Whoosh!
The original smoker
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Ricci/Rossi coming back to FLOPS?!
- Thread starter Whoosh!
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HSDriver
Well-known member
- Joined
- Apr 19, 2004
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- 148
ProFracPilot
What's it doing now?
- Joined
- May 1, 2003
- Posts
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Lord knows much of what Ricci did in the past doesn't deserve to be defended. That said, some of what follows will read like I'm defending him. Just my opinion, take it or leave it.
It is certainly true that when Ricci and Rossi were summarily waltzed out the door, we were losing BIG $$$. The original business model failed at the point where share sales slowed significantly, compelling the company to make money on the operational side or at least not lose the vast dollar amounts we were hemorraging every month. This was a problem for all fractionals, not just FlOps. However, it was exacerbated here by our utilization of maintenance intensive, "previously enjoyed" aircraft as the core of the business model. The combining of the RTA and FlOps fleets was not handled well. Much of the schenanigans that went on with parts swapping, etc was not only unethical, but probably illegal.
But there was some genious in the original business model. By discounting fractional shares in the manner FlOps did, it opened up private jet access to a completely new tier of clients that were very reluctant to pay the high cost of admission being charged by NJA, Flex, et al. I think one would agree that once people of means get a taste of private jet access, it is addictive like crack. And the FlOps business model gave a lot more people a taste, if you will. So in that regard I see the original FlOps business model as being very good for the industry as a whole.
The other thing Ricci figured out was that he was going to sell "service", and that his pilots were the front line marketing people. Keeping the pilots happy was and (as MS knows but won't accept) is still important from a business standpoint. One need look no further than the NJA contract ratification and their subsequent business gains for confirmation of this philosophy.
Had Ricci been able to navigate the business through the tough times I believe he would have been successful at keeping the union out. He would have found a way to maintain his philosophy of keeping the pilots happy, therefore no union would be needed (again, HIS philosophy). But those days are gone as we're getting closer every day to our first contract. (I believe this is good thing)
The next CEO (and, there WILL be a next CEO) will have it much easier. The pilot labor issues will be resolved for a time and he will only have to manage the results of the bargaining agreement. In a perfect world, the cost of pilot labor will be an easy number for him to budget (although, we know that until they figure out how to properly schedule and follow the requirements of the contract they will spend a lot of needless $$ in OT and greivance payouts). This will leave him in a position with more time to find new and creative ways to expand the business, thereby increseasing the revenue stream. But frankly I don't think the person I just described is either MS or Ricci.
It is certainly true that when Ricci and Rossi were summarily waltzed out the door, we were losing BIG $$$. The original business model failed at the point where share sales slowed significantly, compelling the company to make money on the operational side or at least not lose the vast dollar amounts we were hemorraging every month. This was a problem for all fractionals, not just FlOps. However, it was exacerbated here by our utilization of maintenance intensive, "previously enjoyed" aircraft as the core of the business model. The combining of the RTA and FlOps fleets was not handled well. Much of the schenanigans that went on with parts swapping, etc was not only unethical, but probably illegal.
But there was some genious in the original business model. By discounting fractional shares in the manner FlOps did, it opened up private jet access to a completely new tier of clients that were very reluctant to pay the high cost of admission being charged by NJA, Flex, et al. I think one would agree that once people of means get a taste of private jet access, it is addictive like crack. And the FlOps business model gave a lot more people a taste, if you will. So in that regard I see the original FlOps business model as being very good for the industry as a whole.
The other thing Ricci figured out was that he was going to sell "service", and that his pilots were the front line marketing people. Keeping the pilots happy was and (as MS knows but won't accept) is still important from a business standpoint. One need look no further than the NJA contract ratification and their subsequent business gains for confirmation of this philosophy.
Had Ricci been able to navigate the business through the tough times I believe he would have been successful at keeping the union out. He would have found a way to maintain his philosophy of keeping the pilots happy, therefore no union would be needed (again, HIS philosophy). But those days are gone as we're getting closer every day to our first contract. (I believe this is good thing)
The next CEO (and, there WILL be a next CEO) will have it much easier. The pilot labor issues will be resolved for a time and he will only have to manage the results of the bargaining agreement. In a perfect world, the cost of pilot labor will be an easy number for him to budget (although, we know that until they figure out how to properly schedule and follow the requirements of the contract they will spend a lot of needless $$ in OT and greivance payouts). This will leave him in a position with more time to find new and creative ways to expand the business, thereby increseasing the revenue stream. But frankly I don't think the person I just described is either MS or Ricci.
Publishers
Well-known member
- Joined
- Sep 20, 2002
- Posts
- 1,736
Pro really made his point well. Over the years, companies started by pilots treated the pilots really well but failed miserably on the business side-- can anyone remember KIWI. Visa Versa, it is hard for the business people to understand the crews and all their whines to a guy working 70 hours a week, 50 weeks a year trying to make a business work.
I think FO failed because the world of fractionals puts so much strain on aircraft and crews, used aircraft do not work. I harp on here all the time about the importance of a good plan and model being more critical than the crews or other issues. Many think then I am anti pilot. I have just found if you do not have a workable business plan that can be successful on all fronts, you are dead in the water union -no union, good employees, mediocre ones.
I think FO failed because the world of fractionals puts so much strain on aircraft and crews, used aircraft do not work. I harp on here all the time about the importance of a good plan and model being more critical than the crews or other issues. Many think then I am anti pilot. I have just found if you do not have a workable business plan that can be successful on all fronts, you are dead in the water union -no union, good employees, mediocre ones.
Rubber Ducky
Well-known member
- Joined
- Mar 2, 2005
- Posts
- 143
flightOptions failed?
I wasn't aware that flightOptions had failed. I thought they are still flying! I also am not convinced that the doors were going to shut under Ricci. Think about who told you that. Did Ricci tell you that? Absolutely not! Did Raytheon tell you that? Oh yes they did. How do you know who to trust? Think about it! I don't know how well my bottle of snake oil works because I haven't opened it yet. But I was sold, on all of it.
I wasn't aware that flightOptions had failed. I thought they are still flying! I also am not convinced that the doors were going to shut under Ricci. Think about who told you that. Did Ricci tell you that? Absolutely not! Did Raytheon tell you that? Oh yes they did. How do you know who to trust? Think about it! I don't know how well my bottle of snake oil works because I haven't opened it yet. But I was sold, on all of it.
Lost market share, but failed?
Nice post ducky. Only the powers that be know the real statistics on money lost and or gained. Here is an interesting thought.
be-400
Purchase price: $406,250 x 16=$6500000
Monthly Mgmt: $6,820 x 16=$109,120
Occ. Hourly Fee: $1,554 x 120 (avg aircraft month)=$186480
Fuel Variable/Hr: $552
Fed Tax/Hr: $158
Total Cost/Hr: $3900
pilot salaries
8 year captain 6125/month
2 year copilot 2916/month
total pilot salaries= 9041/month
The pilot's salaries compared to the monthly management fee's and hourly generated fee's alone are a drop in the bucket. Granted a lot of that is eaten up in the mx and operational side as well, but come on that is a ton of cash. We know they have the money to pay us, but they want to see the company fail first. What a great way to reward the employee's that built this company just to see incompetent, greedy, selfish, dishonest crooks turn this place into a circus act. I believe flight options management has failed, not flight options. We still do more flying than flex, citation shares, or any other fractionals besides netjets. The worst part is this place had potential. We had a lot of talented and dedicated professionals and we have done nothing but waste a lot of good time and finance one bad management decision after another. I was hoping HIG would see the real reasons holding us back (ms,sanjay,tyler,etc.) and bring in a herb kelleher type ceo and a Ken Combs type chief pilot, but they haven't and now I see that this place is doomed. Dust off those resumes'
Nice post ducky. Only the powers that be know the real statistics on money lost and or gained. Here is an interesting thought.
be-400
Purchase price: $406,250 x 16=$6500000
Monthly Mgmt: $6,820 x 16=$109,120
Occ. Hourly Fee: $1,554 x 120 (avg aircraft month)=$186480
Fuel Variable/Hr: $552
Fed Tax/Hr: $158
Total Cost/Hr: $3900
pilot salaries
8 year captain 6125/month
2 year copilot 2916/month
total pilot salaries= 9041/month
The pilot's salaries compared to the monthly management fee's and hourly generated fee's alone are a drop in the bucket. Granted a lot of that is eaten up in the mx and operational side as well, but come on that is a ton of cash. We know they have the money to pay us, but they want to see the company fail first. What a great way to reward the employee's that built this company just to see incompetent, greedy, selfish, dishonest crooks turn this place into a circus act. I believe flight options management has failed, not flight options. We still do more flying than flex, citation shares, or any other fractionals besides netjets. The worst part is this place had potential. We had a lot of talented and dedicated professionals and we have done nothing but waste a lot of good time and finance one bad management decision after another. I was hoping HIG would see the real reasons holding us back (ms,sanjay,tyler,etc.) and bring in a herb kelleher type ceo and a Ken Combs type chief pilot, but they haven't and now I see that this place is doomed. Dust off those resumes'
netjetwife
1 of many w/an opinion
- Joined
- Sep 18, 2004
- Posts
- 2,741
Good post, FR8Dog! I totally agree. In fact, perhaps readers have noticed that when referring to Flight Options management I use the term "the FLOPS" and when talking about the underpaid/overworked flight crews, I call them "Options pilots". My word choice is deliberate because the distinction is very real. The upper managers have been failing, but the pilots have options--starting with insisting on a fair contract that compensates them like the professionals they are, and rewards them for their significant contribution to the company. Hang in there! I believe there's light at the end of the tunnel. NJW
Those consistently failing to do their job properly should be given the boot.
400A
Well-known member
- Joined
- May 26, 2003
- Posts
- 1,760
Beechjet Mod
He needs his first big customer for his Beechjet mod program. If you did not know, he is currently modifying a Beechjet with Pro-line 21 , winglets and Williams engines. It is supposed to so be shown at NBAA this year. For those who will say the Beechjet mods are BS, I know the serial # of the aircraft they are modifying.
Not looking for flames, but it would make sense.
The performance #'s are supposed to be superior to the Phenom 300, and we all know he has always leaned towards used aircraft.
Should make a nice airplane, but I would not like giving up T/R's.
He needs his first big customer for his Beechjet mod program. If you did not know, he is currently modifying a Beechjet with Pro-line 21 , winglets and Williams engines. It is supposed to so be shown at NBAA this year. For those who will say the Beechjet mods are BS, I know the serial # of the aircraft they are modifying.
Not looking for flames, but it would make sense.
The performance #'s are supposed to be superior to the Phenom 300, and we all know he has always leaned towards used aircraft.
Should make a nice airplane, but I would not like giving up T/R's.
ProFracPilot
What's it doing now?
- Joined
- May 1, 2003
- Posts
- 701
God I hope your wrong. Most of our pilot management is still from the riccci days, and they all suck
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