New Jetblue Contract Pending

[FNG320]

Ya' just don't get it, do ya'? I'm sure they listened to you. Just because our very capable leadership, Al included, disagrees with you doesn't make them wrong and you right. I tend to believe we do indeed have a plan for the future. You may not yet be privy to the details, but I'll put my trust with the seasoned guys who got us off the ground and steered us to double-digit profits through 9-11 and the internet bubble (as opposed to the guy who has been around a few months and suddenly thinks he has all the answers).

- I don't recall seeing a "cost of living increase" in the contract I freely signed. BTW my contract is identical to yours.

- Lots of aviators would kill to be in your shoes right now. If you're concerned about your stock options being underwater, relax. The exercise deadline is 10 years hence for a good reason. Let's worry about them in 20, and hope we still have a company (and stock) to talk about. Our leadership is taking the long-term view here (thankfully). So should you.

- I, for one am truly thankful we have leadership that is more concerned with the long-term survival and profitability of this company than they are with feathering their own nests. That is way outside the norm for this industry.

- No action exists in a vacuum. Raise pay for one group and you'll likely have to raise it for all. That shrinks profit sharing, which acts as a cushion in lean times. You yourself stated "what happens in a downturn when I don't get any profit sharing"? If we have a cushion, we can avoid pay cuts, furloughs and the like standard at the other airlines.

- Think we can just magically raise fares and solve all these wonderful concerns? Ask the boyz at the majors how that works. We would likely see our traffic fall off precipitously, cut deeply into our profits, freeze our growth, etc. Sound rosy?

- We have the good fortune to upgrade in record time. Our pay is at or above SWA's previous contract. Let's see what kind of profit margin our good brothers there can pull down after their nice pay raises before we go experimenting with our business model profitability.

- Sure there may be room for some minor adjustments here and there, but make no mistake: We are fighting for our lives in an absolutely unforgiving marketplace. The other airlines want us GONE!

- Everyone is entitled to an opinion. However, you might want to inform yourself a little better RE: SEC rules for stock options, our own operating margins in certain VERY competive markets, future growth plans before adding your contribution to the internal or external debate.

- Al has most certainly not had a "lobotomy". What he does have is years of experience in the airline industry (after serving his country flying Skyraiders, BTW).

8vAte hit all the nails right on their craniums.

I'm all for passionate, eloquent discussion. I just prefer it to be a little better informed.

For those concerned with perceived "turmoil" at JB, I am only seeing/hearing rumblings from a very small, but vocal minority. Maybe they never bought into the Kool-Aid in the first place. Most of us think it is a great place to fly.

FNG, I sincerely hope you can find some resolution on all these fronts without joining the ranks of the few who would choose to convert this great company into something more familiar to them. IE: a divisive, angry and counterproductive place to try and collect a paycheck.

I'm having a great time here, and I wish you all the best.

Just one guy's opinion from the middle of the seniority pile.

Shaggy

Shaggy,

You are 100% correct on just about everything you say. However, there is more to a contract than the paper and ink it is written with. There are the expectations that came with the job.

First I agree that the guys with the big brains know what they are doing. However, they use to keep us informed with what is going to happen not only tomorrow, but over the next 6-12 months. It isn't happening any more.

Second, Yes, there is no cost of living increase in the contract. But the "expectations" were that "we will take care of you" just is not happening. I agree that the promise of matching SWA payscale in some form was too agressive based on SWA's latest contract. However, some portion of that should have been given to us with with an explanation. The promisie of a matching pay rasise it the cost of living increase we are all talking about. If they can promise one thing but then break that promise, what is next?

Third, we are not talking about lots of $$$. Even just the cost of inflation for a cost of living raise for all work groups is deserved. Do you think that a three percent raise would break the bank. I don't think so. It would most likely drop the margin from 14% to 12%, and our profit sharing would go down, but at least I can help pay the bill with the 3% not the 401K. Paying for the raise is one of those issue that will go on forever. However, most financial planners say that if you want to save money, you need to pay yourself first. If you wait till all the bills are paid, you will never save anything. Right now, the management is looking at what is left and saying "no raise", but if the put it in the system and were forced to work it in. I would bet that in the end there would be money for the raise. Do you think if they raised the faires $1.00 per ticket our load factor would drop? I don't think so. Customer loyality would survive the $1.00 raise and then the $1.00 would pay for every employee a cost of living raise. Yes the majors have done it wrong. But we are going to the opposite extreme. Do we need to raise the ticket prices to give a cost of living raise, no. The funds are there. They just need to use some of the profit margin to help. Hey, where's the caring? Where's the trust (oh, that just got set aside already"

You know, I don't know the SEC rules, but I would bet that there are ways to do what I suggested in some form or another. That is what the big guys up at Forrest Hills can figure out. Heh, but they need to do something. Even a token would be enough to quell the talk. Remember, 75% of the company was not here before the current pay scale. You mention turmoil at JBLU. Well it is there. It is not big posters on the wall, with union meetings taking place around town. But it is there. It is the small discussion about all of these issues. It is the undercurrent that is washing away the foundation. The disappointment with management and the new contact, the way it was presented, the EMB-190 payscale, the lack of a raise (in any form), the total lack of proactive communication. Management has to fix this, not us.

In the end, do I want to be anywhere else? No. If told expect no raise for 5 more years would I leave? No. Do I trust our leadership to do the right thing? Not as much as did before. Do I need to make as much as the other majors? No. Will I keep working as hard as ever for JBLU even with out the changes? You bet.

I guess it is time to drop this whole thing for now. We are all just restating the same facts back at each other. Those who support the status quo won't be persuaded. And those of us that feel we have been let down will still feel the same way. But we all must be sure to look at the facts before us; what has is in writing, but also what has been promised before you and I close our eyes. We all have our own opinions. That is the USA.

Good luck to us all.

 

[SpeedBird]

Great post Shaggy!

A couple of other thoughts I'd like to add to yours.

1.) Stock Options: Stock options which the first 200 pilots received served as a stronger incentive to attract the highest caliber pilots possible while the industry at large was still in a hiring mode back in 2000 and early 2001. The level of risk for accepting employment at jetblue during the first year of operations was much higher than it is today for a new hire. The greater the risk then the greater the reward incentive should be. As it stands it is okay with me since they have in a sense served as the early trailblazers for the company and thus deserve something for their efforts that others following behind might not have shared in fully. It is still way too early to classify yourself as a "have-not" in regard to stock options.

As Shaggy so eloquently stated these options and their vesting schedule are not to be looked at based on the current swings in the stock market but are designed as an "incentive" for employees to stick with the airline for a few years and contribute to its long-term financial success not just as an employee, but also as a shareholder. For those who have only been with the company for a year or two please have some patience and understand that there is a lot of time for you to gain a financial windfall from your ISOs, provided you don't try and choke the goose before then.

2.) Contract Expectations: Once again if you don't like the current agreement because it falls way short of your expectations perhaps there is nobody else to blame but yourself. The comments made by some people here would make one believe that jetBlue has been in business for decades and thus should provide all the same benefits, work rules, and other related pay issues as other airlines of comparable experience. Let's not forget that this sirline has only been in business for a little more than four years! NOBODY has been on this property has been here long enough to be complaining loudly about how tough their professional lives are and expect much sympathy yet.

People need to have a better understanding of where this airline is and maintain some patience with its progress, and when you can expect to get your goodie bag filled up. This airline demands that its employees have some vision and enough gray matter to understand the economic and competitive drivers that this industry is facing, including jetBlue. While some may think that a 10-15% profit margin automatically qualifies them for more money; it is critical that the airline show as much profitability as possible in order to obtain the maximum capital possible when jetBlue goes shopping for new debt instruments. The amount of capital jetBlue can receives is directly proportional to how much available working capital is on hand in any given quarter. This is the life blood of a young growing airline that is competing for its very existence with no guarantees of long-term success. If you listened closely to Dave Barger he made this point very clearly during the pocket sessions and it should not be a great leap of critical thought processing to figure this out.

So FNG you want more pay, higher stock valuations, and more profit sharing.....don't we all! But just because you want it on your terms doesn't mean that is the only road to obtaining it, and thus everyone else who doesn't agree with you is wrong or suspect of not being true to jetBlue's culture and your long-term best interests as a member of jetblue's team. I appreciate your concerns and I want the same thing as you, but I just have a different view on how to get it. Some advice for you is to ignore the inputs of the many jetBlue outsiders who don't have your best interests at heart and love nothing more than to see us squabble and drop to their level of professional frustration. It is popular for everyone to call jetblue pilots a bunch of Kool-aid drinkers, but in the end everyone drinks their own flavor of Kool-Aid...if you know what I mean.

3.) Understand that jetBlue senior management is conservative where it counts most and they must be responsible to several masters of which the pilots represent just one portion. While you may believe that D3 and Al Spain are not being honest, or forthright with the pilots, my experience with them does not support your position. In the case of Al Spain he went out of his way to help me early in my jetBlue tenure when he didn't have to, and it made a considerable impression upon me about his character. He is one sharp dude and we'd all be lucky to have his brains and work ethic. Of course he's still a member of the human race and makes his share of mistakes just like you and me but for now I'll withold my harsh judgment of him and anyone else in the management suite in Forest Hills.

4.) jetblue crewmembers need to just get a hold of their emotional positions and remain patient with themselves and those who are charged to manage the airline's strategic plans and operations. I suspect the next couple of years will be pivotal to jetblue's long-term plans and goals. If the flying gods continue to smile on jetblue you and I will not be disappointed...just hang in there for a little longer and remember how wet behind the ears we all still are.

 

[V2+10]

FNG

Your opinions are valid because YOU believe in them. That's your right. Not everyone will agree with you, but it is your right nonetheless. It's easy to spout off about delicate subjects on a web board due to the anonymity of it. A safe place to vent if you will. With that being said, I still do not believe for one second that you have had a face to face discussion with the upper powers at JB using the SAME vocal tenacity that you portray here at Flight Info. You just might find it a better place to voice your concerns. Try it...I think you will find that they will most likely still renew your contract anyway.

V2