NetJets US furloughing ?
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3rd Quarter results from berkshirehathaway.com published 6th November.
In 2009, NetJets’ revenues declined $471 million (41%) for the third quarter and $1,495 million (42%) for the first nine months as compared to 2008. The declines reflected a 79% decline in aircraft sales as well as lower flight operations revenues primarily due to a 24% decline in flight revenue hours. NetJets produced pre-tax losses in 2009 of $183 million for the third quarter and $531 million for the first nine months. The pre-tax losses in 2009 included asset writedowns and other downsizing costs of $181 million for the third quarter and $436 million for the first nine months. NetJets owns more planes than is required for its present level of operations and further downsizing costs will be incurred in the fourth quarter. However, management believes that NetJets is likely to operate at a modest profit in 2010, absent any further deterioration in the U.S. economy or negative actions directed at the ownership of private aircraft.
Staggering numbers
, however they seem confident about turning a profit next year.
In 2009, NetJets’ revenues declined $471 million (41%) for the third quarter and $1,495 million (42%) for the first nine months as compared to 2008. The declines reflected a 79% decline in aircraft sales as well as lower flight operations revenues primarily due to a 24% decline in flight revenue hours. NetJets produced pre-tax losses in 2009 of $183 million for the third quarter and $531 million for the first nine months. The pre-tax losses in 2009 included asset writedowns and other downsizing costs of $181 million for the third quarter and $436 million for the first nine months. NetJets owns more planes than is required for its present level of operations and further downsizing costs will be incurred in the fourth quarter. However, management believes that NetJets is likely to operate at a modest profit in 2010, absent any further deterioration in the U.S. economy or negative actions directed at the ownership of private aircraft.
Staggering numbers
, however they seem confident about turning a profit next year.
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NetJets To Furlough Nearly 500 Pilots
Fractional provider NetJets late last week announced that it will furlough up to 495 pilots from its North American fractional operations, mostly from NetJets Aviation but also a “small number” from NetJets International, the division that flies Gulfstreams. The furloughs will take effect on January 15. “This difficult decision resulted from a comprehensive analysis of current and projected flight demand,” said NetJets chairman and CEO David Sokol. During an October 26 CNBC Squawk Box episode, Sokol said that NetJets “customer usage is off 15 to 20 percent. What we’ve had to do is get the cost structure in line with today’s economy and the needs of the owners. Our aircraft have to be revalued to current market values, and in many cases they’re down as much as 40 percent.” A spokeswoman for NJASAP (NetJets Association of Shared Aircraft Pilots) said the union is providing resources for affected pilots, including a dedicated Web site with furlough information and a list of unemployment benefits, as well as weekly teleconference calls for affected employees and their spouses. NJASAP president Mark Luthi said that NetJets is phasing out its Cessna Encore and Ultra fleets as they come off customer contracts. “How quickly they do that, I don’t know,” he told AIN.
link to the interview
Sokol to CNBC: Last 18 Months May Be Buffett's 'Most Successful' Period Ever - Warren Buffett Watch - CNBC.com
may the force be with you ...
Fractional provider NetJets late last week announced that it will furlough up to 495 pilots from its North American fractional operations, mostly from NetJets Aviation but also a “small number” from NetJets International, the division that flies Gulfstreams. The furloughs will take effect on January 15. “This difficult decision resulted from a comprehensive analysis of current and projected flight demand,” said NetJets chairman and CEO David Sokol. During an October 26 CNBC Squawk Box episode, Sokol said that NetJets “customer usage is off 15 to 20 percent. What we’ve had to do is get the cost structure in line with today’s economy and the needs of the owners. Our aircraft have to be revalued to current market values, and in many cases they’re down as much as 40 percent.” A spokeswoman for NJASAP (NetJets Association of Shared Aircraft Pilots) said the union is providing resources for affected pilots, including a dedicated Web site with furlough information and a list of unemployment benefits, as well as weekly teleconference calls for affected employees and their spouses. NJASAP president Mark Luthi said that NetJets is phasing out its Cessna Encore and Ultra fleets as they come off customer contracts. “How quickly they do that, I don’t know,” he told AIN.
link to the interview
Sokol to CNBC: Last 18 Months May Be Buffett's 'Most Successful' Period Ever - Warren Buffett Watch - CNBC.com
may the force be with you ...
