The new NetJets?
02-15-2010, 12:53 PM
#2
Gets Weekends Off
Joined APC: Dec 2007
Position: Chrysler Pacifica
Posts: 203
Too early to say for sure. This latest week has proven very busy but that is in no small part to the combined events of the Olympics, Daytona 500, and the fiasco created by the eastern seaboard record snowfall.......
They have indicated however that there was a noticeable uptick in demand during that period though, so hopefully good news for those on furlough.
They have indicated however that there was a noticeable uptick in demand during that period though, so hopefully good news for those on furlough.
02-27-2010, 12:12 PM
#4
Gets Weekends Off
Joined APC: Aug 2007
Position: Skeptical
Posts: 378
Looks like Buffett's not too excited:
Buffett’s Bargain Shopping Spree
Buffett’s Bargain Shopping Spree
He also admitted mistakes of his own, saying he had closed a troubled credit card business, which had been his idea, and had given too much time to turn around the NetJets business, long a burden.
Closing the letter, Mr. Buffett, ever the cheeky salesman, invited shareholders to his company’s annual meeting on May 1 in Omaha — promising to play table tennis for spectators and urging them to buy goods and services from his companies, and ending, "P.S. Come by rail."
02-28-2010, 02:34 AM
#7
Gets Weekends Off
Joined APC: Apr 2007
Position: F/O- G-V/550
Posts: 1,163
In his annual letter to shareholders released this morning, billionaire Warren Buffett singled out Columbus-based private jet company NetJets for both negative and positive attention.
Buffett called NetJets "the major problem for Berkshire last year," as Berkshire overall reported a 61 percent increase in net income compared to 2008 but lagged the Standard and Poor's average in its per-share book value increase.
"In the eleven years that we have owned the company (NetJets), it has recorded an aggregate pre-tax loss of $157," Buffett said in his letter. "Moreover, the company's debt has soared from $102 million at the time of purchase to $1.9 billion in April of last year. Without Berkshire's guarantee of this debt, Net Jets would have been out of business. It's clear that I have failed you in letting NetJets descend into this condition."
Buffett said he had been "bailed out" by David Sokol, whom he appointed CEO of NetJets in August after the abrupt resignation of longtime CEO Richard Santulli
source- columbusdispatch.com
Buffett called NetJets "the major problem for Berkshire last year," as Berkshire overall reported a 61 percent increase in net income compared to 2008 but lagged the Standard and Poor's average in its per-share book value increase.
"In the eleven years that we have owned the company (NetJets), it has recorded an aggregate pre-tax loss of $157," Buffett said in his letter. "Moreover, the company's debt has soared from $102 million at the time of purchase to $1.9 billion in April of last year. Without Berkshire's guarantee of this debt, Net Jets would have been out of business. It's clear that I have failed you in letting NetJets descend into this condition."
Buffett said he had been "bailed out" by David Sokol, whom he appointed CEO of NetJets in August after the abrupt resignation of longtime CEO Richard Santulli
source- columbusdispatch.com
03-01-2010, 10:55 AM
#10
Line Holder
Joined APC: Mar 2010
Posts: 36
The unfortunate thing is that they have been too resistant to changing their model. It became pretty clear early on that NJ customers were using the service for only the most costly and inefficient flights. Their pricing is incredibly inefficient. They charge you the same and guarantee you availability even when your flight might require twice the distance in deadhead as the actual revenue leg. They charge you the same and guarantee availability even when it's peak demand and NJ doesn't have enough planes. It was bound to fail.
Its a real shame because if they had put the same credit and management intelligence towards a more sustainable model, I think it could have been huge.
Its a real shame because if they had put the same credit and management intelligence towards a more sustainable model, I think it could have been huge.
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