From Manfred on the CNN site
Manfred May 29th, 2009 4:05 pm ET
At present, GIA has a program in which First Officers pay for their training in the Beech 1900 and fly for a block of 250 hrs as a line qualified First Officer. This program undermines the airline pilot profession in the view of many, particularly union members. To gain experience, pilots with low experience often pay over $32,000.00 to ride in the right seat of turboprops in duty positions normally occupied by a paid professional; albeit one that receives very little pay. This was also the case with captains early on with candidates paying $15,000 up front starting in 1992 with Avtar International doing the recruiting and advertising. However, these pilots received compensation following successful completion of Initial Operating Experience (IOE). The Captain’s Program was initially for the CE-402B/C but later expanded to the BE-1900 and SD3-60 until the latter were repossessed. So called “Pay to work” programs started with Avtar International selling 100 hours of multi-engine time in CE-402s for $8,750 with the assurance from the Miami Flight Standard District Office that this time was loggable. Avtar International was started by Vic Johnson of New Jersey and Bill Veiga, a former Cessna Aircraft test pilot. Initially, most intern pilots were sent to GIA’s chief competitor, Airways International as Gulfstream possessed only one aircraft: N200UV, a Cessna 402B. As Gulfstream continued to grow, they took the lion’s share of Avtar pilots and the price was restructured to $8900 for 150 hours of flight time. Soon, a turbo prop program was added: $15,000 for 100 hours on a BE-C99; later increased to 200 hours and then 300 hours. Simultaneously, Avtar offered a heavy turbo prop program with Airways on their SD3-330 for $16,000. This program ended with the demise of Airways International and was only briefly restored with Gulfstream’s own SD3-360s; a program that sold for $39,500 for 500 hours. The status of the CE402 F/Os was always the most ambiguous. Non-functioning autopilots made SICs a requirement but they were left behind (bumped) if passenger loads or weight & balance considerations dictated [1]. From their outstation locations they were expected to jumpseat home on GIA or other carriers, if necessary, because no return tickets were provided. For these reasons, and the fact that the company was founded and run by strike breakers from the very acrimonious Eastern Air Lines Strike of the late eighties, a few professional pilots refuse to fly on GIA as a passenger though they frequently jumpseat [2]. After complaints of jumpseating abuse by the interning First Officers from pilots at Major Carriers, Gulfstream, to its credit, made this a punishable activity for pilots not considered employed. Interning pilots were issued unique ID badges stamped in bold red “Jumpseat NA.” Equally controversial, was the practice of using foreign nationals on student or tourist visas (including citizens of the People’s Republic of China). These crewmembers were also recruited by Avtar Int’l which operated until 1997 when Gulfstream took over the practice with a sister company: The Gulfstream Training Academy. Post 9/11, many of these programs have been cleaned up and no international First Officers have been deported or detained by U.S. Customs since. Pilots who have interned with GIA have been hired by many other airlines, including all Major Airlines. Most have not brought any negatives to their new employers, although they have been among the crews of prominent crashes[3]. See also Pinnacle Airlines Flight 3701, Comair Flight 5191 and Colgan Air Flight 3407 . Gulfstream itself has never had a fatal accident.
In 2009 U.S. Congress investigators and the Federal Aviation Administration accused Gulfstream of falsifying flight time records, making crews fly longer hours than allowed by law [4], and providing below standard aircraft maintenance. Capt. Thomas L. Cooper forbade the photocopying of aircraft logbooks done by some pilots to corroborate the times they logged in their personal logbooks.
Historically, pilots were paid “segment hours.” So called, “segment hours” were based on ideal enroute times as opposed to block times and have been suspected of being part of an inducement for under reporting. Logging of true block hours (actual enroute times plus taxi time) could be detrimental to pilot pay. Whereas, most carriers pay pilots based on block time, since it is what FAA flight time limits are based on, GIA did not. An incentive existed to under report block time by keeping it as close to segment time as possible thereby permitting pilots to get paid for the most segment hours in a week, a month, and a year. Delays that increased block times not only reduced the crewmember’s utility to GIA but also limited his pay. This under reporting was most relevant to captains. First Officers were not remunerated until 1995 when a majority of the turboprop co-pilots on the virtual seniority list with U.S. Passports or Green Cards began to be paid $8 per segment hour. Foreign copilots, who were not compensated and merely wished to return to their home countries with as much multi engine turbine time in as few months as possible, had little incentive to abide by FAA flight time limits.
In July 1997, the airline’s entire fleet of Shorts 360-300s were repossessed by the leasing company due, in part, to maintenance irregularities that included the welding of hydraulic lines according to USA Today. Gulfstream faces a civil penalty of $1.3 million U.S. dollars according to USA Today. Gulfstream’s affiliated Gulstream Flight Academy the successor to Avtar went into scrutiny since Marvin Renslow, the pilot of Colgan Air Flight 3407, trained there.[3] This is ironic because despite its status as a mere stepping stone in the minds of most pilot employees, the company was able to keep whistle blowing in check through selective disclosure of training documents mandated by the Pilot Record Improvement Act of 1996 (PRIA). PRIA came about in reaction to the crash of an American Eagle Jetstream piloted by a captain with a history of difficulties at prior airlines. It has been criticized because much of the information is subjective and the pilot waives his right to sue his former and current employers when he seeks employment with other FAR part 121 operators. Furthermore, a prospective employer is merely required to request and receive the PRIA material prior to hiring a pilot. No consideration of the material is required and the law does not apply if the applicant’s former employer is the military or a foreign operator.