Nekton (Bad News)

[underwater life]

The private plane is a single prop four seater leased through Seagull Aviation and I have had the misfortune:depressed: of flying in that plane from Ft. Lauderdale to Mayaguana.

He does live in a very nice house, but his vehicles are in the company's name. I don't know how much longer he'll be driving the nice vehicles.

Lynn definitely comes from a moneyed family, but the family invested millions in the Nekton boats (the Pilot cost 6 million dollars to build, the Rorqual 8 million dollars to build) and the shipyard property. That family has lost millions on their investments. John did not have the start up capital to start the business, so he relied on these investors.

Sorry cappyjon, you have misinformation. The company the plane is leased through is Laughing Gull Aviation; only one vehicle is in the company's name; and the family did NOT invest "millions" in the Nekton boats or shipyard properties. It came from loans.

By the way, the Dixons have four children, not three; you stated that in an earlier post.

 

[cappyjon431]

Sorry cappyjon, you have misinformation. The company the plane is leased through is Laughing Gull Aviation; only one vehicle is in the company's name; and the family did NOT invest "millions" in the Nekton boats or shipyard properties. It came from loans.

By the way, the Dixons have four children, not three; you stated that in an earlier post.

I stand corrected, it is Laughing Gull (not seagull), but my point was that this is a single engine 4 seat airplane, not one that can whisk family members to California for sailing lessons. Does anyone have any evidence to the contrary? How does this refute the argument I made about the previous poster's remarks? If anything, it proves my point that the plane was leased and not purchased.

As far as vehicles in the company's name, even if it is one, my guess is that JD's lifestyle is going to change dramatically in the near future. I might be wrong, but I believe creditors and the IRS are going to be looking for assets.

Where did these "loans" come from, banks or investors? I don't know many banks out there willing to lend money to those in the dive industry. I know i wish I could find one, but most banks consider these types of investments pretty risky.

I only knew of the three kids, but I have been out of the Nekton loop for over five years. The only time I get information is when I see/speak with former crew members and JD at trade shows. Not sure that the number of kids makes much of a difference as far as my arguments were concerned, other than it is one more mouth to feed for a family that has lost quite a bit.

 

[vladimir]

II know for a fact that tips averaged about $350/week

Wow, I've tipped more than that myself on some (non-Nekton) trips.

 

[cappyjon431]

Wow, I've tipped more than that myself on some (non-Nekton) trips.

I kept track of my tips on the Pilot over an eight year period and it averaged $350/week per crew member. We had a high of $688 in July of 2000 and a low of $94 in October of 2001. When running with a full crew (12) and a fairly empty boat (we would often go out with 5 or 6 guests as not to cancel trips, something I always admired the company for) tips were very low but obviously the workload was less so it kinda balanced out. I also observed a huge decline in tips once the Rorqual was launched as two boats split Nekton's loyal following.

 

[deepstops]

I also observed a huge decline in tips once the Rorqual was launched as two boats split Nekton's loyal following.

Just so I am clear, was this because the trips stopped being full?? (same number of passengers split between the two boats)

 

[Doc]

Sorry cappyjon, you have misinformation......

Okay, but... What's the sense of all of thisthough?

People make bad business decisions all the time, most of them have likely greater effect to the world than this mess.

Forming various different corporations is a commonly accepted practice. All businessmen compartmentalize their endeavors, it protects them from liability first and foremost, it has tax advantages, and it makes accounting easier.

Thinking that anyone would fly from Florida to California in a private aircraft, even a pressurized twin, tells me only one thing- you have no idea what that would cost in terms of gas (versus commercial aviation) as well as tooth damage caused by vibration. If he did that more than once, he must be truly, clinically insane.

Also, being referred to as a "One time wonder" greatly offends me.

Maybe you aren't. Prove otherwise. Go to the forum that holds posts on St. Croix and other areas of your expertise and become part of the community. This issue is dead and gone, argue the reasons and effects if you must, but I think both topics are pretty well fleshed out.

I was on the St. Croix trip, you and I likely know each other... you likely saw my true motivations, feelings, and concern for the well being of the crew of any dive operation. I encourage you to sign your posts, you have nothing to fear or hide, and everything to be proud of- everyone I met aboard the Nekton St.Croix itin in September 2009 did a superb job!

How's the diving business in St. Croix? I was quite surprised by the quality and diversity of the diving. My wife, unfortunately, really liked the "Ear Doctor" at the local hosptal!

 

[diverdoug1]

I can't think of a single prop 4 seater that would be practical to commute from Florida to California on weekends with.

 

[cappyjon431]

Just so I am clear, was this because the trips stopped being full?? (same number of passengers split between the two boats)

That was a big part of the equation. Nekton always had a large group of return guests (at one point about 50% of our guests were repeat customers). Many of the guests who were on the Pilot when I was onboard were folks who had been out on the boat 10, 12, 15, 20 times. Some of these folks almost seemed like family and I still keep in touch with many of them.

When the Rorqual was launched many of the loyal "repeat" guests wanted to go on the "new" boat, see the "improved" (sarcasm intended here) technology, experience new itineraries (Cayman, Puerto Rico). In my mind, this split the loyal customer base into two and I know for a fact the trips on the Pilot began to see fewer bookings (and my tips went down substantially as a result).

Having two boats was only part of the equation (although IMHO it was the main contributor). The launch of the Rorqual also coincided with 911 and international travel nose dived for almost a year. We would frequently go out with 5, 6, 10 guests--cruises that did not even break even after fuel, payroll and food expenses. I always admired JD because for many, many years he held the philosophy that if you go out with a small group they will not only return for future trips, but they will spread the word and bring additional guests. I thought it was a great philosophy, as cancelled trips because of low occupancy really alienate the consumer (after they have requested time off, bought plane tix, etc.).

When you throw into the mix increase dockage fees (two boats, plus Port Everglades raised fees substantially to cover security costs after 911), a steep rise gas prices immediately after 911, and other increased expenses (crew were now required to be STCW certified, very expensive and Nekton helped subsidize this early on because they needed to get all of their crew STCW certified quickly so they would meet USCG regs), I believe Nekton dug itself into a hole from which it was never able to recover financially. They started cutting back on services (the free tours of Altun Ha and the belize Zoo in Belize), free airport pick up and drop off was curtailed, adding fuel surcharges, etc. The Nekton I knew and loved became very different, charging more and delivering less. This lowered occupancy rates and the whole thing snowballed (lower occupancy means less money for maintenace), leading to the collapse of the company.

Just my $.02.

 

[DiveMaven]

Sadly the truth is that had the boats been kept up a bit better, most folks would have paid another couple of hundred for trips. Nekton kept their prices in the $1800 range while Aggressor and Hughes were in the $2400 range. If the Pilot had been kept close to the condition the Aggressor and Hughes boats are kept, I wouldn't have had any problem paying $2000-2100 per trip. Nekton had a great dive platform for a liveaboard and I was totally sold after being in a storm in Belize and enjoying my dinner while watching the Hughes boat disappear and reappear in the waves (barf!).

JD backed himself into a corner by trading low cost trips to try to fill the boats with deferred maintenance that never got done. Slowly the boats went into disrepair and the reputation went with it. Then as he couldn't make his payroll/bills/etc. on-time, he lost excellent and long-time crew. Vicious cycle that snowballed out of control to this point.

Actually, we loved the Pilot so much in Belize that we returned for a back-to-back 18 months later to the Bahamas. Unfortunately, that 18 months had not been good for the Pilot, she looked like she hadn't had any maintenance at all, and was in huge need of an overhaul then. I can only imagine how bad it got in the 2 years since before she went to drydock, never to return.

 

[robint]

I am with DiveMaven on this... if they had stayed in Belize and/or Caymans, and kept up the maintenance, I would have paid the same price as the Aggressor boat! I loved the stability and roominess of the Nekton. I also loved the fun, casual atmosphere.

And on our 2 trips, once on Pilot and once on Rorqual, I can say that both boats had many return guests onboard. Our first trip had a group doing their 6th Nekton trip and they were already booked for #7 later that year! People were loyal to Nekton but all the things mentioned by Cappyjon led to losing those regulars. Sad, really sad.

robin