NJA and Marquis Press this week....

[Frac Daddy]

Whoa whoa....discussion in this thread was clearly about the overusage of a/c and the speculation of NJA buying Flight Options to ease the Marquis burden. Can we get back to this discussion?

I agree that Flight Ops also must feel the pinch in demand, however if Santulli is in search of tails this may be the quickest way to get them.

Thoughts?

Re-read my original post. We barely have enough planes to carry out obligations to the FLOPS customers. Not nearly enough spare capacity to help NJA.

 

[holden1]

Re-read my original post. We barely have enough planes to carry out obligations to the FLOPS customers. Not nearly enough spare capacity to help NJA.

Yep, I saw that - was just wondering if there was other logic or reasons that NetJets might acquire Flight Options. I have heard from some folks in the field that flight options has a lot of debt on the books so it may not be worth it.

Also, now that you mention no having enough capacity, if that is really true (and I don't doubt you Frac Daddy), then why the JetPASS card program?

Holden1

 

[Starman]

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.

 

[Frac Daddy]

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.

True, but holden1's question is would the acquisition of FLOPS relieve the short-term capacity problems facing NJA right now. NO! Our core fleet (i.e. excess capacity) would not come close to solving this problem.

Economy of scale would be a LONG-TERM benefit, however.

 

[Frac Daddy]

Yep, I saw that - was just wondering if there was other logic or reasons that NetJets might acquire Flight Options. I have heard from some folks in the field that flight options has a lot of debt on the books so it may not be worth it.

Also, now that you mention no having enough capacity, if that is really true (and I don't doubt you Frac Daddy), then why the JetPASS card program?

Holden1

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.

 

[Some Dude]

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]

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]

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]

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]

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]

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]

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]

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]

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]

 

[smartestwife]

none of which matters if the union and mgt don't sit down and end the cold war.