Prime Jet VNY closed.

[hawkerflyer]

What happened there? I know large cabin charter is down but they seemed to buck the trend as a quality operation. What a business. Good luck to all those involved.

 

[pilothouston123]

Conference call mass firing last week. Bought g4's at the top of the market and now they are worth less than 50% of what they paid for them. that's tough on any business plan

 

[jumppilot03]

I talked to a buddy that worked there. He said something similar to what ph123 said. He was glad to be off and at home because 1 or 2 GIV's and crews are stranded around the world with no way home. At least as of yesterday. Bum deal for all that were involved.

 

[ultrarunner]

Conference call mass firing last week. Bought g4's at the top of the market and now they are worth less than 50% of what they paid for them. that's tough on any business plan

What they paid vs. what they are worth has nothing to do with their ability to generate business.

Now, a general down-turn in the economy and subsequent down-turn in charter income, THAT will effect the business plan based on their debt-to-income ratio.

 

[hawkerflyer]

I'm just surprised considering how much they flew. I certainly understand that you can fly a lot and still lose money but they were flying almost double what other 135 large cabin operators were doing, even during the downturn. Also heard that they were the only operator to fly an airplane 200 hours in one month a while back.

 

[TransMach]

Possible Problems

There are lots-n-lots of ways to get into such trouble.

1) fly 200 hours a month at $3,500 per hour and you're not going to cover your costs.

2) refiance when rates were low with specific loan covenents, such as maintaining "X" level of profitiability or "X" level of cash on hand, or "X" level of debt to equity ratio in the colaterialized article (the airplane/s) and if you don't live up to any of these the lender "calls" your note. If you are not able to remedy/rectify the issue that puts you in default of your loan, you loose your equipment.

3) your investor gets tired of his situation and pulls the plug.

I'm not saying this is what happened, just sayin >>>

TransMach

 

[greed]

Is the whole company shutdown or just down sized?

 

[hawkerflyer]

Shutdown. Records were boxed in SDL last week.

 

[zonker234]

anybody from Prime land on their feet? any G IV jobs out there right now?