NetJets at FlightSafety

The president of Gulfstream Operations for NetJets stopped by FlightSafety Academy today to chat with the students and instructors. He started the discussion by giving us his background. He is a former FSI student from back in the 1980s. He was subjected to the hiring freeze of the day, so he spent a lot more time instructing than he anticipated. He says those were the most valuable days in his flying career. Every student is different. A good instructor must adapt to the needs of the student and modify the lesson as necessary. This flexibility makes instructors experts in all areas of flight. He likened this time to "filling the pool". When the gates finally opened, the pool emptied and with it went a lot of instructor talent. We are currently filling the pool again, so now is a great time to be a student or instructor.

He also discussed the business reasons for the economic crash of last September. Large holders of stock can borrow against margins. Once a week, the loans come due and you must pay back the borrowed money. Say, for example, you are a broker and hold $100 million in stocks. You can borrow up to half and do with it as you please. Many brokers reinvest this money. If the market goes up, they can easily pay off their loan and continue borrowing more. When the market crashed and the margins came due, these people were in trouble. They tried to sell their beach houses--but no one was buying beach houses. They tried to sell their yachts--but no one was buying yachts. Many sold their share of their jet. NetJets guarantees cash back within 90 days upon sale, so they ended up with a lot of jet shares to sell and outflow of cash. In one example, a used Gulfstream that normally sells for $21 million was selling for $11 million. Luckily for NetJets (unlike the airlines), the owners pay the bills when they fly. In other words, the cost of fuel does not directly affect NetJets, since the owner pays for fuel. As a result, NetJets is not in as bad a position as the airlines.

He also discussed hiring practices at NetJets. He stressed the importance of Personality and Attitude; neither of which can be taught. He recommended that one should focus on the company you want to work for and be persistent. Once you have an interview, the focus shifts from flying credentials to - you guessed it - personality and attitude. Networking also ties in tightly. Everyday, you have the opportunity to show people who you are, and they likely won't forget you if you make a positive impression. He currently has about a dozen Gulfstream captains who instructed with him back in the day.

The most positive thing I heard was that we appear to have hit the bottom in aircraft sale prices. People are starting to buy again. This fares well for me selling my share of the Commander, and the GA market in general. He doesn't anticipate the recovery in GA to come as quickly as in other sectors of the economy. The important thing, he said, is to stay focused on the dream and do things today that will help tomorrow. When the gates open again, and they will open, be prepared.