Rex and the Media Release
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it is past the time
I have been reading this post for a week or so now and realise why i got out of aviation.
I now run a successful business in the tourism industry. The reason that companies can not keep employees is that they are all top heavy in terms of management and wages. They need to do what I have done and that is get rid of all the people that don't need to be there and combine there jobs with others. What they need to do then is use the money saved from that to pass on to employees.
I will give you an example of how much my tour driver / guides earn.
F/T
$75,000 per year + super
Fuel card
1 return airfare to anywhere in the world business class for them and a partner.
4 return airfares anywhere in aus per year and 6 weeks leave.
P/T
$300 per day + super
Fuel Card
50% off flights
This has all been on the return of taking 2 high management jobs away and passing the wages on to the drivers.
As a result we have a happier work force and have not lost a person in over 12 months and no sick days. Always are more active with and courteous with customers.
I think it is time for the aviation industry to do the same I can think of many ways that they can intergrate the high management and cut down on there wages which you don't have to then pass the cost onto customers.
I now run a successful business in the tourism industry. The reason that companies can not keep employees is that they are all top heavy in terms of management and wages. They need to do what I have done and that is get rid of all the people that don't need to be there and combine there jobs with others. What they need to do then is use the money saved from that to pass on to employees.
I will give you an example of how much my tour driver / guides earn.
F/T
$75,000 per year + super
Fuel card
1 return airfare to anywhere in the world business class for them and a partner.
4 return airfares anywhere in aus per year and 6 weeks leave.
P/T
$300 per day + super
Fuel Card
50% off flights
This has all been on the return of taking 2 high management jobs away and passing the wages on to the drivers.
As a result we have a happier work force and have not lost a person in over 12 months and no sick days. Always are more active with and courteous with customers.
I think it is time for the aviation industry to do the same I can think of many ways that they can intergrate the high management and cut down on there wages which you don't have to then pass the cost onto customers.
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flyby11 - and you wonder why your moral is so high 
good one you mate there are some good managers out there
Where do I sign up? oh and my return intl destination = BCN
good one you mate there are some good managers out thereWhere do I sign up? oh and my return intl destination = BCN
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Well said flyby11
The money is already in the pockets of management & company owners. It is about time they pay pilots what they are worth instead of spending all the profits on their own selfish needs. 
I think it is time for the aviation industry to do the same I can think of many ways that they can intergrate the high management and cut down on there wages which you don't have to then pass the cost onto customers.
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Anyone who even tries to suggest that an airline like Rex can't improve salaries should have a look at their latest annual report. I just had a quick look, and they could have increased everyone's wages (including all levels of management) by 10% and still returned a profit of over $27m before tax (down from $33m) to shareholders.
People suggesting that they can't afford any payrise should look at the figures and then try and come to that conclusion.
People suggesting that they can't afford any payrise should look at the figures and then try and come to that conclusion.
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And the consequences?
Dude, a profit figure as such doesn't really tell anyone much unless it's put into relation with things like invested capital and other financial company data. Interesting question actually that hasn't been answered here; can anyone shed light on whether or not Rex are actually performing financially and could really afford a significant salary increase?
Maybe you can also work out what such a proposed salary increase would do to EBIT (earnings before interest and tax) and a few other of the major performance indicators, as those would have a big impact on the value of the company and the attractiveness to investors and banks, which in turn is a major determining factor for any company's ability to raise capital and keep the the show on the road, or in the air in this case..
If the demonstrable performance of the company is still industry average or above after such a salary increase, you have a point, if not, then the management decision to keep salaries where they are is probably not that wrong given management has to look after all stakeholders of which employees are one group, but not the only one..
Standing by to be flamed
Maybe you can also work out what such a proposed salary increase would do to EBIT (earnings before interest and tax) and a few other of the major performance indicators, as those would have a big impact on the value of the company and the attractiveness to investors and banks, which in turn is a major determining factor for any company's ability to raise capital and keep the the show on the road, or in the air in this case..
If the demonstrable performance of the company is still industry average or above after such a salary increase, you have a point, if not, then the management decision to keep salaries where they are is probably not that wrong given management has to look after all stakeholders of which employees are one group, but not the only one..
Standing by to be flamed
PlankBlender,
I'll light the first torch!
Do you actually know what is going on here? Jim Davis has stated publically that the major airlines in this country will require 1800 new pilots over the next 2 years! My estimates were about 60% of that number, and based on that REX were in deep trouble. If the numbers being stated by captain Davis are correct then REX is f#cked!
All your accounting gobbledygook mean absolutely squat if there are no pilots left to fly the aircraft.
I've said it before, leave the profits were they are and add $6.25 to the cost of every ticket. If it's loss of market share you're worried about, then leave the 5 routes that we compete on alone, and make it $7.00 per ticket for the rest!
Rex are already cancelling flights in record numbers, and several less profitable routes, (but profitable all the same) are under threat. Ask the travelling public from those communities what they would prefer?
I'll light the first torch!
Do you actually know what is going on here? Jim Davis has stated publically that the major airlines in this country will require 1800 new pilots over the next 2 years! My estimates were about 60% of that number, and based on that REX were in deep trouble. If the numbers being stated by captain Davis are correct then REX is f#cked!
All your accounting gobbledygook mean absolutely squat if there are no pilots left to fly the aircraft.
I've said it before, leave the profits were they are and add $6.25 to the cost of every ticket. If it's loss of market share you're worried about, then leave the 5 routes that we compete on alone, and make it $7.00 per ticket for the rest!
Rex are already cancelling flights in record numbers, and several less profitable routes, (but profitable all the same) are under threat. Ask the travelling public from those communities what they would prefer?
Last edited by KRUSTY 34; 19th Oct 2007 at 06:01. Reason: spelling
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Dude, a profit figure as such doesn't really tell anyone much unless it's put into relation with things like invested capital and other financial company data
SUPERIOR RETURN
- Return on equity of 23.1%
- Return on total assets of 15%
- Share price increase by 176% in the FY
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And the relevance would be?
Krusty I hear ya, but our respective points are mostly unrelated. If there is indeed a pilot shortage (and at the moment despite some early signs the jury seems to be still out), lack of supply of pilots will mean prices (read pilot wages and T&Cs) must go up. But that will have an effect on all companies, so with the figures I allude to above, you will still be able to make a comparison and answer the question whether or not a company could pay higher wages and still perform financially, which is whay I was arguing..
If indeed then pilot prices go up, what follows is an increase in supply (with the obvious lag due to necessary training etc.), and as conditions improve supply will move to meet demand in the medium term. In that sense aviation is like any other business, at least in the long term.
I would bet that quite a few pilots who got out of the game to make a better living money-wise would re-enter aviation once pay improves, thus dampening any shortage, and I do not think developments will be too dramatic. Of course as an aspiring pilot (coming into aviation out of passion, from a line of business that pays much much more) I am all for better pay and conditions
, but I am not holding my breath 
for ace pay and T&Cs..
As per your ticket increase suggestion, I agree this might work given there is probably limited competition on a lot of the Rex routes. And with any company that isn't too small, if one really wants, one can find the dough for a wage increase, probably more cleverly in combination with a few well-placed T&C carrots to remove incentives to leave..
I have the funny feeling from what others have said here, that a lot of Rex's problems are indeed home-made and not necessarily only a reflection of an industry wide shortage (other airlines don't seem to have that many cancellations, and charter and freight are still running, right?), and an injection of focus on their issues with rosters, staffing levels and retention might just fix some things.. you never know, we might get one of the Rex management/admin insiders who seem to read these threads spill a few beans anonymously about what they're doing to improve things, that would be very enlightening, don't you think? Certainly would breathe some life and maybe even a factoid or two into this discussion
If indeed then pilot prices go up, what follows is an increase in supply (with the obvious lag due to necessary training etc.), and as conditions improve supply will move to meet demand in the medium term. In that sense aviation is like any other business, at least in the long term.
I would bet that quite a few pilots who got out of the game to make a better living money-wise would re-enter aviation once pay improves, thus dampening any shortage, and I do not think developments will be too dramatic. Of course as an aspiring pilot (coming into aviation out of passion, from a line of business that pays much much more) I am all for better pay and conditions
, but I am not holding my breath for ace pay and T&Cs..As per your ticket increase suggestion, I agree this might work
given there is probably limited competition on a lot of the Rex routes. And with any company that isn't too small, if one really wants, one can find the dough for a wage increase, probably more cleverly in combination with a few well-placed T&C carrots to remove incentives to leave..I have the funny feeling from what others have said here, that a lot of Rex's problems are indeed home-made and not necessarily only a reflection of an industry wide shortage (other airlines don't seem to have that many cancellations, and charter and freight are still running, right?), and an injection of focus on their issues with rosters, staffing levels and retention might just fix some things.. you never know, we might get one of the Rex management/admin insiders who seem to read these threads spill a few beans anonymously about what they're doing to improve things, that would be very enlightening, don't you think? Certainly would breathe some life and maybe even a factoid or two into this discussion
Plank...,
I'm all for management initiatives to better the lot of their employees, hense giving encouragement to stay.
Do you know what has been done in this area.....
ZIP!
The pilot crisis, because that is what it really is, hasn't even started. Remember what the REX chief of staff said, "1800 pilots required over the next 2 years".
You sound like a fairly intelligent person, therfore I asume you can count!
And the numbers just don't add up.
I'm all for management initiatives to better the lot of their employees, hense giving encouragement to stay.
Do you know what has been done in this area.....
ZIP!
The pilot crisis, because that is what it really is, hasn't even started. Remember what the REX chief of staff said, "1800 pilots required over the next 2 years".
You sound like a fairly intelligent person, therfore I asume you can count!
And the numbers just don't add up.
Numbers.
A classic example of management thinking today.
These accountant managers never approach the problem from an operational point of view.
Its just numbers, they're not pax to be catered for, they're just numbers, they're not aircraft that can breakdown, just numbers, staff are not loyal, committed people, we're just numbers.
Numbers to appear in the bonus column.
If they're not careful those numbers won't be too flash.
These accountant managers never approach the problem from an operational point of view.
Its just numbers, they're not pax to be catered for, they're just numbers, they're not aircraft that can breakdown, just numbers, staff are not loyal, committed people, we're just numbers.
Numbers to appear in the bonus column.
If they're not careful those numbers won't be too flash.
Hi Does anyone know how much REX pays?
Now for the Rex cadets they are going to pay $80K for that job. Also they won't be able to be promoted so they will probably be on less than $50K for a long time. They also won't have ATPL subjects either I imagine.
If they wanted money they'd be better off doing the GA thing, as you would get more money working as a grade 1 instructor or flying twin charter
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YAK,
Great job of disguising your voice with that weird scottish/mexican/estonian accent, never thought of that!
The interesting thing is...you are wrong.
There is one turboprop operator who has had very stable numbers for donkeys years. The only thing that has changed is some middle manager got in and tried to get blood out of a stone by stuffing up the lifestyle. This co-incidentally happened with the current jet recruitment drive.
For pilots with families, there is more to the job than making lots of noise and getting paid 6 figures.
Reap etc.
Evan ef Rex payed saim as Deeeejay aand Cunnas u turboplop pielots wood steel go jet, all that is happening is as eye hav 4seen
The interesting thing is...you are wrong.
There is one turboprop operator who has had very stable numbers for donkeys years. The only thing that has changed is some middle manager got in and tried to get blood out of a stone by stuffing up the lifestyle. This co-incidentally happened with the current jet recruitment drive.
For pilots with families, there is more to the job than making lots of noise and getting paid 6 figures.
Reap etc.
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See what happens with Easterns EBA. Lifestyle to go down the gurgler
Biggest mistake is 6 days & splitting 2 of 8. What lifestyle is that when others are gettin 11 or 12 off.
Wynsock yer right. To the blokes they NEED to hang on to (most senior & experienced) are doing it for lifestyle. Once it goes why stick around.
Rumor is 15-20 QL captains for career progression interviews in Nov.
Lifestyle,lifestyle.
.
.
.
.
Career progression ie Virgin/Dragon/Cathay/ and any airlines OUTSIDE QF group coz we're lepers to mainline management. Hardly anyone bothered applying 2 mainline this time round coz they know from years of experience theyre not likely to get thru. Gotta keep them double training costs down so why not use skills test as a tool to minimize migration.
Reap what u sow Cockaroach. Good luck on yer northern Oz junket.
See Youse!
Biggest mistake is 6 days & splitting 2 of 8. What lifestyle is that when others are gettin 11 or 12 off.Wynsock yer right. To the blokes they NEED to hang on to (most senior & experienced) are doing it for lifestyle. Once it goes why stick around.
Rumor is 15-20 QL captains for career progression interviews in Nov.
Lifestyle,lifestyle.
.
.
.
.
Career progression ie Virgin/Dragon/Cathay/ and any airlines OUTSIDE QF group coz we're lepers to mainline management. Hardly anyone bothered applying 2 mainline this time round coz they know from years of experience theyre not likely to get thru. Gotta keep them double training costs down so why not use skills test as a tool to minimize migration.
Reap what u sow Cockaroach. Good luck on yer northern Oz junket.
See Youse!
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Rex Cadetship
Hi all,
Just wondering if anyone else got ask to supply their HSC results over the last couple of days. I got asked last night for them and am wondering if they are starting to move things along.
outthere
Just wondering if anyone else got ask to supply their HSC results over the last couple of days. I got asked last night for them and am wondering if they are starting to move things along.
outthere
OK Boys & Girls,
It's probably no secret that I trust airline management as far as I could throw any of 'em.
Having said that, it is important that people make up their own minds. It is also vitally important that anyone contemplating a cadetship with REX, arm themselves with all the facts.
REX management have typically been short on detail. If I were about to embark on such a program, I would be asking these questions.
Don't place yourself in a position where you are put at a disadvantage.
It's probably no secret that I trust airline management as far as I could throw any of 'em.
Having said that, it is important that people make up their own minds. It is also vitally important that anyone contemplating a cadetship with REX, arm themselves with all the facts.
REX management have typically been short on detail. If I were about to embark on such a program, I would be asking these questions.
- How much will it cost me?
- How much will REX contribute to my training?
- Will it be a loan? If so how do I pay it back?
- How much will this cost me out of each fortnights pay?
- Exactly how long will it take from commencement of training to eventual check to line?
- At what stage will I be considered a REX employee?
- Will I be eligible for command?
- If I fail to reach proficiency standards along the way, will I still be liable to repay the debt if I were to fail the program?
- If after my check to line, I subsequently fail 2 checks in a row, and my services are terminated (yes it can and has happend), will I have to pay out the debt?
Don't place yourself in a position where you are put at a disadvantage.
