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Strapped for pilots, Republic asks partners to reduce flights

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Strapped for pilots, Republic asks partners to reduce flights

Republic Airways Holdings Inc. is so short on pilots that it’s asking major-airline partners to reduce its summer flying schedule.
The situation will mean less revenue for Indianapolis-based Republic, the company has said, and it could mean a noticeable lack of seats available from airports like Indianapolis International, where about 60 percent of flights are operated by regional contract carriers such as Republic.
“Essentially it would be less capacity,” said James Clark, president of the International Brotherhood of Teamsters Local 357, the union that represents 2,300 Republic pilots. “It could actually change the schedules.”
Republic CEO Bryan Bedford told investors earlier this month that crew-related flight cancellations rose throughout the first quarter and continued at a high level in April and May. The labor shortage will reduce revenue by an estimated $15 million this year, the company said.
Bedford said the solution is to bring an end to protracted contract talks with the pilots’ union. The two sides have been meeting seven days a week since April and hope to have a tentative agreement in the near future.
Republic has been in off-and-on talks with the pilots’ union since 2007 and reached a tentative agreement last year, only to have it rejected by 85 percent of the pilots.
“There’s really no point in speculating as to whether or not our ongoing labor dispute is driving elevated levels of crew cancellations,” Bedford said during a May 8 conference call. “Regardless, we’re convinced that the most expedient way to get back to our historically high levels of performance is to reach a successful outcome at the bargaining table.”
In the meantime, Bedford said the company asked its major-airline partners to reduce its schedule in order to avoid disappointing customers. Republic said it's uncertain at which airports those schedule reductions will appear, since that's up to the major airlines.
Republic has a new executive team leading talks with the pilots. Chief Operating Officer Wayne Heller retired early this year, and he’s been replaced by human resources Vice President Matt Koscal and Chief Financial Officer Tim Dooley.
"It matters who's at the table," Clark said.
Clark said the union and Republic executives have been meeting almost nonstop since April. “This is a massive amount of effort on both parts," he said.
Although Republic executives believe the union thwarted their effort to fill gaps in crew availability, Bedford told investors that he won’t seek a legal remedy.
“If we go back over the tenure of the previous leadership team, it was very adversarial,” Bedford said during the conference call. “We spent a lot of time in court, and honestly, we generally prevailed in those arguments. We’re trying to approach this with a new spirit of engagement and cooperation. And we don’t have any intent to seek a legal process to resolve this.”
The issue behind the canceled flights, Bedford said, is that Republic does not have the ability under the current contract to force junior pilots to work on their days off. Instead, the company uses incentive pay to encourage pilots to fill the gaps.
When the company notified the union that it intended to activate incentive pay, the union responded by telling pilots not to pick up open slots. Clark said the union’s instruction to its members was appropriate because at this stage of the negotiation, which is overseen by federal mediators, neither side is supposed to change its behavior.
Regional contract carriers like Republic face pilot shortages that appear to be driven by significantly lower pay than at the major airlines.
Republic’s net income was $6.4 million in the first quarter, down more than 50 percent from the prior year. Earnings per share were 13 cents, half as much as a year ago.Total revenue rose 1 percent, to $341 million.

Company shares were up 7 cents Wednesday morning, to $10.33 each, but have fallen nearly 30 percent since the beginning of the year.

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First, I what you to know that I'm completely with you. You've heard the story about tossing the frog in the pan of boiling water? The frog would jump out. However, put the frog in a pan of cool water and slowly heat it up, the frog with boil to death.

The company is slowly heating the water with respect to their NUMEROUS status quo violations. If the company had done all of these things at once, any lawyer in the country would have agreed that it was a serious and obvious violation of status quo, but when they do it slowly, they get away with it.

That being said; the local has gone to the IBT national more than once regarding these various violations of status quo. From what I understand, the closest we were to walking out was when the company attempted to take action against the pilot that created rahcontractnow.org on the union's behalf.

The problem is that IBT national's lawyers claim that a status quo has not been violated. (Again, an assessment with which I COMPLETELY disagree, particularly on the new-hire bonuses) If IBT national makes this determination and the local engages in self help on it's own, there will be no support from IBT national. No legal help, no legal picket lines, no financial backing. We'd be on our own.

The problem is that IBT national will not let us strike.

On a related note, RAH, GoJet, Kalitta, Allegiant...most of the airlines that are engaged in difficult contract negotiations are represented by the International Brotherhood of Teamsters...coincidence?

While I'm appreciative and very much respect Local 357's (RAH pilot's local) EBoard, NC and other leaders and chairpeople, I think that it's high time that airline pilots give serious consideration to letting the IBT focus on their core business....representing truckers.

My statements are not to be construed as support for APLA: Their complete indifference to the plight of regional pilots has been demonstrated time and again. Unless there is a serious shift in attitude and culture at ALPA national, I'm convinced that they are not the answer, either.

 

Would copying Skywest's unionless model be an effective replacement?

 

When BB at the controls? NOW it's a party!!

 

If you had seen the losses we have had to endure over the last decade you would shudder. They smile while they pick your pocket. The only thing you would achieve is a quicker decline. Immoral behavior won't be thwarted by unions or religion.

 

So what is the answer? Not trying to put you on the spot, just making sure people start to think about this (as if it's not on everyone's mind already). How can we go forward, there HAS to be some action we are able to take. I thank the NC for their support and I know they are busting ass to make sure the holes are plugged in the next CBA, but there is only so much they can do. How can there be more pressure to the company to get this moved forward? We are already canceling 150+ flights a day to lack of crews. It seems like no degree of dire forecasts can make the pace increase.

Frustrating.

 

The answer is to put in a one-month notice, and for goodness sake go to another airline. No offense to any pilot at RAH, but the wheels Re falling off. Top regional picks are Envoy, Compass, Endeavor.

 

So basically go to an airline where the pilot group will vote yes to anything. I may sound slightly silly for saying this, but I refuse to hop sideways into another turd filled life raft. All these boats suck and instead of leaving this pilot group (the one who had voted no 2x to crap contracts) amidst the fight for an airline that looks good now, I think I'll stick it out. If this regional goes under its not like there will be no where else to work...


Edit: also part of my reason for staying is exactly what you stated in the thread back in 2014:
STOP THE LATERAL MOVES.
It doesn't help anyone.

http://www.airlinepilotforums.com/sh...ad.php?t=84955

 

I jumped ship and I can tell you that these other "turd filled life raft" are incomparable to RAH. Life is better on the outside, much better. Also, am not willing to make BB another dollar. Are you?

 

My decision to stay has nothing to do with making money for the CEO, and everything to do with living in base and getting the schedule I want. Is that why you work for your regional? Your CEO is a good guy and you want to buy him a new car? No, don't be silly.

As far as being incomparable to RAH, maybe for your situation (living in base, or whatever). But, its a regional, they are all terrible.