Warren Buffet report on Netjets

[btodd77]

B19,
What you have just said is simply more proof that the union can help or hurt the company. If we're all moving in the same direction(and that is the way we're headed) then things work very well. I'm not saying that we're all sitting around a camp fire singing kumbuyah, but things are definitely moving in the right direction.

 

[theskyking]

Only 2 years ago, he stated:

"Mr. Santulli, the chairman and chief executive of NetJets, who agreed to telephone interviews, had a more colorful observation of his company's problems in 2005 — induced, he said, by haggling over a new pilots' contract, increasing and budget-busting demands on its domestic fleet, and a number of continuing problems in its efforts to build a European presence:
"It was horrible, horrible," Mr. Santulli said. "I was embarrassed."

And as soon as there is a shift in the economics and the union doesn't work with him, he will echo these words once again.

So, he was embarrassed that he let the company degenerate into that state. I can understand his embarrassment. I think he soon got over it when he discovered what a group of motivated pilots and a charismatic, powerful leader (RTS) can accomplish. Now look at us as we move forward together to a much more prosperous future for everyone concerned.

Just another example of B19 taking an isolated sound bite from a larger piece and twisting it to meet an agenda. Just to set the record straight, this article came out in June of '06 and here is the whole quote from RTS:

Mr. Santulli, the chairman and chief executive of NetJets, who agreed to telephone interviews, had a more colorful observation of his company's problems in 2005 — induced, he said, by haggling over a new pilots' contract, increasing and budget-busting demands on its domestic fleet, and a number of continuing problems in its efforts to build a European presence: "It was horrible, horrible," Mr. Santulli said. "I was embarrassed."
Still, ever the optimist, he also said he saw clearer skies ahead. "We will have an excellent year and we will make money this year," he said. "We have the critical mass we need."


Correct me if I'm wrong, but NJ had a pretty good year in '06. Oh, yea, in '07 too.

C'mon B19, you have to do better than that.

 

[CALRepublic]

when will we find out the 2007 earnings for netjets?

AH, the ignorant coment, I knew there was something missing from this thread.....

 

[HiSpeedFlyer]

Having recently retired from the military, I've always wondered why some in the aviation industry believe that in order for unions to be successful, it always has to be at the expense of the company. Granted the airline industry doesn't have the greatest track record, but I put SWA and NJA as two examples of how union and management have come together to create a successful organization.[/quote

]



Need anyone say more??



B19, have you not heard this said before, or are you simply refusing to realize this is not your papa's management/labor relationship?

SIGH!!!!!!

 

[notaNJApilot]

AH, the ignorant coment, I knew there was something missing from this thread.....

what's wrong with asking a question that's relevant to this thread?

actually, according to this, netjets made 278M, and flight safety made 269M, for a total of 547M. http://boards.fool.com/Message.asp?mid=26432612&sort=postdate

 

[FLYLOW22]

Only 2 years ago, he stated:

"Mr. Santulli, the chairman and chief executive of NetJets, who agreed to telephone interviews, had a more colorful observation of his company's problems in 2005 — induced, he said, by haggling over a new pilots' contract, increasing and budget-busting demands on its domestic fleet, and a number of continuing problems in its efforts to build a European presence:
"It was horrible, horrible," Mr. Santulli said. "I was embarrassed."

And as soon as there is a shift in the economics and the union doesn't work with him, he will echo these words once again.

Yes. He said that 3 years ago. Much has changed in 3 years including paradigm shift in labor/management interaction, collaboration and interaction.

As I've said many times, what we accomplished here at NetJets by working together has never been done in aviation and rarely in Corporate America.

Don't hate the player. Hate the game B19.

 

[hammer2]

Glad things are going good for you guys at net jets.

 

[netjetwife]

Thanks, H2! With the pay raise announcement at CS hopefully that means that the practice of underpaying pilots will be given the boot at other frac companies, too.

CALR, I just can't resist pointing out that you might consider using spell-checker next time you mention ignorance ..hint, hint.
Note that comment has two "m"s...

 

[G4dude]

The reason NetJets is now profitable is that finally the NJA pilots are behaving like professional pilots instead of like professional union thugs. I am very happy about this, but for the union pilots to congratulate themselves for not misbehaving is disengenuous to say the least. In my opinion.

 

[1folinepilot]

The reason NetJets is now profitable is that finally the NJA pilots are behaving like professional pilots instead of like professional union thugs. I am very happy about this, but for the union pilots to congratulate themselves for not misbehaving is disengenuous to say the least. In my opinion.

G4dude, You obviously have it all backwards as the NJA pilots were only acting as Management was treating them, so once Management decided to treat and respect the pilots like the true professionals they are, the pilots proudly returned the favor.

 

[fischman]

The reason NetJets is now profitable is that finally the NJA pilots are behaving like professional pilots instead of like professional union thugs. I am very happy about this, but for the union pilots to congratulate themselves for not misbehaving is disengenuous to say the least. In my opinion.

Just to be clear, the Union NEVER endorsed or called for ANYTHING illegal to happen.

We follow(ed) the FAR, CBA, and FOM to the letter. That's all.

 

[CALRepublic]

what's wrong with asking a question that's relevant to this thread?

actually, according to this, netjets made 278M, and flight safety made 269M, for a total of 547M. http://boards.fool.com/Message.asp?mid=26432612&sort=postdate

sorry man, I was trying to quote someone else.

 

[acaTerry]

Just to be clear, the Union NEVER endorsed or called for ANYTHING illegal to happen.

We follow(ed) the FAR, CBA, and FOM to the letter. That's all.

Beat me to it.

 

[netjetwife]

The reason NetJets is now profitable is that finally the NJA pilots are behaving like professional pilots instead of like professional union thugs. I am very happy about this, but for the union pilots to congratulate themselves for not misbehaving is disengenuous to say the least. In my opinion.

This is faulty reasoning. Perhaps you're on the outside looking in? Are you a NJA pilot G4? As a reminder, profits were being shifted from NJAmerica to subsidize NJEurope, at the expense of the pilot group. At the same time Mr. Santulli had left management of NJA to Boisture. Mr. Moisture (inside situational joke) stupidly used sticks like punitive scheduling instead of carrots like professional pay. Suffice it to say that things went to hell in a hand basket. It's no coincidence that shortly after the 2005 CBA was signed Boisture left. It appears he got the black boot... and then things starting heading in the right direction.

The NJ pilots can verify this, but I've heard that Mr. Santulli made conciliatory remarks to the pilots (in a hangar meeting) to the affect that he let them down by not staying engaged and that it wouldn't happen again. True to his word, upper management was a willing partner in working with the pilots to make voluntary contract improvements--3 years early, no less. As further evidence of his commitment to the concept that motivated pilots are more productive, a few others have also recently gotten the boot for not being team players.

NJE is now pulling its own weight and the joint Union-Management committees established in the 2005 contract have done excellent work at finding ways to make NJA more efficient. In fact, work done by the Union Training committee, who took the lead in redesigning the training program at NJA, saved the Company millions in training costs.

It is indisputable that respect and fair treatment made the difference. The NJ pilots deserve every word of congratulations and appreciation they have been given (from Union and Management leaders) for responding quickly and enthusiastically to the call for partnership.

As a matter of personal speculation, I have no doubt that when their Union leaders call for help in the next big project the NJ pilots will pull on their boots and roll up their shirt sleeves...

Congratulations to the entire NJA team!
Netjetwife

 

[FLYLOW22]

The reason NetJets is now profitable is that finally the NJA pilots are behaving like professional pilots instead of like professional union thugs. I am very happy about this, but for the union pilots to congratulate themselves for not misbehaving is disengenuous to say the least. In my opinion.

That's another opinion. Not the right one, but an opinion.

NJA is making more money now than ever before... not just as compared to 2004/2005.

 

[Publishers]

Did I miss something or was not one of the original problems with the Teamsters and all that resulted in 1108. Until that happened, there was no progress.
Secondly, I believe Santulli and Buffet both were saying that there were multiple problems all at once, probably the most significant was Europe expansion which was having a bigger negative effect than the pilot contract ones.
Lastly Netjets has obviously won the "fractional" game. They dominate it and Europe holds the promise of stablizing things if the US is in a recession and a period of no growth comes. $547 million sounds like a big deal but when you look at the assets employed and total revenues, it is not so awesome. Maitaining the marketshare will be difficult not so much against Flight Options but new business models like XO or those to come.

 

[gunfyter]

The root of any poor performance can be traced to one place:

The (failed) 2004 POS TA ... and the very sorry proposed payscale thereof.

 

[buckeyes95]

Hey B19, you dumb ass. ALL the employees at Netjets are the associates mentioned. Netjets stands as a testament to what can happen when management and the employees (union and non union) work as a team. Maybe someday you will figure that out. Now go crawl back under your rock you piece of sh*t.

 

[G4dude]

That's another opinion. Not the right one, but an opinion.

NJA is making more money now than ever before... not just as compared to 2004/2005.

The rejoinders to my comments are correct, but the fact remains that many union pilots' behavior in response to management is what kept profits from happening. I am not disputing either the cause of union discontent or the validity of the feelings of the union folks. Also, as we all know within the company, union official policy regarding such misbehavior by many crews during those fractious times is not the subject, merely the behavior itself. The behavior caused the lack of profits. Period.
I am very glad y'all got the deal you did, although the higher pay will open the lower end of the fractional market to bottom feeder newcomer companies, because there are pilots willing to fly for peanuts, unfortunately. It is a rather fun job, however. Heh heh.
Meanwhile, the civil discourse is quite enjoyable, and we at NJI are waiting for Gulfstream's announcement of their new plane, the 600 series, I suppose. Secret stuff, how intriguing!

 

[G4dude]

This is faulty reasoning. Perhaps you're on the outside looking in? Are you a NJA pilot G4? As a reminder, profits were being shifted from NJAmerica to subsidize NJEurope, at the expense of the pilot group. At the same time Mr. Santulli had left management of NJA to Boisture. Mr. Moisture (inside situational joke) stupidly used sticks like punitive scheduling instead of carrots like professional pay. Suffice it to say that things went to hell in a hand basket. It's no coincidence that shortly after the 2005 CBA was signed Boisture left. It appears he got the black boot... and then things starting heading in the right direction.

The NJ pilots can verify this, but I've heard that Mr. Santulli made conciliatory remarks to the pilots (in a hangar meeting) to the affect that he let them down by not staying engaged and that it wouldn't happen again. True to his word, upper management was a willing partner in working with the pilots to make voluntary contract improvements--3 years early, no less. As further evidence of his commitment to the concept that motivated pilots are more productive, a few others have also recently gotten the boot for not being team players.

NJE is now pulling its own weight and the joint Union-Management committees established in the 2005 contract have done excellent work at finding ways to make NJA more efficient. In fact, work done by the Union Training committee, who took the lead in redesigning the training program at NJA, saved the Company millions in training costs.

It is indisputable that respect and fair treatment made the difference. The NJ pilots deserve every word of congratulations and appreciation they have been given (from Union and Management leaders) for responding quickly and enthusiastically to the call for partnership.

As a matter of personal speculation, I have no doubt that when their Union leaders call for help in the next big project the NJ pilots will pull on their boots and roll up their shirt sleeves...

Congratulations to the entire NJA team!
Netjetwife

I am at NJI, spoiled rotten as my flight attendants will attest!