NetJets pilot negotiations update

[GEXDriver]

I hope you guys get this resolved soon. One of the companies that comes into our home base frequently just bought a 3/4 share of a Challenger for supplemental lift from Flex Jets. They wanted a Falcon 2000 from you guys, but they were afraid that there would be labor problems with NetJets so they went to Flex Jets.

 

[Majik]

Trust me, we want this resolved soon also, and not just because you claim we lost the sale of 3/4 of a Falcon.
As they say, "We could have voted in a $hitty contract 2 years ago." It does seem to be dragging on forever and at least we've reached the hurdle of getting a mediator assigned. Hopefully a great contract will be less than a year away and the non-union fractional pilots will benefit from our efforts also.
Too bad Ricci won't be around to give his promised "NetJets plus 15%"

 

[Timebuilder]

I have friends at NJA and FO, and I wish you guys the best in achieving a good contract.

 

[GEXDriver]

Trust me, we want this resolved soon also, and not just because you claim we lost the sale of 3/4 of a Falcon.

PM me. I'll give you the name company's name and you can confirm the details for yourself.

 

[Majik]

PM me. I'll give you the name company's name and you can confirm the details for yourself.

I don't want to PM you to confirm it. I wasn't questioning your claim. I hope NJA makes tons of sales and continues to do so, and I'm confident that FlexJet will continue to make sales also. I wish all fractional pilots well. I hope "we" lead the way and I hope the others are "hot on our heels"

My point was that I will wait as long as it takes to either reach an agreement or be released for action. I'm not going to settle for something less, just because some customer shopped elsewhere because he/she was concerned about labor negotiations at NetJets. Actually, I'm glad a potential customer noticed we are over 2 years past the contract ammendable date. Maybe he'll talk to some of his buddies that are NetJet owners and they'll let Santulli know their concerns.

Thanks for the information and the offer.

 

[CatYaaak]

Actually, I'm glad a potential customer noticed we are over 2 years past the contract ammendable date. Maybe he'll talk to some of his buddies that are NetJet owners and they'll let Santulli know their concerns.

I wouldn't hold out any hope that many, if any, owners will do the Teamsters lobbying for you.

 

[Majik]

I wouldn't hold out any hope that many, if any, owners will do the Teamsters lobbying for you.

You may be right, that many may not care if their service stands a chance at getting interrupted for a while. Probably wouldn't even mind flying commercial, paying for charter or postponing their travel while they wait for the pilots to come back to work. I wonder if they would have to continue paying management fees while they wait. They are generally a patient and understanding group. You may be right, that they are probably not the type that would pick up a phone and voice their concerns to Santulli.

Or, you may be wrong... Maybe more than a handful might voice their concerns if they became aware that there may be a problem looming in the future. I like to "Hope for the best but expect the worse". Maybe I'll be pleasantly surprised that way.

 

[CatYaaak]

Or maybe

You may be right, that many may not care if their service stands a chance at getting interrupted for a while. Probably wouldn't even mind flying commercial, paying for charter or postponing their travel while they wait for the pilots to come back to work. I wonder if they would have to continue paying management fees while they wait. They are generally a patient and understanding group. You may be right, that they are probably not the type that would pick up a phone and voice their concerns to Santulli.

Or, you may be wrong... Maybe more than a handful might voice their concerns if they became aware that there may be a problem looming in the future. I like to "Hope for the best but expect the worse". Maybe I'll be pleasantly surprised that way.

Oh, they will care about an "interruption of service" all right, no doubt about it. And someone will pick up the phone; probably the General Counsel of thier company, demanding that their contract be fulfilled. Except as a matter of passing interest, do you really think they're going to care WHY an airplane doesn't show up on the ramp? Maybe, they will come to the conclusion that contracting with a company using Teamsters = labor problems (like so many other companies), unpredictability, hassles for them, and choose not to renew their contracts when the time comes. And contract renewal time always comes, memories are long, and you don't become the kind of sucessful business that needs, and can afford, access to their own private jet/s without being willing and able to change with a changing climate.

They're smart enough to know NetJets isn't the only game in town, that they have other options. Maybe they'll choose a non-union fractional or buy their own airplanes/hire their own pilots that they can always depend on to be there. If they fly a lot (over appx. 400 hrs/year) it's less expensive to have their own flight department anyway, and they never go on strike. I'm sure you'll keep a few actors and golfers around though, but don't count on those owners running serious businesses or companies that use you as supplemental uplift sticking around.

If your "product" becomes as unreliable as the airlines because of protracted labor disputes, they'll treat you as such....and vote with their feet just like they were doing when they bought into your program in the first place. They were sold Reliability and Convenience, but they surely aren't a captive audience like your flip-flop, lowest fare-seeking, no-other-option airline crowd who always come back if the ticket price is right no matter how much they've been screwed in the past.

I hope you get your raises, etc., but IMO (an opinon based on 14 years of corporate and fractional flying) the act of going on strike (becoming unreliable) would be counterproductive because of the nature of your customer base. Without those who ultimately pay the bills and your salary, even the gravy-est of Gravy Train contracts "won" from Management won't mean squat for very long. If you do go strike, I'd suggest holding out for a non-furlough clause too. Good luck.

 

[Majik]

Re: Or maybe

Oh, they will care about an "interruption of service" all right, no doubt about it. And someone will pick up the phone; probably the General Counsel of thier company, demanding that their contract be fulfilled.

CatYaaak,
Now that sounds exactly like what I was talking about. I heard that in June 2001 the owners received a 6% increase in management fees (to pay anticipated increases in pilot salaries). Problem was, those increases never got passed to the pilots. Note: A 5% increase in management fees would double current pilot salaries.
Now if I were an owner, and you raised my fees and told me the reason was because you needed to pay the pilots more, then, when my service looks like it might be interrupted and I discover that one of the biggest reasons was because the CEO never spent the money for the reason he stated, then I might be miffed and pick up the phone and make my disappointment known.

Santulli has to weigh all of the things you mentioned in the remainder of your last post. He can either increase pilot salaries with the money he's previously collected from the owners, or, he can take a chance that a potential disruption in owner services will not damage current customer relations and future sales. Does he want to see a strike? Heck no. Does he want to give up a big pot of "extra" money he's been holding on to for over 2 1/2 years. Probably not but it may be a better choice than the alternative. I think Santulli is a smart man and will make the best decision for the long-term benefit of the company and it's pilots.

 

[CE750Driver]

Re: Or maybe

Maybe they'll choose a non-union fractional or buy their own airplanes/hire their own pilots that they can always depend on to be there. If they fly a lot (over appx. 400 hrs/year) it's less expensive to have their own flight department anyway, and they never go on strike. I'm sure you'll keep a few actors and golfers around though, but don't count on those owners running serious businesses or companies that use you as supplemental uplift sticking around.

Uhhhhhh, yeah, and thats why Netjets sells more shares, and more importantly has the highest retention in the idustry, even being more expensive, and Union........ As you make that sound bad.

Could be.

By the way, this will never get to a strike.