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This has been on the go since June.
They were advertising for a new MD/CEO with a number of agencys for a few months now.
When speaking to one in Aug they said he was bing replaced as things were not going well.
Whoever is next, (s)he may still have some money left to play with:
From a May 2009 Forbes article:
"A month ago the Tehranchians and their investors put another 32 million pounds ($50.9 million) into the business. "We wanted to send a signal that we don't need to raise [more capital]"
Seems the bullsh!t road show is coming to an end, real management now in place, weeding out from the top down. Was not, is not, never was a realistic plan hope they hid away enough to survive as who the hell is going to employ them.
fastjet45 -what bullshit road? From where I sit they've done ok -grown massively, bought a completion centre and the AAA business in Germany and lest we forget they are still in business in a very difficult market. Maybe Im missing something?
Flat Spin: "fastjet45 -what bullshit road? From where I sit they've done ok"
You think a $9M loss on $101M of sales is OK ?!!
Surely it would have been better to stay at home; you can have a hell of a party for $8m and still have a $million change. Kerosene makes people lose all sense of any business reality.
I see what you're sayin pt-wind, but 101m of sales is still bloody good in the current market and hey, EVERYONE'S making a loss at the moment. Look at Execujet, TAG, Vistajet, Netjets, Hunt & Palmer - everyone's bleeding cash...
Flat-spin: if I sell you a load of genuine $100 bills for $90 each, and you're so impressed you buy a million of them from me, have I done "bloody well" in being a great salesman and selling so many of them to you "in the current market" ....or have you done "bloody well" in taking me for one hell of a big ride at my expense?
In any market, there's no pride in selling below face value; you're just postponing the inevitable.
+1 to PT_Wind. What business school did you go to to think that loosing $9m off the back of $101m Sales could possibly be considered as "good"?! That's loosing just shy of 9% on every flight - or, selling a £10k charter for £9,100 ad infinitum. And that's just silly. Likewise using NJE as comparison to OCS is like comparing Enron to my local independant petrol station.
-$9m...by my reconing and at current rates that's like opening the hangar door one morning and finding someone's stolen a CJ2 and an XLS - and writing it off.
Someone ought to tell all the majors still losing mega-millions on mega billions turnover a quarter to shut up shop............... What's the big picture at OS?
A loss, even at 10 % on turnover, does not necessarily mean that business is bad.
Imagine that you sell a service. Year x you sell for and generate $100 million, at the same time you have costs reaching $80 million. Result, $20 profit. Year y you generate $115 million, have running costs at $85 million and make investments at $40 million. Result, $10 million loss.
x933 is very sound - was definitely listening at school. And very witty too!
CaptProp: you're right esp when you talk about 'making investments of...' but is that the case today? I think people are on survival rations and no one's seriously investing in anything (as an AOC holder), which means a loss is a loss. Serious investments appear on the balance sheet anyway, not the P&L.
pt-wind, you may or may not be correct. I don't know. I was just making a general point.
Having said that, a company could have made commitments on an investment years earlier when business was prospering. In this case you either cancel your investment, take the possible (likely!!) financial hit, or you stick to your commitments hoping for business to turn around so that your investment will start generating income.
Remember what happened in US when de-regulation came in the 80´s, only survived those who could loss less money in long term. Anyhow Biz-jet is no longer a good business to run, it was, but that´s part of history
The long and the short of it guys is any fool can sell below cost and thtas exactly what they have been doing now it does not take a business school to teach you that selling below cost is going to result in a loss! In times of recesssion its is often better to actually increase your prices even if it means flying less! One profit making flight is better than 10 loss making flights any day.Having looked at some of their quotes it clear why they are making a loss!
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