Avantair pay cut vacay elimination

[jonjuan]

What the Hell happened? I thought you guys were doing good taking more planes and hiring pilots. It goes to show everyone is struggling to survive this market.

They've been buying business since they started. The majority of their owners previously used other more expensive frax. Good for marketshare, bad for profits when they charge less for the product than it costs. they've been at 55 aircraft for a couple of years now.
At first, the bigger frax wouldnt price chase those leaving. Now, they are getting much more aggressive about keeping folks. I've seen some unreal NJA deals floting around. Ol Warren's gonna keep every owner he can, no matter the price. The aair Q is now over 4 months since the last report. Gonna be interesting.

 

[CALRepublic]

I DID NOT like unions before, but my way of thinking is chaging, slowly but is changing

I think unions are a neccesity these days. Investors and CEOs are vicious, they want every penny they can get back and the hell with the average guy...

It is very unfortunate that managements make more accepting of unions and not the union itself

 

[emspilot 01]

I don’t know partner…I’ve never met anybody that feels humiliated working “at-will”…people who are worth their salt wouldn’t have it any other way. Most are pretty proud of themselves and the success they’ve achieved in life…they value their independence. This gung ho attitude is what America is all about...men who have hearts of oak and dicks of steel and make it on their own

Hey Dude, You have my vote...:smash:

 

[gret]

AIN Alerts

Avantair Management Takes Pay Cut, Grants Stock Options
Avantair, the fractional-share operator of a fleet of 56 Piaggio Avanti twin turboprops, has adjusted its payscales to better match the rate of growth of management fees, company CEO Steve Santo told AIN. Management fees generally grow at the rate of the consumer price index (CPI), but raises during certain years were climbing faster than the CPI, making it difficult for Avantair to keep expenses in check. The new-hire and 10-year pay rates haven’t changed, he explained, while some rates were adjusted to match management fee growth. To remunerate employees for the changes, Avantair is granting stock options to all employees; the options vest in three years. Santo and president Stephen Wagman also took voluntary pay cuts of 15 percent and 6 percent, respectively, according to Avantair’s August 24 SEC filing, and agreed to forego 2012 bonuses, “in furtherance of their continued actions as part of the company’s ongoing efforts to reduce expenses.” Non-employee directors agreed to reduce their compensation by 40 percent. Avantair’s stock closed yesterday at 53 cents per share.

 

[emspilot 01]

Avantair Pay Cuts...

Avantair Management Takes Pay Cut, Grants Stock Options
Avantair, the fractional-share operator of a fleet of 56 Piaggio Avanti twin turboprops, has adjusted its payscales to better match the rate of growth of management fees, company CEO Steve Santo told AIN. Management fees generally grow at the rate of the consumer price index (CPI), but raises during certain years were climbing faster than the CPI, making it difficult for Avantair to keep expenses in check. The new-hire and 10-year pay rates haven’t changed, he explained, while some rates were adjusted to match management fee growth. To remunerate employees for the changes, Avantair is granting stock options to all employees; the options vest in three years. Santo and president Stephen Wagman also took voluntary pay cuts of 15 percent and 6 percent, respectively, according to Avantair’s August 24 SEC filing, and agreed to forego 2012 bonuses, “in furtherance of their continued actions as part of the company’s ongoing efforts to reduce expenses.” Non-employee directors agreed to reduce their compensation by 40 percent. Avantair’s stock closed yesterday at 53 cents per share.

That's pretty good, because managers usually never take pay cuts... I wonder if managemant received any stock options for those cuts...:smash:

 

[brokeflyer]

they didnt take a pay cut. They just said they did. The gave themsleves raises after they cut the pilots pay.

 

[DUATS]

Avantair’s stock closed yesterday at 53 cents per share.

trading today at 41 cents, down 37% in a week when the broader market went through the roof. I think the investors see blood in the water.

 

[jonjuan]

Market cap of $10 Million. Oooofff....

 

[T-1GUY]

Avantair is granting stock options to all employees; the options vest in three years.

I see the company won't last three years....

 

[rajflyboy]

I see Italian planes going down for maintenance

thats what I see

 

[Praetorian]

Humiliation? I am proud to work "at will." And I expect my employer to employ me "at will." If I don't like them I can leave "at will." If my employer doesn't like me, they can fire me "at will." Sounds like a fair exchange to me. I work for whomever I want and they employ whomever they want.
Union organizing during a perilous time for a company, especially during a protracted flat economy, doesn't take "stones" but rather "cluelessness", it seems to me. Sounds like a good way to lose one's job.

Don't you work for NetJets.:erm: Unless the just cause provision somehow disappeared from your contract, you aren't at-will.

 

[Praetorian]

I don’t know partner…I’ve never met anybody that feels humiliated working “at-will”…people who are worth their salt wouldn’t have it any other way. Most are pretty proud of themselves and the success they’ve achieved in life…they value their independence. This gung ho attitude is what America is all about...men who have hearts of oak and dicks of steel and make it on their own

Since you and I are now using the familiar diminutive form of address...

Are we talking about pilots here sport, or lumberjacks?

 

[gret]

Since you and I are now using the familiar diminutive form of address...

Are we talking about pilots here sport, or lumberjacks?

Too tired tonight to deal with you. Will respond sometime this weekend.

This will give you time to change from the pink panties to the purple

 

[G4dude]

Don't you work for NetJets.:erm: Unless the just cause provision somehow disappeared from your contract, you aren't at-will.

I fly for NJA, and was forced to join the union. I prefer the "at will' relationship I described earlier. I must say, to avoid provoking the Crazies, the union here is pretty reasonable, as unions go. Not as bad as I had feared, now that Luthi is gone.

 

[Fresh Air]

I am truly sorry that this happened to you Avantair folks. You all seemed fairly happy for a long time, and I guess in this industry that is a pretty good run. Here's hoping things eventually improve.

 

[sshrae]

With the stock at that price it would be an easy takeover target for some investor. Even if it would mean dismantling the company, only thing is, I dont know what they actually own. Do they have equity in any of the airplanes or are they just acting as a management company?

 

[208starcheck]

Look closer at their financial report. No investor would touch them unless they went into bankruptcy first. Check out some of the loan terms, double digit interest rates..... No investor wants to inherit all that balance sheet liability.

 

[jonjuan]

Also, if the frax owners sense trouble, there may be a rush for the exits. No one wants to be the last to do so.

 

[208starcheck]

Funny, I wish all pay cuts worked this way.


http://www.bizjournals.com/tampabay/news/2012/08/31/avantairs-santo-wagman-agree-to-pay.html

Aug 31st
Steven Santo, CEO, agreed to reduce his annual base salary by 15 percent, from $525,000 to $450,000, and Stephen Wagman, who was appointed president of the company earlier this month, agreed to reduce his salary by 6 percent, from $375,000 to $352,000.

------

http://finance.yahoo.com/q/it?s=AAIR+Insider+Transactions

Sep 6, 2012 SANTO STEVE Officer, 150,000 Direct Acquisition (Non Open Market) at $0 per share

Sep 6, 2012 WAGMAN STEPHEN MARK Officer, 150,000, Direct Acquisition (Non Open Market) at $0 per share.

------

so....
150,000 x .55 per share on Sept 7th = $82,500



.

 

[Praetorian]

Too tired tonight to deal with you. Will respond sometime this weekend.

This will give you time to change from the pink panties to the purple

So you've been thinking about my panties? I think I just felt my dic move a little.

While your feeling naughty, can I get another scolding

 

[Praetorian]

I fly for NJA, and was forced to join the union. I prefer the "at will' relationship I described earlier.

So your just a hypocrite.

 

[AftCG182]

I am truly sorry that this happened to you Avantair folks. You all seemed fairly happy for a long time, and I guess in this industry that is a pretty good run. Here's hoping things eventually improve.

Factually, we're not really sure what's going on over here. We ARE mostly happy. We DO have a product that is profitable. We're just not sure exactly what's going on and where the money's going.

In fact, we're so busy we can't really keep up with all of the business that we have... Where the heck IS all of the money going???

Thanks for your support...

 

[208starcheck]

Factually, we're not really sure what's going on over here. We ARE mostly happy. We DO have a product that is profitable. We're just not sure exactly what's going on and where the money's going.

In fact, we're so busy we can't really keep up with all of the business that we have... Where the heck IS all of the money going???

Thanks for your support...

You should read your company's financial filings with the SEC. I was bored sitting at the FBO today. After I finished reading the entire internet, I started reading AAIR's filing. The report paints a different picture then you are discribing. Example as stated in the report. AAIR has never turned a profit. Operating are funded through a reverse merger in 2007, stocks sales and operation. 5 strait years of loses.


Read this from page 9 and think about where additional financing would come from.

The Company has suffered recurring losses resulting in a stockholders’ deficit of approximately $44.0 million and a working capital deficiency of $63.9 million as of June 30, 2011. As of June 30, 2010 the Company had a stockholders’ deficit of $32.2 million and a working capital deficiency of $43.9 million. Historically, the Company has been able to finance operations from the capital obtained through the Reverse Merger which was completed on February 22, 2007, the November 2007 private placement of Series A Convertible Preferred Stock which raised gross proceeds of $15.2 million and the June, September and October 2009 private placements of Common Stock which raised net proceeds of $1.3 million, $0.6 million and $7.3 million, respectively. Management intends to continue to finance the operations of the Company through future cash flows from operations and future financings.

http://www.avantair.com/investors.html?qm_page=31548
sort for annual report on the drop down menu.

 

[brokeflyer]

the money is all going right into your CEO's pocket so he can claim a pay cut.

You're all being boned up the rear. Santo will bail out with a golden parachute and land on a giant pallet full of $100 bills.

And you'll be out of of a job because you helped make him rich.

Welcome to aviation in the usa.

 

[jonjuan]

Funny, I wish all pay cuts worked this way.


http://www.bizjournals.com/tampabay/news/2012/08/31/avantairs-santo-wagman-agree-to-pay.html

Aug 31st
Steven Santo, CEO, agreed to reduce his annual base salary by 15 percent, from $525,000 to $450,000, and Stephen Wagman, who was appointed president of the company earlier this month, agreed to reduce his salary by 6 percent, from $375,000 to $352,000.

------

http://finance.yahoo.com/q/it?s=AAIR+Insider+Transactions

Sep 6, 2012 SANTO STEVE Officer, 150,000 Direct Acquisition (Non Open Market) at $0 per share

Sep 6, 2012 WAGMAN STEPHEN MARK Officer, 150,000, Direct Acquisition (Non Open Market) at $0 per share.

------

so....
150,000 x .55 per share on Sept 7th = $82,500



.

Post # 34....

To remunerate employees for the changes, Avantair is granting stock options to all employees; the options vest in three years.

 

[jonjuan]

We DO have a product that is profitable.
In fact, we're so busy we can't really keep up with all of the business that we have... Where the heck IS all of the money going???

not really a business major, eh?

 

[CALRepublic]

Factually, we're not really sure what's going on over here. We ARE mostly happy. We DO have a product that is profitable. We're just not sure exactly what's going on and where the money's going.

In fact, we're so busy we can't really keep up with all of the business that we have... Where the heck IS all of the money going???

...

Busy does not mean profitable..

I heard this from a friend who is a commuter. few years back, Continental's first flight of the day from IAH-DEN was a 757-200. The load factor on that flight was 99%, it was hard to find an open seat on that flight, pilots always fighting for the jump-seat..

UAL cancelled the flight because it was a money looser. I didn't think it was possible to loose money on a busy route with a full plane

 

[AftCG182]

not really a business major, eh?

No need for a business degree. Lots of new Owners. No new airframes. For the most part, a fixed cost structure offset by additional revenus. Everyone taking a reduction in compensation.

The only question left is the obvious one. Where the heck is all the money going?

 

[RoughAir]

AftCG

You are drunk from their Koolaid.

From their balance sheet avantair will never show a positive net worth until they go chap 11 and then eliminate their debt in the bankruptcy process.

 

[jonjuan]

No need for a business degree. Lots of new Owners. No new airframes. For the most part, a fixed cost structure offset by additional revenus. Everyone taking a reduction in compensation.

The only question left is the obvious one. Where the heck is all the money going?

Deadhead costs, increased MX, recovery costs, debt servicing, ROI $$$ back to the investors who bought aircraft? Just because you have lots of new owners, how many are leaving? Are these new owners being brougt in at dirt cheap rates? Are they given free hours?
It appears from the 10Ks that costs exceed revenues.