Flight Options Paycut

[hawkercpt]

I find it hard to believe your PM would tell you that. Hell, I find it hard to believe that the PM's would know anything more than we do. Do you honestly think that management would tell the PM's something like that when they have no need to know? Which fleet are you in - new or used? I know both PM's, and I would like to call to see if they repeat this supposed information.

I agree, who's your source? New or "pre-owned?"

 

[kilroy]

So whats up with the all white Flight Options airplanes are they trying to save money or trying to sell them

 

[Dep676]

Maybe his PM knows or doesn't. You can't dipute something is going on. I truly believe there is going to be a big annoucement after the first of the year.

 

[waka]

So whats up with the all white Flight Options airplanes are they trying to save money or trying to sell them

The white paint has nothing to do with any unsubstantiated of the planes being sold. There are issues with the 3m decals that were used for the trim and the FAA, however. This is what I was told by a several coworkers.

 

[pnjohn75]

How about this one......Heard from a few sources, none worth noting though....Ricci, who is at Swift I believe, is supposed to have a meeting at CGF early in 2005. I heard in one of the hangers, to announce that he is taking over Flight Options, and combining Swift and Flight Options operations?

Absolutely no way to verify this....But I know the total pilot list is down to close to 935, from 990-ish in February of 2004. They are short in the OCC as well I have been told. Just to list a few changes that have taken place in 2004, please add if I miss some. (some good, most bad, some indifferent)

1. Per diem pay cut. IRS tax code give me a break, they just needed an excuse. If true the IRS will still penalize them for past practices. Why not give us the 600-1000 dollars in lost per diem in another fashion, PAY RAISES!
2. Training contract for any new type rating (2 years)
3. New large city multiple domicile ie. NYC= EWR/LGA/JFK whatever is cheaper
4. Slide to parity, Citation X SIC pay cut, various issues with this entire system.
5. Reorganization of the OCC
6. 10 bid openings approximately for the entire year!
7. Nahill resigns
8. We hire multiple prior USAir managers

One thing remains the same, we as a pilot group are weak, and we continue to sacrifice the most.....there is no end in sight. I feel that Flight Options has started a journey down a slippery slope, hopefully I'm wrong, especially for the career fractional pilots out there.

 

[jetwash]

Just to add a few more interesting things. It seems that a large number of former Flight Options/Corporate wings managers and key operations people have all been moving to Phoenix in the last year or so. There must be a reason because who would want to move from Cleveland now during the lovely grey and cold season. I even heard that Joe Salata (Our current Chief Pilot)is buying a house there and is not wanting to hire any pilots or give any info to the training department when they can start reserving Sim time at Simuflight for next year which he has been doing for the last few years.

I did hear that Ken is on the Swift board of directors, I don't know how true that is and that his no compete claus is over in February 2005.
There is also a rumor that Swift is selling off assets to raise a large amount of cash. So there might just be something in the works.

I am not saying that anything is going to happen but all the little signs are there that the spring of 2005 is going to bring big changes to Options. I just hope its not the pilots that will be left with the short end of the stick. (or atleast not be beaten with a stick)

 

[luvu]

about SWIFT Transportation, and MOYES

These guys are headed for serious trouble. I am shocked that Ricci would have anything to do with individuals accused of outright fraud!!!
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BALA CYNWYD, Pa., Nov. 9 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Arizona on behalf of all securities purchasers of Swift Transportation Co., Inc. ("Swift" or the "Company") from October 16, 2003 through October 1, 2004, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].

The complaint charges Swift, Gary R. Enzor, Patrick J. Farley, Jerry C. Moyes, and William F. Riley III with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the conditional safety rating given to the Company by the FMSCA was not an error, but rather a true representation of Swift's performance; (2) that making the internal changes necessary to improve the rating was fiscally prohibitive; (3) that the Company had to absorb the cost of the new Department of Transportation regulations requiring that drivers be paid for loading time and time waiting to load; (4) that as a consequence of the foregoing, the Company was losing its competitive position and revenue, however, in order to maintain the appearance of financial well-being, for the benefit of defendant Moyes' personal finances, the Company systematically under-depreciating its capital assets thereby artificially inflating its revenues; (5) that as a result of this, the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (6) the Company lacked adequate internal controls; and (7) the Company's financial results were materially inflated at all relevant times.

On September 15, 2004, Swift announced that it had adopted a new repurchase program, under which it may acquire up to $150 million of its common stock over the next several months. Additionally, Swift also announced that it expects Q3 earnings to range between 26 cents and 31 cents per share. This news shocked the market. Shares of Swift fell $2.18 per share, or 14.9 percent, on September 15, 2004, to close at $16.09 per share. On October 1, 2004, Swift announced that the previously disclosed informal inquiry by the SEC into certain stock trades by the company and insiders, including defendant Moyes, had become a formal investigation. The investigation centers around certain stock trades made by defendant Moyes as well as selected the Company repurchases. On this news, shares of Swift tumbled an additional $.95 per share, or 5.4 percent, on October 4, 2004, to close at $16.54 per share.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.

 

[FracCapt]

Just to add a few more interesting things. It seems that a large number of former Flight Options/Corporate wings managers and key operations people have all been moving to Phoenix in the last year or so.

Ya know...it's pretty easy to figure out who has purchased homes in a given county...it's public records and on the web! Kenn purchased a home in Phoenix back in March. Of all the other management names I ran, none came up with a hit. The most recent sale I saw on one of the searches was about a week ago...so there may be 1-2 weeks between the time of sale and the time it hits the database.

 

[luvu]

Swift, Moyes, Swift Aviation

WASHINGTON, Oct. 13 /PRNewswire/ -- Today, in a letter sent to independent members of Swift Transportation's Board of Directors the Teamsters called for the Board to take immediate action and appoint an independent Chairman of the Board who is not also the Executive Officer of the Company. The company's current Chief Executive Officer Jerry Moyes also serves as Chairman of the Board. The Teamsters' letter recognizes independent directors' recent statement acknowledging the need to stop related party transactions, but maintains that the best way to protect shareholders from abuses of conflict of interest is to separate the Chair and CEO positions.

Jerry Moyes is currently under investigation by the Securities & Exchange Commission (SEC) for a questionable stock-buying spree. Just days before Swift issued a dramatically positive press release announcing better than expected second quarter earnings guidance and outlined a $40 million stock buy-back -- sending Swift's stock price up 20% -- Moyes purchased a large block of stock, saving him an estimated $600,000. Moyes also failed to report to the SEC the purchase of an additional 7,000 shares of stock on May 19, 2004 at $15.14 per share. In June 2004 the stock was trading above $18.00.

"This past week, Swift Independent Board Directors finally took notice of the issues concerning Swift shareholders, by recognizing Jerry Moyes' and Board Director Earl Scudder's related party transactions," said C. Thomas Keegel, International Brotherhood of Teamsters General Secretary-Treasurer. "Now is the time to implement corporate governance reforms that will protect shareholders against conflicts of interest including the separation of the Chair and CEO positions at the company."

Moyes is not only the Chair & CEO of Swift Transportation, but has numerous conflicts of interests due to his many interlocking business relationships. Moyes serves as Chair of Central Freight Lines, and owns Central Refrigerated Service, Inc, Swift Aviation, Interstate Equipment Lines, Inc, Southwest Premier Properties LLC -- all companies that do business with Swift. A report issued last year by the Teamsters, and available at http://www.teamster.org/osi/afragileweb.pdf, delineated the web of conflicts at Swift.

 

[FracCapt]

These guys are headed for serious trouble. I am shocked that Ricci would have anything to do with individuals accused of outright fraud!!!

Yea...they may as well close the doors right now and all move to Afghanistan and go into hiding....no lawsuit has EVER been filed against Raytheon...