NetJets Launches Extra-Lift Program for Flight Depts

[gret]

NetJets Launches Extra-Lift Program for Flight Depts

NetJets introduced its Supplemental Lift Assurance program yesterday to address the short-notice needs of aircraft owners that cannot be met with their owned aircraft. The obstacle might be a technical problem, an existing trip commitment or a size or range inadequacy of the owned aircraft for the mission at hand. “We listened to corporate flight departments and aircraft owners and we tailored NetJets Supplemental Lift Assurance to their exacting needs,” said NetJets North America sales, marketing and service president Adam Johnson. “Whether you need a reliable resource to increase capacity or an aircraft is out of service for maintenance, NetJets Supplemental Lift Assurance provides on-demand access to our entire fleet whenever and wherever you need it.” NetJets says the diversity of its fleet can solve the problem with as little as four hours’ notice. The company emphasizes that “this product does not require a specified number of flight hours or a long-term commitment. The costs associated include a one-time enrollment fee, an hourly flight fee and an annual renewal fee based on cabin class (light, midsize or large). Enrollment fees for the first year start at $25,000, with an annual fee of $10,000 for subsequent years.”


Is this going to work? Is there a message to be had from this strategy? Do they really think that anybody will pluck down $25K just for the privilege of paying an hourly rate to charter a jet?

 

[BentOver]

I don't see a whole lot of interest in this.... Nothing that would greatly increase business in a dramatic fashion.... Companies basically have to pay $25K just to be a member for an aircraft they may or may not use.( and then still pay for usage). Hope it works but not holding my breathe that this is the way to the promise land...

 

[DadofSeven]

Tried this at citationair in 08 when the ******************** hit the fan. We couldnt get any takers. Might work for you guys more planes, etc

 

[jtf]

I don't believe it is really NJA. NetJets North America includes EJM. They are just trying to wrap EJM in NJA clothing to sell more charter. If this is successful, it will allow the company to dispose of old NJA airframes to individuals by promising a certain number of charter hours to help subsidize the sale and management prices for the buyers. Good for overall company profit, but probably not so good for NJA pilots if it cannibalizes card and/ or fractional customers.

 

[CALRepublic]

I'm happy to see the company trying new things... Sokol (before his departure) said the focus should be on providing flight-departments with supplemental lift rather than going after wealthy individuals.... seems rational

Today Berkshire releases their 2Q results. I wonder how we did?

 

[T-1GUY]

We kicked Ass, that's how we did!!!

 

[chainring]

We kicked Ass, that's how we did!!!

You guys just kill me.

 

[BentOver]

In June 2012, NetJets placed orders with certain manufacturers to acquire up to 425 aircraft with an estimated value of $9.6 billion. The aircraft purchases would be made to replace aircraft in its existing fleet, with deliveries expected to occur over an 8 year period beginning in 2014. The orders include cancellable commitments for 125 aircraft with an estimated cost of $2.8 billion and options to purchase an additional 300 aircraft, with respect to which, NetJets is not presently obligated to acquire.

awesomeuke:

 

[gunfyter]

Forgot this part:

Other service
Our other service businesses include NetJets, the world’s leading provider of fractional ownership programs for general aviation aircraft and FlightSafety, a provider of high technology training to operators of aircraft. Among the other businesses included in this group are: TTI, a leading electronic components distributor; Business Wire, a leading distributor of corporate news, multimedia and regulatory filings; Pampered Chef, a direct seller of high quality kitchen tools; Dairy Queen, which licenses and services a system of over 6,100 stores that offer prepared dairy treats and food; Buffalo News and the Omaha World-Herald (acquired at the end of 2011), publishers of daily and Sunday newspapers; and businesses that provide management and other services to insurance companies.
Revenues of our other service businesses in 2012 were $2,152 million in the second quarter and $4,199 million in the first six months, representing increases of $71 million (3%) and $150 million (4%), respectively, over the corresponding 2011 periods. The increases in revenues in 2012 were primarily attributable to the inclusion of the Omaha World-Herald and comparative revenue increases from TTI. Pre-tax earnings of $283 million in the second quarter and $488 million in the first six months of 2012 were essentially unchanged from earnings in the corresponding 2011 periods. Earnings in 2012 reflected increased earnings at NetJets and earnings from the Omaha World-Herald, which were substantially offset by lower earnings from TTI, as well as from several of our smaller service businesses. The improvement in comparative earnings of NetJets in 2012 was largely due to fees incurred in the first quarter of 2011 to cancel certain aircraft purchases under a purchase agreement entered into several years earlier and the absence of foreign currency exchange losses affecting operations outside of the United States in 2012. ....​

 

[BentOver]

Netjets is flying less, has less customers in 2012.. On the other hand they have less airplanes, less maintenance etc...

Shrinking to profitability so far....


And will Luthi stop acting like a little kid? Resign or let the membership vote, enough with this altamatum of I'll resign if they resign....

 

[gunfyter]

I don't know ... From the report ... as usual you cannot determine much. And this time I can't piece anything together from previous reports

 

[CALRepublic]

I don't know ... From the report ... as usual you cannot determine much. And this time I can't piece anything together from previous reports

I'm there with you, I can't even guess

It is very frustating, why can't they tell us how much money we're bringing in.

I hate this wall street-lingo- "30% better than estimates, but 10% lower than last year, however 6% ahead of our projected goals, etc, etc, etc"

just give me a figure

 

[CALRepublic]

In June 2012, NetJets placed orders with certain manufacturers to acquire up to 425 aircraft with an estimated value of $9.6 billion. The aircraft purchases would be made to replace aircraft in its existing fleet, with deliveries expected to occur over an 8 year period beginning in 2014. The orders include cancellable commitments for 125 aircraft with an estimated cost of $2.8 billion and options to purchase an additional 300 aircraft, with respect to which, NetJets is not presently obligated to acquire.

awesomeuke:

According to the FinancialTimes, Berkshire has a cash hoard of $40 billion USD. There is a lot of pressure on Mr. Buffet to put that money to work. Investors DO NOT want their money parked, doing nothing, they want it "working for them"....

I wonder if Berkshire gave NJA the go ahead with that aircraft order just to find something to do with that cash? I don't know, just a thought

 

[jetmaster727]

Look u idiots, Uncle Warren is simply taking advantage of poor economic times to buy jets at the low point because he knows things are gonna turn around. If it wasn't for your old grandfather u guys would be gone. Be glad he is a loooong term investor. Dont be too cocky, u guys r just lucky to be there. Warren has such deep pockets that he would never allow his baby to fail.And that is the truth!

 

[CALRepublic]

Look u idiots, Uncle Warren is simply taking advantage of poor economic times to buy jets at the low point because he knows things are gonna turn around. If it wasn't for your old grandfather u guys would be gone. Be glad he is a loooong term investor. Dont be too cocky, u guys r just lucky to be there. Warren has such deep pockets that he would never allow his baby to fail.And that is the truth!

i deleted my comment twice, as much as you pissed me off, I'm not going to trade insults with you

 

[gunfyter]

Who said, "I rather be lucky, than good."?

 

[ProFracPilot]

I don't believe it is really NJA. NetJets North America includes EJM. They are just trying to wrap EJM in NJA clothing to sell more charter. If this is successful, it will allow the company to dispose of old NJA airframes to individuals by promising a certain number of charter hours to help subsidize the sale and management prices for the buyers. Good for overall company profit, but probably not so good for NJA pilots if it cannibalizes card and/ or fractional customers.

This ^^^^^^

 

[cldsfr79]

I don't believe it is really NJA. NetJets North America includes EJM. They are just trying to wrap EJM in NJA clothing to sell more charter. If this is successful, it will allow the company to dispose of old NJA airframes to individuals by promising a certain number of charter hours to help subsidize the sale and management prices for the buyers. Good for overall company profit, but probably not so good for NJA pilots if it cannibalizes card and/ or fractional customers.

I agree. Shrink NJA to grow EJM. It's been happening since the recession. It's a great plan for the company. NetJets Inc. isn't exposed to the same risk when they expand EJM. In a sense, instead of buying a plane trying to sell it and be held accountable at the end of a contract for it, EJM just "borrows" the plane from an owner, pays them some cash for it's use while charging a managment fee. It's brilliant. And now if they start using a corporate hours-card it would greatly increase revenue. Who needs to fly on NJA when you can get it done for cheaper with EJM and still fly within the the NetJets Inc. envelope? :erm:

Keep an eye on their hiring. They are always hiring while the the Execs keep threatening to furlough more NJA guys. Hmmm.

Wake up union. As dysfunctional as you are. You better put the breaks on this. Sounds like EJM is turning more and more into what NJA does. Single carrier suite just like NJI? I think so!!!

 

[X-rated]

Wake up union. As dysfunctional as you are. You better put the breaks on this. Sounds like EJM is turning more and more into what NJA does. Single carrier suite just like NJI? I think so!!!

If you honestly think that could happen, you don't understand EJM's business. Who are you going to negotiate with? The 75 or so independent owners who are under no obligation to keep their business with EJM? The owners pay their crew's salary, not EJM. If the union tried to make unpopular demands, the owners would simply vote with their feet. Besides, why would an existing crew at EJM want to join the union anyway? "Oh, please take my job and put me on the steet." I don't think so...

 

[cldsfr79]

If you honestly think that could happen, you don't understand EJM's business. Who are you going to negotiate with? The 75 or so independent owners who are under no obligation to keep their business with EJM? The owners pay their crew's salary, not EJM. If the union tried to make unpopular demands, the owners would simply vote with their feet. Besides, why would an existing crew at EJM want to join the union anyway? "Oh, please take my job and put me on the steet." I don't think so...

What's funny (or not) is that NJA has a group of guys who used to work over at the EJM side and they were in a mini class action lawsuit with the company to get their date of hire at NJA changed to when they were hired at EJM to boost their seniority. I don't know the out come.

Yes it would be very difficult to merge a group of individual privately hired pilots but here is the bigger picture: 1. NetJets Inc. wholly owns EJM, 2. NJA sells sell-offs to EJM if NJA can not provide the lift, 3. NJA has persuaded NJA owners to purchase whole used aircraft and place them over onto EJM. 4. It's been gathered that NJA has even sold fractions of whole used planes and placed them with EJM. 5. It's been gathered that if an NJA owner can not be provided lift they are quietly transferred to EJM, but this doesn't count as a sell off day. 6. Now it appears EJM might have their version of a Marquis Card. Are they going to directly start selling fractional shares next? If it walks like a duck.....

What the problem is, is that EJM is NJA's equivalent to our version of a wholly owned regional airline. You've got un-unionized pilots working for a different wages, are trained different, have different work rules, but yet they are flying former and current NJA customers.

And it wouldn't be NJASAP asking EJM pilots to join a union, they would be forced. Kind of like NJI. Would they get screwed? Probably not. Look at NJI, they got a sweet deal. They had no union at all but was provided date of hire seniority, they got to stay in type and position (we have NJI GIV PICs junior to NJA FOs while NJA furloughed hundreds of NJA guys), they also got to stay home-based. What merger in history gave a non-union group such a deal????

I say NJASAP should at least give a single carrier lawsuit a go. The worst that happens is a judge says no, and that's the end of a debate. But with NJASAP's infighting right now, the company can probably start up a whole new fractional and we would be too crippled to do anything about it. Way to spend by 2% a year!