NetJets Unrest Puts Warren Buffett in a Rare Pinch

[NJAowner]

I am not saying it does not have anything to do with WB. I do not know whether it does -- but I know I did not say it. The point I was trying to make is that for months (or years) I have read so much on this site about how afraid WB is of negative publicity. The conclusion is that since he is "so scared" the union has leverage. All I am posing is "what if he is not all that scared of negative publicity??" Well -- the negative publicity "cat is now out of the bag".

 

[Hawkered]

Flightsafety has plenty of demand for their slots, so I don't see a big negative impact if NJ were sold. I also don't see Buffett being concerned about that small impact. If he wants to sell it he will. For the record, I don't think a sale is likely at this point.

At the end of the day, Netjets is a very small part of the BRK porfolio.

If we continue to play stupid games...we all will win stupid prizes!

This needs to be brought a close, NOW!!

 

[SpaceShipEarth]

Sooooo I've got an interview scheduled. How sound of a career move would this be? Any while your at it some winning lotto numbers would be great too

 

[CALRepublic]

Sooooo I've got an interview scheduled. How sound of a career move would this be? Any while your at it some winning lotto numbers would be great too

Rumor has it a couple of days after Netjets announced we were hiring, the website collapsed due to traffic.

Great place to work, good company, lots of potential provided the union and management get along

 

[realityman]

At the end of the day, Netjets is a very small part of the BRK porfolio.

If we continue to play stupid games...we all will win stupid prizes!

This needs to be brought a close, NOW!!

I keep hearing how we're just a small part of the BH portfolio. Just a pimple on a knat's a**.

So what? Who cares? Small things can create big waves and even bigger problems. A pimple could actually be a cancer that if just ignored could create large problems for the rest of the body later on.

End it now? Uhhhhhh, okay, I'm all for that. Would you mind telling me how we do that without taking it in the shorts? You don't seriously believe that if we stop all the union activity that JH will just pony up to the negotiating table and say, "Thanks boys. This was all just a misunderstanding. I didn't really want concessions from you. Now we can sit and talk like adults and work out a nice compromise.". So what do you think the end result will be if we let up on the pressure? Seriously, I'm all ears as to how you think this would play out.

As for BH selling us, again, so what? That could be a negative thing, but not necessarily. Depends on who buys us. I'm not all that worried about a BH sale of us right now.

Besides, good luck to BH selling a company that's in extremely contentious negotiations with FOUR unionized labor groups! What will the sales pitch be? "Do you like angry employees? Enamored with the thought of a strike? Ready to lose millions (maybe billions) while fielding complaints and lawsuits from the richest and most powerful people and companies in the world? Then boy do we have the company for you! Come on down to Crazy Warren's profit center and we'll cut you a great deal!".

The prospect I find most possible (but I don't think it's very likely) is BH just winding us down. They could. But I'm not going to worry about it until they shut our sales department down. Every day they sell another share is a five year extension to NJA's life.

Meanwhile, if we want any chance of a good contract we need to increase the pressure on JH and BH any and every way we can. Looking forward to walking in Omaha in May!

 

[fischman]

http://www.wsj.com/articles/netjets-unrest-puts-warren-buffett-in-a-rare-pinch-1420485740

f.u.d.

 

[ghostrider64]

One thing is certain, none of us have seen how WB will react to such "bad" PR, as he approaches the end of days. Sell, stay or fold? Either way we shouldn't fear it, we should enjoy the "game" as it plays out. We are seeing history, as it pertains to WB's running one of his businesses, and let there be no doubt "his team" is in fact directing ALL aspects of the company.

As for folding, this seems to be the least likely option.

1) flow of new metal increasing
2) increasing sales (new and existing aircraft)
3) increasing staffing

Not typical benchmarks for a company to be shut down. If he in fact chose to do this it would still mean pilots would be needed for quite sometime to fly out the contracts, not too mention planes being sold, still need crews to fly them and demand for those planes is evident.

So what's to fear exactly? Not much from where I'm sitting. Over the past year I've been turning down jobs left and right, instead I'm sticking around to see this all unfold. It can be fun to participate in historical events.

 

[T-1GUY]

Keep the pressure on boys. They will cave.
Nows the time to stand strong !!!

 

[Hogprint]

I keep hearing how we're just a small part of the BH portfolio. Just a pimple on a knat's a**.


...Would you mind telling me how we do that without taking it in the shorts? You don't seriously believe that if we stop all the union activity that JH will just pony up to the negotiating table and say, "Thanks boys. This was all just a misunderstanding. I didn't really want concessions from you. Now we can sit and talk like adults and work out a nice compromise.". So what do you think the end result will be if we let up on the pressure? Seriously, I'm all ears as to how you think this would play out....

Yes. This. Remember, this is what the Recall was all about. Getting JH's (or the Twinky Dinks) boys in place to "play along to get along" and look what happened. They will play games until we make them negotiate in good faith.

The rest of your quote was spot on also.

 

[G4dude]

He sure doesn't like bad press and had enough sycophants in the media to assure he didn't get any. Social Media has changed things as much as he tries to outlaw it.

I expect to see 19th Century anti-union railway violence on his part. The message board infiltration harkens back to The Molly Maguires.

You GOTTA be KIDDING.

 

[G4dude]

I keep hearing how we're just a small part of the BH portfolio. Just a pimple on a knat's a**.

So what? Who cares? Small things can create big waves and even bigger problems. A pimple could actually be a cancer that if just ignored could create large problems for the rest of the body later on.

End it now? Uhhhhhh, okay, I'm all for that. Would you mind telling me how we do that without taking it in the shorts? You don't seriously believe that if we stop all the union activity that JH will just pony up to the negotiating table and say, "Thanks boys. This was all just a misunderstanding. I didn't really want concessions from you. Now we can sit and talk like adults and work out a nice compromise.". So what do you think the end result will be if we let up on the pressure? Seriously, I'm all ears as to how you think this would play out.

As for BH selling us, again, so what? That could be a negative thing, but not necessarily. Depends on who buys us. I'm not all that worried about a BH sale of us right now.

Besides, good luck to BH selling a company that's in extremely contentious negotiations with FOUR unionized labor groups! What will the sales pitch be? "Do you like angry employees? Enamored with the thought of a strike? Ready to lose millions (maybe billions) while fielding complaints and lawsuits from the richest and most powerful people and companies in the world? Then boy do we have the company for you! Come on down to Crazy Warren's profit center and we'll cut you a great deal!".

The prospect I find most possible (but I don't think it's very likely) is BH just winding us down. They could. But I'm not going to worry about it until they shut our sales department down. Every day they sell another share is a five year extension to NJA's life.

Meanwhile, if we want any chance of a good contract we need to increase the pressure on JH and BH any and every way we can. Looking forward to walking in Omaha in May!

Amazing how cavalier you are about your colleagues' jobs when you discuss a shutdown by WB.

 

[rajflyboy]

Peeps will fly their jets. Doesn't matter if its NJA or some other company or their own jet.

There will be pilots to fly them and sims to train the pilots.

 

[FamilyGuy]

That assumes he cares about it and wants to end the publicity. He could make 1 phone call and give each of you a $1,000,000 gift as well. But it doesn't mean he will. The HUGE assumption here is "how much WB cares about negative publicity?" And I guess we will all know in the next year or so??

WB isn't concerned about the negative publicity and judging from the comments to the article, most of the WSJ readers aren't either.

The pilots shouldn't be fooled into thinking that a WSJ article or picketing is creating some huge amount of pressure on WB. These are a passing annoyance for him. The readers, especially those who own their businesses, will recognize this as a fairly common occurrence in unionized businesses and not pay it any more attention.

What will get WB's attention is declining earnings and negative feedback from the owners.

 

[FamilyGuy]

I keep hearing how we're just a small part of the BH portfolio. Just a pimple on a knat's a**.

So what? Who cares? Small things can create big waves and even bigger problems. A pimple could actually be a cancer that if just ignored could create large problems for the rest of the body later on.

Interesting analogy to use when the standard treatment for cancer is to remove it. WB wouldn't hesitate for a second to jettison NJ if he thought the labor problems would spread to other businesses.

As for BH selling us, again, so what? That could be a negative thing, but not necessarily. Depends on who buys us. I'm not all that worried about a BH sale of us right now.

Berkshire selling NJ would be a major negative. Please name another buyer out there that would have the same appeal and reputation as a solid financial backer as Buffett. Buffett has a sterling reputation and many of the owners are with NJ because he owns it. If he sells it, then you can expect a considerable number of owners to reconsider their decision on who to use for the private jet travel. Just look at the huge boost at EJM after the 2008 financial crisis if you need proof. There was a tremendous flight to safety and quality after the crisis and EJM doubled in size because AC owners wanted to have the BRK backing and know their AC wouldn't get tied up in litigation ala Sentient.

End it now? Uhhhhhh, okay, I'm all for that. Would you mind telling me how we do that without taking it in the shorts? You don't seriously believe that if we stop all the union activity that JH will just pony up to the negotiating table and say, "Thanks boys. This was all just a misunderstanding. I didn't really want concessions from you. Now we can sit and talk like adults and work out a nice compromise.". So what do you think the end result will be if we let up on the pressure? Seriously, I'm all ears as to how you think this would play out.

Besides, good luck to BH selling a company that's in extremely contentious negotiations with FOUR unionized labor groups! What will the sales pitch be? "Do you like angry employees? Enamored with the thought of a strike? Ready to lose millions (maybe billions) while fielding complaints and lawsuits from the richest and most powerful people and companies in the world? Then boy do we have the company for you! Come on down to Crazy Warren's profit center and we'll cut you a great deal!".

The prospect I find most possible (but I don't think it's very likely) is BH just winding us down. They could. But I'm not going to worry about it until they shut our sales department down. Every day they sell another share is a five year extension to NJA's life.

Meanwhile, if we want any chance of a good contract we need to increase the pressure on JH and BH any and every way we can. Looking forward to walking in Omaha in May!

The rest of your post is spot on.

Finding a buyer for NJ would be difficult and any sale would be at distressed prices, something WB does reluctantly and only after he has given up hope on the business.

JH is only interested in making a name for himself, so he wont give you a deal unless his hand is forced.

 

[gunfyter]

How about GE?

They bought Milestone

 

[JustPlaneTruth]

How about GE?

They bought Milestone

How about the Milestone founders. They have money.

 

[realityman]

Amazing how cavalier you are about your colleagues' jobs when you discuss a shutdown by WB.

Not cavalier at all. My point, which you obviously missed, is that he isnt going to shut us down.

Can I say that for 100% sure? No. But history has already shown it takes more than unhappy labor and public pressure for him to shut us down.

Are you up on your NJA history at all? We went through this back in '04-'05. Granted, I'll give you that we didn't take it to the level we're at now (WSJ Ads, social media, numerous pickets, etc...) but it was there. In addition, and more importantly, when it was all over RTS came to us and told us the whole deal had cost us 16 full aircraft worth of owners. That's a bunch of really pissed off owners!! So yes, we had plenty of labor unrest back then, actually cost the company more than we have so far (if we've even really cost them anything yet), and did it at a time when NJA wasn't earning nearly the profits it is now. And he didn't sell us or shut us down.

I'm not being cavalier. I've just already been through this and have a good understanding what posturing is, from both sides.

Like I said, it's not impossible that he'd sell us or shut us down, but highly unlikely.

If you would like to know what carries far more gravity with me right now than remote possibilities like we've been discussing, is the possibility of a giant smoking hole in the ground with only a tail section remaining that has a "QS" on it because WB's quest for profits and JH's uninformed capitulation to the process pushed someone to fear calling fatigued when they should have, or as a result of the brilliant new maintenance I've been witnessing, or any number of other reasons that have not been good for us or the company since DS/JH came in.

If anything, I've found your attitude towards our union to be somewhat cavalier, not to mention incredibly negative, considering that well beyond trying to improve this career for you and the rest of us, it's the ONLY buffer between you and all your colleagues, and an incredibly hostile management team.

 

[realityman]

FamilyGuy,

My point about a cancerous pimple was that something small can cause big issues. It isnt wise to ignore negative things coming from small stuff. That's all.

As for a buyer, how about Goldman Sachs? As others have shown, there are plenty of wealthy investment companies. Heck, XOJet had some very wealthy middle east backers. Swearingen was bought by the Chinese. There's A LOT of money out there (it's just not necessarily in OUR pockets).

A sale could be bad for us, but also very good. Like anything, it just depends on the intent of the buyer.

 

[NJAowner]

How about an employee buyout?? Let the employees (who are the foremost experts in the industry) buy it form BH??

 

[G4dude]

Then wind it down. What's clear to me is that BRK is no longer a fit for Netjets.

I can't imagine that another company owner would be better for us than Warren. I think y'all are playing with fire. I can do something else for a living, but many pilots cannot.