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