NetJets Payscale: 10 yr DA-2000 Capt.

[NJAowner]

WHy SW is not a CFO

There is a reason why SW is not a CFO and G200 beat me to the punch. It seems like he has been reading the Enron book of corporate finance (which is no longer deemed current). There is a big, big difference between gross revenues and net profit. But to mediate this, Falcon Capt may be rightif he is at a large company (maybe Fortune 100 or 200) ... the percentages for the flight dept expenses are small. On the other hand, if your company only has $200MM in revenue and $10MM in net income, spending a few million on a flight department is significant. Not to be degrading here, but try reading The Wall Street Journal when you are sitting in the FBO or hotel. It will give you a better understanding or corporate finance. Some companies deal in billions and round up to the next hundred million. When Wlater Annenberg sold TV Guide, Seventeen annd the Daily Racing Form for $6,240,000,000 all the media reported it as a $6.2 billion deal. Malcom Forbes said if everyone wnats to forget about the $40 million, please give it to him.

It is all a matter of relative (key word here) size.

 

[Cat3C]

Always entertaining

 

[swberry]

Re: WHy SW is not a CFO

It is all a matter of relative (key word here) size.

Yes, and that goes for the size of the flight department as well. If the company is large they most likely have a large flight department. If they have a large/productive flight department then how can their annual budget be insignificant?

If their annual budget is so insignificant then why do companies usually go after the flight department when it is time to trim expenses?

G200, I apologize for calling you names as well.

 

[Gulfstream 200]

Good Post NJA Owner.

Certainly a company with 200 million in revenue should NOT be looking at a corp jet. It wont last...but they may very well be in the market for a 1/4 share...!!

On the other hand, many today ARE measuring PROFITS in the billions and a select few are even posting TRILLIONS in assets.

Fortune 10 or 20 companies simply could not stay competitve with fractional ownership (supplemental lift aside). Small companies and wealthy individuals are your niche. The wealthy individual who wants to take his poodle with him to PBI or ASE is your customer. The $hit service the airlines have become is your success story...but....Doing 10 day Europe/Mid East/Asia road shows to stay competititve in this Global Economy simply is not what a frac can do - Thats what corp flight depts do - we dont take the CEO to his mansions in PBI too often...we work.

The days are of cutting the flight department when its time to trim expenses are few and far between....(but never say never!).

If a company gets to that point, they are going down the tubes - they are giving up what keeps them competitive and its time to jump ship (Tyco,Enron) This is not "trimming expenses" this is "liquidation".

unfortunatly....

 

[G100driver]

NJAowner:

I am curious what are the tax advantages of "owning" a share of an aircraft when you compare it to your own flight department.

IE deprecation and equiptment(upgrade) purchases.

Thanks

 

[NJAowner]

Comparisons

G100 -- I have never had my own "flight department". I have several companies (all private) and own a 1/8 NJA share. I use the plane for both business and personal uses. As the "owner" of the aircraft, I get my proportionate share of all depreciation, and each fractional owner, based upon their specific situation, is able to take the expenses for business use for the monthly management fees and occupied hourly fees for the busines suse of the jet.

Sorry I could not be more helpful.