NetJets and $110/Barrel Oil
 

Hi All
Can anybody please tell me how NetJets is weathering the latest rise in oil prices? I have been interested in applying to NetJets, but am concerned about its future due to rising fuel. I am a probie at a major flying 757/767s.
Thanks!

Owners pay for the fuel surcharge at all fractionals. The monthly management fee (which is under a 5 year contract) pays amongst many other things, the pilots salary. Those of us in the 35K-75K gross pay bracket will feel this pretty hard, but the rich folks are not getting any poorer, and they are NOT going back to airline flying.

Rich people aren't affected by fuel surcharges. They're already paying a ton of money for the convinience and luxury that a bizjet brings. What's a fuel surcharge?

Good point.

But If a family or someone's CEO is traveling from Los Angeles to Seattle, NetJets has to get the airplane to LAX, and we (pilots) do it on the company's nickle.

I think a reccession is going to hit everybody, but the fracs. and box haulers are better positioned to soften the blow.

With everything that is going on ( pssible reccession, mergers, fuel prices, etc) if I had a job at a legacy and/or major airline, I would stay where I'm at. Commuting can make life miserable, but being at the bottom of a seniority list would frek me out. But that's just me

"A quart of wheat for a day's wages, and three quarts of barley for a day's wages, and do not damage the oil and the wine!" REV 6:6

The rich will always be rich. When we struggle for gas money, they will still have private jets. But there are other rising costs for the companies to absorb. The best bet for the coming economic troubles is not just a fractional, which is better than an airline, but a large, stable, profitable one.

The rich have ongodly amounts of money, they could afford 400 dollars a gallon and not think twice. Fly for a fractional and you'll soon see how much money is in this world.

Thats the cost of doing business, is it not? Isn't all that factored in to the total operating cost picture?

If on average X amount of occupied legs leads to X amount of empty/repo legs, don't they just spread that cost out and pass it on to the customer?

Netjets and the other fractionals still have fuel exposure on the ferry flights (non-pax) flights - right? It's true that fractionals will not be hit as hard as the 121 carriers but there is still some exposure.

There is some, but as it's been pointed out, in fractionals, the extra cost is passed on to the owners in the form of fuel surcharges. Isn't THAT no novel concept -- the owner/customer pays a market value for the cost of the flight? :-)

Pax don't pay for ferry flights - right? If not, Netjets and others would pay the fuel bill for those flights. That's why it pays to have a big fleet that can cover most of the country to reduce ferry time.