Would ASA do better in this industry if they focussed on making the pilots happy?

[JoeMerchant]

That's what worries me. Those in charge will see an adequately staffed airline as overstaffed.

We have to make money...We aren't in business to lose money. Right now we don't make money. The cash cow that regionals used to be doesn't exist anymore. Reimbursement rates have gone way down. Costs have gone way up...Something has to give. The net profit margin that ASA enjoyed back in 1998 has been shrunk to zero or worse....

 

[JoeMerchant]

We'll be fine. 40% of the pilot group with be on reserve.

If 40% are on reserve, then we will need to furlough.....

 

[FishandFly]

Joe, would you agree though that being adequately staffed encourages a pilot group to operate at 100% efficiency?

Of course the question would be which saves more money, but considering offering a good product comes only with being adequately staffed maybe it would work out.

An interesting example is our mechanic catastrophe. They have been refusing our mechanics even minimal pay increases for ever and look what happened. Now our entire operation is failing partially due to continual mx issues. Why can't they forecast the costs that result from being a bad company to work for?

 

[Flyguy1226]

The only thing Mgmt cares about right now is to complete SOC by the end of the year, unfortunately everything else is being ignored or going to s**t right now.

 

[JoeMerchant]

Joe, would you agree though that being adequately staffed encourages a pilot group to operate at 100% efficiency?

Of course the question would be which saves more money, but considering offering a good product comes only with being adequately staffed maybe it would work out.

An interesting example is our mechanic catastrophe. They have been refusing our mechanics even minimal pay increases for ever and look what happened. Now our entire operation is failing partially due to continual mx issues. Why can't they forecast the costs that result from being a bad company to work for?

Fish, it's not that simple in this business...I wish it were.

1. The airlines have far more flying in June, July, and half of August than the rest of the year....You can't use 20% of the year for your staffing model.

2. The majors we partner with are constantly adding flying at the last minute. How do we account for that? It may end next month.

3. We have built a "master/apprentice" type industry where the "regionals" are "stepping stone" jobs to the "real" jobs at the "mainlines"... This causes constant movement, and the cost structure is based on this constant movement. In addition, it only takes 2 weeks notice to quit, but 3+ months to replace. For mechanics, it takes far longer to get them up to speed...

4. We already can't make money under the new paradigm...How does increasing our costs make us make money? The only way it will work is to outlive the competition and get pricing power....

5. You say this is a "bad company to work for". Can you name a regional that is better to work for. Which one is better?

 

[Freebrd]

The only thing Mgmt cares about right now is to complete SOC by the end of the year, unfortunately everything else is being ignored or going to s**t right now.

copy dat!

 

[pilotyip]

Fish, it's not that simple in this business...I wish it were.

1. The airlines have far more flying in June, July, and half of August than the rest of the year....You can't use 20% of the year for your staffing model.

2. The majors we partner with are constantly adding flying at the last minute. How do we account for that? It may end next month.

3. We have built a "master/apprentice" type industry where the "regionals" are "stepping stone" jobs to the "real" jobs at the "mainlines"... This causes constant movement, and the cost structure is based on this constant movement. In addition, it only takes 2 weeks notice to quit, but 3+ months to replace. For mechanics, it takes far longer to get them up to speed...

4. We already can't make money under the new paradigm...How does increasing our costs make us make money? The only way it will work is to outlive the competition and get pricing power....

5. You say this is a "bad company to work for". Can you name a regional that is better to work for. Which one is better?

Hey stop that! this is FI, we do not deal in reality here. We only deal in a self centered world of everything being someone else's fault. BTW Isn't the term Happy Pilot an oxymoran?

 

[FishandFly]

Fish, it's not that simple in this business...I wish it were.

1. The airlines have far more flying in June, July, and half of August than the rest of the year....You can't use 20% of the year for your staffing model.

2. The majors we partner with are constantly adding flying at the last minute. How do we account for that? It may end next month.

3. We have built a "master/apprentice" type industry where the "regionals" are "stepping stone" jobs to the "real" jobs at the "mainlines"... This causes constant movement, and the cost structure is based on this constant movement. In addition, it only takes 2 weeks notice to quit, but 3+ months to replace. For mechanics, it takes far longer to get them up to speed...

4. We already can't make money under the new paradigm...How does increasing our costs make us make money? The only way it will work is to outlive the competition and get pricing power....

5. You say this is a "bad company to work for". Can you name a regional that is better to work for. Which one is better?

Joe,
Let me be clear, my issue is not having to stretch ourselves a bit over a 3 month period. We have been severely understaffed for the entire year. Your typical professional will not lose sight of operating at 100 percent simply because they are told they are going to have a poor quality of life, be extended, etc. for that short period of time. I am referring to running thin on purpose. Reserve pilots ARE understaffed 80 percent of the year, not 20 and have been for 4 years.

Of course it is a difficult industry, but don't get too down on yourself or the industry. Although you seem like a very analytical guy, Jerry Atkin's actions are more of a good indicator than skepticism of profit we receive in company emails. Jerry is NOT divesting.

How do we spend more money when we are not making money? That is my question. If ASA is running at a loss and low on cash, you run it like they currently are OTHER than one major point of my original post. We have all seen ASA go to the end of the earth to NOT accommodate pilots in need of numerous personal flexibility or simply trusting the group. My point in the case of low cash is that we should still be treated very well to ensure we operate at 100% for the company.

If we consider all the time past and present when we have adequate cash flow and the pilot group continues to be treated poorly, my point still stands. Treat your employees well and they will treat you well.

If you would like to see a company that operates this way successfully, just look around. Southwest touches on it, but the non-airline industries have dove head first into this concept.

Focus on your employees and your employees will focus on you.

 

[acaTerry]

..

5. You say this is a "bad company to work for". Can you name a regional that is better to work for. Which one is better?

You may not want to keep such an "I surrender" attitude. That is part of why you guys are where you are now. Look back to the CMR contract in the late 1990's. Regionals weren't all that bad when I was there...but then again, the airline industry was a different animal. Regardless, they fought it out, and I remember many a newspaper article on CMR and its contract fight with the pilots. They ended up getting a pretty darn good contract. The service you provide does matter. Passengers write letters. And when they keep getting good letters, or bad ones, that is remembered not only in the contract between you and your management, but also between your management and the associated mother airline. If you think that a fee-per-departure of $15 cheaper is more important than losing 15% of their customer base over crummy service, you need to think again. The better airline WILL get the bid. Big dollars come from full airplanes. Airplanes are filled with passengers who like your airline. Even if it costs a little more. Guess what? SWA has not been THE cheapest fare for quite some time, and look at their load factors. Now look at their pilots pay and benefits package.
Your service, your attitude does matter. When the time comes, fight for that contract. If they give you a good one, and you can't wipe the smile off the faces of your passengers after flying with you, then it only gets better. Saying "oh why bother, it sucks everywhere" is an easy way to stay miserable. No one will cry for you if you guys don't try.

 

[acaTerry]

.

Focus on your employees and your employees will focus on you.

SWA is a fine example. "The airline that will never last" is now kicking everyone's a$$. They went from being the airline that everyone turned their nose up to the one that everybody loves, eh I mean, Luvs

 

[paid4training]

I worked for the asa/expressjet airline as an agent. I have to say the company doesn't care about any of it's employees!!! I felt like I was in an abusive relationship, management and the company do not care about you at all. Starting at $8.75 but getting a pay reduction to 8.50 come sept., you are going to have alot of unhappy don't give a crap agents working your flights!!!!! Misery is company wide at surejet!!!!!