NetJets returns to profit in first quarter

[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..

 

[gunfyter]

I think Art is right. Profits/losses don't = recalls/furloughs. Flight demand = need for more or less pilots. We gotta fly more. Whether we make or lose money ... doesn't change how many pilots are needed.

 

[gutshotdraw]

The point was, our "friend" said it was the union and the contract was the cause of the losses and that we would furlough more and the contract would be re-opened. All three points are now clearly shown as being wrong. Furloughs alone cannot account for the TREMENDOUS turnaround that the 1st quarter numbers indicate.

Based on statements from BN, the company is closer to planning for recalls than planning for more furloughs.

 

[CRJFlyer]

The point was, our "friend" said it was the union and the contract was the cause of the losses and that we would furlough more and the contract would be re-opened. All three points are now clearly shown as being wrong. Furloughs alone cannot account for the TREMENDOUS turnaround that the 1st quarter numbers indicate.

Based on statements from BN, the company is closer to planning for recalls than planning for more furloughs.

Sure hope so. Tonights 411 and the planned fleet count for the year 2014 doesn't add up though. Especially with DS wanting 125% out of his employee's.

 

[RP170]

Sure hope so. Tonights 411 and the planned fleet count for the year 2014 doesn't add up though. Especially with DS wanting 125% out of his employee's.

I think this so called "5 year plan" they have will be modified as the economy changes. If things pick up more than expected they will most likely increase the fleet size. Then again, they may not give a crap about market share and shrink the fleet size and keep it there, regardless of what happens.

I just don't think the demand for a product like NetJets will ever come back to where it was back in 2008. Even the wealthy and corporations won't be looking dish out the big $$$$ that NetJets costs regardless of the economy. Especially when they can get nearly the same service for much less cost someplace else as Sokol drags down the customer service aspect of NJA.

 

[CRJFlyer]

True.

Especially when people realize that a plane is a plane. And most pilots are capable of completing a flight just as well as NJA. And with our fleet getting older and the "perks" slowly going downhill. They may actually get a bit better service with a nice charter company.

All it takes is one good flight at a charter company to make up their minds. Other than NJA reliability with having back-up a/c, I don't see the edge being all that much greater with NJA anymore.

Granted pilots know that going with NJA,Avantair, Flex etc. is probably an overall safer/ reliable method of transportation. The customer only sees the amenities, cleanliness of the a/c and customer service provided. And honestly I didn't see any better customer service at NJA than at my former 4 Beechjet/8 pilot charter outfit. Pilots are pilots. Some are super nice and sociable, some aren't. It doesn't matter which company you work for. It's not like one day I woke up a NJA pilot and became super pilot with a great personality. I'm still as grumpy and miserable sitting in the right seat for yet another year as I was in the airlines.

Plus NJA is still the most expensive. If your reading material trying to decide where to take your business, we better hope NJA has great word-of-mouth advertising from our current owners.

Not knocking NJA, just trying to rationalize how long this furlough will last.