NJA Contract Rumor

[Rubber Ducky]

Yes of course, you can spend a few weeks or months searching for a replacement CP, pull a CP from another operation or just hire your airport neighbors CP and let that CEO wish they chose Fractional. Every CEO I know cares how much is spent on the nice hangar on top of ground he/she doesn't own and the overhead associated with it. CFO's and HR folks are a dime a dozen; a CP that has accounting background and managerial skills necessary to run a flight department... Not that easy to find.

 

[BoilerUP]

a CP that has accounting background and managerial skills necessary to run a flight department... Not that easy to find.

Actually, its easier than you might think.

Sure there are plenty of crappy aviation managers/CPs out there, but there are also plenty who actually know WTF they are doing.

And like any 'critical' management position in any industry, you have to compensate appropriately for skilled, experienced talent...and that talent won't tolerate a crappy job when they can take their skills elsewhere - capitalism at its finest.

Or, an owner can outsource their flight department to a fractional for a "turnkey" setup and other fractional intangibles, paying a hefty premium compared to in-house (depending on how they utilize their aircraft) to rid themselves of that 'headache'.

This stuff ain't rocket science...

 

[gret]

...or they can place with a good aircraft management company and not worry at all.

Good CFOs and HR executives are a "dime a dozen"? Funny...they have the same view of aviation professionals...did you really mean to say that?

 

[BoilerUP]

...or they can place with a good aircraft management company and not worry at all.

With the new IRS interpretation of how excise taxes should be applied to business aviation, having a Part 91 airplane with a management company could cost an owner an extra 7.5% every year to Uncle Sam that they could have kept with an in-house department.

 

[gret]

With the new IRS interpretation of how excise taxes should be applied to business aviation, having a Part 91 airplane with a management company could cost an owner an extra 7.5% every year to Uncle Sam that they could have kept with an in-house department.

Excellent point, however the issue is being negotiated and I think they will work out a solution favorable to mgmt companies. The Congressional Committee Reports from several years ago (2004 or 2006, I don’t recall exactly) clearly indicate that the tax was not to apply to management companies. Congress is now involved and they’ll whip the IRS into shape.

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http://www.ainonline.com/aviation-n...fet-tax-plan-now-under-congressional-scrutiny

The $1 billion or so assessment for past FET taxes against NetJets is still being litigated and it appears the parties are trying to reach a settlement.

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http://www.ainonline.com/aviation-n...2012-06-02/netjets-irs-may-settle-tax-dispute

Going forward, fractional customers will be paying the additional taxes via the fuel tax assessments pursuant to the FAA Modernization and Reform Act of 2012.

 

[Rubber Ducky]

...Good CFOs and HR executives are a "dime a dozen"? Funny...they have the same view of aviation professionals...did you really mean to say that?

Sorry about that, my neighborhood has a couple CFOs and VP's, the rest are in HR. They're all good, but none of them know if their airplane is RVSM capable. Contrary to this message boards expectations, it was not my intent to belittle any particular person or group of persons; but I'll try harder next time.