Post by Losttimes on Jun 23, 2013 8:21:32 GMT -5
For all intents and purposes, the company has, at least temporarily, "terminated operations" as warned in the most recent filing. Definitely this is true for the owners, lessees and card(or bag)holders.
I see three options. Liquidation.
Takeover/buyout.
Large capital infusion.
The first two are most likely as no intelligent investor group at this time would plow millions into a "leadership" group that stiffs, ignores and insults its ownership group and has repeatedly fallen short on execution and business development. Good money after bad and all.
As some have stated, the Piaggio parent group might step in as they have a big vested interest and; a market suddenly flooded with 50 or so aircraft would severely impact sales for them. My opinion is that would be contingent on the departure of the CEO et al and establishment of a new, strong and competent BOD.
A takeover group ( e.g. a truly professional operator like NetJets or Executive Jet Shares) purchasing the outfit ( a pipe dream on my part) should immediately fire the CEO and maintenance group as they are, in my opinion, the responsible parties for the events that led to the rapid down spiral. Leaders need to take blame as well as credit.
A hybrid, charter/membership company like XoJet is also a possibility.
Leadership have issued misleading and false statements to the ownership and given no honest, clear and believable communication at all for months, much less at this time. Why were so few aircraft flying before this latest "stand down" ( I have a good idea why). The most recent "daily updates" are now 6 days in arrears.
When a high profile player in Florida politics has to seek recourse in the courts to recoup funds for services not delivered, that is very telling and sets the stage for a very broad and deep seeded mistrust in management and very likely has fatally damaged the ability of the company to attract new customers. With numerous other options in a commodity product market, people will simply not want to risk large amounts of money with a company that they can now see does not respect or adequately inform its customers and repeatedly fails to deliver product and has the gall to "assist you find alternate options at your own expense". Wow, I want to tell my colleagues and family to sign up for that too!
They were recently able to attract new owners because the price is low ( too low obviously) and the perception was they had fixed their problems. However I doubt the recent members and owners were informed that the fleet was only at 15 to 25% capacity and dozens of aircraft at any given time were sitting idle. Maybe they were. I hope so otherwise it is a very sleazy way to do business.
Since a take over group might terminate management, they may have been disinclined to sell as it could be interpreted they were inept and might lose their jobs. Pride and greed are very powerful forces.
I am disappointed and saddened for the hard working folks at the company especially the OS people. Maybe the leadership will show some selflessness (as they expect others to do) and integrity and negotiate a handover of the company to some real professionals. I am not holding out too much hope.
Oh we'll, I got my venting done.
I see three options. Liquidation.
Takeover/buyout.
Large capital infusion.
The first two are most likely as no intelligent investor group at this time would plow millions into a "leadership" group that stiffs, ignores and insults its ownership group and has repeatedly fallen short on execution and business development. Good money after bad and all.
As some have stated, the Piaggio parent group might step in as they have a big vested interest and; a market suddenly flooded with 50 or so aircraft would severely impact sales for them. My opinion is that would be contingent on the departure of the CEO et al and establishment of a new, strong and competent BOD.
A takeover group ( e.g. a truly professional operator like NetJets or Executive Jet Shares) purchasing the outfit ( a pipe dream on my part) should immediately fire the CEO and maintenance group as they are, in my opinion, the responsible parties for the events that led to the rapid down spiral. Leaders need to take blame as well as credit.
A hybrid, charter/membership company like XoJet is also a possibility.
Leadership have issued misleading and false statements to the ownership and given no honest, clear and believable communication at all for months, much less at this time. Why were so few aircraft flying before this latest "stand down" ( I have a good idea why). The most recent "daily updates" are now 6 days in arrears.
When a high profile player in Florida politics has to seek recourse in the courts to recoup funds for services not delivered, that is very telling and sets the stage for a very broad and deep seeded mistrust in management and very likely has fatally damaged the ability of the company to attract new customers. With numerous other options in a commodity product market, people will simply not want to risk large amounts of money with a company that they can now see does not respect or adequately inform its customers and repeatedly fails to deliver product and has the gall to "assist you find alternate options at your own expense". Wow, I want to tell my colleagues and family to sign up for that too!
They were recently able to attract new owners because the price is low ( too low obviously) and the perception was they had fixed their problems. However I doubt the recent members and owners were informed that the fleet was only at 15 to 25% capacity and dozens of aircraft at any given time were sitting idle. Maybe they were. I hope so otherwise it is a very sleazy way to do business.
Since a take over group might terminate management, they may have been disinclined to sell as it could be interpreted they were inept and might lose their jobs. Pride and greed are very powerful forces.
I am disappointed and saddened for the hard working folks at the company especially the OS people. Maybe the leadership will show some selflessness (as they expect others to do) and integrity and negotiate a handover of the company to some real professionals. I am not holding out too much hope.
Oh we'll, I got my venting done.