The Marquis Effect on NetJets

[NJAowner]

Marquis

Marquis does not own entire a/c in the NJA fleet. It owns shares in many planes. Marquis cardholders do not fly on Marquis a/c. Marquis is just like another share owner (who owns lots of shares). The planes are not used any more or less becuase of Marquis. It is just since I owner has so many shares, it is apparent when they are flying. If I owned shares which in the aggregate added up to 45-50 aircraft I'd be pretty noticable too. It is actually quite simple and not as suspect as many of you make it seem. The flights are Part 135 due to a myriad of federal regs. which all of you know better than me, including the part about charging $$ to fly people. There are some availability issues and reponse times and availability are better for NJA owners than Marquis card holders.

Fly safe.

 

[NJA Capt]

The biggest problem with the Marquis card is that it puts the 1/32 share cardholder on the same footing as a true 1/4 share owner.

Not really. Marquis cardholders have no ownership /no assets/no writeoffs.
Keep in mind that an 1/4 owner is 1000 hours over 5 years. a Marquis customer would have to purchase 40 cards to equal (1) Share owner.
In other words, 8 cards per year to equal 1 owner.

 

[Publishers]

There is some validity to the difference between having 4 "owners" on an aircraft and having 32 "owners". Much is undefined but the word demands comes to minds

 

[NJA Capt]

There is some validity to the difference between having 4 "owners" on an aircraft and having 32 "owners".

It makes no difference. 800 hours/plane are sold. It doesn't matter if 32 people use it or 4 people use it. 800 hours is 800 hours.

 

[dkte737]

BB says Marquis "Leases" aircraft,....no purchasing (registration under Netjets Sales). He also said a 25 hour card holder vs. 1/2 share owner are currently treated the same.. He did mention that there will be changes to the marquis program due to the high demand over the holidays by creating "black out dates" to give the owners the first right.


FWIW.

David

 

[holden1]

Does not make sense

It makes no difference. 800 hours/plane are sold. It doesn't matter if 32 people use it or 4 people use it. 800 hours is 800 hours.

I agree 800 hours is 800 hours - but it appears that these jets are doing more than 800 hours. It has to have something to do with 135/Marquis....yes?

 

[miles otoole]

It makes no difference. 800 hours/plane are sold. It doesn't matter if 32 people use it or 4 people use it. 800 hours is 800 hours.

Tell this to the folks in ops/scheduling. You double the number of owners in an aircraft and you double the potential demand. It's not simply linear.

 

[Sctt@NJA]

The difference is in the number of owners per airplane. More owners with smaller shares means more potential conflicts as to who wants to fly when.

The other difference between right now and 1 year ago is the number of airplanes we operate "unencumbered", which is to say airplanes that aren't completely sold off into fractions. The more unencumbered airplanes we have the easier it is to meet all of the owners and card holders needs. Last year we had lots and lots of unencumbered planes, this year we have very few. This is good for cash flow but bad for operations.

 

[justacfii]

It's the same thing at Options with the Jetpass card. 32 cards (25 hrs ea) = 1 airplane (800 hrs) The COO is all excited about selling more cards...The problem is, one new airplane can't possibly provide service to 32 card-customers. Short-term cashflow = operational nightmare

 

[WrknStff]

800 is just a marketing gimmick. I was under the understanding that these airplanes are averaging well over 1200 hours a year, at least on the Flops side. I can't see NJ doing much less with thier planes.

 

[some_dude]

I believe the 800 hours refers to 800 "occupied" hours. With deadheads, that could easily be 1200 total hours.

800 is just a marketing gimmick. I was under the understanding that these airplanes are averaging well over 1200 hours a year, at least on the Flops side. I can't see NJ doing much less with thier planes.

 

[Some guy]

When RS came up with the concept in the 80's, he figured that the average acft would be used approx 1000 hours per year. 1 full share = 800 hours...The remaining 200 hours are used for repositioning trips and maintenance check flights. I believe the owners are aware of this when they are signing on the dotted line. As far as I can tell from where I sit, we are averaging 1000 hours per year on each aircraft.

 

[Flightbag]

To answer a question earlier in this thread:

25 hour card

Falcon 2000 $259,900.00
G-IV-SP $299,900.00
G-V $339,000.00

Flightbag

 

[G4G5]

To answer a question earlier in this thread:

25 hour card

Falcon 2000 $259,900.00
G-IV-SP $299,900.00
G-V $339,000.00

Flightbag

Thank you very much

 

[ghostrider64]

They way I see it on the front lines is that Netjets may be trying to rid itself of owners all together and going all Marquis....Why? More $ More $ More $ and far fewer complaints....