Herb valued employees satisfaction with job as to their role in the process but it would be a bit simplific to say one started there. As to the 75% comment, Netjets competition is only part other fractionals. They also compete with every charter company and every corporate flight operation. It is a very complex model that needs constant tweaking. I always thought the problem was going to be the 5 year new equipment stategy as with their intial success, they would be pumping quite a few high time used aircraft into the market. If that in turn depressed the used market, their original estimates of residual value would not work and the customer would be upset.
This has happened to a small extent already with some customers upset that the residual has not held up. On the service side, they have made some strong committments to the customer. To meet that service level means some extrodinary costs to provide the promised service. No matter how the TA comes out, the likelyhood is a higher cost to Netjets and one they will try and pass along to a customer base somewhat stressed by the cost per hour they end up paying. That may not be a big deal to Tiger Woods but some of the smaller companies that they are trying to get on board, it will be.