Notices
Fractional NetJets, FlexJet, etc

Flight Options Rumormill

Old 04-18-2006, 10:38 AM
  #1  
Gets Weekends Off
Thread Starter
 
Joined APC: Mar 2006
Posts: 296
Default Flight Options Rumormill

Gents, heard from a pilot friend of mine at FO who know guys in mgmt that told him that they will be looking to fire 50-150 pilots before the union is official in a few months and it is nearly impossible to get rid of the dead-wood. This is also due to the company moving down to only four a/c types. So I guess hiring there is over for now. Any confirmation of this?
Bigflya is offline  
Old 04-19-2006, 04:21 PM
  #2  
New Hire
 
Joined APC: May 2005
Position: BE40
Posts: 3
Default

April 18, 2006

Dear Flight Options Crewmember,

Early in 2005, Flight Options announced its Go-Forward business plan. The plan outlined a strategy for the Company to work toward a sustainable, profitable business model in an industry that historically has failed to make money. Owners and team members have acknowledged the far-sighted vision and soundness of our plan.

THE PAST

The major players in the fractional business recently announced multi-million dollar operating losses for last year. Our biggest competitor, NetJets, announced it lost $143,000,000 in 2005. Flight Options faces similar challenges to be profitable. We're all trying to find a balance that works.

Most of you were hired by Companies led by different management teams. Many of you have told me that past leaders shared their visions with you of where our Company was headed. You've told me well-meaning corporate executives and managers said things like, “You're part of one of the fastest growing industries in the country...You'll be a PIC in a year...We'll never lose money...” As we know, the landscape of the fractional business has changed over the past few years. Sadly, yesterday's fantasies have given way to the reality of today.

THE PRESENT

Industry changes and our Company's lack of profit are not your fault. On the contrary, your proactive efforts have helped us survive in a declining segment of the marketplace. You have not caused the problem, but you can be part of the solution.

Let me emphatically state that the initiatives in this letter have absolutely nothing to do with the recent union election. The plans we made last December and in early 2006 were based on hours under management at that time. The dynamics of our owner redemptions and accelerated retiring fleet have changed. This requires a change in our plans.

Management and your union representatives must work together to develop a responsible labor agreement. Since your union was certified, I've met or talked with each member of the Flight Options Leadership Council. While I imagine we'll have differences of opinion about how we get there from time-to-time, I hope we share a common vision of doing what it takes to assure our mutual success. It's in all of our best interests to develop a business plan that delivers Flight Options to the sustainability that has been so elusive to the entire industry. Repairing broken trust and rebuilding mutual respect are steps on our path to success.

THE FUTURE

By the end of 2006, Flight Options expects to be operating about 150 aircraft. A reduction in fleet size was a planned and necessary aspect of the Go-Forward plan, but it's occurring faster than we had initially forecast. An unanticipated number of owners are exiting their shares or getting out of the Retiring Fleets. Owners in these older aircraft require much larger investments to transition to a newer aircraft and many are simply redeeming their shares without buying into the Go-Forward Fleets. While some of this was expected, we are seeing this take place at an accelerated rate, which is speeding up the next phase of our Go-Forward plan.

This swift reduction in fleet size must be accompanied by proportionate scaling in all other areas of the business, including maintenance, support functions, and flight operations. Effective May 1, 2006, a number of our flight attendants will be laid off by seniority; that is, the junior flight attendant will be laid off first, the next most junior will be laid off second, and so on. As the number of Gulfstream and Challenger aircraft has declined, so has the need for large cabin flight attendants. Additional information regarding this process will be given to those affected. Please log on to the Flight Options Aircrew Site (http://pilots.flightoptions.com). See FLIGHT ATTENDANTS on the website.

As the total number of aircraft has decreased, a fleet-wide surplus of pilots has developed. Some programs are adequately staffed, others, especially the retiring fleets, have excess crews. For example, we currently have one GIV with ten assigned pilots. See RETIRING FLEET TRANSITIONS on the website. FlexJets laid off pilots in the aftermath of 9/11. Since 2001, no major fractional company has laid off crewmembers due to a reduction in fleet size. We are trying a number of initiatives to avoid laying off pilots. If layoffs become necessary, see PILOT LAYOFFS on the website for the policy we will follow.

In order to avoid involuntary terminations or layoffs, we are offering options to our pilots. Please log on to the Flight Options Aircrew Site (http://pilots.flightoptions.com) for added information about each initiative.

We're going to open three times the number of vacation days for bid as we've recently awarded. There will be two bids: one for May 2006, and one for June 1, 2006, through January 31, 2007. Vacation bids will be awarded by seniority and seat; that is a similar number of PIC and SIC vacation days for each aircraft type will be awarded. We will attempt to offer at least the number of accrued vacation days for bid. Each crewmember should bid every possible vacation period available. If a vacancy for a vacation period is not filled, the junior crewmember will be assigned to fill the period. See VACATIONS on the website.
We're encouraging pilots to take voluntary leaves of absence. See UNPAID LEAVE OF ABSENCE on the website.

The most important goals of the current flight operations initiatives are to preserve as many crewmembers' jobs as possible, to perform as efficiently as possible, and to control costs where possible. The following actions are to help satisfy those goals:

Training and attrition have adversely affected the available pilot staffing of several aircraft programs. We'll align the 8/7 duty period schedules in May 2006.
We no longer need the additional duties provided by our Senior Flight Officers (SFO's). They have performed past assignments for previous management teams. While we appreciate their historic contributions, effective May 1, 2006, we will remove the SFO designation and compensation.
Effective May 1, 2006, a crewmember will be considered in rest 30 minutes after the last block in time of the flight day unless directed otherwise by dispatch. See END OF THE DAY DUTY OFF TIME on the website.
Although the policy changed last year, some crewmembers have continued to receive per diem pay while at home. Effective May 1, 2006, crewmembers will receive per diem anytime while away from their domicile. For example, a crewmember who travels on Day 1, works eight days, and returns home on Day 8 will continue to receive eight days of per diem. A crewmember who has no duty assignment on Days 1 and 2, travels on Day 3, works six days, and returns home on Day 8 will receive six days of per diem.
Many crewmembers have shared stories of wasted crew meals. The goal of the revised policy is to address this waste. There is no change in our current per diem rate. See CREW MEALS on the website.
SUMMARY

We are taking these unusual measures in an attempt to show you, our owners, and other team members we value you and we want you to stay with Flight Options. We're hopeful that crewmembers will take enough vacation to ease the temporary surplus of pilots. If too few bid vacation, take leaves of absence, or resign, we'll have to layoff. If we layoff, it will be by seniority; that is, the junior pilot will be laid off first, the next most junior will be laid off second, and so on.

Although we've tried to minimize the turmoil, I realize the impact these announcements carry. I am saddened that these changes must affect some of you and your families. These difficult changes are necessary to help us adjust to the changing marketplace. It is our fervent desire to position Flight Options as the premier provider of service in our industry. Alongside that goal is to secure our mutual futures.

Best regards,

Bob Tyler

Vice President, Flight Operations
266854 is offline  
Old 04-19-2006, 06:06 PM
  #3  
Gets Weekends Off
Thread Starter
 
Joined APC: Mar 2006
Posts: 296
Default

Glad to know my sources are reliable. Good luck to you current FO employees.
Bigflya is offline  
Old 04-19-2006, 09:51 PM
  #4  
Gets Weekends Off
 
Pilotpip's Avatar
 
Joined APC: Jun 2005
Position: Retired
Posts: 2,934
Default

I wish you guys the best. FO comes to my FBO quite a bit and you're always friendly to the lineguys. Hope it works out.
Pilotpip is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Bigflya
Fractional
10
04-27-2006 04:04 AM
buckeyes95
Fractional
2
03-03-2006 05:43 PM
Bengalsfan
Fractional
5
02-12-2006 07:06 PM
daytonaflyer
Fractional
4
11-05-2005 09:31 AM
loudgarrettdriver
Hiring News
5
11-01-2005 04:41 AM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices