PPRuNe Forums - View Single Post - Netjets seniority list
View Single Post
Old 23rd Feb 2008, 17:59
  #24 (permalink)  
Sgnr de L'Atlantique
 
Join Date: Apr 2006
Location: Behind the Silver clouds
Posts: 105
Likes: 0
Received 0 Likes on 0 Posts
Nice article indeed.

But it is still talking about growing pains experienced by the industry in the period 2002-2005. The whole fractional ownership business model is all in all fairly new, so couldn’t growing pains be expected?

From what I know for example about the whole business model, is that the whole thing starts getting profitable the more you reduce the number of ferry flight hours. This off course can only be done once you start having a fairly big fleet size so you can cover a denser airplane coverage of your geographical area of operation.

From what I hear of NJE, this has only started to happen this year and this can be seen in a rather big decrease of ferry flight hours.

Another thing is watching fuel burn on these ferry flights. While before pilots could fly anyway they wanted on these sectors, now they are being encouraged to fly econ cruise speeds . ( correct me if wrong)

Many more things like this could be done in the future, and I am sure lots of them are being looked in to by the powers to be.

So it is my opinion that these business models will start showing their full potential in the nearby future.

Especially when looking at the rising fuel costs, which will affect big jets more when flying below optimal payloads.

Airport saturation is another fact, only playing in favour of fractional ownerships.

Many of these things could be brought up in favor of the Netjets Niche market.

Open for discussion, as always.


Sgnr de L'Atlantique is offline