Questions for Republic guys

[trainer8]

1. When are your respective contracts amendable?

2. Considering that the "commuters" are no longer a short stop on your way to a career at a "major" are you going to demand pay worthy of someone who safely hauls thousands of men women and children around the world? Something on the order of +/- 100k for mid level FOs, +/- 200k for mid level Captains? Will you tell the company to pound sand until you get what you deserve?

32K base for 3yr FO and 62K base for 6yr captain is obscene. (Republic pay from APC) Im sure I do not have to point that out.

You guys need to realize that you'll not likely be moving on from Chataqua/Shuttle/Rep etc. to a major like you probably planned. Your airline is moving in, in its entirety, and bringing you with it.

I mean no disrespect but you need to tow the line and demand fair compensation. This affects us all. The future viability of this career depends on it.

Thanks in advance for your replies.

Nice....

Old Chinese proverb: "Never....never cut off the nose of an opponent, and then ask him to smell a rose."

You do mean to disrespect. The condescension in your post is dripping, not worthy of a reply.

T8.....one of the "kids", now.

 

[bluefin]

Are we really considering Republic a Major? Maybe a LCC, but really a Regional.

Baja.

There is no such thing as a "regional" anymore. These guys are now mainline and the future of the industry. They are killing real mainline jobs and is a serious situation that needs to be addressed by "majors". A majority of furloughed pilots at "majors" is the result of these "regionals"

 

[StaySeated]

Hopfully, none of this will matter.

Delta, AirTran and everyone else is throwing everything at these guys-including the kitchen sink. I think it will be very difficult for Republic to survive more than a year or two-especially after DAL and United stop giving them connection business.

Any new airline's survival is an uphill battle, even in the best of times. These days, the big guys (especially AirTran) will try very hard to kill Republic. I think their chances of doing so are excellent. Many people at Republic have no idea how vulnerable they really are.

I hate to see people lose their jobs, but to see what has become of Midwest pilots makes me far, far less sympathetic toward these kids....

First, the current contract at RAH is meaningless in my opinion. If and when the SLI is completed, there will be a new representation drive at RAH and the IBT will be gone in a heartbeat. After a new union is voted in we will have to negotiate an entirely new contract. FAPA has done a pretty phenomenal job over the past decade during their negotiations. Two very good Section 6 negotiations, two rounds of BK negotiations, an additional exit agreement, and now an SLI negotiation. I would argue that the FAPA leadership is the most experienced and effective bargaining unit in the country. The current RAH CBA and the current FAPA CBA will remain in effect until a new CBA is negotiated at RAH.

Second, the DAL ASA states that if DAL cancels the agreement, they also must assume the aircraft. I don't think DAL wants to assume the debt on 50+ ERJ's.

The CAL agreement will probably die on the vine, but RAH's growth in the branded ops will essentially even out the loss of the 50 seaters.

RAH's branded flying is a formidable one. F9's CASM is 2nd only to Airtran, and RAH now has the ability to deploy 70-160 seats as they see fit. Airtran was going to lose market share overnight at MKE, so they entered into an agreement with Skywest to fly 50 seaters. The CRJ's are dinosaurs in this revenue environment, and flying a 50 seater out of milwaukee is exactly what you refer to as "throwing everything at these guys". That is otherwise known as desperation to prevent the loss of market share, and it isn't working.

I am not a fan of BB, but he has executed this entire circus acquisition about as successfully as can be imagined. The "branded" operation at RAH is obviously his future plan.

 

[shearedshaft]

I would argue that the FAPA leadership is the most experienced and effective bargaining unit in the country.

I would argue that you sound like you're on crack.

Print out this statement, pin it to the wall over your desk, because we'll be coming back to this statement when the walls come tumbling down around you.

It's a weird alternate-reality that you FAPA guys are in.

You think that you'll be able to get the Teamsters off your back because you guys are such a superior pilot group with a superior union that the other RJ folks aren't going to take your Airbuses from you.

As I said, make a note, because we'll come back and re-visit as the ink turns red and the Teamsters don't just file out of the door quietly.

 

[aewanabe]

The RAH contract was amenable in October 2007. Current E-Jet rates in that contract were negotiated in 2003, when CHQ was the only RAH carrier and flew only the E145 family.

 

[shearedshaft]

I am not a fan of BB, but he has executed this entire circus acquisition about as successfully as can be imagined. The "branded" operation at RAH is obviously his future plan.

Bryan Bedford also is on record begging for government relief from the "Major airline bullies that underprice their product". Methinks you guys are just starting to feel the pain of having everything thrown at you.

You guys need EDIT: $3 billion (actually $425 million) in cash to be out of range of bankruptcy. You have $110 million. So all you need is to multiply your cash reserves by EDIT: THIRTY (actually four) and you'll have a fine competitive place.

And good luck with that.

(edited for oopsies)

 

[StaySeated]

I would argue that you sound like you're on crack.

Print out this statement, pin it to the wall over your desk, because we'll be coming back to this statement when the walls come tumbling down around you.

It's a weird alternate-reality that you FAPA guys are in.

You think that you'll be able to get the Teamsters off your back because you guys are such a superior pilot group with a superior union that the other RJ folks aren't going to take your Airbuses from you.

As I said, make a note, because we'll come back and re-visit as the ink turns red and the Teamsters don't just file out of the door quietly.

Obviously I am biased, as are you. You will notice that I didn't say anything about the "pilot group" or "superiority". I cleared referenced the union leaders.

If you want to make an objective assessment, take a look at each party's CBA. Another analysis would be to ask the membership how happy they are with their representation. After speaking with several of my new co-workers, I have never heard one good thing about the IBT. Not one. Your tone is pretty abrasive. I am not sure if this is a soft spot with you, or if you are a member of the EXCO, or if you just don't know how to play well with others. Regardless, re-read my post. I was simply stating that there will need to be a new CBA negotiated, and that FAPA has been very successful in their negotiations.

 

[StaySeated]

Bryan Bedford also is on record begging for government relief from the "Major airline bullies that underprice their product". Methinks you guys are just starting to feel the pain of having everything thrown at you.

You guys need $3 billion in cash to be out of range of bankruptcy. You have $110 million. So all you need is to multiply your cash reserves by THIRTY and you'll have a fine competitive place.

And good luck with that.

I am glad I was able to quote this before you edit. According to you the new benchmark for BK is TWICE TTM REVENUE in unrestricted cash!!! Uh OH! You have just doomed 99.99% of every company in the US.

He who walks with the wise grows wise, 

but a companion of fools suffers harm.
Proverbs 13:20

I will step away now...

 

[shearedshaft]

The cash reserves was from the most recent Bedford interview, I didn't make it up, it came from your CEO, who you say is doing everything right.

Even the WSJ calls Republic "thinly capitalized".

If you like, I'll dig up the quote.

In terms of the Teamsters, I think they are awful, but they don't have the same conflicts of interest that ALPA has when it comes to representing majors versus branded commuters. ALPA can be awful too. Independents can be fine, but if you've been around the block, you'll realize that the Teamsters hang on with fangs to any decertification effort, ask UPS, ask ATA and a handful of other unions that finally tossed them off their back.

The idea that FAPA will suddenly be recognized as great and beautiful and a great replacement is very naive. The Teamsters will tie you up. They've done it before, they'll do it again. They do NOT want to lose the dues.

 

[shearedshaft]

Here we go (from the recent interview):

Another question frequently asked of the company is how it thinks about cash and what it needs to operate the company. “For the fixed-fee business we use a metric of about 10% of trailing 12-month revenue which is about USD100 million. I could argue it is lower because it is a stable business which produces a consistent cash flow. On the branded business, if you want to say 20% is a more acceptable amount of trailing revenues, that’s an additional USD340 million for a total about USD450 million. That USD325 million is short of that so clearly we want to build cash revenues in 2010."

 

[shearedshaft]

I guess I was wrong. MY $300 million is really $450 million, and you're $325 million short of the goal.

But all is well, do not look behind the curtain. I'm sure you'll make it up in MKE as Airtran and SWA overlay your routes. Or maybe its Denver, where apparently SWA is willing to take one for the team and keep your yields down.

 

[StaySeated]

I guess I was wrong. MY $300 million is really $450 million, and you're $325 million short of the goal.

But all is well, do not look behind the curtain. I'm sure you'll make it up in MKE as Airtran and SWA overlay your routes. Or maybe its Denver, where apparently SWA is willing to take one for the team and keep your yields down.

And your $3 BILLION comment fits into the equation, where?

 

[shearedshaft]

And your $3 BILLION comment fits into the equation, where?

You got me. My mistake.

You have to quadruple your cash reserves, not increase them by thirty.

But the grim reaper is still outside your door, with Southwest and Airtran pushing him from behind.

 

[Going2Baja]

Bottom line is the majors need to fly their own routes. Buy the EMB's...or the new CRJ-C's and fly them in house...possible seperate work rules - but MUST protect the scope!

Baja.

 

[Scope out RJ's]

We shall see....

What's there to see skooter, just give out more $5 favors, you'll be making money, "hand over fist.":laugh:

 

[Lear70]

Careful... your edit reason plus the post itself is starting to border on that context we talked about again...

Keep it clean, ladies and gentlemen. Throw flame all you want, but keep the sexual innuendos out of it.

Thanks,

 

[Sailpilot]

.possible seperate work rules

Baja.

gave that away quick!?

at jetblue we fly the same work rules as the Airbus. Yes, they are the worst and bottom of the Major airline industry... but the same as our Airbus.

 

[StaySeated]

Hey sheared, you have assumed the role of an SWA pilot in numerous other posts. Do you really work for SWA? If so, why do you still care about what happens at little ole frontier?

 

[shearedshaft]

Why are you so quick to deflect outside interest? This is probably the tenth post you've made that basically says "Leave us alone."

Why is that?

 

[Minimaniac]

1. The RAH CBA covers all pilots on the RAH master seniority list. At this moment, that means Chautauqua, Republic, and Shuttle America pilots.

2. The RAH CBA became amendable on October 1st, 2007.

3. The negotiation process began in May, 2007, as allowed by the RLA.

4. Contract negotiations were paused earlier this year when the acquisitions of Midwest and Frontier were announced. Our negotiating committee wanted to step back and see what the new direction and fleet makeup of RAH would be before continuing with negotiations. Negotiations are scheduled to resume in January.

5. Prior to the pause in negotiation, all sections were either agreed upon, or in most cases, at in impasse. The lone exception was the compensation section. An initial proposal was fielded by the IBT, but it was promptly withdrawn when the acquisitions were announced, and before the company had a chance to put forth a counter offer.

6. For now, Midwest, Frontier, and Lynx pilots operate under their respective contracts. That will continue until after the SLI is complete, at which time the contracts will be combined in some way. I don't fully understand that part of the process, but expect that most parts of the Frontier (or Lynx or Midwest) will be added to our contract and apply to those pilots. Pay for a particular aircraft should be preserved (no changes for Lynx and Frontier, Midwest pilots will be paid for whichever aircraft they end up on, with some differences based on longevity or partial pay protection possible). Work rules will probably follow the airplanes, but certain things like differences in scope will have to be rectified for the singular contract, and likely the framework of the RAH CBA will be considered as primary.

7. The combination of contracts will likely precede any new CBA being voted in. That means that the "combined" contract will limp along until a new CBA is voted in. This should work to everyone's advantage, as the inputs and will of the Midwest and Frontier pilots should ensure the best possible outcome.

8. One fact that the cheerleaders of an RAH demise constantly overlook is that Frontier is still a valuable brand. Midwest will have all its value erased, no doubt. But, if Bedford finds that the branded operations are too costly, either through direct operational losses, or through threatened or discontinued relationships with major airline partners, he can sell off the Frontier brand and assets. Both the branded and contracted operations are individually profitable. If bringing both under one roof destroys profit, then all Bedford has to do is separate them again. It is not hard to see that is a realistic option, and offers Bedford a way out if necessary. Think outside the box, guys and gals. It is very unlikely that Bedford would commit his company to a do or die scenario when it wasn't necessary. It's just like landing on a short runway. It is riskier. You expect a good outcome. But is crashing the only other option? As long as you have a decent airplane, you can always go around. Selling off F9 is one go around option, and the RAH "aircraft" is still capable of doing the go around. We aren't deadsticking it into our futures, here. ExpressJet survived their foray into branded flying. Indy Air did not, but that was because they had no other revenue streams. As stated above, RAH has a diversified revenue stream for at least 7-8 years.

9. I don't know what RAH will look like in 5 years, but it will still be around, barring a grounding of an entire fleet type or the collapse of multiple mainline partners in the near future.

10. I don't know what the new pay will look like, but understand that some type of compromise must be made by the pilots in terms of what pilots make what. My reasoning is such: The 145/170/175 aircraft operate under fixed rate contracts with major partners. The fixed fees have always set an artificial cap on what our pilots could be paid. You can't get paid more than you bring in and keep a job. This has hindered regional pilot pay for nearly two decades now.

Conversely, the 190 and 320 fleets have no limits on pilot pay potential, as the company can directly change ticket costs to cover the increases in labor cost. So here is the dilemma. Should our Airbus and 190 pay go up to Jet Blue rates, while our 145/170 fleets go up 5-10%, with tweaks to FO base and longevity? Or should we spread the wealth, and take some of the revenues from the 190/Airbus side of the equation and bring up the pay for 145/170 pilots to a level that exceeds what a strictly fee-per-departure revenue stream would allow? That means the 190 and 320 rates would stay below Jet Blue, but our 145 and 170 pilots would receive substantial pay increases (to the point of industry leading for equipment size), and our pilot group overall would see small changes in pay between equipment?

The bigger the gains on the 190 and the 320 means smaller gains for the 145 and 170. Jet Blue was able to get their rates because the company could directly control all revenues. RAH can't do that. We control half of our revenues, with the other half being set already. I'm not saying that we can't achieve notable gains everywhere, but the potential increase in pay due to fixed fee contracts will hinder us somewhere. Help everyone, or help a limited group? Going backwards is not an option for any of our pay scales, including the Airbus. We have no reason to give that up. But the increases in pay will involve a compromise somewhere.