Hold on tight

[Propilot77]

Get ready for pay cuts

 

[AeroBoy]

Flexjet will indeed be operated separately from Flight Options. Also, I was told that all Flexjet personnel will be retained by the new owner (Directional Aviation Capital), so no job losses. While today's announced aircraft order is for Learjets and Challengers, I was told that it's very likely there will be a follow-on order for Globals by the end of the year. So this is all very good news for Flexjet pilots.

 

[Cavpilot]

Maybe I'm reading too much into it, but what the PR never says is that Flexjet is being sold. However, it is Flexjet's activities that have been sold for $185 million. What does "activities" really mean? Honest question. There is obviously some legalese going on here.

 

[ProFracPilot]

The term "whipsaw" comes to mind...

 

[rsm]

More Bases??? What are FO bases?

 

[BlueNose]

It's Flex and Options.

No, it's Flex being purchased by Directional, which owns Options. Directional and any company they purchase is outside of the scope clause (as the 1108 leadership so masterfully negotiated), so Kenny can operate it as a separate, non-union company taking away business from Options pilots. Bet they even continue to get a company 401K match.


My guess is that Options continues on the old Kenny model of pre-owned 'value' player, with maybe the Phenoms staying as new a/c. More re-engined Beechturds, maybe some pre-owned Lear 45s or various Citations (if the rumored a/c sale from Shares happens) coming into the Options fleet. Forget about the new Embraer midsize purchase. All the new toys will go to the non-union comany.


I'm also guessing Flex managers and schedulers will be coming in to fill up the half-empty CGF HQ (after downsizing to 'streamline', or maybe enouth will quit when asked to move to Cleveland), but on the pilot side this will be used to weaken the union.


Or maybe I'm completely wrong.

 

[BlueNose]

AIN Online: Flexjet Being Sold To Flight Options’ Parent Company

http://ainonline.com/aviation-news/2013-09-05/flexjet-being-sold-flight-options-parent-company

Looks like Options completing their journey back to the Sanford & Son business model.

Ricci told AIN that Flexjet LLC will operate separately from Flight Options, with the former being a luxury “bespoke” fractional provider flying newer aircraft (four years old or less) while the latter will be the “value” fractional with a fleet of mostly pre-owned or remanufactured jets.
​

 

[Fresh Air]

Welcome Flex pilots

Let me be the first to welcome you ladies and gentlemen to our strange and occasionally dysfunctional family, although it appears that the two companies are to be operated as separate entities.

Having your company sold out from under you really sucks- As an ex-RTA pilot I know that pain all too well. The uncertainty is scary as hell for everyone, especially for those with families to support.

We wish you well, and hope the transition is smooth for you all.

If pay cuts happen to match your salaries to ours, I am truly sorry. Maybe they will raise ours to match you folks (not holding my breath on that one!)

Anyway, good luck.

 

[BlueNose]

So much for the long-rumored Options large cabin program.

While he acknowledges that some excess capacity remains, Ricci is bullish about the fractional industry in the near and longer terms. In fact, he sees an opportunity in the ultra-long-range, large-cabin fractional market and told AIN it is likely that Flexjet LLC will be announcing a follow-on order for Bombardier Globals by the end of this year. Flexjet currently does not have any Globals.
​

Maybe this is the first of the next new fleet: http://registry.faa.gov/aircraftinquiry/NNum_Results.aspx?NNumbertxt=719CC

 

[Pacific]

The term "whipsaw" comes to mind...

Ya, but usually it's the non-union company being used to whipsaw the union joint. In this situation it may be the union shop dragging down the benefits of the non-union group. Crazy industry. Wishing for the best for all the Flexjet and Flight Options pilots.

 

[Chewbacca]

Well, that doesn't look too good for the CitationAir folks. Good luck to all!

 

[johnsonrod]

"Ricci told AIN that Flexjet LLC will operate separately from Flight Options, with the former being a luxury “bespoke” fractional provider flying newer aircraft (four years old or less) while the latter will be the “value” fractional with a fleet of mostly pre-owned or remanufactured jets."

Now that makes more sense to me - no way was Ricci going to give up his Beechjet Nextant operation. I can see him putting 40 of those remanufactured Beechjets (plus maybe remanufactured Hawkers next) into the adhoc charter/card market.

Another question will be the fate of the Embraer (Phenom and Legacy) and Citation X products... Why would they compete with the Flexjet program for a similar customer base? I can see the revamped Beechjets competing hard at the lower end of the spectrum, but the newer Phenom 300 would be competing with the Lear 75s - right? And the Legacies will be competing with the CL350s... Obviously too early to speculate.

 

[gret]

Maybe I'm reading too much into it, but what the PR never says is that Flexjet is being sold. However, it is Flexjet's activities that have been sold for $185 million. What does "activities" really mean? Honest question. There is obviously some legalese going on here.

It is the business (assets, liabilities, work force in place, etc) that has been sold. The legal entity remains with the seller as a shell.

Normal structure so that any unasserted claims or liabilities don't follow the assets to the buyer. Also the structure is used to maximize the tax benefits to the buyer which may not be available if they bought the legal entity.

 

[gret]

Hold on tight boys and girls--big changes coming to the fractional industry. Sorry I can't go into details now, but all will be revealed very soon.

Good scoop...don't like these types of teases, but you delivered the goods.

 

[Rupert.]

not exactly. Flex will remain separate company

This is what happens when you get butt f#%cked on scope. Nice job to those that negotiated our contract. KR has to be laughing his azz off about now.