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Straight from Silvestro's mouth he wants to cut Flex pilots pay

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exagony

Well-known member
Joined
Dec 9, 2002
Posts
371
Flexjet, the second-largest fractional jet company, is taking on industry leader NetJets, nearly four times its size. It?s doing so by aggressively expanding its fleet with newer aircraft?180 aircraft by year?s end, up from 154 in April?and by adding more large-cabin aircraft with swank interiors capable of flying long international hauls. Red Label, a new premium service, guarantees customers aircraft that are five years old or newer, as well as dedicated crews.

Last year, Flexjet placed a $2.4 billion order for 20 of Aerion?s AS2 supersonic business jets, which halve trans-Atlantic crossing times. The first fractional firm to go the supersonic route, it quickly distinguished itself from NetJets. In total, Flexjet has placed orders for 207 new jets and options that could ultimately secure the firm a 445-aircraft fleet for $8 billion. ?We want to make sure we are flying the youngest fleet in the sky,? says CEO Michael Silvestro.

Will its luxury strategy work? The problem with fractional-ownership programs: You buy a share in a ?new? jet and often get an older model that has been flown triple the average number of annual hours of a typically owned private jet. We boarded a fractional Gulfstream a few years ago, and the ratty interior looked as if it had been besieged by a pack of hunting dogs.

Flexjet?s fleet services 2,100 customers; you may own a quarter share, but your airplane is used by 12.8 other customers. Both Flexjet and NetJets have been countering this problem with huge orders for new aircraft, and by expanding their leasing?rather than buying?offers. But for those still seeking the tax advantages of a fractional share, Silvestro says, Flexjet is trying hard to get the price right at buy-in, while making sure the aircraft have the latest equipment and fresh interiors, and are properly maintained, so resale values hold up. He also claims that his Red Label crews make Flexjet?s service more personal and responsive than the competition?s.

Which is where the industry?s labor problems come in. In fat years, fractional operations make modest returns; in a recession, they hemorrhage cash. So everyone in the fractional business has cut labor costs, and that has occasionally affected customer service.

Flexjet is part of Cleveland-based Directional Aviation Capital, a private holding company with $1.5 billion in revenues in 2015. It acquired Flexjet from jet manufacturer Bombardier for $195 million in December 2013, but declined to provide Penta with Flexjet?s recent financial data. Directional has many other aviation-related businesses, including a lower-end sister fractional company, Flight Options, and aircraft-maintenance firm Constant Aviation.

Directional is trying to bring Flight Options? lower-cost labor structure to Flexjet, and that?s not easily done. Early last year, a group of fired Flexjet pilots filed suit against the company, alleging multiple violations of the Railway Labor Act, which also governs airline labor relations. By December, the pilots at both Flexjet and Flight Options had voted to join the Teamsters. Since then, Flexjet and the union have been engaged in increasingly acrimonious litigation. The company states it was disappointed by the vote, but looks forward to continuing to work with the pilots ?who are so vital to our success.?

Flexjet?s next flight mission is to become the go-to provider for wealthy international travelers. In the next three to four years, Silvestro wants to double Flexjet?s fleet of large-cabin Gulfstream aircraft, which existing customers can tap via the new Global Access lease program. Retired Datatel co-founder Tom Davidson leases a share in a Flexjet-run Embraer Phenom 300 light jet, but occasionally uses Global Access when he needs to intercept his catamaran at its various international ports of call. Davidson moved to Flexjet in 2014, partly because he liked the more-personal service that a smaller organization provides. ?It?s all about execution. The staff is tremendously responsive,? he says.

Can Directional really run Flexjet as a luxury brand? So far, so good, with 20% of Flexjet?s customers already signed up for the higher-priced Red Label program. That?s an impressive result, considering it?s not yet a year old
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http://www.barrons.com/articles/flexjet-takes-on-netjets-1466222365
 
What say you RH I mean Warlord? PD are you going to comment too? Says right there in B&W that MANAGEMENT wants to reduce Flexjet's pay! This isn't a union letyer, this is straight from the horse's mouth in an interview MS had wirh Barron's. Head out of the sand yet?

I read the findings from the lawsuit of the pilots who were fired, the judge ruled that Flexjet indeed had violated the RLA hence why these pilots were returned to their positions. Has the company won ANY lawsuits?

To all the union naysayers, if the contract is shi**y then you have no one to blame except for yourself and management. Get on board the union train and get industry pay and benefits or you'll get the contract you deserve. Any paycuts are because of KR, RH, JW, MS's doing - stop being a sheep and start fighting for an industry leading contract.
 
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And yet another jerk telling us how it should be done

Every 4-5 years, a guy in a business suit comes along, criticises the way Netjets does business, and promises to do it better, quicker and far more efficient. They're going to show us "how it should be done" 5 years ago, it was Xojet, 10 years back it was CS

But there's always a catch. They're gonna pay their employees less to better compete.

I've seen this movie before

Let's see what BS excuse they come up with in 5 years time when this flying utopia they're promising doesn't work out.
 
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And yet Netjets just added and option for 50 more Citations. Apparently they are doing something right and also paying their pilots a wage that KR said was unsustainable! That is only unsustainable because it would cut into his profits! Not make the company go out of business!
 
Westin IAD, tv doesn't work...and the toilet doesn't flush. I miss Flexjet.
 
I notice that RH - I mean warlord and PD haven't answered - can't defend the indefensible can you? Lies you have spun have been proven to be lies by your own guy... SMH
 
I notice that RH - I mean warlord and PD haven't answered - can't defend the indefensible can you? Lies you have spun have been proven to be lies by your own guy... SMH

Both laughing stocks.
 
Oh oh! Looks like Netjets is trying to streamline things. Ricci is buying Netjets!

He wishes. Because Ricci's only hope of competing with NetJets is to assimilate them and bring them down (way down) to his Options model.

How many times is it going to take for us to learn the current atmosphere was his plan from the beginning and we were lied to all along? If that Barron's article didn't wake you the ******************** up then nothing will. I know you're bitter about SLI (perhaps rightfully so from where you land) but can you see now the Union will get you better than Ricci ever intended? If you aren't Red Label, you weren't ever even going to keep your salary or schedule let alone boost it. Maybe we can get NJ A parity, maybe we can't but one thing you can take the bank is Kenn Ricci ain't gonna give it out of the nonexistent goodness of his dark soul. You want parity, you need to be willing to fight for it and all this talk of waiting to pay dues until we get to vote on a cba isn't helping and makes those chirping it sound downright dense.

But they got theirs, so what do I know, right?

While I still have a general disdain for a few of the issues regarding the drive and even our current situation, every day brings more clarity. The fact is we have no hope of surviving a Ricci company without a union. I'm hearing more and more people realize it and those who dislike unions as a principle are making plans to go. The ridiculous thing is their plans include unionized work forces. I guess they'd rather have the fight behind them on someone else's dime and effort.

SMH. I'm making plans too but only because I think he'll literally destroy the ship and burn it to the ground before he ever does anything that makes the union look good. I hope the investors are paying attention to the carelessness at the helm. That's not just Ricci by the way. At some point the puppets have to reach for the scissors. It's the saddest thing I've ever watched.
 
He wishes. Because Ricci's only hope of competing with NetJets is to assimilate them and bring them down (way down) to his Options model.

How many times is it going to take for us to learn the current atmosphere was his plan from the beginning and we were lied to all along? If that Barron's article didn't wake you the ******************** up then nothing will. I know you're bitter about SLI (perhaps rightfully so from where you land) but can you see now the Union will get you better than Ricci ever intended? If you aren't Red Label, you weren't ever even going to keep your salary or schedule let alone boost it. Maybe we can get NJ A parity, maybe we can't but one thing you can take the bank is Kenn Ricci ain't gonna give it out of the nonexistent goodness of his dark soul. You want parity, you need to be willing to fight for it and all this talk of waiting to pay dues until we get to vote on a cba isn't helping and makes those chirping it sound downright dense.

But they got theirs, so what do I know, right?

While I still have a general disdain for a few of the issues regarding the drive and even our current situation, every day brings more clarity. The fact is we have no hope of surviving a Ricci company without a union. I'm hearing more and more people realize it and those who dislike unions as a principle are making plans to go. The ridiculous thing is their plans include unionized work forces. I guess they'd rather have the fight behind them on someone else's dime and effort.

SMH. I'm making plans too but only because I think he'll literally destroy the ship and burn it to the ground before he ever does anything that makes the union look good. I hope the investors are paying attention to the carelessness at the helm. That's not just Ricci by the way. At some point the puppets have to reach for the scissors. It's the saddest thing I've ever watched.


I hear ya, Imissy. I've accepted the hand that I've been dealt and have decided to move on. While I'm thankful for the paycheck, I'm miserable in my job.

I'm removing myself from this debate because I'm tired of being angry with both sides. I don't believe this job is worth the many battles we have to fight to win the war. Here are the few reasons why:
1. Kenn Ricci.
2. Kenn Ricci.
3..Kenn Ricci's business philosophy of Cheap labor, low overhead cost. This will never change.
4. Lack of competitive pricing for the product as well as customer friendly detail.
5. The constant battle between pilots. (Not options vs. flex) but the foks vs. the non-foks. This will go on indefinitely.
6. The teamsters.
7. Overworked with an unfavorable schedule.
8. I don't believe we are growing at a trickle.
9. I believe Flex pilots will get screwed in the fence negotiations.

What really lead me to this conclusion that this job will always be mediocre at best is the Option pilots. They are the most unhappy, pilot group I have seen. This has been the case for years, and they have representation. Now, I'm miserable here too. That starts from the top...Ricci.

Unless Ricci changes his business phylosophy towards pilots, nothing will change. Even when we have a contract. My life is too short to eat a ******************** sandwich every time I go to work. I will not accept this standard of working conditions for the next 20+ years. Ricci mentioned during a meeting that the new Flexjet might not be right place for some of us, and if it wasn't he invited us to leave. He's right. I'm looking for employment elsewhere. There's enough PDs in aviation to do his dirty work, he doesn't need me.

You guys take care and good luck.
 

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