FLOPs Furloughing????

[DO-82 driver]

Heard this rumor yesterday on thge raod from a FLOPs crew in APF.

They said management has released or will be releasing a letter addressing this......They need to shave about 150 to 200 pilots as well as some office and flight ops people....

Any truth to this?

 

[WrknStff]

Doubt it. At the rate people are bailing on the company already, they don't need to furlough. Especially when they are chartering all sorts of flights already because of green aircraft sitting with no crews.

 

[Apeman]

and the latest.............




-----Original Message-----
From: Corporate_Communications
To: All_PIC; All_SIC; All Flight Attendants; All Employees
Sent: Tue Apr 18 14:49:23 2006
Subject: Sharing Our Progress - Special Edition

Dear Fellow Team Member,



In this special edition of Sharing Our Progress, I would like to report that we are mostly on track with our three year Go-Forward business plan and detail the next phase in our pursuit of long term viability. Clearly - with record dispatch availability, occupied rate, improved on-time performance and record trade/acquisition activity - the Go-Forward plan is working. What we are changing is the pace we are retiring aircraft and as a result, will be aligning an infrastructure to match. As we have witnessed, the four Go-Forward aircraft types have a much higher dispatch availability rate than the Retiring Fleet. While transitions from the Retiring Fleet in to the Go-Forward Fleet are at plan, exit requests from the Retiring Fleet are exceeding projections. With a higher dispatch availability rate, Go-Forward sales at projections and a smaller Retiring Fleet than planned, our overall fleet plan has been accelerated.



By January 1, 2007, the Flight Options fleet will be made up of approximately 150 aircraft, comprised of primarily six aircraft types, the Citation Jet, Hawker 400XP, Citation V, Hawker 800XP, Citation X and Legacy. We may have a single aircraft remaining in the Gulfstream IV, Challenger, Falcon 50, Citation III and King Air fleets but all other aircraft of these types will be retired from the system by year end and we will have completed 85% of the Fleet Modernization plan. This year we will sell 50 Retiring Fleet aircraft and bring in 18 new, Go-Forward aircraft. As a result of the accelerated Fleet Modernization initiative we need to adjust the size of our infrastructure to fit the reduced size of our fleet.



While the majority of the departments will achieve the appropriate year end staffing levels through natural attrition, the maintenance system and Flight Operations will require additional adjustments.



Regarding Flight Operations: There will be a seniority based layoff for flight attendants and a portion of Retiring Fleet pilots will be placed on paid absence; first using any vacation surplus at their current pay rate and then transitioning to their new, Go-Forward aircraft pay rate for the remainder of their paid absence until called back when a Go-Forward aircraft seat and training slot become available. This process will be based on a Retiring Fleet pilot bid. The paid absence plan is in lieu of a pilot layoff. At this time, we wish to achieve required pilot staffing levels through this alternative plus attrition. If we find that we are unable to achieve the required staffing levels through these means we will be left with no viable alternatives than a layoff. Detailed information regarding these announcements, including the bidding process, will be communicated to the affected crewmembers within the next few days.



Related to the year end fleet requirements, Flight Options will also be reorienting its maintenance system due to changing needs of the business. While there will be no significant reductions in the overall size of the system, reorientation will occur which will shift a limited number of positions from stations in Cleveland and Sacramento to station locations in Dallas and West Palm Beach. The Cleveland and Sacramento stations will remain open, but will be reduced in size and scope as the Dallas and West Palm Beach stations are expanded to better meet the needs of the business. Other stations will not be affected at this time. A performance based selection process will determine which team members are affected by these station reductions and additional details will be communicated to those affected.



Please direct questions regarding these announcements to your manager or supervisor. I will provide additional details at the Q2 Company Meeting tomorrow at headquarters and there will also be individual department meetings later in the week.



I realize that these announcements carry a substantial and personal impact on many in our Flight Options family. The steps highlighted to scale our business to the projected ownership size were selected as the most balanced for all team members and still meet the needs of the business. While very difficult, these decisions are required to secure the long term future of the Company.



Please remain focused on our goals and we will achieve a collective success.





Fly safe,



Michael

 

[DO-82 driver]

Well, I guess there was some truth to it......

 

[Voice Of Reason]

Games Beginning

Flops is in no financial trouble...this is just one of MANY MANY baby games they will play during their crybaby tantrum because the union got voted in. They threaten the livelihoods of the bottom couple hundred on the seniority list, and in their eyes, that's a couple hundred dissenters out there (they are assuming against the union), to cause turmoil during the time they "wait to hear from voluntary furloughes."

They will do anything in their power to turn pilot against pilot, because they know they have lost any hope of their own control of the group. I am guessing that the bottom couple hundred will not just be from the bottom of the seniority list, but those NOT in the "New improved fleet".

They are getting rid of the old planes types anyway, so why not create some turmoil in the process? The company is rolling in the dough or their law team from Ford & Harrison would NOT be sticking around, believe me. You can bet THEY'VE pulled the company financials before wasting their time with them.

This is just all part of MANY nightmares they will attempt to throw our way to show us all what bad little boys and girls get when they overwhelmingly vote in a union. MS has likely got some BIG bonuses dangling in front of him from Mother RAYTHEON to cut costs to maximize THEIR profits. Too bad the Owners will notice the difference

 

[GVFlyer]

Raytheon 10K

My dog's not in this fight, but management could be on the up and up here. This is from Raytheon's 10K, their annual report to the Securities and Exchange Commission. If you lie to the SEC you get to go to the Federal Honor Farm at Eglin AFB or Maxwell AFB and pick up trash around the golf course for a few years.


Other--The Other segment, which is comprised of Flight Options LLC (FO), Raytheon Airline Aviation Services LLC (RAAS), and Raytheon Professional Services LLC (RPS) had 2005 sales of $781 million versus $675 million in 2004 and $573 million in 2003. FO offers services in the aircraft fractional ownership industry. RAAS manages the long-term wind-down of the Company's commuter aircraft business. RPS works with customers to design and execute learning solutions. The increase in sales in 2004 was primarily due to the consolidation of FO in June 2003. The Other segment had an operating loss of $117 million in 2005 versus $40 million in 2004 and $34 million in 2003. The increase in operating loss in 2005 was primarily due to the operating results of FO described below, and to a lesser extent RAAS. The higher losses at RAAS were due to higher aircraft maintenance expense in the period.





The Other segment's results in 2005 were principally comprised of the operations of FO. Although FO has had a history of operating losses, the higher losses in 2005 are due to increased supplemental lift (higher third party chartering expense) and maintenance expense related to the operational impacts primarily from older aircraft in the fleet, and the timing of peak customer demand. The older aircraft in the fleet are being retired and replaced by newer aircraft which is expected to be substantially complete by 2008. At the same time, FO is also taking action to reduce the number of different types of aircraft in its fleet from twelve to four and in connection with this action reduce current operating costs. Although the Company believes that these actions will result in improved financial results, there can be no assurance that these actions will have the expected effect. In addition, in 2005, the Company recorded a $22 million pretax, $19 million after-tax goodwill impairment charge related to FO. The impairment was a result of changes in valuation assumptions, the effect of projecting recent performance variances on future periods, and the increase in goodwill as a result of the transaction described below. The Company also recorded a $7 millioncharge in 2005 related to a third party settlement of a lawsuit against FO and its minority shareholders.





In December 2005, the Company settled all disputes with the FO minority shareholders and acquired the minority shares for $28 million in cash and assumed liabilities and now owns 100% of FO. The Company's net investment in FO was approximately $223 million at December 31, 2005. If losses at FO were to continue over the longer-term or if FO's financial objectives were no longer expected to be achieved, the Company's investment in FO could become further impaired and additional charges may be required. FO must demonstrate substantial operating results improvement to achieve its financial objectives including achieving its sales forecasts, reducing maintenance expense, and improving dispatch availability over the 2005 average.




GV

 

[joeyfly55]

Sorry guys all the B.S. in the letter from B.T. is too long, here is part of it...what a joke!!
THE PRESENT
Industry changes and our Company's lack of profit are not your fault. On the contrary, your proactive efforts have helped us survive in a declining segment of the marketplace. You have not caused the problem, but you can be part of the solution.
Let me emphatically state that the initiatives in this letter have absolutely nothing to do with the recent union election. The plans we made last December and in early 2006 were based on hours under management at that time. The dynamics of our owner redemptions and accelerated retiring fleet have changed. This requires a change in our plans.
Management and your union representatives must work together to develop a responsible labor agreement. Since your union was certified, I've met or talked with each member of the Flight Options Leadership Council. While I imagine we'll have differences of opinion about how we get there from time-to-time, I hope we share a common vision of doing what it takes to assure our mutual success. It's in all of our best interests to develop a business plan that delivers Flight Options to the sustainability that has been so elusive to the entire industry. Repairing broken trust and rebuilding mutual respect are steps on our path to success.
THE FUTURE
By the end of 2006, Flight Options expects to be operating about 150 aircraft. A reduction in fleet size was a planned and necessary aspect of the Go-Forward plan, but it's occurring faster than we had initially forecast. An unanticipated number of owners are exiting their shares or getting out of the Retiring Fleets. Owners in these older aircraft require much larger investments to transition to a newer aircraft and many are simply redeeming their shares without buying into the Go-Forward Fleets. While some of this was expected, we are seeing this take place at an accelerated rate, which is speeding up the next phase of our Go-Forward plan.
This swift reduction in fleet size must be accompanied by proportionate scaling in all other areas of the business, including maintenance, support functions, and flight operations. Effective May 1, 2006, a number of our flight attendants will be laid off by seniority; that is, the junior flight attendant will be laid off first, the next most junior will be laid off second, and so on. As the number of Gulfstream and Challenger aircraft has declined, so has the need for large cabin flight attendants. Additional information regarding this process will be given to those affected. Please log on to the Flight Options Aircrew Site (http://pilots.flightoptions.com). See FLIGHT ATTENDANTS on the website.
As the total number of aircraft has decreased, a fleet-wide surplus of pilots has developed. Some programs are adequately staffed, others, especially the retiring fleets, have excess crews. For example, we currently have one GIV with ten assigned pilots. See RETIRING FLEET TRANSITIONS on the website. FlexJets laid off pilots in the aftermath of 9/11. Since 2001, no major fractional company has laid off crewmembers due to a reduction in fleet size. We are trying a number of initiatives to avoid laying off pilots. If layoffs become necessary, see PILOT LAYOFFS on the website for the policy we will follow.
<U>In order to avoid involuntary terminations or layoffs, we are offering options to our pilots. Please log on to the Flight Options Aircrew Site (http://pilots.flightoptions.com) for added information about each initiative.

1. We're going to open three times the number of vacation days for bid as we've recently awarded. There will be two bids: one for May 2006, and one for June 1, 2006, through January 31, 2007. Vacation bids will be awarded by seniority and seat; that is a similar number of PIC and SIC vacation days for each aircraft type will be awarded. We will attempt to offer at least the number of accrued vacation days for bid. Each crewmember should bid every possible vacation period available. If a vacancy for a vacation period is not filled, the junior crewmember will be assigned to fill the period. See VACATIONS on the website.
2. We're encouraging pilots to take voluntary leaves of absence. See UNPAID LEAVE OF ABSENCE on the website.

The most important goals of the current flight operations initiatives are to preserve as many crewmembers' jobs as possible, to perform as efficiently as possible, and to control costs where possible. The following actions are to help satisfy those goals:

• Training and attrition have adversely affected the available pilot staffing of several aircraft programs. We'll align the 8/7 duty period schedules in May 2006. <We no longer need the additional duties provided by our Senior Flight Officers (SFO's). They have performed past assignments for previous management teams. While we appreciate their historic contributions, effective May 1, 2006, we will remove the SFO designation and compensation. Effective May 1, 2006, a crewmember will be considered in rest 30 minutes after the last block in time of the flight day unless directed otherwise by dispatch. See END OF THE DAY DUTY OFF TIME on the website. Although the policy changed last year, some crewmembers have continued to receive per diem pay while at home. Effective May 1, 2006, crewmembers will receive per diem anytime while away from their domicile. For example, a crewmember who travels on Day 1, works eight days, and returns home on Day 8 will continue to receive eight days of per diem. A crewmember who has no duty assignment on Days 1 and 2, travels on Day 3, works six days, and returns home on Day 8 will receive six days of per diem.
• Many crewmembers have shared stories of wasted crew meals. The goal of the revised policy is to address this waste. There is no change in our current per diem rate. See CREW MEALS on the website.
• Policy Title:Crew MealsDate:April 18, 2006
  
  Policy: Guidelines:
  • No breakfast provided if a crewmember has more than 12 hours of scheduled rest and duty-on starts after 0700.
  • If a crewmember has 3 consecutive hours without flight duty between 1000-1500, no crew meal lunch will be provided. If a crewmember has 3 consecutive hours without flight duty between 1600-2100, no crew meal dinner will be provided.
  • No dinner should be ordered if the crew duties-off prior to 1900.

SUMMARY</U>
We are taking these unusual measures in an attempt to show you, our owners, and other team members we value you and we want you to stay with Flight Options. We're hopeful that crewmembers will take enough vacation to ease the temporary surplus of pilots. If too few bid vacation, take leaves of absence, or resign, we'll have to layoff. If we layoff, it will be by seniority; that is, the junior pilot will be laid off first, the next most junior will be laid off second, and so on.
Although we've tried to minimize the turmoil, I realize the impact these announcements carry. I am saddened that these changes must affect some of you and your families. These difficult changes are necessary to help us adjust to the changing marketplace. It is our fervent desire to position Flight Options as the premier provider of service in our industry. Alongside that goal is to secure our mutual futures.
Best regards,
Bob Tyler
Vice President, Flight Operations

 

[DO-82 driver]

Voice of Reason......I kind of thought this was a Union busting tactic on FLOP's management behalf.....I figured you'd chime in sooner of later.....

Now....where's FamilyGuy ( far from the truth) and NJADispatcher.....(which he's not)?

 

[RNObased]

I have money that says not a single pilot hits the street.... Total company crap... Who is going to fly the jets???

 

[netjetwife]

Wasn't there also a rumor of laying off pilots during the NJ contract battle? The truth is there. How busy are the Options pilots? How many flights a day? The union-busting firm is still advising management? I guess we can see what they get for their money. No one should be surprised then. They had to come up with some campaign to justify their bill. They didn't stop the pilots from joining 1108 so they're concentrating on keeping them from getting a fair contract...so predictable. I'm sure we'll see every trick in the book before it's all over.

Aging aircraft and over-manned fleets aren't problems that suddenly appeared. They should have been dealing with those issues long ago. The timing sounds a bit too convenient (not to mention, suspicious) to me. Now is the time for Options pilots to listen to their leadership, not scare tactics.
Good Luck! Hang in there!
NJW

 

[ProFracPilot]

FlOps management is obviously positioning themselves for negotiations. It also appears union leadership was caught totally off guard by the changes announced yesterday. No one in a leadership position has yet answered the question as to how management can legally make these changes while maintaining the "status quo".

 

[gunfyter]

from what GVFlyer posted I would say they have enormous expenses associated with the Ricci "rent-a-wreck" fleet. Lot of those planes are non Raytheon products... so why do they want to operate them at high cost?

...and not a bad opportunity to bust the union either.

 

[ProFracPilot]

...and not a bad opportunity to bust the union either.

It certainly is. And the union is giving them every opportunity to do so.

I'm a bit surprised that FlOps union leadership either a) did not see these changes coming; or b) if they did, they were not adequately prepared nor have they adequately prepared the rank and file for what could happen post vote / pre contract. It appears that the company is not maintaining the status quo. If what the company is doing is illegal, there should be a cease and desist order filed by FlOps union legal counsel on Sheeringa's desk today. Further, there has been no contract questionaire distributed, no organizing committee assembled, etc. We're being told the response by the union is slow because it is an all volunteer group at this point. Did they not anticipate what would be required the day they won the vote? Confidence in the current union leadership is quickly waning.

 

[AceCrackshot]

ProFracPilot-

I'd grade your post as a 8.5 on the rhetoric meter.

The negotiations are going slowly. Granted. That is the company's doing, not the union. The company refuses to accept the existance of Weingarden rights, and will not grant reasonable accomidation for our negotiators.

No one is being furloughed at FLOPS in the immediate future. Essentially, Raytheon is pulling a huge account payable off the company by allowing surplus pilots to burn their accumlated vacation, then after that, being paid their salary until a training date in the Enduring Fleet (I despise the "Go Forward") is available.

This is simply a good deal for the pilots, and for the company.

Other things, like the 30 minute block in and crew meal policy are more problematic. However, if you are hungry, eat. If it takes you more than 30 minutes to clean and prep the aircraft overnight, notify dispatch, lock it up and walk away. Do it in the morning and take the delay and code. Additionally, our POI has said that we cannot be off duty without hotels.

As for your confidence. The bottom line is this: The union is currently the only organized group on the entire Raytheon property that has the future of the pilots in mind. PERIOD.

There is a strategy. Some significant things have been accomplished recently. Some are for public consumption, like the "expect duty on time" issue, and others are not.

We're starting from the ground up here.

 

[Ultra Grump]

...a portion of Retiring Fleet pilots will be placed on paid absence; first using any vacation surplus at their current pay rate and then transitioning to their new, Go-Forward aircraft pay rate for the remainder of their paid absence until called back when a Go-Forward aircraft seat and training slot become available...

Why wouldn't every pilot on the seniority list be scrambling for this deal? A leave of absence at full pay? Sign me up!

 

[ProFracPilot]

The negotiations are going slowly.

Call it rhetoric if you like. The fact is as long as the company is successful in using the unions own bylaws to their advantage, negotiations will not even begin.

 

[AceCrackshot]

Call it rhetoric if you like. The fact is as long as the company is successful in using the unions own bylaws to their advantage, negotiations will not even begin.

That is a mischaracterization of the facts. Negotiations are going slowly because of Raytheon's unprecedented tactics vis a vis our negotiators. It is not because of our bylaws, or anything of that nature.

I would suggest getting in touch with one of our negotiators if you don't take my word for it.

Moreover, we are operating under the RLA and other pertinent labor law, which takes a dim view of disregarding one's own bylaws.

 

[gunfyter]

Call it rhetoric if you like. The fact is as long as the company is successful in using the unions own bylaws to their advantage, negotiations will not even begin.

What you have to do is PROMOTE UNITY in response. Its an uphill battle... they will not just roll over.Why direct your displeasure with the pace of negotiation on the union leadership?How far would you be along without the union?

 

[johnsonrod]

Sorry to hear about potential furloughs. Well, on the plus side, you can leave that place and go to NJA, CS and Flexjet which are expanding instead of languishing at the bottom of the seniority list at Flight Options... Even Avantair is looking like a better option.

 

[AceCrackshot]

you can leave that place and go to NJA, CS and Flexjet

I'm actually kind of surprised that NJA hasn't offered some kind of deal to FLOPS folks. We're all typed and rated in an aircraft they fly, all are CANPASS and TSA cleared, familiar with fractional flying, etc. If NJA offered home basing to the bottom half of the FLOPS seniority list, it would be a race for the exits. Honestly, it would probably shut FLOPS down because there would be no one left to fly the airplanes. The best case scenario would be NJA getting that pool of talent at pennies on the dollar, and FLOPS forced to spend 40k plus to replace each pilot. It would probably put them out of business on training and charter costs alone.

I imagine there is some gentleman's agreement in place to forestall wholesale pilot poaching.