1. What exactly is the current status of the pilot negotiations/mediation/etc. and what are the next milestones?
2. What do you see as the "pros" and "cons" of Red Label from the pilots perspective?
3. What should an owner be concerned with about Red Label and the future direction of Flex?
4. Anything else you would like to share.
Thanks.
No family obligations today so I'll take a shot:
1.) Pilots have an arbitrated "temporary" MCBA. It is not nearly good enough and attrition will continue to happen at the same rapid pace we've been observing unless management takes longterm negotiations seriously. So far the company has stalled at every juncture, including frivolous lawsuits, but recently (2 days ago) agreed to honor the MCBA. We'll see how it goes but it's too soon to tell.
Kenn Ricci has verbally expressed a complete disdain for the pilot's union and has said he will always refuse to negotiate or deal with them. He is encouraging a current decertification/in-house campaign that will further murky the waters with stalled negotiations, lawsuits, drama etc...
In my personal opinion, unless management changes their tactics the union issue for OneSky is a huge problem and will continue to be long and drawn out. This has been to Kenn Ricci's own detriment but he is like a 5 year old who wants his way regardless. I'm not being cute or facetious; it is that ridiculous.
2.) Red Label has a few serious issues. From the pilot side, it can lead to complacency which is the #1 safety issue pilots deal with. It has gotten so bad the company is reportedly asking for security footage from the FBO's to verify preflight checks are occurring. The company knows it's a huge issue.
Additionally, the bonus structure is set up to encourage pilots to be extra flexible with writeups, duty time, safety etc... Pilots in the program are also encouraged to work long tours (8+), another safety issue. One day this will catch up to them, the alleged FAR violations (and possible felonies with alleged adjusting of books & logs) might result in an unexpected grounding of the fleet. Do you want to be counting on a plane or crew that could be unexpectedly grounded?
From the owner side, the service is no different so why would you need to be in an exclusive program? Literally everything is the same except the interiors. In some cases RL planes are more trashed because of the incentives to fly them continously. I understand they are giving him a great deal but why are they slashing prices? If your friend needs a good deal to stay in private aviation, maybe he's not meant to be in private aviation. You get what you pay for.
Kenn Ricci is famous for making up on the back end what he gives away on the front end. Beware, that good deal might end up costing him.
3.) I like Silvestro, the current CEO. He seems to get it. But the rest of management is all competing for the idiot award as Ricci yes men. As long as Ricci is involved in the day to day operations (which will be always regardless of what is said - he is a micromanager) the company will continue to have labor issues. They need to turn the reins over to Silvestro and otherwise clean house. Additionally, they need to hire competent schedulers and stop this ridiculous SOP of not hiring professional, certified office personel.
The pilot shortage is real. Unless the company changes it practices, expect a diminishing quality and skill level of pilot. Once again, if they get serious and change their tactics they might be able to pull a hail mary and save it on this front but it will have to be immediate and drastic. I would not risk a 5 year contract when it's reasonable to see every pilot in 3 years will be ancient or inexperienced. Every qualified pilot under 60 here is at least looking for other employment unless they are Red Label.
The pay and benefits are substandard. The work rules are substandard. If they are slashing prices that tells me management is not looking to improve their pilot attraction. That would worry me as a potential owner (and as a pilot looking)
4.) Remember your #1 resource in this industry are your pilots, regardless of whichever company you choose. Sales, services, scheduling can and will lie to you and not look out for you. However, because of face to face long term nature of the relationship it is unlikely a pilot will. Help them out by expressing an interest in their betterment when negotiating contracts. 95% of owners don't tip us because (I'm assuming) you consider us professionals a step above your concierge, driver or waiter. So then why do you allow for us to be treated as indentured servants when you negotiate these contracts knowing we are abused and underpaid? Either start tipping or start talking about your support of us to management including a willingness to leave for greener pastures.
When scheduling, request well rested pilots. Refuse to fly with a pilot on duty for more than 8 hours or 7 days especially in weather. That would go a long way in helping the safety issue and making sure you are put on a list of owners who care about these things. Trust me being on those owner watch lists is a good thing and awards you with certain benefits you won't even be aware of.
Another option, if I ran into a ton of money tommorow and became an owner, I don't know if I'd do fractional. I would consider owning and hiring a full time, well paid aircraft manager and utilize contract for my right seat. Takes care of every problem I see from my perspective. But alas perhaps my "vision" is why I'm in the front and you're in the back.
Another thing I'd like to add is don't be automatically reflexive because of personal business concerns or political ideology regarding the union issue. Except in the scenario I listed above as a single or small group owner there is no way I would risk my money in this industry with a non unionized pilot group. Unions are now industry standard. They are the ones pushing for safety, reliability, standards etc.
In this industry, a non unionized larger sized company just simply will not be cheaper let alone as safe, reliable or professional. This is your life at 35,000 feet. Remember Colgan. Do you want to risk your family, your business, your employees and all that you've built to save a few bucks or let a man-child get his way?
Oh, and Merry Christmas. I'm happy to work today, but remember I did so you can enjoy your holiday. Sure I get paid but a little appreciation goes a long, long way.
