Netjets taking Beechjets

[Pugnacious G]

I guess I don't understand. Why exactly would NJA want to buy Floptions' debt and under-priced owner contracts? They already have the same market share as all the other companies combined. I don't see any advantage.

One thing is for sure though. Floptions pilots will be a lot better off if they are Teamsters when/if it happens.

 

[Live4flyng]

I don't think NJA would buy debt, more or less assume the debt already amassed, for pennies on the dollar. If a bankruptcy were to take place and the undervalued contracts were terminated, then it would seem realistic.

I agree, FLOPS pilots would be in a better position if they went to NJA as Teamsters. And NO, I am not some hardcore Teamster insider who is trying to get anyone to vote a certain way, this is just my opinion.

 

[GooseHZ]

question...

Very interesting thoughts on a possible FLops/NJ buyout or what ever you want to call it......but if that happens, would we (FLOPS pilots) just become members of the union? We would be working for NetJets so would we not just magically become members of the IBT? If we vote in Local 747 and you guys are 284 or whatever you are, then NJ would have to deal with 2 shops instead of 1, 2 contracts....you get my point. Just wondering.....

Fly safe!

 

[NJAowner]

Antitrust Concerns

It seems highly unlikely that the Department of Justice, Antitrust Division, would approve of a NJA/FO merger. The market share of the resulting company would almost create a monopoly.

 

[Frac Daddy]

.

NJAOwner,

Well, I guess it depends on what NetJets market is. Certainly it would have a monopoly on the fractional market. But aren't the fractionals just another form of aircaft management, thus making NetJets just another charter(Marquis Jet)/management(fractional) company? If so, what share of THAT market would they have? Probably not enough to be considered a monopoly.

Goose,

I am not the most educated person on unions, but here it goes: Would we become automatic members of the Teamsters if we were bought by NetJets? If they decided to keep us around, sure. And we would most likely be stapled to the bottom of the NetJets list. One of the things that the union-types like to talk about is "successorship." That gives you some protection in case of mergers or acquisitions. Would we get the short end of the stick if NetJets bought us anyways? Probably, but we would fare better if we were already organized. If I am wrong or someone with more kowledge would like to add to this, feel free to do so. Like I said, I don't know too much about unions.

 

[Da Man]

I think it would be even less likely that Berkshire Hathaway shareholders would approve the deal.

 

[Live4flyng]

Ok,

I'll put it another way then. I never said that NJA would merge with Options, highly unlikely. I didn't know that NJA had to check with the Department of Justice or Shareholders whenever they bought airplanes either. Even if they did, it still would not make them a monopoly, there other fractionals out there.

If Raytheon made an announcement that they are going out of business as a result of bankrupcy, or just out of the fractional business all together, a couple things would have to happen for sure. The owners would have to be refunded their money, and the airplanes would have to be sold.

Back to my original post, if Beechjets are available for next to nothing and some sort of maintenance agreement were involved, it could be very attractive for NJA.

When it comes to unions, NJA isn't much different from an airline as far as hiring goes. You would have to become a member of that union once hired, one shop, one contract.

NJA Owner,

I have a quick question for you, if you don't mind answering it.

If NJA called you tomorrow and told you that the flight you booked in your Excell was going to be canceled because they were anticipating a work stoppage by the pilots, how would you handle that?

 

[Frac Daddy]

Da Man,

Why wouldn't B-H approve of a merger or acquisition of FLOPS? Just curious as to your reasoning?

 

[NJAowner]

Frac Daddy -- hats off to you. You are correct; the whole ball game in a Clayton Act antitrust analysis is not what % of the market you will ultimately control but how the relevant "market" is defined. The frax market could be defined to include on demand charter, jet management, or just plain, traditional fractional ownership. However, the relevant percentage would still be staggering under any of those market definitions. Without realizing it (or may be he did), Live4flying has brought up the "going out of business" exception to not approving the merger. Plus NJA would not have to be a monopoly ... oligopolies may be covered s well.

Live4Flying --- based upon relative market percentages and control before and after a merger/acquisition, the Department of Justice can prevent a merger under the Clayton Antitrust Act and the Hart-Scott-Rodino Act. In additon, in large transactions, both the buyer and seller (or merger partners) need shareholder approval. In this case, I doubt the ultimate shareholders of B-H or Raytheon would need to approve this deal because it is not of a sufficient magnitude in light of the complete operations of either parent company.

Live4Flying -- I would not be a happy pup if my plane did not arrive. However, NJA could replace it with a charter flight. If things got bad, they may replace it with a charter (or EJM) flight but only charge me 1/2 of my hours (they have no obligation to do this, but if they did the inconvenience would not be as great as you expect). Legally speaking, under the Master Interchage Agreement, NJA does not have to give me any plane if there is a work stoppage. Not saying I'd like it, but I have very limited legal recourse against them.

 

[Da Man]

Re: Da Man,

Why wouldn't B-H approve of a merger or acquisition of FLOPS? Just curious as to your reasoning?

I just don't think the shareholders would approve a merger with a company that is losing significant money while NJ is trying to get back to profitable operation. I also don't see any economies of scale from this merger.