 20 Hawker 800s, 10 Xs, some 2000 classics and probably some other airframes since the Global order. Nobody has said if the original agreements include taking more trade ins as the airframes come online.
Business details are guarded a lot more under the post Santulli regime. All I know is that the company plans on disposing of around 50 airframes a year and actual growth or shrinkage is supposed to be based on actual sales, not forecast sales. The new airplanes only get delivered once they are already sold. Getting rid of old airframes will be the driver of sales of new ones. The old ones just won't be resold to owners so if they want to stay with NJA, they will eventually have to buy new. These entire huge orders and any more in the future are so easy to delay or cancel that they in no way imply growth. They can allow growth, but they aren't dependent on it. NetJets can take every option spread out over time and the various divisions and still be smaller than today.

 

[jetlag7]

disregard...

 

[ultrarunner]

This order will insure a continued supply of roached out, high-time airframes on the used market, so definitely something for anyone out there...

 

[CE750Driver]

Yeah I'm confused there as well since I did work for NJA.

Wow. Read that one wrong. Apologies.

Can't find the edit button for some reason.

I feel really bad for the guys at Flex. This really does seem like the beginning of the end. I don't think any of us have the real plan.

 

[Coool Hand Luke]

That EMB 500 looks like a nice bird with the interesting FBW/sidesticks. But isn't it roughly the same size/performance as a CL300? How does the addition of the EMB 500 improve efficiency and reduce fleet complexity?

I received a close look at the 500 Legacy...at 19 million it will be a game changer in cost of operations.

 

[Downwind]

I received a close look at the 500 Legacy...at 19 million it will be a game changer in cost of operations.

How much is a Challenger 300?

 

[cldsfr79]

But what will the "fractional" business look like in a few years? It seems to be changing to more of a 135/managed model (i.e., like XOJet and Citation Air).... Will Netjets have to change its model to more of an XOJet model with fewer financial commitments from customers (i.e., must buy a 1/4 or 1/16th share to participate)? Morph to more of a Marquis Card model in the future?

It does appear that the market at this time is shifting to less risk and asset holding for a jet owner/user. We have companies such as EJM growing (hiring and obtaining more aircraft on their certificate) while genuine fractional ownership suffers. Even NJE has announced a management program and according to AIN magazine, NJ china looks to be a management style operation, at least at first.

But....

Once the economy recovers.....if it recovers....I think things will start to recover for the fractionals. While Citation Air is aggressively shifting it's model and Flex seems to be shifting too; NJA appears to stay on course as a fractional provider. Owners who have sold their shares to acquire a wholly owned plane and then manage it will soon realize that the cheap used plane they bought comes at a very high operating expense. Wait until they have to start buying engines, or get stuck in the middle of no-where. And owners who have down sized to flying charter and on cards will realize that owning a plane (a fraction) does have its cost advantages over renting. There will always be avantages to fractional ownership. Why buy a whole used citation X, and be responsible for maintenance, staffing, insurance, and asset devaluing, when you can own a 1/4 or 1/8 of a Falcon or G5 (now a challenger or Global) with less stress. You manage that fraction with a phone call and that's it.

 

[jonjuan]

I received a close look at the 500 Legacy...at 19 million it will be a game changer in cost of operations.

The Hawker 4000 is/was a game changer. Just saying.