Sokol talks about Netjets on CNBC

[johnsonrod]

http://www.cnbc.com/id/15840232?video=1390957735&play=1

Sokol seems to be pretty optimistic. Have major fleet decisions been made?

 

[FLYLOW22]

http://www.cnbc.com/id/15840232?video=1390957735&play=1

Sokol seems to be pretty optimistic. Have major fleet decisions been made?

That's an older article...

 

[jtf]

The only plans they have let out are retiring a bunch of older airplanes and getting rid of a bunch of fleets. Pretty much shrink to the number of owners we actually have. That is all old news. The only newer stuff is that we will be taking lots of new aircraft, but not very quickly and only to replace retired airframes. No news on any new fleets or even what fleets will be retired next.

 

[CRJFlyer]

It's the non-growth business strategy...Works well, lasts long time..it can't miss!!!!:smash:

 

[jtf]

I like that Sokol came in and took care of quite a bit of waste (still surprised that scheduling hasn't had much of an improvement on their waste issues), but I am not all that happy with the limited new aircraft for replacing the old. They will need to replace hundreds of older airframes in the time frame they say we are taking well under 100 for that purpose. I wouldn't have a problem with that if the business jets we fly were built to last like a Boeing. The price paid for these things should really get more durability. Hopefully he will move on to some other Berkshire position sooner rather than later and we will get a leader that will continue to keep an eye on expenses, but will not water down the product like I think Sokol is on the way to doing. We needed change, but I don't like all the change that I see coming.

 

[CRJFlyer]

Any one of us could have figured the waste part out...In my short time there I could have done the same.... Everything that was done.....ie: moving HQ, consolidating the operation, getting rid of the manager of square plates etc...every single pilot on the property knew that was a waste..

Sokol also will get credit for the improvement in scheduled flights, new sales etc.. But in reality that was bound to happen eventually anyways. The economy and Wall St. is a fickle bunch.. One day their up, the next their down... It was bound to happen that the economy would improve and our business would rebound..

What Sokol needs to do to is figure out how to increase market share by retaining owners and increasing the fleet. I hope his solution isn't simply to eliminate fleets. And keep old a.ss a/c on property. )Only time will tell the real plan.

I think in the end business will just return to normal, NJA will grow just by the natural evolution of things. Besides 9/11, Pearl Harbor , people easily forget events of the past. They'll buy just like they used to within a few years.

JMHO

But I'll still be pissed at the decision makers for my lost retirement earning, kids college fund, and my overall quality of life that was lost for this time period. And I'll still want to kick every one of them in the nut sack.

 

[OPECJet]

Gonna be a long line for that.

 

[johnsonrod]

Any one of us could have figured the waste part out...In my short time there I could have done the same.... Everything that was done.....ie: moving HQ, consolidating the operation, getting rid of the manager of square plates etc...every single pilot on the property knew that was a waste..

Sokol also will get credit for the improvement in scheduled flights, new sales etc.. But in reality that was bound to happen eventually anyways. The economy and Wall St. is a fickle bunch.. One day their up, the next their down... It was bound to happen that the economy would improve and our business would rebound..

What Sokol needs to do to is figure out how to increase market share by retaining owners and increasing the fleet. I hope his solution isn't simply to eliminate fleets. And keep old a.ss a/c on property. )Only time will tell the real plan.

I think in the end business will just return to normal, NJA will grow just by the natural evolution of things. Besides 9/11, Pearl Harbor , people easily forget events of the past. They'll buy just like they used to within a few years.

JMHO

But I'll still be pissed at the decision makers for my lost retirement earning, kids college fund, and my overall quality of life that was lost for this time period. And I'll still want to kick every one of them in the nut sack.

FYI - Jet Blue and AirTran are hiring...

 

[CRJFlyer]

Got the JB app. in..Don't meet the 121 PIC requirments for AT....

 

[jonjuan]

I like that Sokol came in and took care of quite a bit of waste (still surprised that scheduling hasn't had much of an improvement on their waste issues), but I am not all that happy with the limited new aircraft for replacing the old. They will need to replace hundreds of older airframes in the time frame they say we are taking well under 100 for that purpose. I wouldn't have a problem with that if the business jets we fly were built to last like a Boeing. The price paid for these things should really get more durability. Hopefully he will move on to some other Berkshire position sooner rather than later and we will get a leader that will continue to keep an eye on expenses, but will not water down the product like I think Sokol is on the way to doing. We needed change, but I don't like all the change that I see coming.

The net growth nja has seen is over. They will still continue to maintain the marketshare leadership position for some time, but quite simply, the product and service they offer which is 10-30% higher than that offered by competitors ( many with newer and better performing products) will be commoditized.
New airframes are purchased by a frax company in anticipation of turning around and selling them for a premium to new owners. 2 things have happened which will significantly curtail new frax purchases; 1) the economic downturn and subsequent oversupply of aircraft in the market have destroyed aircraft valuations and thus dramatically increased expected costs per hour, and 2) even IF a new frax owner is somehow convinced that he won't suffer what just happened to all his friends recently, he will not stand for purchasing a brand new plane and flying on a fleet which is quickly becoming long in the tooth.
DS is in a tough situation. He can't order new airframes without complete confidence that significant numbers of new owners will step up and buy them instead of buying the 2+ year old birds, slightly used, but at a significant discount.
Add to this problem the massive efforts by every competitor to undercut nja in every way, shape, and form via newer and/or better performing aircraft at a lower cost (to include labor rates), and you have a recipe for negative growth. Of course, this is all just my opinion. I could be wrong.