New:2004 NetJet Payscales!

[Lrjet55]

The quality pilot for our purposes here are the guys who had very little experience, this was their first jet job, had and still have very little self worth.

We have many pilots at NJA who to this day cannot comprehend CRM. We have pilots who think, since this was their first jet job, that a captain should make $50,000 and work over 14 hours.

Our training dept is filled with attitudes like "this is the way we've always done it".


I will agree with you Bart. There were alot of guys who were hired with very little experience and have a done a great job. The current corporate culture, pre Billy Boy, is a perfect example. The pilots we hired had a large part to do with the current culture. Those are the folks that must change.

I point fingers Bart because I follow up the pointing with letters and suggestions through the appropriate channels.

 

[Schrode]

Just a quick lesson on how NetJets pays pilots:

1. Aircraft are sold as fractional shares - No overhead for NetJets, they don't own them. (Actually they own a few - core fleet aircraft, about 5%).

2. Owners are charged a "management fee" to cover costs of management, training and pilot salaries. This increases annually to cover inflation.

3. Owners are charged a "hourly fee" to cover maintenance, fuel, taxi and ferry.

4. The owners were informed of the impending contract changes and were assessed an "increase" to pay for the increased pilot salary. (over the last 3 years this is estimated at $156,000,000).

5. The pilot costs (including the expected 100% pay increase + benifits and retro) are included in the management fees and amount to less than 7% of that management fee - not substantial - and not a "company cost factor" since it is directly passed on to the owner.

So you see, a 100% increase is possible, not a pipe dream - no precident is required. We are building a new industry, and a whole new set of rules.

 

[Lrjet55]

Well said

 

[NJAowner]

Cost Pass Through

Scrode ... not all costs are passed through. Both the MMF and OHF can be increased each year but it is tied to the Consumer Price Index (or 3.75% whichever is lower) annually from the commencement of the owne'rs contract. If pilot costs go up substantially, NJA may only pass on the portion up to the amount of the COLA increase on the fees. They can adjust the fees higher in the future, but only for new owners and renewals.

 

[Diesel]

You thought the company was out of touch with what we have to do. The owners are even more out of touch with what we do on an every day to make sure they get to their destination safely and with their bagels.

One of my favorite line's of all time from an owner.

"I think the people who clean the plane out of ase do a much better job than the people out of sna."

What 99 percent of owners don't realize is that we clean the planes. Every once and a while we have detailers clean the plane but the day to day stuff are the same guys up front.

 

[Lrjet55]

That is sooooo funny Diesel. I would love to be afforded ignorance and bliss through wealth. If only our owners were as educated about our job descriptions as we are about their travel plans, fractional shares and Marqui programs. And since we are not allowed to educate them then I suppose the company will be getting right on that... right?

 

[F9 Driver]

LrJit-55

The less one makes absolute statements the less one tends to look foolish in retrospect.

You are either very young, stupid, or both. (odds are the latter)

I wish my friends at EJA good luck.

55,

I wish you all you feel entitled to.

Time will tell

 

[Lrjet55]

Yawn...

 

[FL450]

Re: Cost Pass Through

Scrode ... not all costs are passed through. Both the MMF and OHF can be increased each year but it is tied to the Consumer Price Index (or 3.75% whichever is lower) annually from the commencement of the owne'rs contract. If pilot costs go up substantially, NJA may only pass on the portion up to the amount of the COLA increase on the fees. They can adjust the fees higher in the future, but only for new owners and renewals.

Actually, it's based on the CPI-U for the previous fiscal year ending November 30th or 3.75%, whichever is greater.

 

[NJAowner]

FL450 is correct

FL450 is correct. It was a typo on the "lower" .. I meant greater. And I did not want to bore the board with CPI-U vs other CPI indexes, and regional indexes. But yes, you are correct. The intent of my message was that unlimited increases may not be passed on to the existing contract owners. I apologize for not actually tking my contract out of the nice NetJets binder to quote it verbatim.