In business, there is no such thing as a "New Normal".

The two most common reasons for business failure are:

1) A lack of capital
2) Failure to adjust to changing environments.



AL

So what is the end number over there for furloughs I have a couple of buddies over there but I don't think they are affected. Is it going to go beyong the 500?

As a former Fractional pilot, I've read numerous blogs of how they would never furlough....you know...the Union support....financial situation....go figure....

Budgeting, yes. But there is also such a thing as the cost of doing business. I think corporate america is trying to make such drastic cuts they are forgeting the this important aspect.
In the end, it takes money to make money.

But for how long? According to the article, there was no integrated business plan. I'll bet that most of the Netjets corporate customers used integrated business plans to run their businesses efficiently. I think there was a perception that Uncle Warren would fund all of the excess waste forever because of his huge wallet. But you need a return on investment and it can't take 20 years to achieve it.

Unfortunately, it's a tough lesson for a lot of pilots who probably left good jobs for the "ideal" fractional position. I wish everyone there good luck and a speedy return to work for those impacted.

You should add:
3) Make a profit
4) Have sufficient cash-flow to cover operational expenses

For most businesses revenue is down 20-40%. And no one knows when it will or ever recover. Ex. Nasdaq was 5,000 points in March 2000 and today it is about 2,200. It has not recovered in the last 9 years and 9 months.

By NEW NORMAL I mean spending is way down, conspicuous consumption is way down, the wealth effect has disappeared.

1 out 5 Americans is unemployed, under-employed, or stuck in a PT job.
1 out 8 families can’t even pay their minimum CC payments.
1 out 12 homeowners is behind, underwater or in foreclosure even though they are honest and did everything right.

It costs more to send a box from Memphis to LA overnight than it does a human......

No, it doesn't.

Boxes also don't complain, they aren't obese, stink, rude and they don't sue. It's a pleasure flying boxes. Can't say the same about flying the public.

i've done both ,boxes,and folks ,both have their pros and cons. Boxes in DC3's,and Convair 340's,outstanding airframes,awesome flying, pax in 727's,and Citation XL's,and XLS's,also outstanding. Its all good.

Yes, you are probably right. I just get nervous when management wants to make cuts. That can easily lead any company into becoming a 3rd rate operation.