NetJets 2009 danger ahead ?
Seems that Warren Buffet placed a huge $45 billion derivates bet in 2003 which is not going along nicely....he lost $7 billion the last quarter alone (company holds $35 billion in cash), all accoording Bloomberg.
You might think a capital intensive industry as NetJets is not the perfect combination when you are running out of cash?
The last dip in economic performance (2002) made NJ started selling 25 hourly cards, which became popular over time, but are a complete different bussiness as they where used to (eg. selling aircraft and not financing them, because the fractional owners were loaded with the debt).
At the moment the word on the street is, postphoned deliveries and long term storage of planes...seems not many new customers coming in....
Anyone with another take on the situation ?