NetJets Profits

[RNObased]

You are correct that the 4th quarter will be critical. Anyone can tell by looking at the last few years of financial results that we perform better financially in the 2nd and 3rd quarters and worse in the 1st and 4th. This is directly tied to the subcontract rate.

So Family Guy,
When or if scheduling blows the profits in the 4th quarter by silly ferry legs, subcontracting flights while our crews sit, and various other activities will someone finally listen to the pilots and fix that dept??? Or will it still be status quo????

 

[Hawkered]

Easy going on Family Guy there! First of all NOBODY could have predicted that we would be looking this good, this quickly. Second; we need to focus on not dropping the ball now we've finally been given a chance to run with it.

Scheduling has improved. We got five revenue legs in one day not long ago, and that is the first time I've ever seen that happen.

Good job in Columbus guys. We need to realize that a lot of people had tremendous fear going into this year of war and uncertainty. I'm just glad everything has worked out..so far.


Now, let's get back to work!

 

[ETDTBA]

Several reason contributed to profitability.
1. Less aircraft breaking, which means less subcontracting.
2. More restrictions being put on Marquis Jet card holders.
3. More efficient scheduling, less wasted ferry flights. They still do happen.
4. Over all cost cutting on everything.

P.S. I was never told nor never heard that the new pilots contract would bankrupt the company.

 

[gunfyter]

Family Guy and hawkered....

You did not address the point I was trying to make about the Reduction in Forces of Bridgeway and Easton folks.

Are we going to be hurt by saving a couple million in RIF but then paying for it by not having those assets available to do needed work.

 

[Diesel]

wow familyguy is back. talk about a blast from the past.

 

[Some guy]

Family Guy and hawkered....

You did not address the point I was trying to make about the Reduction in Forces of Bridgeway and Easton folks.

Are we going to be hurt by saving a couple million in RIF but then paying for it by not having those assets available to do needed work.

While it sucks seeing people get pink slips, I don't think the daily operation will be affected.

SG

 

[Number$Cruncher]

Hopefully pessimistic...

It's a lot easier to make money selling the things than it is operating them. If you have one gangbuster qtr. selling shares and then said sales falls flat you've got some problems for subsequent qtrs.

True, but not in financial reporting. Assuming the statements are issued according to GAAP reporting rules, the revenues and expenses associated with share sales are averaged over the period of the associated contracts' expected life. So, assuming NetJets is using 60 months, then the revenue and expense from share sales in a given month is actually 1/60th of what has happened over the last five years. From a financial reporting perspective, this has the effect of "smoothing out" the seasonality of share sales, both good and bad.

The point about the breakdown of revenues in Q1 and Q2 someone else made is a critical one. Management could make the case to adjust the expected contract life from 60 months to something shorter (and perhaps more accurately reflect the contract life), and POOF! A month that had previously seen only 1/60th of all prior sales margin is now 1/48th. That sure would help the financials for a company like NetJets where sales have continued to be relatively strong. I don't know whether this is what actually happened here, but knowing what the breakdown of profit from share sales and flight operations would certainly help give more insight into the health of the program.

 

[FamilyGuy]

Family Guy and hawkered....

You did not address the point I was trying to make about the Reduction in Forces of Bridgeway and Easton folks.

Are we going to be hurt by saving a couple million in RIF but then paying for it by not having those assets available to do needed work.

While it sucks seeing people get pink slips, I don't think the daily operation will be affected.

Some guy - agreed. I hate to see anyone get laid off, but I don't think it will affect the daily operations.

I haven't seen anyone in the flight center get laid off, it appears to be restricted to the non flight related departments like HR, recruiting, training, subcontracting, etc.

 

[Hawkered]

I heard that the hiring freeze is over in the Flight Center. Owner Services seems to be doing a much better job of informing the passengers about baggage space and fuel/load restrictions. In fact, everything has improved enormously.

The antagonists need to dry up and get back to work, where their energies and paychecks should be directing them, (as well as any sense of self-preservation).

 

[Some guy]

I heard that the hiring freeze is over in the Flight Center. Owner Services seems to be doing a much better job of informing the passengers about baggage space and fuel/load restrictions. In fact, everything has improved enormously.

The hiring freeze does seem to be over...As for now, the only spots being filled are those that have opened due to artrition.

There are a lot of good things happening in many departments. Things are slowly getting better.

SG

 

[gunfyter]

Some guy - agreed. I hate to see anyone get laid off, but I don't think it will affect the daily operations.

I haven't seen anyone in the flight center get laid off, it appears to be restricted to the non flight related departments like HR, recruiting, training, subcontracting, etc.

See this is what we were hearing. People had to lose their jobs to pay for pilot raises.
Also we heard No raises for the earth people at CMH because of pilot raises. Whats the truth? Will there be raises or no?
...Here is my prediction. 3rd quarter profits similar to the 2nd qtr will outpace losses in the 4th. 2006 will be a net profitable yr. 50 to 100 Million

 

[RTRHD]

I airlined home yesterday. What a mess, that has got to help sales. I think that was the last nail for a lot of carriers.

RTRHD

 

[gutshotdraw]

I airlined home yesterday. What a mess, that has got to help sales. I think that was the last nail for a lot of carriers.

RTRHD

You got that right. Just when you thought the airlines had turned the corner.....

Any of you still not going to travel in uniform?

(Sorry. Thread hi-jack alert)

 

[batsky2000]

Well since I have always traveled in my uniform, this will be no big deal to keep doing it, from what I have read else where on this site is that uniformed crew members are exempt from the TSA rule of bringing lotions,shampoo,tooth paste,etc..., so we shall see if that is true

 

[RTRHD]

Any of you still not going to travel in uniform?

I didn't before, but I will now!!! Besides, I hear you can make two bucks a bag while you wait on the Van. (If only we had Hats.)