Status of Flight Options Including Fleet Plans

[wacoflyr]

Two of those three have good reality shows on Discover. I want a reality show!

 

[solafide]

Come on, twad. We all have the utmost confidence that you'll back up that intelligent statement of yours.

 

[52Vincent]

What's the current situation at Flight Options? Are pilots still being furloughed? How many are on the street?

What about the addition of Phenom 300s? Is that still the plan? Will the Phenoms basically end up replacing the Beechjets on a one-for-one basis? How soon are the Phenoms expected to arrive and how many in 09? Any updates? The Phenom 300 looks like a pretty solid performer (certainly far better than the Beechjet).

I guess the long-term future fleet composition would be Legacies, Citation Xs, Hawker 800XPCs and Phenom 300s - right? Let's hope the economic situation improves for all fractionals so that hiring begins again (I am assuming in 2010).

I am attempting a hijack of this thread back to its origin. Read on!!



RICHMOND HEIGHTS -- Flight Options is pinning its fortunes on a sleek Brazilian-made jet and competitive pricing to steer out of an earnings plunge that's forced the furlough of more than half its pilots and administrative staff. The Cuyahoga County Airport-based fractional jet company hosted a visit Friday of Embraer's new Phenom 300, a super-light jet in the final stages of development.
Flight Options has ordered 100 of the luxury jets and will take delivery of them over 10 years. It will get its first Phenom 300 in November, a second in December and 16 more next year.

Meanwhile, Flight Options is touting its JetPASS program that lets customers buy a block of time in its fleet, instead of owning an equity share of an airplane. Other fractional jet companies have programs similar to JetPASS. But Flight Options says it can undercut their pricing by 20 percent because it doesn't use a middleman broker to sell the hourly packages.
"These are the two ways in which we will survive and thrive in this economy," Chief Executive Mike Silvestro said.
Silvestro didn't say when the privately-held company will be able to rehire pilots and other employees. The goal is to do so as soon as business recovers.
Demand has dropped sharply from corporate fliers and wealthy individuals who buy ownership shares in private jets. The slump has pushed Flight Options into at least four rounds of pilot furloughs and administrative staff cuts.
As recently as 2007 Flight Options had 1,500 employees. Today it has 670, including 330 pilots. Its Cuyahoga County presence has dropped from 500 employees to 225.
The founder of Flight Options is taking a bigger stake in the company as part of the bid to stabilize operations.
Kenn Ricci's Directional Capital and another private equity company in Cleveland, Resilience Capital Partners, have increased their combined share of Flight Options from about 20 percent to 75 percent.
Ricci himself, Silvestro, Chief Financial Office Julie Boland and Chief Operating Officer Chris Herzberg also have increased their investment in Flight Options -- acquiring part of the 25 percent share not owned by Directional and Resilience. The rest of the company is held by H.I.G. Capital. Flight Options didn't disclose further details or dollar amounts.
H.I.G., a Miami private equity operation, was Flight Options' biggest owner until the realignment.
Ricci launched Flight Options in 1998, but left when it was bought by Raytheon Co. in 2001. He returned to Flight Options in his role as chairman of an H.I.G. holding company after parent company H.I.G. bought the aviation services provider.
The head of the pilots' union at Flight Options, Mat Slinghoff, said pilots weren't brought into the loop on the new ownership structure.
"We have put in a detailed request to the company and hopefully we'll get a response from them soon as to what it will be," Slinghoff said in a call from Minneapolis, where he's in contract negotiations. The pilots voted in mid-2006 to affiliate with the Teamsters and have been bargaining for a first contract.
Slinghoff said Flight Options pilots are excited that the firm will be the "launch customer" for the Phenom 300.
The aircraft joining Flight Options' fleet later this year has a range of 2,071 miles, seats up to seven passengers and two crew, and has a per-hour cost of $3,519 when fuel and taxes are included. That compares with hourly costs for other business jets that range from $4,450 for the Cessna Citation CJ3 to $5,689 for the Citation XLS, Flight Options says.
Flight Options' main competitors are Columbus-based NetJets, an enterprise of Warren Buffet's Berkshire Hathaway; CitationShares, a division of Cessna Aircraft Co., based in Greenwich, Conn.; and Flexjet of suburban Dallas.
Silvestro said the Phenom 300 consumes less fuel and has a bigger baggage area and more amenities than comparable jets. Its cruising speed is 518 mph.
A promotional brochure says the plane can handle restrictive airports, take off from high elevations in ski country or short runways in hot conditions, and climb to 35,000 feet in 12 minutes with ease.
Isn't a $750 million outlay -- the combined cost of the 100 jets -- a rash investment with demand so tepid?
"If the airplane wasn't so unique . . . that would be a valid point of view," Silvestro said. "But this airplane is one we feel strongly will have great reception in the market."

 

[johnsonrod]

I am attempting a hijack of this thread back to its origin. Read on!!



RICHMOND HEIGHTS -- Flight Options is pinning its fortunes on a sleek Brazilian-made jet and competitive pricing to steer out of an earnings plunge that's forced the furlough of more than half its pilots and administrative staff. The Cuyahoga County Airport-based fractional jet company hosted a visit Friday of Embraer's new Phenom 300, a super-light jet in the final stages of development.
Flight Options has ordered 100 of the luxury jets and will take delivery of them over 10 years. It will get its first Phenom 300 in November, a second in December and 16 more next year.

Meanwhile, Flight Options is touting its JetPASS program that lets customers buy a block of time in its fleet, instead of owning an equity share of an airplane. Other fractional jet companies have programs similar to JetPASS. But Flight Options says it can undercut their pricing by 20 percent because it doesn't use a middleman broker to sell the hourly packages.
"These are the two ways in which we will survive and thrive in this economy," Chief Executive Mike Silvestro said.
Silvestro didn't say when the privately-held company will be able to rehire pilots and other employees. The goal is to do so as soon as business recovers.
Demand has dropped sharply from corporate fliers and wealthy individuals who buy ownership shares in private jets. The slump has pushed Flight Options into at least four rounds of pilot furloughs and administrative staff cuts.
As recently as 2007 Flight Options had 1,500 employees. Today it has 670, including 330 pilots. Its Cuyahoga County presence has dropped from 500 employees to 225.
The founder of Flight Options is taking a bigger stake in the company as part of the bid to stabilize operations.
Kenn Ricci's Directional Capital and another private equity company in Cleveland, Resilience Capital Partners, have increased their combined share of Flight Options from about 20 percent to 75 percent.
Ricci himself, Silvestro, Chief Financial Office Julie Boland and Chief Operating Officer Chris Herzberg also have increased their investment in Flight Options -- acquiring part of the 25 percent share not owned by Directional and Resilience. The rest of the company is held by H.I.G. Capital. Flight Options didn't disclose further details or dollar amounts.
H.I.G., a Miami private equity operation, was Flight Options' biggest owner until the realignment.
Ricci launched Flight Options in 1998, but left when it was bought by Raytheon Co. in 2001. He returned to Flight Options in his role as chairman of an H.I.G. holding company after parent company H.I.G. bought the aviation services provider.
The head of the pilots' union at Flight Options, Mat Slinghoff, said pilots weren't brought into the loop on the new ownership structure.
"We have put in a detailed request to the company and hopefully we'll get a response from them soon as to what it will be," Slinghoff said in a call from Minneapolis, where he's in contract negotiations. The pilots voted in mid-2006 to affiliate with the Teamsters and have been bargaining for a first contract.
Slinghoff said Flight Options pilots are excited that the firm will be the "launch customer" for the Phenom 300.
The aircraft joining Flight Options' fleet later this year has a range of 2,071 miles, seats up to seven passengers and two crew, and has a per-hour cost of $3,519 when fuel and taxes are included. That compares with hourly costs for other business jets that range from $4,450 for the Cessna Citation CJ3 to $5,689 for the Citation XLS, Flight Options says.
Flight Options' main competitors are Columbus-based NetJets, an enterprise of Warren Buffet's Berkshire Hathaway; CitationShares, a division of Cessna Aircraft Co., based in Greenwich, Conn.; and Flexjet of suburban Dallas.
Silvestro said the Phenom 300 consumes less fuel and has a bigger baggage area and more amenities than comparable jets. Its cruising speed is 518 mph.
A promotional brochure says the plane can handle restrictive airports, take off from high elevations in ski country or short runways in hot conditions, and climb to 35,000 feet in 12 minutes with ease.
Isn't a $750 million outlay -- the combined cost of the 100 jets -- a rash investment with demand so tepid?
"If the airplane wasn't so unique . . . that would be a valid point of view," Silvestro said. "But this airplane is one we feel strongly will have great reception in the market."

Thanks 52Vincent! That Phenom 300 looks like a pretty cool airplane and I am sure the pax will appreciate it. I hope it all works out for you guys - you deserve much better!!!!!

 

[B19 Flyer]

Did they have gold seals on their CFI's too?

"departement" Honestly???

Spelling Nazi again, too bad you have such a hard time with an AFM...

Many of them were ERAU grads with CFII's with a multi-commercial. Choices were made for various reasons when they came out of school. The primary reason they took they pay cut seemed to be they wanted to be home every night so they sacrificed the additional pay flying would have given them.

You seem to underestimate those around you fischman or the efforts and choices they have placed in their careers. Career pilots are not the only ones that have invested emotionally and financially in their careers.

 

[B19 Flyer]

Safest form of transportation?

Top 3 most dangerous jobs.

1) Fisherman

2) Pilot

3) logger

I don't see any other aviation type job on the list.

Interesting. You are right. You're a commercial pilot, right? Safest form of transportation? Agreed?

Who makes it the safest form of transportation?

Pilots? Or perhaps those in management that put the systems and standards together to mitigate risk?

The answer is those in management that mitigate risk.

 

[gunfyter]

19,

All honorable jobs....

But none have done what I have to get where I am. Otherwise they would be here.

Here is a CLUE ... Compare the Interview process for hiring of pilots with that of other positions at an airline or aviation company....

Look, just accept the fact that being a pilot is a $200K per year job and don't whine about it if you are not a pilot and make less.... Do something about it.
Get your ATP and thousands of hours of experience Flight Instructing, fly night freight and charter ... etc.. While living on Ramen noodles and Mac and Cheese. Then apply to the airlines .... Its that simple.

Its like a Sports team... the is the admin, sales, groundskeepers, concession stands personnel etc....


But the Players on the Diamond are the ones with the investment in Baseball.... And they Have a Union....

 

[B19 Flyer]

It's not always about the money...

19,

All honorable jobs....

But none have done what I have to get where I am. Otherwise they would be here.

Here is a CLUE ... Compare the Interview process for hiring of pilots with that of other positions at an airline or aviation company....

Look, just accept the fact that being a pilot is a $200K per year job and don't whine about it if you are not a pilot and make less.... Do something about it.

Get your ATP and thousands of hours of experience Flight Instructing, fly night freight and charter ... etcc.. While living on Ramen noodles and Mac and Cheese. Then apply to the airlines .... Its that simple.

Geez ... should I start whining because I don't earn as much as my Doctor or my Electrician and plumber?

$200K per year thats what we need to get a decent ROI an what we invest in this career.

What exactly have you done that make you any more special than any other pilot? I've worked with guys that flew with the 160th that didn't take that attitude with them. I'm certain you haven't flown at that level.

The exact point I was trying to make fischman is that many of these folks invested financially just as deeply as you did, but chose not to fly for a living. They accepted the lower wage for what they considered a higher quality of life.

Have you ever interviewed for any other position in aviation? Probably not. You sure as heck haven't interviewed for a senior management position where the vetting makes hiring a pilot look like beginners day.

You don't seem to appreciate the fact that others, myself included, do other things in the industry. You can't do what I do unless you've had years of experience. Each job has different skills and none of it is learned overnight.

It's not always about the money...

 

[gunfyter]

So you are comparing vetting Senior management with Pilot Hiring....

Good job. Both six figure careers. Now you are talking. Before I was thinking you thought everybody and their brother in support roles had as much invested in aviation as the Pilots.... But now I see you have put us in the right category.

 

[jehtplane]

Interesting. You are right. You're a commercial pilot, right? Safest form of transportation? Agreed?

Who makes it the safest form of transportation?

Pilots? Or perhaps those in management that put the systems and standards together to mitigate risk?

The answer is those in management that mitigate risk.

Really? Did you write a standard practice for say, landing an Airbus in the Hudson River. Pilots through their individual experience develop skills and instincts that are not covered in any manual or standard practice, we like to call it thinking outside the box. There are things that cannot be taught by a book. There is no way for any checklist or any SP that can cover everything that can happen. Sometimes you just have to figure it out as a crew between the two guys in the cockpit and get the job done, that my friend is irreplaceable. Back to Flight Options thread now, I hope you guys come out of this and thrive, as a furloughed CS guy, we do not need any more on the street. Good luck.

 

[waka]

Interesting. You are right. You're a commercial pilot, right? Safest form of transportation? Agreed?

Who makes it the safest form of transportation?

Pilots? Or perhaps those in management that put the systems and standards together to mitigate risk?

The answer is those in management that mitigate risk.

This is why you have never been and never will be a professional pilot. Yeah yeah, I know, you lost your medical. I'm glad that you didn't take care of yourself like you should have and lost it.

 

[johnsonrod]

Hey B19 Flyer,

Do you know what the original topic was for this thread? Perhaps you could take your nonsensical, blabbering cr@p to another thread...

I want to thank 52Vincent for finally taking control of this thread and answering the original questions.

 

[993_Pilot]

Blah Blah Blah Blah Blah. . .

Can't you keep a thread on topic ???

( Here comes, "but he started it" )

 

[52Vincent]

Hey B19 Flyer,

Do you know what the original topic was for this thread? Perhaps you could take your nonsensical, blabbering cr@p to another thread...

I want to thank 52Vincent for finally taking control of this thread and answering the original questions.

Thanks JR, but it appears my hijack attempt was foolhardy.
Lets all just get along and try to stick to the original topic of this thread.

Have a great day!!!

 

[AeroBoy]

Interesting. You are right. You're a commercial pilot, right? Safest form of transportation? Agreed?

Who makes it the safest form of transportation?

Pilots? Or perhaps those in management that put the systems and standards together to mitigate risk?

The answer is those in management that mitigate risk.

I'm certain Capt. Sullenberger would disagree entirely with your conclusion.