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NJA and Marquis Press this week....

Some Dude

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alot
Our management sucks, but How many companys did Bush run into the ground? Wasn't like three that he ran that went belly up?
 

holden1

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Frac Daddy said:
I think your assumption is that we have a charter card program to fill a lot of excess capacity on our fleet. Following that logic, NJA isn't really short of aircraft. After all, they are selling Marquis cards like crazy. So they must be desperate to fill idle aircraft.

Look, if Starman's number of being 100 aircraft short is anywhere close to being true, our core fleet could not come anywhere close to relieving the pressure.

I'll say it again: Santulli wants the owners. That would be his motivation for a merger or acquisition.

True - but if an acquisition of Flight Options happened, NetJets could seek to convert all Flight Ops fractional owners over to Marquis Cards. This idea could have some merit as frax players are offering to replace frax with cards or offer supplemental lift via cards.
 

Guitar Guy

Charvel - San Dimas
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Enough
This idea of a merger/buyout of FLOPS by NetJets has been around for several years. What is giving this idea more traction or emphasis these days? Is it the current downsizing of fleets and Tier 3 airports for pilots at FLOPS? Or is it just idle speculation?

Just curious.
 

smartestwife

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May 27, 2005
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The problems associated with marquis are similar to any co. which is growing and trying to move into new niche markets while keeping the base consumer happy.

The problems, long term, would not be solved by taking over more cos. or by simply purchasing more planes. Then you run into increased costs which need to be analyzed against your increased revenue, and could potentially eat all the profit the card program has brought.

Though marquis corp. pays for shares and then resells them, unless marquis corp. is paying more than other owners, NJA is not recouping the costs associated with management of more people to keep track of- not just flying. There is more names in the data base, more phone calls etc. More infrastructure to support 16 people per plane than 8 people per plane.
 

El Chupacabra

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No the solution to this problem is not to buy a fractional company with trips already commited to their own owners.


The solution is to reconstitute the core fleet... and ramp up EJM with many more managed aircraft to do EJM charter... NJ selloffs.
 

BortaS

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El Chupacabra said:
No the solution to this problem is not to buy a fractional company with trips already commited to their own owners.


The solution is to reconstitute the core fleet... and ramp up EJM with many more managed aircraft to do EJM charter... NJ selloffs.

There are many ex EJM guys smiling at the sell off problem that NJA management has found itself in. Most of us could never figure out how management ever expected to cover the 100 hours a month that the 14 dedicated EJM aircraft flew for NJA charter. It's too bad that it's always the workers who have to pay the price for the short sightedness of management.
 

Frac Daddy

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holden1 said:
True - but if an acquisition of Flight Options happened, NetJets could seek to convert all Flight Ops fractional owners over to Marquis Cards. This idea could have some merit as frax players are offering to replace frax with cards or offer supplemental lift via cards.[/QUOTE


Um, ok.....but wouldn't you just be shifting those customers to Marquis just put more pressure on an overloaded system at NJA? Playing three-card monty with the owners won't solve the problem. You still have the same TOTAL number of aircraft hauling the same TOTAL number of owners.

One more time: THERE IS NOT ENOUGH SPARE CAPACITY AT FLOPS TO FLY BOTH THEIR CUSTOMERS AND END NJA'S AIRCRAFT SHORTAGE. THIS WON'T BE THE REASON FOR ANY MERGER!
 

Frac Daddy

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El Chupacabra said:
No the solution to this problem is not to buy a fractional company with trips already commited to their own owners.


The solution is to reconstitute the core fleet... and ramp up EJM with many more managed aircraft to do EJM charter... NJ selloffs.

Bingo!
 

NJAFracPilot

Fly for Pay-Fly for Play
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Oct 31, 2004
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Starman said:
Economy of scale. The combination of the airplanes from NetJets and Flight Options will allow them to fly more owners than they could do separately. Yes, I think the idea has merit.


???


[font=Courier New, Courier, mono]Economies of Scale[/font]

[font=Verdana, Arial, Helvetica, sans-serif]The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.

There are two types of economies of scale:

External economies - The cost per unit depends on the size of the industry, not the firm.

Internal economies - The cost per unit depends on size of the individual firm.
[/font]
 

holden1

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Marquis Getting More Restrictive

Saw an article last week on Bloomberg that mentioned how NJA had to subcontract for 160 a/c during this past New Year's Eve (vs. 60 the year prior).

It also went on to mention that Marquis really caused issues during peak periods b/c everybody bought Marquis cards to grab guaranteed aircraft during the holidays. Additionally, it is clear that Marquis is now being relegated to tighter restrictions in 2005-2006.

I even heard recently that Marquis will no longer alllow its card owners to interchange into the Excel based on availability.

Could the whole card model be flawed or is this just typical growing pains?

Holden1
 
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