In today's New York Post:
http://nypost.com/2015/05/26/warren-buffetts-airplanes-thriving-despite-pilot-shortage/
The 1 percent is giving Warren Buffett agita again.
Berkshire Hathaway-owned business-jet operation NetJets is trying to wrangle benefit cuts from its pilots union just as boom times fuel a pilot shortage that could crimp its business.
A lot of business jet owners are looking for pilots and can't find them, a former NetJets executive said.
With the economy on the rebound, wealthy customers have returned to buying shares in NetJets planes in exchange for flying hours. Last year it sold 3,500 NetJets Marquis cards - 1,000 more than expected, the exec said.
Nevertheless, NetJets, which almost collapsed during the downturn when CEOs cut back on private-jet travel, said it has to trim costs to meet Berkshire?s demands for greater returns.
The situation is fueling testy talks with its 2,700-member pilots union, which said the company wants cuts when business is soaring.
"This year and the next year are going to be the best years [the business-jet industry] has had in the last decade, and we're not really in a position to capitalize on it," said Pedro Leroux, president of the union, NetJets Association of Shared Aircraft Pilots.
NetJets is building up its fleet after selling planes to pay down debt during the downturn. Its fleet was 26 percent smaller at the end of 2014 compared to 2008, when it had 634 jets, according to research firm JetNet.
It has been subcontracting more flights to meet demand and cover for grounded planes after cutting back on its spare parts inventory.
Buffett, who admitted NetJets would have crashed and burned had Berkshire not backed its nearly $2 billion of debt, suggested the company would have no problem filling cockpit seats.
If we have an opening, we have lots and lots of people who want to come join us, and we have very few that want to leave, he told Fox Business this month.
Last year, 98 pilots either resigned or were fired, more than double the previous year, the union said. Its own internal polling data show 30 percent of NetJets pilots are considering a move to a commercial airline.
They are the highest numbers we've ever seen, the union's Leroux said.
NetJets pegged its pilot losses at 93, lower than the union's tally, and said only 22 of them quit for competitors. The company said it is halfway toward its goal of hiring 127 pilots this year.
During the recession, NetJets furloughed 495 pilots, of whom 240 have returned.
NetJets wants to maintain the present salary and is asking pilots to start paying for some health-care benefits.
The pilots contract with NetJets expired in 2013, but they can't strike until they go through federal mediation.
NetJets goal remains as it always has been to reach a fair agreement with the pilots, a NetJets rep said.
http://nypost.com/2015/05/26/warren-buffetts-airplanes-thriving-despite-pilot-shortage/
The 1 percent is giving Warren Buffett agita again.
Berkshire Hathaway-owned business-jet operation NetJets is trying to wrangle benefit cuts from its pilots union just as boom times fuel a pilot shortage that could crimp its business.
A lot of business jet owners are looking for pilots and can't find them, a former NetJets executive said.
With the economy on the rebound, wealthy customers have returned to buying shares in NetJets planes in exchange for flying hours. Last year it sold 3,500 NetJets Marquis cards - 1,000 more than expected, the exec said.
Nevertheless, NetJets, which almost collapsed during the downturn when CEOs cut back on private-jet travel, said it has to trim costs to meet Berkshire?s demands for greater returns.
The situation is fueling testy talks with its 2,700-member pilots union, which said the company wants cuts when business is soaring.
"This year and the next year are going to be the best years [the business-jet industry] has had in the last decade, and we're not really in a position to capitalize on it," said Pedro Leroux, president of the union, NetJets Association of Shared Aircraft Pilots.
NetJets is building up its fleet after selling planes to pay down debt during the downturn. Its fleet was 26 percent smaller at the end of 2014 compared to 2008, when it had 634 jets, according to research firm JetNet.
It has been subcontracting more flights to meet demand and cover for grounded planes after cutting back on its spare parts inventory.
Buffett, who admitted NetJets would have crashed and burned had Berkshire not backed its nearly $2 billion of debt, suggested the company would have no problem filling cockpit seats.
If we have an opening, we have lots and lots of people who want to come join us, and we have very few that want to leave, he told Fox Business this month.
Last year, 98 pilots either resigned or were fired, more than double the previous year, the union said. Its own internal polling data show 30 percent of NetJets pilots are considering a move to a commercial airline.
They are the highest numbers we've ever seen, the union's Leroux said.
NetJets pegged its pilot losses at 93, lower than the union's tally, and said only 22 of them quit for competitors. The company said it is halfway toward its goal of hiring 127 pilots this year.
During the recession, NetJets furloughed 495 pilots, of whom 240 have returned.
NetJets wants to maintain the present salary and is asking pilots to start paying for some health-care benefits.
The pilots contract with NetJets expired in 2013, but they can't strike until they go through federal mediation.
NetJets goal remains as it always has been to reach a fair agreement with the pilots, a NetJets rep said.
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