So was B19 right or wrong?

[gunfyter]

Reality,

... I am not even going to blame management... for this economy. After all everyone knows it was Bush's fault .

Only FLOPS management was prescient enough to right size before the spit hit the fan. :crying:

Seriously... we had a good management ... so what if you waste a little cash when tons of it are rolling in? The ONLY thing that could take them down was a Crash like we never seen before. An economic earthquake.

And WHEN we recover ... it will be upon the foundations set by RTS....

 

[BlueNose]

PS- during many of our supposed money-losing years, we had some captains barely making $40K/year. Even our highest paid weren't getting near $100K. At $40K for a captain, I doubt you could point the finger at the union for any losses the company may have been experiencing.

With possibly the exception of 2005, the union has not been the problem for NJA. Nor will it be the downfall of NJA.

You forgot pay-for-training when hired. I spoke (briefly) to an EJA recruiter back in those days, laughed and moved on. Amazing how things change.

I think most of us in the industry were pleased to see the standard being raised in 2005. That being said, many of us also scratched our heads and wondered WTF Santulli was thinking with the IBB terms in late '07, a time when our industry was already starting to struggle and the frac/ card model in particular had been showing cracks for some time. No blame to you guys for taking the deal, but IMHO it didn't look sustainable then and things certainly haven't improved since.

 

[imacdog]

What I find interesting is B19 just assumes that those who took the early out weren't planning on retiring soon anyway.

 

[imacdog]

That being said, many of us also scratched our heads and wondered WTF Santulli was thinking with the IBB terms in late '07, a time when our industry was already starting to struggle and the frac/ card model in particular had been showing cracks for some time. No blame to you guys for taking the deal, but IMHO it didn't look sustainable then and things certainly haven't improved since.

Sure it is. The wages we make now as highly trained and experienced professionals are not out of line at all. When the economy went down we lost business and now have to adjust our staffing to meet the new, lower demand. Nothing more or less.

 

[gunfyter]

... IMHO it didn't look sustainable then and things certainly haven't improved since.

But once again ... the CBA is in NO WAY the problem in the economic performance of this company. The CBA is in NO WAY a factor in causing anyone to be furloughed.

How about those plans for a $200 Million Training Center? Have those been canceled?

They were so flush with cash in CMH and Woodbridge ... it was pouring out their ears.

But we have a CBA so that no matter what they do ... we have some measure of stability in our lives.

 

[gutshotdraw]

How about those plans for a $200 Million Training Center? Have those been canceled?

They've been postponed but I guarantee the blueprints are being re-done. The original plans called for a sprawling, opulent building with a grand entry blah blah blah. The new building, when finally built, will be functional, modest, and efficient. And that's a good thing.

 

[gunfyter]

... And maybe Flight Safety can pay for it...

 

[BlueNose]

How about those plans for a $200 Million Training Center? Have those been canceled?

And risk forfeiting $70M in incentive money from the state of Ohio? Not likely. I expect to see a "delay for reassessment, to ensure that the new campus best meets the needs of our go forward business plan and the local community" or similar business-speak for, "we don't have the money, but don't want to lose our state grant."

 

[BlueNose]

But once again ... the CBA is in NO WAY the problem in the economic performance of this company.

ALL costs contribute to your cashflow out - from equipment costs, to aircraft fuel, to executive bonuses, to free coffee in the break room - including pilot salaries, benefits and work rules. You might make a credible argument that the terms of your CBA do not hurt (or can even help) the long term profitability of the company, but it strains credulity to claim that they have no effect on its economic performance and thus have nothing to do with your current situation. A more straightforward answer would be, "we're worth what we make, we won't take any less, so go find savings somewhere else." But that approach may or may not hold up over time - and only time will tell.

 

[gunfyter]

Excuse me ... The CBA is the same now as it was when NJ posted large profits...

The CBA did not cause the financial crisis... which caused people to fly less or turn in aircraft shares.

Uncle Warren says...

Warren Buffett: The financial panic is over - Forbes.com

The Berkshire report also predicts NJ profits in 2010.
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Wall Street Profits will resume ... People will be flying their private jets again soon ... The value of jets in the NJ inventory will INCREASE again and be reported as PROFIT instead of write down in 2010. Cash flow will reverse from negative to positive as aircraft shares sales increases again.

So we must conclude ... There will be no concessions or contract re-negotiations before the contract becomes amendable in 2013.

As a wise man has said previously in this thread...

"...Netjets as a company has the critical mass of clients to get to operational profitability within the next 6-8 months. Sales will eventually rebound and provide the profit gravy that BK is looking for...."

--GutShotDraw--

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So I am issuing a STRONG BUY recommendation on NetJets stock right now....

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