NetJets Unrest Puts Warren Buffett in a Rare Pinch

[G4dude]

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.

I consider, and many of my colleagues also, the union to be a major threat to NJA pilots' job security. Nothing cavalier about that.

 

[realityman]

I consider, and many of my colleagues also, the union to be a major threat to NJA pilots' job security. Nothing cavalier about that.

Yeah, because the union has been sooooo bad for the company, what with insisting on rules that make it easier for us to avoid unsafe situations and providing for a compensation package that helps keep pilots around longer.

And Netjets was here (as EJA) long before BH and, unless the buyer only intends to shut it down, could survive a long time with a different owner.

Quit being so afraid of everything.

 

[realityman]

I consider, and many of my colleagues also, the union to be a major threat to NJA pilots' job security. Nothing cavalier about that.

One more thing, why don't you make a list for everyone here on FI of all the bad things the union has done for everyone's job security, and also make a list of all the bad things company management has done, or attempted to do, that has threatened everyone's job security. I'll put good money on it that the union list is very short but the company list will be quite long. I'll also put good money on the fact that a lot of what the company tried to do but failed was only because the union stopped them, through having a decent CBA (think DS wanting relief from scope protections) or more direct intervention.

Looking forward to it.

 

[CA1900]

I can do something else for a living, but many pilots cannot.

That is, word for word, what Hansell said to us at one of the propaganda dinners a few years back. As I said then, I think you'd be surprised just how deep the backgrounds and skill sets are of the pilots at this company. The vast majority of us will be just fine without Netjets if it comes to that.

 

[FamilyGuy]

How about GE?

They bought Milestone

Milestone is a helicopter leasing operation. They don't operate the helicopters or employ the crews. They don't have any labor issues. Much different from NetJets.

Milestone is actually very similar to ILFC and GECAS, the latter of which GE already owns, so the Milestone purchase is highly complementary to an existing business for them. That's why GE wanted it and paid $1.8B for it.

 

[FamilyGuy]

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.

I agree that it isn't wise to ignore small issues and let them grow into larger issues. That applies here to NJ. The answer is still the same though. If WB thinks the problem will spread he would jettison NJ without a second thought. And the impact on BH financials would be negligible.

While Goldman Sachs has the capital, as does GE, which Gunfyter mentioned, neither of these companies comes close to the reputation and cachet that WB brings to the table. It's also worth noting that both of those companies came to WB for capital infusions at the height of the financial crisis in 2008.

I can not think of any buyer that would measure up to WB in terms of recognition and respect within the owner base. If NJ were to be sold (which I think is a very remote possibility), then you can expect to see many owners reconsider their decision to use NJ.

How about the Milestone founders. They have money.

Now that is a scenario I'd love to see, although I think that is extremely remote. NJ needs a leader who is passionate about aviation, cares about the employees, and has strategic vision. JH strikes out on all three counts.

 

[Hawker dude]

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.

you found someone that will pay you to be an idiot? Impressive

 

[fischman]

Wow. The FUD here is thicker than I can remember in recent history. NetJets is a cash cow.

 

[ExecJetCA]

I believe that WB will allow this to take its course to see where and what JH can or can not do. If it is apparent that JH can not break the union, then there will be negotiations in good faith to achieve a contract. Because NJ represents a very large portion of Flight Safety's business, it would be difficult to sell the business. Also because the owners are in the same social circles as well as business that BH does business with, brings other dynamics into the equation. If WH wanted to sell, he would have taken RS up on his previous offers. This business is tied into WH pride, and sometimes pride is a bigger determining factor in decisions.

 

[Hawkered]

you found someone that will pay you to be an idiot? Impressive

lol!!