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.

 

[Fresh Air]

It does seem to be a NJA/NJI situation shaping up. Should be an interesting scope battle.

 

[ProFracPilot]

Nevermind. The definition of "Parent" contained in Section 1 doesn't extend beyond Flight Options Holdings II, Inc (i.e., Directional Capital is free to do as it wishes).

 

[rsm]

First Officer at flex make more than a 15 year Captain on the Gulfstream. Somebody is gonna benefit or someone is going to get screwed.

Flight Options PAYSCALES

CAPTAIN PAY SCALE (Monthly)
Year Gulfstream Large Mid Small 15 8050 7688 7325 7325 14 7850 7488 7125 7125 13 7650 7288 6925 6925 12 7550 7138 6725 6725 11 7450 6988 6525 6525 10 7350 6888 6425 6425

 

[BlueNose]

But wait, there's more

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.

I don't see anything about Jet Solutions, LLC in this deal. Flex doesn't have a 135 certificate (can't since it was foreign-owned). So all the Flex pilots have an agency agreement with Jet Solutions, who holds a 135 cert and is the operator of record for any 135 flights. No need to keep up this charade, and no need to get Flex a 135 certificate, thanks once again to 1108's magnificent scope clause. Here's one more guess how this plays out.
Every Flex pilot can now sign an agency agreement with Flight Options, who can be the operator of record for 135 flights. So Options maintenance program (and mx centers) covers the Flex fleet, the DO and Options training dept take care of training, OCC schedules and dispatches all flights. Kenn makes money by cutting overhead significantly since he's now paying himself for these outsourced services. Flexjet becomes the grandaddy of all brand partners.
You might think the pilot contract would have something to say about that, but that pesky scope clause doesn't quite get it done. Every brand partner flight does indeed count the same as a charter sell-off, but, oops, the scope clause contains absolutely no limits or penalties for sell-off, so there's no limit to how many flights can be outsourced, all without bringing another Options pilot back on the property.
Matt and his buddies were so pleased with themselves when Kenn personally flew in and sat down with them to negotiate the scope clause. They rubbed shoulders with the Bid Dawg, and were smiling so hard that they failed to notice their bleeding rectums when they walked out of the session.

 

[Club ORD FO]

Does either Flex or Options "win" from this agreement? I think we are all nervous. Not sure who is getting (going to get) shafted more.

 

[jetwash]

Where do the Flex pilots stand on the union?

Wouldn't locking in your pay and benefits at current rates be a wise choice or will you be happy with what the new owners will offer?

Setting a price on a daily rate for pilot labor across all the providers will ensure some stability for all.

 

[ProFracPilot]

First Officer at flex make more than a 15 year Captain on the Gulfstream. Somebody is gonna benefit or someone is going to get screwed.

Those are old pay scales. I think you have to use a formula in the CBA that is based on MTOW to determine pay for anything larger than the Legacy.

 

[Club ORD FO]

Flex pilots have been assured that our pay will remain the same

 

[DirtyBeech]

Flex isn't going to unionize. They just won't.

Told compensation will be the same or similar.

Flex schedulers and dispatchers won't be heading to Cleveland. Y'all don't appreciate just how short we're running in that department.

 

[BlueNose]

Flex pilots have been assured that our pay will remain the same

That's good news, best of luck to you all.

 

[doh]

Are they at least good changes?

Nothing good here whatsoever!?????

 

[flex*wife]

Flex pilots have been assured that our pay will remain the same

Yes but it looks the vacation/PTO benefits might... Kiss your senior 4 weeks good bye if you read between the lines on the Q & A. I think that part is going to suck majorly for Flex because they are wording it so elusively right now...

Healthcare was going to change anyway due to Obamacare - so maybe a wash - hopefully? That makes me the most nervous - will Directional go the way of so many other companies and cover only children and non working spouses?

I would also anticipate some changes to operational schedules, bid periods etc... especially the 14.5 day guarantee, perhaps a new 7 and 7, and some more clarification on start/end, change band rules... Hopefully those will be positive but that's one way of tweaking the salary without breaking the promises that it says the same.

Really smart opportunity to find a home for Flex's older fleet without taking a hit... I like that part a lot - makes Flex's bottom line suddenly much more attractive. If Flex continues to have good numbers, it will help the new parent to justify the current benefits over FO pilots. And I like Deana - a lot - she is a shark. Her staying on assures some continued success with the bottom line which can only benefit Flex pilots, or at least I have good reason to hope!

Does anyone know the vacation/PTO/holiday schedule of Directional as well as the healthcare situation?

I'll admit the sky didn't fall the last time the union drive fizzled but I sure wish there were a piece of paper I could look at that gave families some assurances and peace of mind.

 

[ProFracPilot]

I'll admit the sky didn't fall the last time the union drive fizzled but I sure wish there were a piece of paper I could look at that gave families some assurances and piece of mind.

That opportunity doesn't have to be lost long term. Just sayin'.

 

[Rupert.]

I don't see anything about Jet Solutions, LLC in this deal. Flex doesn't have a 135 certificate (can't since it was foreign-owned). So all the Flex pilots have an agency agreement with Jet Solutions, who holds a 135 cert and is the operator of record for any 135 flights. No need to keep up this charade, and no need to get Flex a 135 certificate, thanks once again to 1108's magnificent scope clause. Here's one more guess how this plays out.
Every Flex pilot can now sign an agency agreement with Flight Options, who can be the operator of record for 135 flights. So Options maintenance program (and mx centers) covers the Flex fleet, the DO and Options training dept take care of training, OCC schedules and dispatches all flights. Kenn makes money by cutting overhead significantly since he's now paying himself for these outsourced services. Flexjet becomes the grandaddy of all brand partners.
You might think the pilot contract would have something to say about that, but that pesky scope clause doesn't quite get it done. Every brand partner flight does indeed count the same as a charter sell-off, but, oops, the scope clause contains absolutely no limits or penalties for sell-off, so there's no limit to how many flights can be outsourced, all without bringing another Options pilot back on the property.
Matt and his buddies were so pleased with themselves when Kenn personally flew in and sat down with them to negotiate the scope clause. They rubbed shoulders with the Bid Dawg, and were smiling so hard that they failed to notice their bleeding rectums when they walked out of the session.

Your my hero!

 

[jetwash]

You might want to look at the benefits and providers that Flight Options uses for indications of future changes. Last time we updated our benefits it was done on a site that was for Nextant employees and Flight options employees even though we are different companies but in the same family. I am sure Constant also was using the same providers and had similar health and other benefits.

Time will tell how this will all turn out but you Flex people might want to read Kenn Ricci's book on managing aviation companies to get an idea of his logic. It's called " management by trust" I am sure you will all be issued a copy in the coming weeks.
Book reports will be due a week later.