Has NetJets become a used aircraft broker?
 

Wit Netjets not receiving any new aircraft in the near future, all Netjets has to sell is previously owned aircraft being dumped by owners leaving the program.

There business model has changed completely and now resembles that of the Travel Air/Flight Options program. It did not succeed for them. Will it succeed for NetJets?

Current owners are furious at the resale price Netjets is offering (less 7% remarketing fee). The aircraft are clapped out 8000 hour Citations and 10,000 hour Gulfstreams that no one will touch in the outside market and Netjets is stuck trying to peddle them in house.

Buyers have gotten smart and will not be stung a second time. There is a reason all those NetJets airplanes are sitting on the ramps. It has as much to do with the business model as with the economy.

i'm trying to come up with a sarcastic,yet witty reply to this Mav,but for the life of me I just cant,I will try again tomorrow.

Every now and then an aviation expert will come on here and try to show us the error of our ways.. Sometimes we even get FREE profesional advice.

This month's edition, "the Netjets model is outdated, we're becoming the next flight options, our airplanes are beat up, our owners are mad as hell and they won't allow themselves to be stung again by NJA"..

Isn't this what the fractional business model is about? Even a brand new car driven off the lot becomes a used car.

Nothing new to see here, move along.

ALL airplane owners, fractional or otherwise, are suffering at the hands of a ****-poor used aircraft market.

Besides, its not like NJA owners haven't experienced a loss in value of anything else they own the last 12+ months...

Quote:

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Originally Posted by UCLAbruins (Post 639880)

Every now and then an aviation expert will come on here and try to show us the error of our ways.. Sometimes we even get FREE profesional advice.

This month's edition, "the Netjets model is outdated, we're becoming the next flight options, our airplanes are beat up, our owners are mad as hell and they won't allow themselves to be stung again by NJA"..

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Continue to stick you head in the sand! The truth sometimes hurts.
Yes the owners have been hurt in other investments which is exactly the point.
Money is not flowing as freely, they have gotten smarter and NJA is not about a new aircraft taking you to your destination. Quite the contrary. NetJets was built on it's own version of a ponzi scheme: Sell new aircraft at overinflated full retail prices to newbi owners. Resell the aircraft 5 years later at below market rates, collect a remarketing fee and sell the owner another inflated price aircraft.
The business of moving aircraft has never made NJA a penny. Sales drove the business. Where is the new money coming from? What is NJA to do when they cannot get rid of old aircraft? NJA will succeed but the model will change drastically from what we know it as.

This isnt the first time Topgun has spouted off over something he does not understand. I tell you what if I had lots of money which is looking more unlikely every day I stay in this business I would own a Netjets Share, it may be expensive but they are a known constant, unlike Charter or the Airlines. Net Jets will come back, the Business aviation market has fallen about as much as the automotive industry, so it not like its anything unusual during these trying times.

I just wasted a few minutes of my life reading this pointless thread. Man, I hate that!

TopGun: Are you suggesting that NJA doesn't earn revenue from moving aircraft? If so, you REALLY don't know what you're talking about.

As recenty as 2008 Mr. Santulli himself has stated that due to 40% deadhead flights and outside chartering the flight operation has never made a profit. Initiatives were put in place to control both of the above. Outside chartering has decreased significantly along with repostioning flights. With this reduction has come the latest significant decreaase in flying.
As stated before NJA profits have always come from sales. Jet cards and other programs have only helped to limit the flight operation loss.