NJ and Cessna??

[ozpilot]

In fairness to Cessna they build a Ferrari (Citation X) and Netjets runs them like New York Taxi cabs ....

 

[Dassault]

Buying Signature would make more sense.

 

[tdwnds1]

I have heard the "overlap" theory for years. I have issues regarding the synergy of NJ and Textron at this time. While a majority stake might have benefits down the road, at this time it really dosent make sense. I do think that some consolidation in the fractional industry in inevitable considering the current issues within the industry.

As for CS, it is apparent at this time that Textron is going to try to rebrand the company to make if profitable or at least stop the drain on its finances. If the new Citation Air by Cessna can be at least somewhat profitable in the on demand charter market (a similar model being used by XO Jet) it would be an accomplishment. I dont think at this time Textron is going to abandon or spin off CS unless the re-branding dosent work, but the next year will be very interesting for all the fractionals.

 

[ProFracPilot]

Buying Signature would make more sense.

This is certainly a possible scenario. At the very least, I believe Signature is being slimmed and pretty'd up for a sale. Look no further than the history of their current CEO. This has been his M.O. in the past: Come in with great promise of saving the company; cut cost to the bone (shrinking to profitability); then either sell the joint or part it out. It certainly isn't his understanding of a "customer service" business that gets him these jobs - he doesn't have a clue about caring for customers.

 

[sflax]

Who said CS was a drain on Textron. The last few townhalls have actually stated the CS is cash positive to the bottom line at Cessna and that the company is in a very good financial situation.

 

[tdwnds1]

I not going to contradict your information since I dont have any inside knowledge of what is going on, but...

You have gone through 2 or 3 rounds of furloughs at the company, I have never seen a company that was making money have mass layoffs of people. In additon, though CS might add to the bottom line at Textron (revenue), the larger company is still hurting. Ask the 55 percent of the workforce that has been laid off. Lastly, a "re-branding" means that the current business plan needs to be changed. Why would that happen if the company was profitable? You can still have lots of revenue without profits.

Dont get me wrong, I hope you guys are doing well and the company succeeds. Dont want to see anyone else out of work.

 

[BoilerUP]

You have gone through 2 or 3 rounds of furloughs at the company, I have never seen a company that was making money have mass layoffs of people.

UPS tried to furlough 300 pilots earlier this year...while still making a HALF BILLION in profit per quarter...

 

[sflax]

Why is bringing cost in line with revenues a bad thing, it is the right thing. So keeping people around, just b/c you make money is the moral thing in the social world. But if you want a business to succeed, people are cost. And when revenue goes down so must costs.

 

[FRACTRASH]

#1 we are cash positive at CS
#2 the re branding is just a way to reach more people who think shares is all we do.
#3 many very exiting changes coming, I don't want to say too much at this point, I'm not sure what's public info yet.
#4 I don't like to see it anywhere, because it effects us all. But, NJ is about 150 airplanes to fat right now in this market. You can only carry that much extra overhead and cost for so long, somethings got to give.

 

[Sparse]

.
#4 I don't like to see it anywhere, because it effects us all. But, NJ is about 150 airplanes to fat right now in this market. You can only carry that much extra overhead and cost for so long, somethings got to give.

Just curious where you got that statistic.