Mega Merged: Latest Rex Media Releases re:Routes & the Pilot Shortage
AustralianMade
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REX: Reduced flights to Albury and other locations.
From page 7 of today's Border Mail:
Makes me sad to see this airline in difficulties, if only we could see a paradigm shift in management thinking.
ABX
NO FLIGHTS ON SUNDAY
BRAD WORRALL
8/05/2008 10:00:00 AM
REX’S Sunday night flights to and from Melbourne have been axed as the airline struggles to keep its pilots from being poached by the major carriers.
Regional Express says it has lost about half its pilots since July.
Most have moved to discount airlines now operating between capital cities.
The 5.50pm Albury to Melbourne and the 7.15pm return flight were among 24 services cancelled by Rex this week.
The decision will take effect from Sunday, May 24.
Warrick Lodge, the airline’s network strategy and sales general manager, said against all expectations the major carriers had continued their recruitment drive.
“In April, Rex experienced a 5 per cent attrition in our pilot ranks, with the attrition rate in this financial year tracking above 50 per cent,” he said.
“It means our flight schedules remain vulnerable to last-minute sickness of the flight crew.
“We believe the responsible course of action is to reduce the flight schedule, which will provide us with more reserve pilots and in turn will translate into a reduction of last-minute flight cancellations.”
Mr Lodge said the services cancelled were lower demand weekend flights.
Rex said the Albury-Melbourne flight was, on average, less than half full.
Other routes affected include Adelaide to Mount Gambier, Melbourne to Mount Gambier, Melbourne to Mildura and Sydney to Griffith.
A pilot academy now wholly owned by the airline might result in the services being reinstated later this year.
“The second batch of 23 cadets commenced their training in early last month, bringing the total cadets to 39,” Rex chief pilot and general manager of flight operations Chris Hine said.
“With the first batch now well into the flying stage of the training, everything is on track for this first batch to graduate later in the year and commence their conversion training onto Rex’s Saab 340 aircraft.
“Twenty new cadets will be enrolled every three months.
“Once our cadets start to enter into service late this year, we believe that we will be in a much better position to be in control of our pilot strength and hopefully we could envisage a gradual resumption of our network expansion.”
Rex is Australia’s largest independent regional airline, operating a fleet of 38 Saab 340 aircraft on more than 1200 flights a week.
BRAD WORRALL
8/05/2008 10:00:00 AM
REX’S Sunday night flights to and from Melbourne have been axed as the airline struggles to keep its pilots from being poached by the major carriers.
Regional Express says it has lost about half its pilots since July.
Most have moved to discount airlines now operating between capital cities.
The 5.50pm Albury to Melbourne and the 7.15pm return flight were among 24 services cancelled by Rex this week.
The decision will take effect from Sunday, May 24.
Warrick Lodge, the airline’s network strategy and sales general manager, said against all expectations the major carriers had continued their recruitment drive.
“In April, Rex experienced a 5 per cent attrition in our pilot ranks, with the attrition rate in this financial year tracking above 50 per cent,” he said.
“It means our flight schedules remain vulnerable to last-minute sickness of the flight crew.
“We believe the responsible course of action is to reduce the flight schedule, which will provide us with more reserve pilots and in turn will translate into a reduction of last-minute flight cancellations.”
Mr Lodge said the services cancelled were lower demand weekend flights.
Rex said the Albury-Melbourne flight was, on average, less than half full.
Other routes affected include Adelaide to Mount Gambier, Melbourne to Mount Gambier, Melbourne to Mildura and Sydney to Griffith.
A pilot academy now wholly owned by the airline might result in the services being reinstated later this year.
“The second batch of 23 cadets commenced their training in early last month, bringing the total cadets to 39,” Rex chief pilot and general manager of flight operations Chris Hine said.
“With the first batch now well into the flying stage of the training, everything is on track for this first batch to graduate later in the year and commence their conversion training onto Rex’s Saab 340 aircraft.
“Twenty new cadets will be enrolled every three months.
“Once our cadets start to enter into service late this year, we believe that we will be in a much better position to be in control of our pilot strength and hopefully we could envisage a gradual resumption of our network expansion.”
Rex is Australia’s largest independent regional airline, operating a fleet of 38 Saab 340 aircraft on more than 1200 flights a week.
ABX
So what is your solution ABX?
Pay??? How much pay increase will be required to stop young guys moving onto jets. I suggest a hell of a lot more than Rex can afford. Even if Rex matched the likes of Tiger and Rex, say $180k-ish for a skipper, many will still want to move to the jets. But that is not even a remore reality - they just cannot afford it. So what is the solution??
Pay??? How much pay increase will be required to stop young guys moving onto jets. I suggest a hell of a lot more than Rex can afford. Even if Rex matched the likes of Tiger and Rex, say $180k-ish for a skipper, many will still want to move to the jets. But that is not even a remore reality - they just cannot afford it. So what is the solution??
said against all expectations the major carriers had continued their recruitment drive.
“The second batch of 23 cadets commenced their training in early last month, bringing the total cadets to 39,”
....Didn't think so
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Trev, call me crazy, but there is something wrong with a management that can only think one way. If the only way they can look at the problem is to try and introduce more pilots at the same (low) pay, then I'd hardly call that nimble, innovative management.
This is straight off the cuff, but how about
- charging more for the tickets? If $99 fares aren't viable (because you cant pay enough to retain employees), then charge more. Your business model isnt viable otherwise. If the market wont bear a higher price, then you either create the market that will, or leave the market. How, you say?
-run ads that point out it costs $100 or more to drive return mel abx, so why not pay a bit extra and fly? marketing, marketing, marketing.
-improve the product
-investigate whether people will work for say, $120k and be based in the country rather than the city. If not, find out what it will take and work on that. eg if the magic number is 150k, how much extra will tickets cost, and work on how you can sell tickets for that price, rather than the smaller (unviable) amount that is currently being charged. It's not always about money. You might find something that people want (even jaded jet jockeys from the sandpit), that isn't monetary. Find out (2 months vacation/whatever).
gotta be lots of things to try. What have they?
This is straight off the cuff, but how about
- charging more for the tickets? If $99 fares aren't viable (because you cant pay enough to retain employees), then charge more. Your business model isnt viable otherwise. If the market wont bear a higher price, then you either create the market that will, or leave the market. How, you say?
-run ads that point out it costs $100 or more to drive return mel abx, so why not pay a bit extra and fly? marketing, marketing, marketing.
-improve the product
-investigate whether people will work for say, $120k and be based in the country rather than the city. If not, find out what it will take and work on that. eg if the magic number is 150k, how much extra will tickets cost, and work on how you can sell tickets for that price, rather than the smaller (unviable) amount that is currently being charged. It's not always about money. You might find something that people want (even jaded jet jockeys from the sandpit), that isn't monetary. Find out (2 months vacation/whatever).
gotta be lots of things to try. What have they?
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Could be that REX training up all these new pilots are simply supplying pilots for other operators when the time comes at REX's expense!
I don't believe there is a quick single solution to our current crisis, it just has to run it's course like a bad cold & we shall ALL pay for it one way or another!
CW
I don't believe there is a quick single solution to our current crisis, it just has to run it's course like a bad cold & we shall ALL pay for it one way or another!
CW
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Might I suggest that you should have done the sums before you attend the interview and 'spent' $1200 of your own cash. It doesn't seem to me to be a great investment on trying out for a job that you dont intend to take. Luckily the baby bonus will help out. Good luck with bubs...
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Can REX afford a substantial raise...??
Let's do the numbers.....
REX needs to have 250 pilots, 140 of which are Captains and 110 F/O's.
Assume the Captains all get a raise of $20,000 (per annum); that will cost $3,052,000 per year including 9% super.
Assume F/O's all get a raise of $12,000; the cost for that is $1,438,800 including the 9% super.
Total extra costs for this improvement in conditions: $4,490,800
With REX profits around $20 million clearly there is room for this......
With REX transporting around 1,500,000 passengers per annum, the cost per passenger would be almost exactly $3.00 (or a ticket price increase of just over 2%). Haven't even taken the reduction in training effort into account.
You'd think it would be worth it, wouldn't you.....?
REX needs to have 250 pilots, 140 of which are Captains and 110 F/O's.
Assume the Captains all get a raise of $20,000 (per annum); that will cost $3,052,000 per year including 9% super.
Assume F/O's all get a raise of $12,000; the cost for that is $1,438,800 including the 9% super.
Total extra costs for this improvement in conditions: $4,490,800
With REX profits around $20 million clearly there is room for this......
With REX transporting around 1,500,000 passengers per annum, the cost per passenger would be almost exactly $3.00 (or a ticket price increase of just over 2%). Haven't even taken the reduction in training effort into account.
You'd think it would be worth it, wouldn't you.....?
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Timber:
Exactly!
You are the first poster to point this out and this reality makes a complete mockery of the management's argument that they can't afford to fix the problem the easy way.
Sure, some pilots will always leave for a jet job, but plenty will stay longer if the T's and C's are reasonable. And that is the problem - too many are leaving too quickly because they are being treated like crap. Treat them well, it doesn't actually cost much, and the problem will be solved.
Although, I would suggest something more like $35K pay rise for $5/ticket would be on the mark.
It won't cost them loss of market share, the competition would rapidly match the fare rise - but someone has to bite the bullet first.
Exactly!
You are the first poster to point this out and this reality makes a complete mockery of the management's argument that they can't afford to fix the problem the easy way.
Sure, some pilots will always leave for a jet job, but plenty will stay longer if the T's and C's are reasonable. And that is the problem - too many are leaving too quickly because they are being treated like crap. Treat them well, it doesn't actually cost much, and the problem will be solved.
Although, I would suggest something more like $35K pay rise for $5/ticket would be on the mark.
It won't cost them loss of market share, the competition would rapidly match the fare rise - but someone has to bite the bullet first.
With valuable experienced pilots leaving due to ridiculously low salaries in comparison to social norms, clearly the management strategy being taken is:
One:
Protect the profit line by canceling lossy routes and blame outwards via the media...as being all the fault of other airlines "taking our people".
Two:
Seek supplemental incomes by keeping the media supplied with pilot "shortage" messages, causing popular opinion to pressure governments to subsidize these and other routes.
Three:
Seek sources of cheaper labor to keep wages down. Keep blaming a shortage of pilots despite huge numbers of ready applicants. Keep wages down at all costs. Lower levels of entrant experience.
Four:
Keep on message - Keep "pilot shortage" it in the media. Avoid mentioning "low pay" and experience levels.
This is nonsense. No other profession requires you to train yourself at great expense, then risk re qualifying for your job every few months, pass annual license medical tests, pay for your own work manuals, ID cards AND be responsible daily for the lives and well-being of passengers in very adverse and time critical airborne circumstances where a nasty slip could result in one of this country's greatest disasters.... for less $$ than hauling trash. Millions are spent on systems to support, promote, investigate and manage these operations, yet the guys with the ultimate responsibility are still being expected to plod on.
One:
Protect the profit line by canceling lossy routes and blame outwards via the media...as being all the fault of other airlines "taking our people".
Two:
Seek supplemental incomes by keeping the media supplied with pilot "shortage" messages, causing popular opinion to pressure governments to subsidize these and other routes.
Three:
Seek sources of cheaper labor to keep wages down. Keep blaming a shortage of pilots despite huge numbers of ready applicants. Keep wages down at all costs. Lower levels of entrant experience.
Four:
Keep on message - Keep "pilot shortage" it in the media. Avoid mentioning "low pay" and experience levels.
This is nonsense. No other profession requires you to train yourself at great expense, then risk re qualifying for your job every few months, pass annual license medical tests, pay for your own work manuals, ID cards AND be responsible daily for the lives and well-being of passengers in very adverse and time critical airborne circumstances where a nasty slip could result in one of this country's greatest disasters.... for less $$ than hauling trash. Millions are spent on systems to support, promote, investigate and manage these operations, yet the guys with the ultimate responsibility are still being expected to plod on.
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Thank you Roller Merlin.You've detailed EXACTLY that what is happening in the industry right now.We as Pilots should be fighting for our rights but I continuously see articles on the "Pilot shortage" and now expats coming over to work when there's plenty of suitably qualified drivers right here.The fact that I know of 2 people who have way surpassed the minimums for all the gigs in the country aren't even getting a call to the selection is what frustrates me the most.They know of more people who know of more people who are the same situation but yet the airlines are holding road shows in South Africa to recruit foreigners.I'm still to see a response to this or a article release from our side etc.We are doing nothing against it yet it is so obvious.I'm not going to deny that there's is a better Job to Pilot ratio then a few years ago but airlines are making sure that they recruit outside of the nation so that when there is a bit of a surplus, they can pick from a healthy pond back home.That way they are making sure that the risk of having no suitable candidates is eliminated and salaries are kept down, all whilst here's cadetships starting up and going left, right and centre.
WHAT A JOKE!
but hey we're all aware of it, reading pprune, complaining and NOT doing anything about it.
If I was in any position to make a difference or help then trust me, I would!
regards
cuttingthatrawrawhammer
WHAT A JOKE!
but hey we're all aware of it, reading pprune, complaining and NOT doing anything about it.
If I was in any position to make a difference or help then trust me, I would!
regards
cuttingthatrawrawhammer
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Vote..
Maybe we should have a small vote given landof's new salary figures!
Who would stay or would have given the figures in landof's post? (exclude all the management bull****, just on the figures alone)
Anyone?
FMC.
Who would stay or would have given the figures in landof's post? (exclude all the management bull****, just on the figures alone)
Anyone?
FMC.
landof4x's numbers are spot on.
12 months ago an annual retention of 18K for F/O's and 30K for Captains was put to the REX CP. Cost $7.25 a ticket. And that was only if every pilot stayed to collect! As some pilots would have left anyway, REX could either adjust the levy downwards or if left the same, they would have actually made money! Rex would not however have lost their critical Check and training and senior Captains, all for $7.25 a ticket!!
I'm afraid now it has become much more difficult. If you take landof4x's $75K for F/O's & $125K for Capts, restructure it to $60K base + 15K annual retention for F/O's and $100K base and 25K annual retention for Capts, then REX's crewing problems would see a definite reverse. The situation is now that serious, it would take something along those lines to save the company.
And before anyone cries it is too high, just keep your eye on what QFLink will be offering in the very near future. DEC's are definitely on the way, and you don't have to be a rocket scientist to figure out where they are going to come from!
12 months ago an annual retention of 18K for F/O's and 30K for Captains was put to the REX CP. Cost $7.25 a ticket. And that was only if every pilot stayed to collect! As some pilots would have left anyway, REX could either adjust the levy downwards or if left the same, they would have actually made money! Rex would not however have lost their critical Check and training and senior Captains, all for $7.25 a ticket!!
I'm afraid now it has become much more difficult. If you take landof4x's $75K for F/O's & $125K for Capts, restructure it to $60K base + 15K annual retention for F/O's and $100K base and 25K annual retention for Capts, then REX's crewing problems would see a definite reverse. The situation is now that serious, it would take something along those lines to save the company.
And before anyone cries it is too high, just keep your eye on what QFLink will be offering in the very near future. DEC's are definitely on the way, and you don't have to be a rocket scientist to figure out where they are going to come from!
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Cadets flying in the saabs later on this year!!!!!!.....
Are these guys for real, from what i hear (stand to be corrected) the cadets don't even have a GFPT yet.
It will be at least this time next year before they will even commence the Rex ground school, which takes around 10 weeks, probably more with no time guys/gals learning the ropes and will they have any one to train them? I'm sure AT will be sick of training by himself by then!!
AFAP, where are you, stop these pricks from feeding the media **** and stand up for pilots for once...THATS WHAT WE PAY YOUR FOR!!!!!!
As for the cancelled services, I believe the E-Jet is kicking there asses, with more to come REX is an even faster sinking ship....
Are these guys for real, from what i hear (stand to be corrected) the cadets don't even have a GFPT yet.
It will be at least this time next year before they will even commence the Rex ground school, which takes around 10 weeks, probably more with no time guys/gals learning the ropes and will they have any one to train them? I'm sure AT will be sick of training by himself by then!!
AFAP, where are you, stop these pricks from feeding the media **** and stand up for pilots for once...THATS WHAT WE PAY YOUR FOR!!!!!!
As for the cancelled services, I believe the E-Jet is kicking there asses, with more to come REX is an even faster sinking ship....
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Krusty & landof4x
Can't really see any airline management in Australia seriously considering the numbers you put up. The difference is just too big vs the current situation. It will be seen as over-asking and the usual reaction then is: "We'll find some other way to solve these problems, with more reasonable pilots..."
One of the difficulties is that the Saab 340 is a relatively small aircraft that produces only a limited amount of seat/kms per block-hour. The Q400 produces almost 3 times as many seat/kms and the E-Jet around 4.5 times as many! A B737-800 or A320 produces 10 times the seat/kms per hour of a Saab 340 if you would wish to compare with those.
It will just have to run its course it seems.... good luck to all.
Nevertheless there is certainly no case for 457 visas are the required pilots are without doubt available in Australia!
One of the difficulties is that the Saab 340 is a relatively small aircraft that produces only a limited amount of seat/kms per block-hour. The Q400 produces almost 3 times as many seat/kms and the E-Jet around 4.5 times as many! A B737-800 or A320 produces 10 times the seat/kms per hour of a Saab 340 if you would wish to compare with those.
It will just have to run its course it seems.... good luck to all.
Nevertheless there is certainly no case for 457 visas are the required pilots are without doubt available in Australia!
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I wouldn't hold your breath for the AFAP to do anything.
They are too busy working with management to reduce pilot conditions in this country in an attempt to build membership.
VB
JQ
EAA
SAA etc. etc.
The AFAP started the rot with VB. They have alot to answer for.
They are too busy working with management to reduce pilot conditions in this country in an attempt to build membership.
VB
JQ
EAA
SAA etc. etc.
The AFAP started the rot with VB. They have alot to answer for.
Quote:
"We'll find some other way to solve these problems, with more reasonable pilots..."
It seems as though you are just playing Devil's advocate Timber, but believe me there is no other way to solve this problem. And what reasonable pilots are we talking about? Cadets! Even if they continue to swallow the bullsh!t, it will be at least 5 years from check to line before any of them reach the minimum qualification for command. If the attrition continues the airline will be out of business within 2! REX have lost 60% of their pilot group in the last year. The latest media release admits 50% so far this year, and I can tell you now it will go higher. The major domestic airlines are about one third through their recruiting needs. Pretty simple math I would say! REX will continue to lose 2/3 of their pilots for at least the next 2-3 years unless REX actively attempt to retain them.
And don't tell me they can't afford it. They have the gall to slug the travelling public for almost their entire fuel bill by way of a levy ($33 per ticket per sector! Nearly $45mil per year). The cost for retaining pilots they will no longer be able to replace, now approx $10 per ticket!
Let me see? $10 dollars per ticket, or the collapse of the service, mmmm..
"We'll find some other way to solve these problems, with more reasonable pilots..."
It seems as though you are just playing Devil's advocate Timber, but believe me there is no other way to solve this problem. And what reasonable pilots are we talking about? Cadets! Even if they continue to swallow the bullsh!t, it will be at least 5 years from check to line before any of them reach the minimum qualification for command. If the attrition continues the airline will be out of business within 2! REX have lost 60% of their pilot group in the last year. The latest media release admits 50% so far this year, and I can tell you now it will go higher. The major domestic airlines are about one third through their recruiting needs. Pretty simple math I would say! REX will continue to lose 2/3 of their pilots for at least the next 2-3 years unless REX actively attempt to retain them.
And don't tell me they can't afford it. They have the gall to slug the travelling public for almost their entire fuel bill by way of a levy ($33 per ticket per sector! Nearly $45mil per year). The cost for retaining pilots they will no longer be able to replace, now approx $10 per ticket!
Let me see? $10 dollars per ticket, or the collapse of the service, mmmm..