Flexjet Management Promotes Calling Pilots while in Rest

[gutshotdraw]

We would all like to think you're right, but I believe growth in the industry has shown otherwise since the downturn. Charter has taken a larger share of the industry. Even in the fracs, cards have been a growing part of the business, and that's just block charter. Unfortunately, I think it comes down to uninformed consumers. We know the difference between the big fracs and the typical 135, but we're on the inside. The average customer thinks that the FAA sets standards high enough to keep them safe. So if an operator has no recent accidents or violations, they must be safe. We all know that's a joke. But everyone claims to uphold the highest standards of safety, and there's little information that's publicly available. Even the rating agencies are mostly BS.

Pilots talk to other pilots and see the crews on the road, we get to know reputations in the industry, so we get a pretty good idea of who the $hitbag operators are and the pressure put on their crews to get'er done. Rivalries aside, all the large fracs are light years ahead of that level. It costs a lot less to staff at 2.1 pilots per airplane, give your crews 5 days off a month, and have them live on a beeper. Unfortunatley, I don't think most customers can tell the difference. And when you're looking at two roughly equal products, price becomes the big differentiator. Like it or not, that's our competition these days. Macy's might like to think they don't compete with Walmart, but the market tells them differently.

Hard to argue. Nice post.

 

[GlorifiedCabbie]

BN
"Just" block charter? I agree there hasn't been much growth since the downturn, but we have to remember to treat all of our customers well or they will leave.

 

[GlorifiedCabbie]

--------------------------------------------------------------------------------
In AIN Alerts today
Also Noted...
Revenue at Berkshire Hathaway’s service business, which includes NetJets and FlightSafety International, rose by $507 million, to $4.9 billion, during the first half of the year, while profits climbed by $72 million, to $605 million. NetJets accounted for nearly a third of this revenue increase, thanks to higher flight services revenue attributable to more flight hours, as well as better rates and product mix changes.

 

[BlueNose]

BN
"Just" block charter? I agree there hasn't been much growth since the downturn, but we have to remember to treat all of our customers well or they will leave.

I was only trying to point out that even in the fracs, charter has been a growing piece of the business. I didn't mean that card or charter trips are lesser customers. I agree that everyone in the back of the airplane should be treated like an owner. Even if it's hard to differentiate the frac product to the market using safety, it can still be done by level of service. Whether the market will pay for that remains to be seen.