Hold on tight

[gunfyter]

So I am not sure I missed it somewhere ... but is it ever explained how this purchase helps the operation if the two companies run separately?

IOWs what is the purpose of this purchase if the operations are not merged?

 

[gret]

Good question...likely savings would occur with mgmt, accounting, HR, sales, advertising, purchasing synergies, mtx coordination, maybe scheduling and flight planning, etc.

Not sure what can be saved in the dispatch and crewing areas as they would have to staff up and dispatch based on two different certificates.

 

[jetwash]

Interesting Canadian perspective.

http://www.montrealgazette.com/busi...lexjet+private+equity+firm/8872937/story.html

 

[gunfyter]

That was my thinking

And from a management standpoint, they pretty well have to say that everything is fine and nothing will change. But at some point, I suspect they’ll want to take advantage of the strengths that Flexjet offers (in relation to the more downscale Flight Options) and merge the two companies. Because the transaction as it stands does not make sense. You can’t operate these two companies totally independently.

 

[johnsonrod]

I agree with the concern about some potential overlap. I thought most mergers are meant to reduce costs by streamlining and reducing redundant costs (focusing on what works and removing the rest). From a customer standpoint, I see demographic overlap in several fleet types when compared to load and capabilities (all approximate):

Phenom 300 - Lear 45/75
Citation X - Lear 85/CL300
Legacy - CL300/350/605

Which fleet types would you keep and which would you remove? Why would a customer select a Legacy when a new CL350 or 605 could accomplish the same mission? Are you confusing the customer by offering so many different types that are relatively similar in terms of performance/capability? I assume the expanding Beechjet 400XT fleet could be used as the "value" fleet type with the Sentient ad hoc charters given the lower operating costs.

 

[CL300Pilot]

Personally, I dislike the "luxury and value" tags. I can see where both companies can operate independently. Options would be the entry level fractional company with the Beechjets and such, while Flexjet is the upper end with the Lears and Challengers. If we do end up merging, I hope we do so in a win/win for both of our companies and pilot groups. I will continue to reach out to our options brethren in hopes of a unified group.

Honest side question and not a union busting question either. If Options decertified the union, what are the implications? Given KR's opinion of unions, would that help or hurt you? Again, I am more curious and not trying to start the pro/anti-union banter.

 

[CL300Pilot]

Double posting, sorry

 

[fischman]

Making our profession a commodity is bad for all of us.

The race to the bottom begins...

 

[BlueNose]

Making our profession a commodity is bad for all of us.

The race to the bottom begins...

Begins??? Dude, that race was over in April 2010, at least among the Big 4 fracs. Have you seen the Options pay scales and scope clause? This is just Ricci's victory lap.

 

[Fresh Air]

Honest side question and not a union busting question either. If Options decertified the union, what are the implications? Given KR's opinion of unions, would that help or hurt you? Again, I am more curious and not trying to start the pro/anti-union banter.

That's a tough question, and one that has certainly been raised in the minds of FO pilots. I think that the problem with trying to decert is that we don't have any plausible alternatives to the Teamsters, which nobody really loves, but neither are they the boogeymen that Bogart and his ilk try to portray them as. We aren't willing to leave ourselves totally naked without any protections, as we were in the Scheeringa days. There has been a feeble effort to garner support for an in-house union, but the people spearheading that effort have been a well-known (ex-PSM) management stooge, and a personality-impaired old Legacy pilot who would be sure that the union looked after the interests of the very senior crewmembers, and nobody else. So, with no credibility among the pilot force, that effort is going nowhere. Not to mention, with less than 350 pilots paying dues, there would be no money to support the infrastructure needed for negotiations, legal counsel, and all the expenses which go into operating a functioning bargaining unit.

So to answer your question: Yes, decertifying our Union would likely result in our being rewarded by FO management for giving up our right to organize and going to our knees before his mighty benevolence. And remaining standing on our feet will likely result in more punishment, humiliation, and possibly the loss of our jobs when if/when Kenn decides to rid himself of the Union thorn in his side by shutting us down altogether.

I value my dignity more than this job, so my choice is to (possibly) die on my feet rather than live on my knees. Others' opinions may vary, and I respect their right to disagree.