Vinny
Well-known member
- Joined
- Jan 31, 2011
- Posts
- 51
Fear Uncertainty and Doubt...
March 31, 2016
Dear Pilots,
During the Company update, we were all given the opportunity to better understand how the brands and business have changed and matured over the past few years. As Kenn stated, our industry is in the process of shifting from an emphasis of guaranteed aircraft availability to a more price-sensitive, on-demand model. We have always excelled at adapting to new market trends, and we will continue to do so with innovative programs like the Gulfstream fleet, international expansion and Red Label. And while these initiatives bring unique opportunities for growth in a highly competitive market, they also bring certain challenges, which we will face as one unified Company.
One of this Company's points of pride is that we have always thoughtfully considered how each decision will impact the lives of our employees, while balancing what is necessary to continually adapt to market conditions and move the business forward.
As you know, fleet adjustments are a common practice in our industry. They are a necessary and beneficial way for an operator to update their fleet based on industry shifts, customer demand, aircraft age/productivity and a range of other factors. In our case, fleet adjustments will help grow programs like Red Label, which includes some of our newest aircraft: the Legacy 450/500, Challenger 350, Global Express and Gulfstream G450 but also will see the retirement of the Lear40XR and the Challenger 604/605 fleets.
By recognizing the shift of some customer preferences to the on-demand business model, we are strategically phasing certain aircraft types ? specifically the Nextant 400XT and the Citation X, - out of the fractional business model into on-demand flying. In doing so we will significantly strengthen our competitive position in the marketplace.
This shift in our fleet deployment and the transition to the on Demand model will have a proportional impact on the size of the pilot group. The On Demand model, unlike the Fractional model, does not provide the customer with Guaranteed availability and therefore requires less pilots per aircraft. The actual number of pilots needed will be determined after we have determined the success of the program. But, suffice to say, it will be less pilots than has been required for Fractional operations. While both brands have historically handled overstaffing through a furlough, we hope to use voluntary measures to recalibrate the number of pilots on staff.
We will begin by allowing interested pilots the opportunity to apply for a Voluntary Separation Package. This program offers pilots who may be considering a change, whether for retirement or other reasons, the chance to receive a severance package to assist in their transition. It is important to note that this is not a furlough; participation is completely voluntary with no rights to recall. While the details will be outlined in a special separation agreement, the highlights include the following:
All Active Pilots
Furthermore, based on the circumstances surrounding the fleet realignment and recent furlough recall, we are offering additional compensation to pilots who meet certain criteria. If interested, and you fall into either category below, you may be eligible for an additional incentivized separation packet:
While this offer is initially being made available to all Flexjet pilots, we have presented a Letter of Agreement to the Union requesting that Flight Options pilots also have the ability to participate in this voluntary program. To apply for a Voluntary Separation Package, submit a written request to [email protected] no later than April 16, 2016.
For operational reasons, availability may be limited. Pilots who apply for and are granted a Package will be released on a timeline that ensures a smooth transition.
If you have any questions at all, please feel free to reach out to your manager or myself.
Best wishes,
Jason Weiss
Executive Vice President of Operations
March 31, 2016
Dear Pilots,
During the Company update, we were all given the opportunity to better understand how the brands and business have changed and matured over the past few years. As Kenn stated, our industry is in the process of shifting from an emphasis of guaranteed aircraft availability to a more price-sensitive, on-demand model. We have always excelled at adapting to new market trends, and we will continue to do so with innovative programs like the Gulfstream fleet, international expansion and Red Label. And while these initiatives bring unique opportunities for growth in a highly competitive market, they also bring certain challenges, which we will face as one unified Company.
One of this Company's points of pride is that we have always thoughtfully considered how each decision will impact the lives of our employees, while balancing what is necessary to continually adapt to market conditions and move the business forward.
As you know, fleet adjustments are a common practice in our industry. They are a necessary and beneficial way for an operator to update their fleet based on industry shifts, customer demand, aircraft age/productivity and a range of other factors. In our case, fleet adjustments will help grow programs like Red Label, which includes some of our newest aircraft: the Legacy 450/500, Challenger 350, Global Express and Gulfstream G450 but also will see the retirement of the Lear40XR and the Challenger 604/605 fleets.
By recognizing the shift of some customer preferences to the on-demand business model, we are strategically phasing certain aircraft types ? specifically the Nextant 400XT and the Citation X, - out of the fractional business model into on-demand flying. In doing so we will significantly strengthen our competitive position in the marketplace.
This shift in our fleet deployment and the transition to the on Demand model will have a proportional impact on the size of the pilot group. The On Demand model, unlike the Fractional model, does not provide the customer with Guaranteed availability and therefore requires less pilots per aircraft. The actual number of pilots needed will be determined after we have determined the success of the program. But, suffice to say, it will be less pilots than has been required for Fractional operations. While both brands have historically handled overstaffing through a furlough, we hope to use voluntary measures to recalibrate the number of pilots on staff.
We will begin by allowing interested pilots the opportunity to apply for a Voluntary Separation Package. This program offers pilots who may be considering a change, whether for retirement or other reasons, the chance to receive a severance package to assist in their transition. It is important to note that this is not a furlough; participation is completely voluntary with no rights to recall. While the details will be outlined in a special separation agreement, the highlights include the following:
All Active Pilots
- Six months continued salary (payable as salary continuation)
- Six months continued Health and Dental Insurance at the employee/employer rate
- Payout of any remaining PTO balance
- Individually timed release with 21-day advance notice, to begin within the next 12 months
Furthermore, based on the circumstances surrounding the fleet realignment and recent furlough recall, we are offering additional compensation to pilots who meet certain criteria. If interested, and you fall into either category below, you may be eligible for an additional incentivized separation packet:
- Learjet 40XR, Challenger 604/605, Nextant 400XT and Citation X pilots will receive an additional three months of continued salary and benefits above the baseline Package, for a total of 9 months.
- Pilots recalled from furlough within the last two years will receive an additional six months of salary and benefits above the baseline Package, for a total of 12 months.
While this offer is initially being made available to all Flexjet pilots, we have presented a Letter of Agreement to the Union requesting that Flight Options pilots also have the ability to participate in this voluntary program. To apply for a Voluntary Separation Package, submit a written request to [email protected] no later than April 16, 2016.
For operational reasons, availability may be limited. Pilots who apply for and are granted a Package will be released on a timeline that ensures a smooth transition.
If you have any questions at all, please feel free to reach out to your manager or myself.
Best wishes,
Jason Weiss
Executive Vice President of Operations
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