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Aviation Industry Updates: September 29, 2020

By September 28, 2020December 22nd, 2021Industry News

United Concessions | Will Other Carriers Follow Suit?

Captain Todd Insler, MEC Chairman of United ALPA, addressed the pilot group yesterday notifying them of the ratification of the Pandemic Recovery Letter of Agreement. The LOA was passed with 58% of the pilots voting in favor of it.

“This historic agreement will return thousands of pilots to their original pre-displacement seats, prevent all pilot furloughs until June 2021 at the earliest, and temporarily provide our airline flexibility needed to capture market share as demand recovers.”

Thanking the Negotiating Committee, pilots, subject matter experts, and support staff Insler went on to say, “United pilots have shown that by representing all pilots fairly and equitably, from the most junior to the most senior, we can improve our contract even in the midst of an economic downturn. This vote also ensures we can protect all of our careers for the long term and keep our pilot group intact by working together.”

With a hat-tip to recent heated discussions, Insler encouraged the pilots to remain cordial and focus on safety and customer service adding, “regardless of how you voted, together, we must move forward as one pilot group, and as one union.” Insler continued, “when we look back, years from now, it is my belief that history, and each of us, will see this as one of our finest hours.”

We thank our clients and colleagues for sharing this important update.

Pilots Face a Tricky Future | Can You Beat The Odds?

KEY QUOTES:

  • “Pilots will do what they need to do to support their families,” Cage said. “They’ll be Uber drivers if they have to until they find something more permanent.”
  • “The deadline is looming, but there is no clear breakthrough on the medical or legislative front.”
  • “We need the flying public,” said Marc Himelhoch, an active pilot for a major American airline. “The course we’re on is unsustainable.”
  • “A lot of us are interested in going to work in nonflying positions for companies that we would like to fly for when the industry recovers — such as driving trucks for FedEx, UPS or Amazon,” said a pilot for a regional carrier who asked that his name be withheld, since he wasn’t authorized to speak publicly.
  • “Pilots are focusing on cutting expenses to the bone and delaying or deferring moving or buying a new home.”
  • “There are a few standard go-to options for a commercial pilot, especially in the corporate sector. Pilots are needed for air transport of goods, which has seen some demand increase from a surge in e-commerce during the pandemic. There’s work to be had in the air, from remote pipeline inspection to banner towing, the difficult-to-break-into world of private jets, or flight instruction.”
  • “It depends on how much you’re willing to suck up your pride and take a job beneath your qualifications,” Himelhoch said.
  • “It is not uncommon to see 500-plus people applying for a job.”

NBC News

RAVEN’S TAKE:

You have a 3% chance of getting a job if you apply online. 👎 If you take the time to learn how to effectively network using tools like LinkedIn, you can increase your odds to 64-86%. 💥 We know you want to stay in the flight deck, currency and proficiency will be important when the recovery begins!

You’ve been sending resumes directly into garbage cans 🗑️ for weeks now. Take the time to invest in yourself and stay ahead.

Last week we had clients get hired at Fedex, Atlas, Eastern Airlines, and multiple Part 135/91 operations. 🎯 Many more of our clients have been scheduling interviews with other flight departments, startups, and government agencies.

How are they doing it?

✈️ Flying jobs are available, are you networking appropriately?

Delta TA Up For Vote | Worth Ratification?

SUMMARY:

Delta pilots may soon have the opportunity to vote on TA 20-03 which allows for creative voluntary scheduling changes and delays furloughs for some. The MEC must first agree to this TA, and if agreed upon, will decide whether or not to send to the pilots for ratification. No one will be forced into participation; the intent (we believe) of this LOA seems to offer the opportunity for senior pilots to fly less, or not at all, in an effort to share the available flight hours with the rest of the seniority list.

We expect more information to be forthcoming and thank our trusted clients for the help reviewing the document. Below is the nitty-gritty…

No Furlough Agreement

  • 1,721 pilots will be furloughed on Nov 1, 2020 if this agreement, LOA 20-03, is signed and 1,941 if not.
  • If LOA 20-03 is signed 220 pilots will be saved from furlough until January 1, 2021.

Reduced Regular Line

  • A Reduced Regular Line will be within 7.5 hours above or below 80% of the Average Line Value for that category.

Monthly Blank Lines

  • A Monthly Blank Line (MBL) is a regular line that is constructed without any rotations.
  • A pilot awarded an MBL will be paid the greater of a twenty-five (25) hour line guarantee or the accumulated pay and credit for the month.

Ultra Long Call Reserve Line

  • 24 hour call out with a line guarantee of 80% of the published reserve guarantee for that category.

Continuous 12-Month Blank Line (CBL)

  • A pilot who holds a CBL will be paid the greater of a thirty-five (35) hour line guarantee, or the pilot’s accumulated pay and credit for the month.

Changes to Open Time Award/Assignments

  • Because of the new line offerings this section was put in to show the award order of flying moving forward.

Military Leave Option Changes

  • A pilot who is on a properly documented long-term Military Leave of Absence (MLOA) that touches any day between April 1, 2020 through June 30, 2021, inclusive, will not have any of those MLOA days, up to a maximum of 1,095 days(or 3 years), count towards the pilot’s cumulative USERRA 5-year limit.

Updated: 9/29 8:52pm EST to reflect more accurate language

Peak Business Travel Season Begins, TSA Numbers Stay Flat

TSA Numbers Sep 29 Email

What Can We Learn From the Hotel Industry?

KEY QUOTES:

  • “It is for us the Great Depression, utterly devastating,” said Dreher. “We’ve tried to get ahead of it. We’re working with lenders, but we need help. We need help in every imaginable way. The human toll breaks your heart.”
  • “Our industry is in crisis. Thousands of hotels are in jeopardy of closing forever, and that will have a ripple effect throughout our communities for years to come,” said Rogers. “We need help urgently to keep hotels open so that our industry and our employees can survive and recover from this public-health crisis.”
  • Since mid-February, U.S. properties have lost more than $46 billion in room revenue, according to the AHLA. Hotels across the country are on track to lose more than $400 million in room revenue per day due to COVID-19, which equates to losses of $2.8 billion weekly.
  • “New research from the American Hotel and Lodging Association shows 68 percent of hotels have less than half of their normal staff working full time.”
  • “More than two-thirds of hotels said they would not be able to last six more months at the current projected revenue and occupancy levels, and half of the hospitality owners polled said they are in danger of foreclosure.”
  • “Without government assistance, 74 percent of hotels said they would be forced to lay off more employees.”
  • “The average occupancy rate for all U.S. hotels in August was 48.6 percent, up slightly from 47 percent in July. This marked the lowest occupancy rate for any August on record (STR was founded in 1985), and the company expects U.S. hotel demand will not fully recover until 2023.”
  • “More than 8,000 hotels could close in September if business travel does not pick up and funding from the Paycheck Protection Program runs out.”
  • “You won’t see meaningful increases in operating metrics for Manhattan hotels until we see a return of the business traveler, and that likely comes after a widely distributable vaccine and therapeutics become available,” said Warren Marr, managing director of U.S. hospitality and leisure for PwC.”
  • “The coronavirus is fast becoming the most significant event to ever impact our business; that includes the 12-month period after 9/11 and the financial crisis of 2009.”

North Star Meetings Group

Additional Resources

United TA Is Up For Vote | What Three Things Should Pilots Consider?

Aviation Recovery | Business or Leisure, Who Will Lead?

You’re getting furloughed, now what?

How to Answer “Will You Resign Your Seniority Number”?

Why Applying for Jobs Online Won’t Work

How Does the Coronavirus Compare to 9/11?

How to Survive Disruptive Change

Are Furloughs Coming?

What Should Pilots Do In These Uncertain Times?