How has NJ fared in past recessions? Are they any better or worse off than the airlines? Owners still want to fly places? Hope to get started soon but I’d be crazy to not hear from those who have been there how things have gone in the past. Thanks!

 

Historically, the Uber rich get richer. Those who buy minimum time like 25 jet cards to look cool to their friends drop out, but we’ve learned not to put all our eggs in one basket. If anything, sales will slow, but today that won’t hurt us. We are having a hard time meeting demand as it is.

 

Is it difficult to meet demand due to pilot staffing? I thought I saw someone else post hiring statistics in the other thread saying only like 9% of applicants got hired? It’s good to hear though that recessions don’t disrupt NetJets too much though.

 

https://www.cnbc.com/2009/11/05/berk...95-pilots.html

 

A whole lot has changed in how the company structures owner contracts since 2009. We also didn't have a thousands-deep waitlist then either.

 

This wasn't the result of any "ordinary" recession. The economic collapse in 2008 was massive. We hadn't seen anything even close to it since the great depression. But that wasn't the only factor. The whole Bernie Madoff thing happened at the same time. We lost many aircraft worth of clients because of him.

But probably the biggest factor leading up to the furloughs was Kenny Dichter. Netjets purchased dozens of aircraft just to service the Marquis crowd. When Dichter left us holding the bag on that one we ended up with dozens of unencumbered aircraft.

Combine all that and yeah, Netjets furloughed. It didn't help that RTS had committed to purchasing a lot of Hawker 400XP's which we had no clients for.

As was said, Netjets is structured very differently now.. I certainly wouldn't use the word "never" in regards to future furloughs. Who can predict just how bad things can get from time to time? Life never ceases to surprise me. But when it comes to recessions that are more typical to the economic cycle I'd say there's very little for our pilots to worry about.

 

They also had a Volunteer Leave of Absense at that time to try to mitigate a furlough. A one year deal and a three year deal. The 1 year came with 1/3 of your pay plus health care and the 3 year was $1000/month plus health care. I think both terms were furlough proof? Meaning, if you took one of the deals and your number came up to furlough, you kept the deal. Can't remember a lot of the details so might not be 100% accurate. Somebody correct me if I'm wrong, please.

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Only 3 year continued paying out if furloughed. I believe there were only 25 or so pilots that took the 3 year deal. It also paid the 401k matching since it was considered “salary”. What great deal, 80% of salary could go to 401k with 50% matching.

 

Regarding the “massive” recession of 2008…

Biden says… “Hold my beer”.

That being said, a furlough only happens when a requisite number of pins catch as the key turns the tumbler.

It’s not hard to get 121 puking massive numbers. NetJets is much harder.

 

Fixed it for ya.