Airline Managements - The case for Denial
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Airline Managements - The case for Denial
REx Management – “OUTthere” or “OUT of there”
Guys/Gals,
I managed to spend some time back in AUS during this past week and I did some travelling on the air transport network around the East coast. Basically, Australian aviation is in a mess showing severe signs of critical problems with service. The regional airlines such as REX and Eastern Australia appear to be coping poorly with schedules and service, and I’d dare say that these two airlines are not alone, given the root cause of a lot of the problems.
One of my trips was into rural NSW flying on Regional Express and this journey proved to be a real eye-opener, not because of journey with REx, but because of the reaction in rural Australia to the causes of the present dilemma at REx and the very real consequences to the customers it serves.
Interestingly, there was considerable knowledge and understanding of the root cause of pilot retention problems at airlines such as REx. Entry level salaries, remuneration to retain senior crew, recent profits, the proposed cadet scheme, schedule cancellations and a myriad of other relevant factors were all openly discussed with me by the friends and business colleagues that I went to visit.
The message was clear; rural Australia requires air transport services and infrastructure, and it won’t tolerate infrastructure or airline managements that won’t respond to the market to ensure reasonable and reliable service. It’s also not just the regional’s that came under fire; Virgin, QANTAS and JetStar also took hits from the rural community.
My return journey to Sydney left me to ponder the state of Australian aviation while watching the landscape from my window of the Saab-340. I then picked up the latest edition of REx’s in-flight Magazine, “OUTthere” (Edition No. 40, 2007, Paul Kelly on the cover).
The opening rexNEWS article, “Staying the Course”, expounded the virtues of the airline’s recent business performance and results; net profit AUD $23.6 M up 50.4%, revenue up 29%, passengers increased by 18%, capacity up 14%, taxed paid dividends, etc.
It was clear that this business has the financial capacity to deal with its issues, but is yet to do anything about it.
The final blow however, came from Page 75 & 76 of the magazine. Within the CountryBIZ section was a Special Feature containing two articles on Human Resources management. The first was “Attracting and Retaining Staff”, followed by another entitled “Mission Impossible”, dealing with the issue of recruitment challenges in times of low unemployment and skills shortages.
Frankly, I was stunned. These articles made an absolute mockery of the incumbent management at REx and the present personnel situation that they’ve not only allowed to develop, but fostered by an ill-conceived denial that all personnel require a fair days pay for a fair days work. Lowering salaries, stagnating remuneration and lowering crew numbers in the pursuit of the “investor’s nirvana” is unfair, un-Australian, and eventually leads to being unprofitable. No Business is entitled to a business at the expense of its employees.
The alarm bells are ringing and it’s time to take action.
Is it any wonder that the CEO resigned for retirement this week; I’m sure he knows what’s coming.
Dragonfly
Guys/Gals,
I managed to spend some time back in AUS during this past week and I did some travelling on the air transport network around the East coast. Basically, Australian aviation is in a mess showing severe signs of critical problems with service. The regional airlines such as REX and Eastern Australia appear to be coping poorly with schedules and service, and I’d dare say that these two airlines are not alone, given the root cause of a lot of the problems.
One of my trips was into rural NSW flying on Regional Express and this journey proved to be a real eye-opener, not because of journey with REx, but because of the reaction in rural Australia to the causes of the present dilemma at REx and the very real consequences to the customers it serves.
Interestingly, there was considerable knowledge and understanding of the root cause of pilot retention problems at airlines such as REx. Entry level salaries, remuneration to retain senior crew, recent profits, the proposed cadet scheme, schedule cancellations and a myriad of other relevant factors were all openly discussed with me by the friends and business colleagues that I went to visit.
The message was clear; rural Australia requires air transport services and infrastructure, and it won’t tolerate infrastructure or airline managements that won’t respond to the market to ensure reasonable and reliable service. It’s also not just the regional’s that came under fire; Virgin, QANTAS and JetStar also took hits from the rural community.
My return journey to Sydney left me to ponder the state of Australian aviation while watching the landscape from my window of the Saab-340. I then picked up the latest edition of REx’s in-flight Magazine, “OUTthere” (Edition No. 40, 2007, Paul Kelly on the cover).
The opening rexNEWS article, “Staying the Course”, expounded the virtues of the airline’s recent business performance and results; net profit AUD $23.6 M up 50.4%, revenue up 29%, passengers increased by 18%, capacity up 14%, taxed paid dividends, etc.
It was clear that this business has the financial capacity to deal with its issues, but is yet to do anything about it.
The final blow however, came from Page 75 & 76 of the magazine. Within the CountryBIZ section was a Special Feature containing two articles on Human Resources management. The first was “Attracting and Retaining Staff”, followed by another entitled “Mission Impossible”, dealing with the issue of recruitment challenges in times of low unemployment and skills shortages.
Frankly, I was stunned. These articles made an absolute mockery of the incumbent management at REx and the present personnel situation that they’ve not only allowed to develop, but fostered by an ill-conceived denial that all personnel require a fair days pay for a fair days work. Lowering salaries, stagnating remuneration and lowering crew numbers in the pursuit of the “investor’s nirvana” is unfair, un-Australian, and eventually leads to being unprofitable. No Business is entitled to a business at the expense of its employees.
The alarm bells are ringing and it’s time to take action.
Is it any wonder that the CEO resigned for retirement this week; I’m sure he knows what’s coming.
Dragonfly
Last edited by dragonflyhkg; 14th Nov 2007 at 05:24.
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Rats and a Sinking Ship
Guys/Gals,
It's time to put my original post into CX context;
How long will it be until TT, NR, or PW, etc, finds it necessary to pursue "other directions" after "a successful tenure" at CX?
Dragonfly
It's time to put my original post into CX context;
How long will it be until TT, NR, or PW, etc, finds it necessary to pursue "other directions" after "a successful tenure" at CX?
Dragonfly
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I bet NR has max 12 -18 months before the swire shuffle moves him to something else, maybe counting butterflies like the good old days. PW will eventually retire and join K Barley in his one man friend club. TT will be around for a while.
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Yeah right!!
Come on guys you are kidding!!
These guys have managed to push through changes in our C.O.S that have saved the company money, have held off on any pay rises and only offered 3%!!! These guys will be well looked after dont you worry!! The fact that the pilot body thinks poorly of them will only further enhance their reputations in the corporate world!!!!!
These guys have managed to push through changes in our C.O.S that have saved the company money, have held off on any pay rises and only offered 3%!!! These guys will be well looked after dont you worry!! The fact that the pilot body thinks poorly of them will only further enhance their reputations in the corporate world!!!!!
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Use of assets
The pilot shortage is not obvious to everybody yet, but it will be.
At some point a board member is going to question "the powerpoint slide" with "Utilization factor" and ask why that is significantly lower than last year or the year before.
Then somebody will have to pay, at what management level I don't know.
cider30
At some point a board member is going to question "the powerpoint slide" with "Utilization factor" and ask why that is significantly lower than last year or the year before.
Then somebody will have to pay, at what management level I don't know.
cider30
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Use of assets
Spot on C30.
The pilot shortage will become apparent - especially when they don't recruit all the FOs in the States that they are after.
They will have all the shiny new aircraft with not enough pilots to fly them.
So which manager will pay? The DFO is my bet. The ostrich that sticks its head in the sand ends up shot in the a$$.
The pilot shortage will become apparent - especially when they don't recruit all the FOs in the States that they are after.
They will have all the shiny new aircraft with not enough pilots to fly them.
So which manager will pay? The DFO is my bet. The ostrich that sticks its head in the sand ends up shot in the a$$.
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They might have pushed through the COS 08, which is a watered down version of the July offer, but I bet they will not be able to push anything else. NR 's spin has come to an end, nobody believes him...I reckon he has lost his effectiveness and he will move on.
Remember neither NR or PW sit on the flight deck , so they do not realize how bad the moral is and on how many pilots are looking to leave.
The pilot shortage has only begun, we wil feel the effect in 12- 18 months trust me!
Remember neither NR or PW sit on the flight deck , so they do not realize how bad the moral is and on how many pilots are looking to leave.
The pilot shortage has only begun, we wil feel the effect in 12- 18 months trust me!
.
