Originally Posted by borismud

Regarding the “contract pilot scheme:”

ABX currently has about 30 planes, plus or minus. Their business model is to use about half of those planes for long-term contracts with DHL, which provide stability, but thin profit margins. The other half of the fleet is used for short-term or ad hoc agreements which pay high profit margins, but are characterized by high volatility.

The short-term or ad hoc customers are willing to a premium price for the flexibility they need. In order to supply the aircraft and crew for the short-term agreements, ABX must have adequate planes, spare parts, mechanics, managers and pilots. They already have the planes. To ensure they have adequate pilots, the company managers and planners need to make sure they have enough pilots. The ideal situation for Hete and company would be to have a pool of temporary pilots who could be called in when Hete needs them and sent home during the slower periods. Fortunately, the union contract prohibits Hete from hiring “temp pilots.”

So now, Hete and the ABX EXCO have come up with this plan to offer early retirements to senior pilots with an option to come back as “contract pilots.” It’s a wonderful deal for Rick Z’s buddies who would get to take early retirement but still get to work when they want to. In government they call it “double dipping.”

The problem I have with it is that it could permit ABX to forego recalls that would otherwise be required.

The Union will say they are doing this to try to bring furloughed pilots back to work. That is absurd! They will sell it a “transition” plan that will allow the company to react to opportunities quickly and secure new work. That is absurd! The only entities that will benefit are Hete and his stockholders and the double dippers (who might include Rick Z.).

Every time ABX has a temporary surge in pilot need, they will just say “we are trying to get a new contract and need to react quickly to secure the job so we need to hire contract pilots.” If the “contract pilot” option is not available, the company will have to establish a staffing level that will allow them the flexibility to pursue their high profit margin, short-term deals.

If I have any opportunity to vote on anything that involves allowing “contract pilots,” I will definitely vote NO.