GoJet Growth
As time went on, a misconception arose throughout the airline industry that the TSA vs GoJet issue had been resolved. To the contrary, it had not. Deep divisions grew between pilots employed at the alter-ego carrier GoJet and those who remained loyal to Trans States Airlines. TSA pilots discouraged pilots from seeking employment with GoJet because of the consequences that growth could have on Trans States pilots’ own future job security. At the time, several airlines had disappeared – from Chicago Express to Atlantic Coast (Independence Air) – and some of these unemployed pilots, not understanding the ramifications of their actions, accepted employment at GoJet. Ten CRJ700s were planned for GoJet delivery with options for 20 more. The furloughing and closures at other carriers resulted in a pool of available pilots, including pilots from flight schools who knew nothing about the situation, and GoJet eventually grew to 15 aircraft solely operating as United Express with approximately 150 pilots11Trans States Negotiations
Needless to say, TSA pilots and negotiators have placed job security as a primary objective in their Section 6 negotiations, which opened in February 2006. During the course of negotiations, TSA management announced the loss of 10 jets – returned to American Eagle which held the leases on these aircraft. Most recently, Trans States management admitted to the loss of the entire American Connection Codeshare effective May 2009. Seventeen (17) aircraft will disappear from our property, taking our 50 jet aircraft operation down to 33. As a result, approximately 150 TSA pilots have been furloughed. At the same time, our alter-ego sister carrier continues to hire more pilots. The only good news coming from the loss of the American Connection (AX) flying is the elimination of the APA scope limitations – as of May 2009, Trans State Airlines is no longer limited to 50-seat or fewer aircraft operations. Clearly, the continued growth at GoJet is a serious threat to the job security of Trans States pilots. Presently, GoJet is taking delivery of six additional aircraft and have options for 10 more. This would increase the size of the GoJet fleet to 31 (assuming all options exercised) while the TSA fleet is scheduled to be reduced to, at best, 33 and quite possibly as low as 27 due to additional aircraft being returned to the lessor. Right now, Trans States Airlines remains the dominant revenue stream to Trans States Holdings and very likely supports the GoJet operations. Consider this: most of TSA’s flying is fee for departure, as is GoJet’s; however, GoJet’s approximate 30,0006 yearly departures for 2008 were far less than TSA’s 100,0006 departures. Additionally, operating revenues for GoJet in 2007 were $127 million7 compared to TSA at $350 million7. As growth and revenue increase at GoJet and revenue and fleet size shrink at TSA, you could expect an eventual role reversal.
GoJet’s steady growth continues to diminish any chance for TSA pilots to propel our job security issues to the surface. Time is of the essence for Trans States pilots. Clearly, a role reversal in pilot group size, fleet size, and revenue production marginalize the effectiveness of any self help measure at Trans States Airlines at the end of the cooling-off period in the current section 6 bargaining. Our only bargaining leverage is the threat of lawful self help, which could adversely impact the bulk of Trans States’ revenue stream, thereby affecting their capability to purchase additional jets for GoJet (at least at the rate they want them) as well as disrupt their entire operation.
It is no secret that Trans States Holdings would like to diversify its portfolio of codeshare partners. Right now GoJet has a codeshare agreement strictly with United, and Trans States Airlines (as of May 2009) will codeshare primarily for United with only a few aircraft in the US Airways system. To be tied to a single codeshare partner that can flex their leverage to eat into their profits remains a concern for both GoJet and TSA management. Additionally, GoJet’s future growth is contingent on UAL’s Jets-four-Jobs (J4J) program, which guarantees seats to furloughed UAL pilots. While this arrangement provides a positive outcome for UAL pilots, it continues to erode the opportunity for TSA pilots to correct the past. The same would hold true for other pilots that fill those seats and promote GoJet’s growth
TSA Pilots’ Plight
TSA pilots remain focused on trying to resolve the GoJet issue in a manner that concedes GoJet’s existence, but rights the injustice of the past while providing future stability and job security for Trans States pilots’ and families. GoJet was born off the labor and sacrifice8 of Trans States pilots. The very existence of GoJet Airlines serves as a constant reminder of the disloyalty Trans States Airlines and Trans States Holdings have for its labor force. The TSA pilot group has endured a tiring and relentless barrage of attacks through the years, yet this pilot group remained loyal to the industry by not accepting substandard wages on larger regional jet aircraft nor did they accept disloyalty as defeat. Trans States pilots continue to build on their own unity and resolve that an improved contract without adequate job protections will ultimately place TSA pilots in the unemployment line or be severely whipsawed by TSA management. It is likely that our last and best chance to obtain acceptable job security is in our current Section 6 negotiations. The likelihood of having enough leverage in the future – once GoJet reaches a self-sustainable size – to address these important issues is highly unlikely. The window of opportunity is quickly closing. TSA pilots are battered and weathered, but remain focused on this one very important issue. TSA pilots continue to prepare for what will likely be a game of brinksmanship, but our future livelihood is no game.