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Luxaviation cash flow issues

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Old 20th Dec 2017, 10:08
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anyone heard about the redundancies at execujet and lea? I hear several including the airworthiness manager at lea have been given notice...
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Old 22nd Dec 2017, 21:27
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"Airworthyness manager"????
If thats our Corbyn supporting , self-appointed manager of Political correctness and manager of just about everything else ....that'll be the first constructive thing Lux have done since taking LEA over.
Lets hope Christmas has indeed arrived early this year!
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Old 26th Dec 2017, 11:04
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Originally Posted by BuzzB
"Airworthyness manager"????
If thats our Corbyn supporting , self-appointed manager of Political correctness and manager of just about everything else ....that'll be the first constructive thing Lux have done since taking LEA over.
Lets hope Christmas has indeed arrived early this year!
Airworthiness manager, I think they mean CAMO and not that the troops on the ground have heard. Place in the unlikely category.
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Old 27th Dec 2017, 09:06
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I must say one does look on with jaw dropped wonder at who has their hands on the controls of LEA at a local level.....wonder at just what degree of competence Lux really are showing in building their empire. You might have expected them to drop in their chosen appointees to execute their plans...instead of which, with every senior departure of the managers who were the backbone and character of LEA the company has appeared more and more parochial, inexperienced and inward looking....with a structure more like that of a flying club than a big league player.
The fact that staff and managers at all levels have flooded out since Lux took over begs the question as to whether Lux are in fact in this totally out of their depth and just hoping that their big bet miraculously captures the attention of the market when they try to cash in.
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Old 29th Dec 2017, 07:20
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Originally Posted by BuzzB
"Airworthyness manager"????
If thats our Corbyn supporting , self-appointed manager of Political correctness and manager of just about everything else ....that'll be the first constructive thing Lux have done since taking LEA over.
Lets hope Christmas has indeed arrived early this year!
I heard its the CAMO nominated person and the new nominated person will be based in Cambridge. Possibly more redundancies at LEA.
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Old 29th Dec 2017, 07:28
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Originally Posted by Ghengis Cant
I must say one does look on with jaw dropped wonder at who has their hands on the controls of LEA at a local level.....wonder at just what degree of competence Lux really are showing in building their empire. You might have expected them to drop in their chosen appointees to execute their plans...instead of which, with every senior departure of the managers who were the backbone and character of LEA the company has appeared more and more parochial, inexperienced and inward looking....with a structure more like that of a flying club than a big league player.
The fact that staff and managers at all levels have flooded out since Lux took over begs the question as to whether Lux are in fact in this totally out of their depth and just hoping that their big bet miraculously captures the attention of the market when they try to cash in.
Senior managers at both LEA and Execujet UK. Looks like lux have done a really good job at damaging both organisations possibly beyond repair. Would be interesting to know how many people have left the organisation in the last 12 months 40+? 50+?
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Old 29th Dec 2017, 15:59
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I am told by a reliable source that that almost ninety percent of the staff who were with LEA at the time Lux took over have left, by far and a way the majority ...of their own free will. Up until that time turnover of staff was minimal...and many had been with the company for years.

That statistic is absolutely staggering and reflects the complete failure of Lux to engage with or inspire their staff in their headlong money spending orgy.
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Old 31st Dec 2017, 08:55
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How many charter clients/airplane owners have left LEA? Did they attract new customers?
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Old 15th Jan 2018, 08:58
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How many charter clients/airplane owners have left LEA? Did they attract new customers?
Well according to their web site they only seem to have four Legacy 600s left in UK ....most of which are pretty tired. (I recall they used to boast the largest Legacy Fleet in the world with at least twice that number) So somwhere between Lux arriving and now it seems theyve lost a whole bunch of decent airframes including a couple of tip top 650s.
Not exactly a ringing endorsement by the moneyed punters either then!
I would imagine the euro/gbp gradient is probably doing a lot to sustain the UK operation...Without that who knows what the story would be?
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Old 15th Jan 2018, 21:12
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"Lost" is a bit of a red herring. An aircraft "Lost" is one that's gone to a competitor - and whilst there have been some of these (Bookajet being the most recent lucky winner of an ex-LEA Legacy) some were owners who no longer had a requirement - or cash - to pay for a jet.

My point being - diminished fleet is not necessarily a sign of a struggling company.
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Old 16th Jan 2018, 07:32
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My point being - diminished fleet is not necessarily a sign of a struggling company.
Sure.......but its hardly a sign of a vibrant healthy company attracting new owners and business either.
When you look at the rotating exit door that has spun faster and faster at LEA since Lux took over where experienced, highly respected ,long served management and staff alike have voted with their feet it is clear that the Lux message.....whatever it is....has not impressed.
When you hear of the same story at Execujet ( where Hansen had to parachute himself in to run it).... All this really does not give confidence that Lux have not in fact created a monstrously large company that they cannot now control.
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Old 16th Jan 2018, 19:04
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Ghengis, what makes you think that those who have left are escaping the new Luxemburg management?
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Old 16th Jan 2018, 20:24
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Very good point D and F.....
If I read you correctly I totally agree with the sentiment.
Due to the fact in large part that Lux's mismanagement philosophy seems to be to leave the locals to get on with it...... there have been promoted some of the most unlikely and profoundly disliked characters who seem to be given free reign to work their personal agendas to replace the respected guys who have gone. It's almost as if the old guard who have trousered their millions don't care any more and are deliberately sticking two fingers up to their detractors by promoting these guys! Cut off their noses to spite their faces it could be said!
Hardly believable.... but that's the way it looks to me.
Ask anyone who has gone why and the same name/s come up almost every time.
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Old 16th Jan 2018, 21:35
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I can well believe it. But they were stuffed the day they bought those little jets to ferry "Barry & his mates" away on golf weekends, chasing the low end of the market, people who can barely afford it. Tiny margins = lots more work for tiny profit or very possibly (probably) a loss.
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Old 20th Jan 2018, 15:04
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I bloody hate "barry and his mates" type phone calls, especially on a Sunday afternoon when you are just about to prepare the roast. Or when BA's computers crash and you get people calling up to offer you £500 for a jet to Nice. Anyway back to topic....

Forget about changes of management, financial position, people and aircraft coming and going. For me, in my role, the biggest problem is the ops side of the business. Now you have one central OPS team doing ALL the ops for the group, multiple AOCS, multiple FTLS to consider etc etc. Its a mess, I dont see how they can cope and customer service is suffering as result. On some bookings I have had to do some ops work for them to get the job done.

PS Miles I don't consider Bookajet all the lucky to recieve G-LALE, especially when Air Hamburg have what, 10 new or newish 600/650's no with the ability to do one way or virtual one way pricing if they so desire and no owners to report to other than the big boss and the banks....
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Old 21st Jan 2018, 07:14
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PS Miles I don't consider Bookajet all the lucky to recieve G-LALE, especially when Air Hamburg have what, 10 new or newish 600/650's no with the ability to do one way or virtual one way pricing if they so desire and no owners to report to oth
Very interesting to have a broker's perspective.
I have long thought that all this explosive expansion of Lux, claiming to be the worlds second largest.....etc..etc... Is all smoke and mirrors.
They dont own their aircraft and are totaly reliant on hundreds of demanding ultra high net wirth individuals from all over the world ( to whom they are individualy accountable) to entrust them with their precious machines.
if these owners lost confidence their business could disappear very quickly indeed.
what is absolutely clear from the absence of growth of the UK operation since they arrived is that, from an owners perspective, the jury is out.....at best. At worst they arent convinced by the razzmatazz and blustering....and the dripping tap of departing airframes could easily become a torrent.
Owners like continuity and must be unnerved to see people they have dealt with for ages disappearing.
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Old 21st Jan 2018, 09:01
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Very good post Sheikh that sums it up quite clearly. Once the owners of the jets lose confidence in the service you offer and take their jet elsewhere it takes strong hands on management to find a replacement aircraft and very hard work to attract new where's to what appears to be a failing scenario.
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Old 21st Jan 2018, 16:36
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They dont own their aircraft and are totaly reliant on hundreds of demanding ultra high net wirth individuals from all over the world ( to whom they are individualy accountable) to entrust them with their precious machines.
Well that's called running a "management company" and it is the same as TAG, Global Jet, BAA, JetAviation etc are all doing (JetA less charters) and for the most part are profiting very well from.

It's when companies start buying and owning jets that things go wrong in my opinion. Selling charters with aircraft financed and owned by someone else is massively de-risking your business as there is always an owner paying crew, parking, maintenance, insurance etc etc while you charge €10-20.000 a month in management fee and taking 10% on all charters sold by your charter department. You don't want to own all that iron sitting on the ramp when charter business is going down.

CP
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Old 21st Jan 2018, 18:41
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Lucky was a tongue in cheek remark - a 10 year old managed aircraft isn't going to print money against the Air Hamburgs of the world, but they'll do OK with it. Only having one aircraft of any type is difficult to compete in a world of dynamic pricing (unless you have a very understanding owner) but at least they're in the market place.

Ultimately, Relationships and stability are vital to retain management customers. The problem is, you can't accurately put a financial value on either.

Anyone fancy a wager on the next big merger?
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Old 22nd Jan 2018, 08:52
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EJ have lost several aircraft over the past 6 months as well as a considerable number of staff.
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