bluepost said:
First off let me say I "don't care" if NJ has the money to pay me or not. If they can't pay they should not be in business. Owners will fly these aircraft somewhere, and it is already happening to some degree.
The question whether NJ has the money to pay is relevant. You may not be interested in flying for the current wages or whatever is agreed upon in the new contract, and you are free to leave if you dont feel it meets your satisfaction, but the hard truth is that there are 8,000+ pilots on furlough right now that would probably be very interested in flying for the current rates or the new ones. The fact that NetJets rates are not that far from the other fractionals and many airlines and they have a proposal for raises between 23-40% shows that they are being competitive for pilot talent.
bluepost said:
That being said, I am still here fighting because I believe the money is there...here are a few examples:
1) We pay more for FSI classes then Jet Aviation does
2) The whole Oil thing in HPN
3) Every owner is insured for the full hull on the aircraft even though they only own a share. Who is the owner of the insurance compnay? BH.
4) A 5% increase in owner fees in Oct 2001 would of paid for ADJUSTED NBAA pay with 100% retro. It wound generate about 150 mill a year, or about 7.5% of the 2 billion in revenue....the company is not going to give up 7.5% of return without a fight.
#1 - Dont make claims and not back it up with facts. I've asked in other posts for someone to show me our FSI rates vs someone else that gets a better rate. In this case, what is our rate, and what does Jet Aviation pay?
#2 - I've seen so many references to this oil thing in HPN that I decided to do a little research. It looks like we did about 7000 flights into HPN last year. If every single flight took a quart of oil (unlikely, IMO) then at most EJM would generate $350,000 in revenue (not profit), given the claimed price of $50/qt.
This seems like a lot, but then I asked a simple question....what does it cost to run our facility in HPN? What's the total cost, when we start thinking about wages for staff, utilities, insurance, mortgage (or lease) cost, etc? I dont know what that cost is, but I dont think it would be cheap in New York.
The next question is how many things can NetJets charge for to try and recoup all those expenses?
I dont know the answer to all these questions, but after thinking about it, I dont think EJM is making much money, if any, at HPN.
#3 I didnt think BH was doing aviation insurance, but its possible. What BH company is insuring the aircraft? General Re? Certainly not Geico....
#4 seems like you've got a lot of pricing info for someone who hasnt looked at the company books. What's your source?
Like it or not, even the fractional world is competitive. We are already the most expensive provider....would our owner base support an additional 5% premium without going somewhere else?