NetJets returns to profit in first quarter

[gunfyter]

NetJets returns to profit in first quarter | The Columbus Dispatch

 

[gutshotdraw]

Guess our "friend" will have to reconsider his notion that we're furloughing more and re-opening the contract.......naaah. That might require an honest assessment of little things called "facts."

 

[OPECJet]

Glad we could be of service.uke:

 

[CRJFlyer]

Ha..thought the same thing...isn't 50 mil about what we cost!!!

Suprised they even showed the profit...Makes trying to pry his fingers into the contract that much harder....I would have bet BHK would have kept that under wraps, transfered the profit to another part of NJA..Like EJA or Europe.

 

[ArtVandalay]

Guess our "friend" will have to reconsider his notion that we're furloughing more and re-opening the contract.......naaah. That might require an honest assessment of little things called "facts."

How do you equate money to number of crewmembers? Just because you make profit doesn't have anything to do with recalls or furloughs. It's a multiple of aircraft and required crews.

 

[jonjuan]

How do you equate money to number of crewmembers? Just because you make profit doesn't have anything to do with recalls or furloughs. It's a multiple of aircraft and required crews.

zactly.......

 

[sshrae]

Haters are out.

 

[imacdog]

Had you two actually read the article, it mentioned that no second round of furloughs is planned, and that flight activity is up.

I'm not sure exactly how XOJet is a "distant second" in terms of fleet size, though. :erm: Maybe in terms of number of 750's

 

[Captainzero1]

A legitimate question to the NetJet guys: how do you make money and your counterparts, Avantair excluded can't seem to consistently make money. What is your formula? I am guessing economy of scale and you also have the most owners out there.

 

[172driver]

A legitimate answer: We don't consistently make money either. If we have more consistently made profits, I would attribute that to bargaining power. I would guess we pay less for fuel, ramp fees, mx, hotels, rental cars, etc., because of our size.

 

[LAZYB]

We made most of the money buying planes Low and selling 'em High. :beer:

If we ain't sellin planes we're dying.

 

[gutshotdraw]

How do you equate money to number of crewmembers? Just because you make profit doesn't have anything to do with recalls or furloughs. It's a multiple of aircraft and required crews.

You missed the point entirely.

 

[realityman]

Ha..thought the same thing...isn't 50 mil about what we cost!!!

I'm pretty sure the reduced costs associated with fewer employees is only one PART of this equation. I don't know, maybe the savings of furloughing all those folks was $50 mil, but over the entire YEAR. I highly doubt the costs of the most junior 495 is $50 million/quarter. That would make your costs $200 million/year. That would equate to our entire work force's labor costs being well upwards of $1 billion/year!!!

Anyway, we lost $126 million in first quarter last year, and made $50 million in first quarter this year. That's a $175 million dollar turnaround. Even with all the cutbacks in all areas, it still looks like the company may actually be making profits operationally and through sales again. That's a great sign!! Can't say how the economy and other important factors will play out over the next 12 months or so, but if we can continue along this path, we'll be much closer to recalls in a year's time than we are right now.

So while the firings and furloughs most certainly did contribute to the turnaround, it doesn't seem like they're the only, or even biggest, factor in the money we made first quarter.

I really hope my guessing (yes, I admit it) is correct. It'd be great to start seeing some recalls sooner rather than later.

And yes, Art, I realize more profits don't necessarily translate to more jobs. But if we stay profitable, and realize new growth in the company,we WILL be recalling.

I'd prefer to maintain a positive outlook.

 

[CRJFlyer]

It was a half-hearted joke. Of course we're not the only reason for the profits. Plus we were being paid our salary for most of the 1st quarter. So in reality NJA didn't see any savings from furloughing us this quarter. Also including medical, and 401k contribution.

I estimate the saving from furloughs, next quarter, to be north of 8.5 million (and thats using an average 70K per pilot. My salary was considerably more). Not including saving medical, 401k, training, and any other employee induced cost. So it is very easy to assume that NJA is saving atleast 10 million per quarter with us on the street. That would have made up around 20% of total savings for this quarter.

 

[fly4funcrj]

Just a thought, guess, dream... When we were losing (spelled correctly!) substantial amounts of $$$ a day, furloughs HAD to be done to HELP stop the bleeding. If we are now making money, a lot of pressure is off to furlough more right now. We don't need to furlough to stop bleeding $$. We have time to stop, breath, take in the scenery and make sure we have enough/not enough pilots on property. There is, what I take as a contradictory statement in the article, 2 statements. One is :

Employment at NetJets, which took a hit last year, is expected to be stable locally.

He said he reassured employees this week that there are no additional layoffs planned, after rumors of more pilot furloughs circulated.

Maybe I'm reading too much into it..