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NetJets TA fails miserably

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Well in the real time example, you have a 10% figure relative to the hourly ops cost.

In my history from above, fuel costs were a relatively low number when combined with the maintenance capabilities we had you, your 2/3 's were low and the pilot cost high.

Today, fuel costs are up and a larger portion, insurance costs are a more significant %, maintenance depending on age of aircraft and type can be very costly, and the pilot costs less as a percentage due to the other factors. That is why the percentage game is not very effective in doing analysis all the time that is really comparative.

Now take the Challenger crew above. For the owner, they only fly 300 hours per year. The balance is charter. In terms of dollars, the owner is paying out the same money with or without charter. The question is whether the costs are spread over the 300 or the 438. Over the 438, his crew costs have dropped, plus, he is generating revenue on the aircraft - a double win.

It is this kind of calculation that people look at to determine what it would cost them versus going with Netjets. You can get whatever you want to get but in the real world, this challenger flies when the boss wants to go, where he wants to go, and there is no overtime, no fixed days off, no staff to do Jepps, no much of any work scope.

To try and translate this typical flight operation into a union organized public company is difficult at best. You want airline type benefits along with corporate type pay, and really are a charter company. I think your work rules more than the money are going to be detrimental to the future model.
 
So, I guess in summary, Publishers, you are saying that the numbers you and I both know so well don't necessarily fit in the fractional house of cards. I agree.

You are saying the fractional business doesn't mirror airlines well, and it doesn't mirror the charter business well. I agree.

So, here we are, you on the sidelines watching and perhaps somewhat threatened by it if I've got the picture right; me in the midst of it all with a couple thousand other guys betting our futures on it, blazing the trail for the future. The Lewises and Clarks of the skies.

Maybe when it all shakes out, we both will know whether or not this business concept was genius or fatally flawed. We just made our bets on opposite sides of the table. Either way, it will be exciting. And hey, I can always go back to corporate/charter, huh?

Regards --
 
They work as long as you can make it up somewhere else in the program. If sales of fractions slowed appreciably, your dead.
 

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