Reality,
It wouldn't make sense if they saw the possibility of a return to a more normal economy sometime in 2009. The costs of training etc..
What did it cost Flex for 25 Challenger 300 type ratings? In the past they went after people who did not fullfill the training contract.
Training contracts should go both ways ... there should be pay to a person let go without cause during he contract period.
Anyway ... bean counters must see a long term problem.
The "two way" of the training contract seems to be the pilots can take their ball and play elsewhere now. When XOJET gets their 300's, they will certainly be interested. So too are a number of operators in the Middle East.
With salary, benefits, recurrent training, etc it costs Flexjet abour $100,000 per year for an FO. They just knocked off expenses of $2.5 million, less severence (which in 2002 was 2-4 WEEKS, not months). If the cutback lasts more than 12 months, they save more than that. Experience says that 60% of these pilots will return, meaning they have only lost ten type ratings, or about $250,000.
The numbers work for them.