Now multiply that by infinity, take that to the depth of forever, and you still will barely have a glimpse of what he's talking about.

Coincidently, I told more than one NK Captain who left for WN for the 'culture' that all of that could change overnight and I gave the exact same history lesson as above. For Southwest's sake I hope it's not true.

 

Imagine him buying SWA, firing Gary, stripping all evidence of Herb's existence from HQ, and putting the CEO of a power company at the helm. Because that's pretty much what he did at Netjets, and it has been an unmitigated disaster for the employees, the customers, and the company.

To continue the story:

Then shortly after the CEO of the power company coming under investigation by the SEC for some questionable dealings, promoting the UNION busting attorney brought on by said CEO, to become the new CEO of Netjets. His resume had: NO aviation experience, NO professioanl management experience, but he did work at daddy’s law firm for a few years. He did an awesome job destroying long term relations with the company. Think of a new Southwest CEO dumping 737’s and boeing all together. He was canned shortly before completely burning down the company. I mean “He wanted to spend more quality time with his family”.

Removing the CEO and founder of the company because of a one-time historical downturn in the economy, and replacing him with idiots with NO aviation background has forever soiled Netjets.

Today Netjets is just a shadow of its former self.

 

back to bed. some article written by some "expert" on the airline sector with speculation only. when Buffett buys SWA, we can worry about this then. Until then, back to regular programming.

 

The entire fractional industry is a "shadow of its former self" and I don't think BH had much to do with it. The jets don't have the residual value they once had and that was the cornerstone of the model. Owners could cash out at the end of their contracts and thanks to depreciation and tax advantages they basically made money owning quarter shares. Now there's a glut of bizjets and managed-charter alternatives and they have eaten away at the fractionals big-time and I don't see the trend reversing itself.

The high water mark for fracs was 2007 and it's been in contraction mode ever since. I think if Uncle Warren had one do-over it would be his purchase of NetJets.

 

concur......

 

Wrong. This is exactly what happened at NJA. Been there 14 years. Saw it go from the best job in aviation to one I am doing everything I can to get away from, all with the change in one man. And this WAS in fact at the direction of BH.

 

Did NetJets make any money from operating the aircraft? It was my understanding that the money was made on the mark-up and resale of shares at retail prices after negotiating massive volume discounts, and flying the airplanes wasn't a big generator of profits.

 

Our whole revenue generating plan has changed. We are pretty much out of the buy and sell game and making most of our money on management fees, jet cards, and regular share owners.
This company has pretty much lost all its vision. Sure, we're taking deliveries but they are only to replace the ones headed out. Growth? Management is afraid of it.

 

Netjets profited from the accelerated depreciation of the aircraft. Not the the aircraft share holder. It says it in the contract you sign. When you leave the agreement you are subject to tax implications on a personal level not netjets. They are in the buy and sell game. The worse deal for any jet user is Netjets. It is a financial fleece with no advantages.




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Their is already enough of a divide between the glorious cubicle commandos and the real world in the trenches people. This doesn't apply only to us, but everyone! I'm fairly certain this is the case through out all of Corporate America.

We ARE in the trenches. We have the education, and make money comparable with the corporate eggheads who have the office with an actual door and everything ... but we are very much in the thick of reality. I for one like that fact.