Rex pilot shortage under control ?
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Rex pilot shortage under control ?
The AustralianAugust 29, 2008 12:47am AEST Rex pilot shortage under control:
Steve Creedy, Aviation writer | August 29, 2008
REGIONAL Express is optimistic it is well on the way to solving a crippling pilot shortage that forced it suspend several routes last financial year.
The airline feels it can handle fuel prices at today's levels but needs its pilot attrition rate to stay at 25 per cent or below if it is to earn a net profit this financial year like 2007-08's $24.3million result.
After losing half its pilots last financial year, the airline is hoping it will have enough to allow it re-open some suspended routes in the second half.
But managing director Jim Davis said the airline wanted to be absolutely confident it had enough pilots to weather future recruitment drives by major airlines.
Mr Davis said the last thing Rex wanted to do was restore a service and cut it again two months later. "So we want to build up. And we feel by early next year, by about February, it might be less of an issue."
Rex executive chairman Lim Kim Hai said pilot attrition remained the big problem.
Rex is not hedged and offsets fuel increases or falls by raising or dropping surcharges.
"We are not so concerned about the fuel prices at this level," Mr Lim said.
"If it goes to $US140 (a barrel), $US160 then we have to review it, but we could deal with it at $US140, even up to $US160.
"We have a lot of resilience as far as the fuel prices are concerned."
To address the pilot shortage, the regional carrier has established its own aviation college in Victoria and established a cadet scholarship scheme that requires graduates to stay with the airline.
It has also ramped up recruitment, including a drive to lure South African pilots.
Mr Lim said the airline would be better able to deal with its attrition rate when 40 students graduated from its new academy in October.
Union officials and pilots have been urging Rex to address is pilot shortage by improving wages and conditions.
They have also expressed concern about the effect of the pilot exodus on the level of experience in Rex cockpits. But Mr Lim said Rex could not compete with its bigger competitors. "You have to be realistic," he said. "If we had to pay 10 per cent more to avoid the problem, or we had to pay 20 per cent more to avoid the problem, it could still be something we stretch for," he said.
"But the pilots who leave are not looking at 10 or 20 per cent in their new jobs with Qantas and their new jobs with Virgin. They are really talking about 80 to 100 per cent increase and on top of that a career as a jet pilot.
"More than the immediate money, (it's) the future career. So why do you even bother to fight that, because you can't win the battle?"
Mr Lim said the airline was offsetting the pilot losses with its cadet school, whose graduates are locked in for six years.
"In a couple of years we'll find we'll have a huge crew of pilots that are no longer going to leave us," he says.
"And because there are new pilots coming on every year, we have the ability to control the supply.
"So in a way, we've turned a very bad situation to something where we've become more confident."
Mr Lim said Rex would be hit if the drop in the Australian dollar outpaced falling fuel prices but, he doubted this would happen. There had been about a 10 per cent fall in the currency compared to a drop of about 15 per cent in fuel prices.
"I don't think the outlook is going to be tremendously worse than it is today," he said. "Of course, this time last year we wouldn't even think of a $100 fuel price."
The airline's $24.3 million net profit was about 3 per cent above last year and better than revised guidance. Officials were encouraged by a strong fourth quarter in which after-tax profits rose 31.7 per cent to $8.3 million.
Group revenue grew by 15.7 per cent to $260.5 million, partly due to the consolidation of results from Pel-Air for the full financial year.
Passenger numbers for the year rose by 5.6 per cent to almost 1.5 million while load factors decreased marginally to 68.1 per cent.
Passenger numbers remained relatively strong despite moves by the airline to increase its average fare to $152.80 in the fourth quarter of 2007-2008, compared with an average for the year of $141.30.
lian, 29 Aug 08..
sounds like a really really really good strategy. well done you muppets.
this is not even being REACTIVE... this is just tossing the cards in the air and hoping they land with a royal flush. Admitting that there IS a problem, but not doing anything about it!
And Steve Creedy.... for shame! do you REALLY think that rex has their pilot shortage under control ?
Boy this one will get some 
flack from pruners and rightly so. My mate is a truck driver and makes $50,000 for 38hrs no overtime as do bus drivers.
This end of piloting sucks re wages, while the other end is over the top.
flack from pruners and rightly so. My mate is a truck driver and makes $50,000 for 38hrs no overtime as do bus drivers.This end of piloting sucks re wages, while the other end is over the top.
Last edited by farrari; 28th Aug 2008 at 22:58. Reason: spelling
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Please, oh please Steve Creedy, show some journalistic integrity
Steve, I beg of you, don't give a token one line "union and pilots want more money".... why don't you put the effort in and write a balanced article which, rather than copy and pastes 95% company propoganda, maybe shows 50% of the company's opinion and 50% of the union's position. If you can waste your time interviewing LKH, why don't you interview Lawrie Cox from the AFAP?
The real facts are:
1. The majority of drivers who have left in the last two years didn't have any huge aspirations to fly a jet and didn't want unrealistic pay rises - but left BECAUSE FINANCIALLY THEY WERE FORCED TO SO THAT THEY COULD SUPPORT THEIR FAMILY
2. By propogating these myths (unrealistic 100% pay increases, or were going to leave to fly a jet anyway) it has allowed Rex management to greatly reduce wages. They must have realised a 2nd year captain costs less to pay than a 10 year captain, so have accepted the higher training costs and pushed the more senior, higher paid captains out.
3. They have then used the high attrition rate to try and gain mileage in eba negotiations - when in fact they have driven it to reduce costs.
4. If you read their press releases and media articles, they have blamed - fuel prices, other airlines deliberately poaching their pilots, pilots not being loyal, pilots calling in sick ... in fact just about every excuse other than themselves - wage tightening to boost profits at the expense of experience and safety.
I have no doubt in my own mind that Rex management, and Rex management alone, have driven the exodus of senior pilots to reduce wage costs.
The real facts are:
1. The majority of drivers who have left in the last two years didn't have any huge aspirations to fly a jet and didn't want unrealistic pay rises - but left BECAUSE FINANCIALLY THEY WERE FORCED TO SO THAT THEY COULD SUPPORT THEIR FAMILY
2. By propogating these myths (unrealistic 100% pay increases, or were going to leave to fly a jet anyway) it has allowed Rex management to greatly reduce wages. They must have realised a 2nd year captain costs less to pay than a 10 year captain, so have accepted the higher training costs and pushed the more senior, higher paid captains out.
3. They have then used the high attrition rate to try and gain mileage in eba negotiations - when in fact they have driven it to reduce costs.
4. If you read their press releases and media articles, they have blamed - fuel prices, other airlines deliberately poaching their pilots, pilots not being loyal, pilots calling in sick ... in fact just about every excuse other than themselves - wage tightening to boost profits at the expense of experience and safety.
I have no doubt in my own mind that Rex management, and Rex management alone, have driven the exodus of senior pilots to reduce wage costs.
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Rumour has it that instead of a medical certificate when they take sick leave, Rex pilot's will now need to provide a note from their mother...
On a serious note, I would say they haven't solved their 'pilot shortage' until all the dropped routes have been reinstated, so far I haven't seen any!
On a serious note, I would say they haven't solved their 'pilot shortage' until all the dropped routes have been reinstated, so far I haven't seen any!
Last edited by Howard Hughes; 29th Aug 2008 at 06:16.
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Locked the cadets in for 6 years hey??? it'l take em that long to get a command...
LKH is a greedy egotistical prick who who no respect for what happens in the pointy end..if this is not enough motivation to leave this second rate outfit, nothing is...
Funny a EBA neg is about to commence, good luck.....looks like it's 3% at best..
I can see mass resignations coming....
LKH is a greedy egotistical prick who who no respect for what happens in the pointy end..if this is not enough motivation to leave this second rate outfit, nothing is...
Funny a EBA neg is about to commence, good luck.....looks like it's 3% at best..
I can see mass resignations coming....
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The majority of drivers who have left in the last two years didn't have any huge aspirations to fly a jet and didn't want unrealistic pay rises - but left BECAUSE FINANCIALLY THEY WERE FORCED TO SO THAT THEY COULD SUPPORT THEIR FAMILY
and of course, better money elsewhere.
AND... when you leave, no one cares! no one asks WHY you are leaving, or why you do not want to stay. there was even the alleged incident where the CP of REX rang the CP of QF to badmouth a pilot AFTER he had left... even though the pilot had a very good record whilst at REX.
basically... there is NO confidence in management by the workers.
chr!st gypsy!
Don't give them more ideas.
apache:
To the point and accurate as usual. If ever there was a case of not having a clue to the reality of the situation it lies squarely with REX management. So in the absence of dealing with the problem, we now see the blatent untruths emerge.
Lie No 1:
"After losing half its pilots last financial year, the airline is hoping it will have enough to allow it re-open some suspended routes in the second half."
Not likely. Captains (who would prefer to stay) are continueing to leave in unsustainable numbers. Next year this will increase significantly. The pool of suitably qualified candidates for upgrade is now all but empty. Rather than see a reversal of lost opportunities, we will see further reductions in services.
Lie No 2:
"But the pilots who leave are not looking at 10 or 20 per cent in their new jobs with Qantas and their new jobs with Virgin. They are really talking about 80 to 100 per cent increase and on top of that a career as a jet pilot."
I have yet to see a Captain with a regional going to a domestic and starting on $160K P/A!
Lie No 3:
"In a couple of years we'll find we'll have a huge crew of pilots that are no longer going to leave us," he says.
No you won't. Most of them will be made redundant because there will not be enough Captains to make up the other half of the crew!
Lie No 4:
"So in a way, we've turned a very bad situation to something where we've become more confident."
See Lie No 1!
Finally:
Steve Creedy. You really should be able to do better mate! I don't know if you read these forums, but feel free to PM me if you want. You just might learn something!
Don't give them more ideas.
apache:
To the point and accurate as usual. If ever there was a case of not having a clue to the reality of the situation it lies squarely with REX management. So in the absence of dealing with the problem, we now see the blatent untruths emerge.
Lie No 1:
"After losing half its pilots last financial year, the airline is hoping it will have enough to allow it re-open some suspended routes in the second half."
Not likely. Captains (who would prefer to stay) are continueing to leave in unsustainable numbers. Next year this will increase significantly. The pool of suitably qualified candidates for upgrade is now all but empty. Rather than see a reversal of lost opportunities, we will see further reductions in services.
Lie No 2:
"But the pilots who leave are not looking at 10 or 20 per cent in their new jobs with Qantas and their new jobs with Virgin. They are really talking about 80 to 100 per cent increase and on top of that a career as a jet pilot."
I have yet to see a Captain with a regional going to a domestic and starting on $160K P/A!
Lie No 3:
"In a couple of years we'll find we'll have a huge crew of pilots that are no longer going to leave us," he says.
No you won't. Most of them will be made redundant because there will not be enough Captains to make up the other half of the crew!
Lie No 4:
"So in a way, we've turned a very bad situation to something where we've become more confident."
See Lie No 1!
Finally:
Steve Creedy. You really should be able to do better mate! I don't know if you read these forums, but feel free to PM me if you want. You just might learn something!
Last edited by KRUSTY 34; 30th Aug 2008 at 06:49.
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Hey Krusty,
I'm fascinated with Rex management Lie number 3
Exactly where do these management clowns think they're going to get "a huge crew of pilots that are no longer going to leave us" ???
Oh that's right, the cadet program will solve everything !
By the time they have enough candidates with the required experience for upgrade there will be no airline left !
As you say, the exodus WILL continue and the bleeding won't stop until LKH and his henchmen start to pay up !
Let's hope for the sake of the travelling public in regional areas, that it's sooner rather than later.
I'm fascinated with Rex management Lie number 3
Exactly where do these management clowns think they're going to get "a huge crew of pilots that are no longer going to leave us" ???
Oh that's right, the cadet program will solve everything !
By the time they have enough candidates with the required experience for upgrade there will be no airline left !
As you say, the exodus WILL continue and the bleeding won't stop until LKH and his henchmen start to pay up !
Let's hope for the sake of the travelling public in regional areas, that it's sooner rather than later.
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Well if he reads these forums and knows how much the workers are getting screwed over, but still wrote that article, he's a f***** moron.
Journalism in Australia is very quickly becoming dressed up advertising.
Journalism in Australia is very quickly becoming dressed up advertising.
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Redundancies
Gday everyone! I have an interview next month with REX (direct enrty FO) and I am losing motivation to prepare for it after reading your posts.
I am especially concerned about redundancies taking place in 1-2 years from now. And I am guessing it would primarily affect the least senior pilots like myself, if I were to join.
"Most of them will be made redundant because there will not be enough Captains to make up the other half of the crew!"
What are the chances are this happenning?
I am especially concerned about redundancies taking place in 1-2 years from now. And I am guessing it would primarily affect the least senior pilots like myself, if I were to join.
"Most of them will be made redundant because there will not be enough Captains to make up the other half of the crew!"
What are the chances are this happenning?
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Mike...NO chance of redundancies. They need all the pilots that they can get. And if you have enough experience, then a quick command is very likely.
Good luck with the interview. Never give up... once some of these problems are solved, it will be a great place to work again.
Good luck with the interview. Never give up... once some of these problems are solved, it will be a great place to work again.
Last edited by apache; 1st Sep 2008 at 03:43. Reason: kangaroo court pointed out a spelling error. he is perfect, and has never made one mistake. we should all be as good as he is.
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Apache,
Is English your second language- by chance?
"redundanceies"
Ladies and Gentlemen; there are members of the general public that frequent these forums.
Is it too much to ask that we observe at least a high school graduate's passing grade in spelling, in order that we might be taken seriously by media sources in the first place?
Is English your second language- by chance?
"redundanceies"
Ladies and Gentlemen; there are members of the general public that frequent these forums.
Is it too much to ask that we observe at least a high school graduate's passing grade in spelling, in order that we might be taken seriously by media sources in the first place?
What's this guy smoking ????
The South Africans will take the job just to get an Aussie passport. Once they've got that they'll move on to something better.
The cadets will take anything just to get airborne, once they are marketable they can either buy their way out or do a runner. Cathay here we come.
Forty cadets fresh from school with the ink still wet on their licences are right seat material only for the immediate future. How many qualified captains, or those they can upgrade in six months are joining ?
How does he expect his pilots to stick around when he refuses to pay them properly ? Money isn't everything, but try buying a house and raising a couple of children on REX wages. These days new CPLs are turning their noses up at $50 000/year C206 jobs.
25% attrition is approaching the rates seen in taxi driving and real estate. It's not acceptable in an airline which needs stability to maintain safety.
"They would have left anyway, so why pay them more ?" Same catagory as:
"You're getting hours" When instructing
"You're getting twin hours" Charter job
"You're getting turbine time" First kero burner
"You're getting jet time" Low cost carrier
"You're new so you start on the 'B' scale" Airline job
"You're lucky to have a flying job" Any employer in times of pilot surplus
"Which would you rather be doing ?" Employers response when comparing your wages to truck driver/baggage loader/refueler etc.
Prehaps he'll learn when he's paying contract companies $130 000/year per Captain as he won't have any of his own.
The South Africans will take the job just to get an Aussie passport. Once they've got that they'll move on to something better.
The cadets will take anything just to get airborne, once they are marketable they can either buy their way out or do a runner. Cathay here we come.
Forty cadets fresh from school with the ink still wet on their licences are right seat material only for the immediate future. How many qualified captains, or those they can upgrade in six months are joining ?
How does he expect his pilots to stick around when he refuses to pay them properly ? Money isn't everything, but try buying a house and raising a couple of children on REX wages. These days new CPLs are turning their noses up at $50 000/year C206 jobs.
25% attrition is approaching the rates seen in taxi driving and real estate. It's not acceptable in an airline which needs stability to maintain safety.
"They would have left anyway, so why pay them more ?" Same catagory as:
"You're getting hours" When instructing
"You're getting twin hours" Charter job
"You're getting turbine time" First kero burner
"You're getting jet time" Low cost carrier
"You're new so you start on the 'B' scale" Airline job
"You're lucky to have a flying job" Any employer in times of pilot surplus
"Which would you rather be doing ?" Employers response when comparing your wages to truck driver/baggage loader/refueler etc.
Prehaps he'll learn when he's paying contract companies $130 000/year per Captain as he won't have any of his own.
