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Luxaviation cash flow issues

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Luxaviation cash flow issues

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Old 1st Oct 2017, 07:45
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Luxaviation cash flow issues

The rumblings of cash flow issues are true according to the company web site. In response they say they are profitable but that there are delays in paying suppliers because the money is in the wrong places!!!
Is this the first sign of the wheels coming off this buy-it-all whatever the cost enterprise...who appeared to have unlimited resources?
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Old 1st Oct 2017, 08:35
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Assuming this information is correct....it certainly raises a massive question mark over the Competence of the money men behind Luxs gravity defying growth. Is the money pit beginning to run dry?
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Old 3rd Oct 2017, 09:22
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Judging how much suppliers were willing to lend to Zetta Jet over the course of only 16 months, I wouldn't be too worried for ages yet...
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Old 8th Oct 2017, 12:10
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Luxaviation...

... is this the operator who has kept the habit of making late Per Diem payment for... YEARS?
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Old 11th Oct 2017, 12:54
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Late payments

Imagine a company, in a distant land, which knows exactly how much per dimes you are entitled to as it sent you their - and upon your return you find a summary that has been paid into your chosen bank account .......dreaming
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Old 24th Oct 2017, 16:42
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Thread creap......but what is going on at LEA...? The revolving door from which crews, manager's and aircraft are leaving spins faster and faster. Most recently the replacement FTM quits after a few months and in walks his replacement....the apparently available ( why?) ex FM of the Challies from Vista. What is bizarre is that this guy left LEA scarcely three years ago ....and how does one put it? Was not exactly a fan of the chief pilot/Legacy fm/ everything else manager.......so seconds out..!..round one guy's .....the fur will be flying.!!!...WEIRD!!!! ( or maybe desperation?)

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Old 25th Oct 2017, 12:18
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Now we hear CEO of execujet has walked and the main man at Lux Mr Big aka Patrick Hansen has parachuted himself as an emergency caretaker!!

Taken in isolation any one of these things doesn't amount to much .... but one could be forgiven for concluding that the wheels are beginning to come off the Lux bus as it careers at breakneck speed in the opposite direction to all conventional wisdom...
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Old 26th Oct 2017, 07:35
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the evidence ( certainly in the UK) seems to be that this Lux buying orgy has achieved the sum total of less than nothing if measured in term of customer experience and workforce motivation/contentment.
It is quite obvious, judged by the mass exoduses from LEA and Execujet of senior highly respected managers as well as very large numbers of their most experienced pilots and operations staff ( certainly from LEA) that Lux has totaly failed to connect with or inspire them as to what their vision or direction of travel is.

The situation is now made significantly worse because, without any discernible help from Lux, management is left to those without experience or , frankly, ability to muddle on with it. As a result, Morale is lower than it has ever been.

The generally accepted wisdom is that the only plan Lux had was to spend gazillions buying up and packaging/ rebranding huge numbers of operations worldwide then sell their shiny branded product with trumpets blazing on a public floatation for vast profits for their bold investors....( who exactly are they..������......??????)

Lux are like an invading army that wins the war with overwhelming fire power ( in their case money) but looses the peace in the ensuing chaos ( because the good guys all left)

If their grand project goes pear shaped.....then it will be another lesson hard learned that those who try to reinvent the wheel always fail.

And, who pays the price? The poor bast£&@s who work on the coal face.

But WTF do I know?!
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Old 26th Oct 2017, 08:20
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As long as they think that aviation is a commodity, investors will fail on it.
On the long run, it "may" create some value. They put at controls people without an ounce of aviation knowledge, the worsts are the one coming from industry ( manufacturing).

All the coming IPO's ( LUX, GlobeAir, etc..) will fail either immediately or later. If one entity buys the whole float ( like a debt) and re-market it ( to bottom line investors), the one's that will pay the price will be these ones ( just after the staff).

They have only ONE chance, there is so much cash out there that one might decide to dump this overflow in this endless hole, ONCE.... Then they will make the scheme "as advertised", and this ill be the end of it.

As I wrote just above, you replace LUX, by ANY name with a lot of publicity around, they are following the same pattern, since it is, in the "normal" perspective the only issue out to cash years of work. The other one is the RYR despair (known as the Starbuck strategy), of endless growth at any price, then contraction at certain points in order to aggregate the market. This does not work too well if there is no MASSIVE cash infusion. EK tried it, they failed; many others will and will fail, as long as there is a limiting factor in operation ( slot, fuel, maintenance, taxes, wages, etc..)

Anyway, find a good spot and enjoy while it lasts. One thing to remember though. Nature HATES emptiness; for one good guy that leaves 10 are showing up..repeating the same mistakes all over again..
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Old 26th Oct 2017, 10:33
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Good post CL
What sickens me in all this is that the guys behind all this .... The money men in Lux who's brainchild all this was cannot loose! Everytime an aquistion or sale is made or money raised they get their percentage...and it will be a big one.
For sure they hope to make a load more from a successful float and reputations would be lost if it did indeed go pear shaped., but be quite certain that he/ they already made enough millions out of the whole scheme to live happily ever after.
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Old 26th Oct 2017, 14:49
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In all fairness - I'm surprised none of you saw this coming from the very moment this ill conceived brainfart of an idea even raised its head.

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Old 26th Oct 2017, 16:38
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I think that EVERYONE whom has a "past" in this industry saw it coming..
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Old 26th Oct 2017, 17:24
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So how is this going to play out?
Are we seeing the start of a long slow painful car crash or is Lux going to come up with another wizard plan...
Hansen putting himself as CEO of Execujet is surely a sign of pure panic and desperation .

Whilst he's busy trying to hold what remains of execujet together .... how is he going to find the time to discharge his function as CEO of his huge multi company worldwide empire?!!

If I was one of his investors who has supplied him with seemingly unlimited blank cheques Id be asking some questions!!
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Old 27th Oct 2017, 08:23
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From outside it might be crash, from inside it might have been planned that way, by a handful of people.. Just speculating..

I can take the job and the money for a year...
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Old 28th Oct 2017, 09:33
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Originally Posted by CL300 View Post
From outside it might be crash, from inside it might have been planned that way, by a handful of people.. Just speculating..

I can take the job and the money for a year...
So are you suggesting that there are 2 that are waiting/wanting it to fail and get their old company back for a song?
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Old 28th Oct 2017, 10:01
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What is a surprise in aviation ?

Something that works as planned !

Everything is possible, and one thing for sure, there is always alternative options, some are less obvious than others, and vulgum pecus calls it a miracle..
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Old 6th Nov 2017, 07:54
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According to Sunday Times LEA are suing RBS to recover £4.6 million pounds of losses over what LEA alleges was a mis sold insurance that was sold to protect them against interest rate rises that never happened.... The claim is that they were effectively bullied into buying this insurance!!!!
An alleged loss on this scale could only have been against loans well in excess of £10 million and the suspicion must be that this was to do with their mis judged belief that the future was VLJ shaped as a result of which they bought a load of Mustangs.

The pay scale for LEA pilots is still the same as it was in 2009...
We have seen no benefit whatsoever from any of the Lux razzmatazz and money ( quite the opposite)..so whilst our management go off on Lux management beanfeasts to exotic venues and the Lux zillions are pumped into elaborate publicity and window dressing and partying, those of us at the coal face are just treated with contempt...
Is it any wonder that staff turnover has exceeded significantly over 75 percent over the last five years?

if this litigation is successful, then properly, the greater part of it should be distributed as a one off bonus to those of us who have effectively paid for this "mis sold" insurance...by seven years of pay cuts...

Yeah right.......Dream on...........
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Old 12th Nov 2017, 11:52
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Royal Bank of Scotland faces another trial: Company alleges it was "scared" into buying interest rate swaps | City A.M.

Anything more recent?

As fr giving cash to the troops, well i don't think anyone would be holding their breath.
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Old 29th Nov 2017, 16:16
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"Luxaviation expands US presence with Paragon Aviation tie-up"

https://www.flightglobal.com/news/ar...viatio-443733/
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Old 13th Dec 2017, 08:04
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There is something mighty strange about the way that Lux just keep on throwing money in every direction........long after the original target date of 2016 set for floatation ( stated when Lux bought LEA)....
If Lux are serious about proving that their empire is capeable of making any money conventional business wisdom states that there has to be a period of consolodation after the spending stops. This gives an opportunity to prove to any would be investor that all their investment and spending plans were well founded and that the combined businesses can return a profit.
The day of reckoning just gets kicked further down the road whilst they keep spending more on expansion.
Weird
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