Change of management at Ocean Sky

[SussexBroker]

Can anyone confirm or explain what is happening at OCS ?

I heard an unconfirmed whisper that Kurosh Tehranchian has been replaced at CEO of OCS

Seems odd considering the recent and surprising Triple Alpha purchase.

SB

[Call Sign Maverick]

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.

[FLEXJET]

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]"

Rough Ride In Russia - Forbes.com (http://www.forbes.com/2009/05/26/ocean-sky-jets-markets-faces-russia.html)

[pt-wind]

Flat Spin: "fastjet45 -what bull**** 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.:confused:

[pt-wind]

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.

[No RYR for me]

Is there an ex Jet Republic director the new Sales and Marketing Director at OS???:confused:

[x933]

+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.

[boredcounter]

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?

[CaptainProp]

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.

Bad business?

CP

[pt-wind]

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.

[CaptainProp]

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.

CP

[Flintstone]

Perhaps it's a case of whoever bleeds the slowest has more of a chance of being around at the upturn? Loss leaders are not an unknown practice.

[lear60fellow]

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

[unablereqnavperf]

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!

[deskjockey101]

Since KT and NR seem to no longer be there, any news on the replacements??

[pt-wind]

Surely SG is still running it, and he's sound.

[Phil Latterly]

PRIVATE JET REPOSSESSED

A Manchester-based Bombardier Challenger 605 private jet belonging to Ocean Sky Aviation Ltd, the private terminal operator at Manchester Airport, has been repossessed after the company allegedly failed to keep up with mortgage payments. The plane was placed into administrative receivership last month by Ohio-based National City Commercial Company, who provided the finance for the $26.7m 12-seater aircraft. Private jet movements at the airport have fallen by 26 per cent in the past 12 months. Ocean Sky Aviation, a Manchester-based subsidiary of Luxemburg firm Ocean International Group, is not in receivership. Ocean Sky Aviation said in a statement: “The receiver has been appointed against a single aircraft, a Challenger, in a dispute with the bank over this particular account. Ocean Sky Aviation is one of a number of trading companies in the group.”

[Cyberdragon]

Did the charter wing just get sold? Anyone know what's going on?