2 min read
For Pilots Only: Oct 20, 2024
Connecting the Dots
The CJO game is changing and it’s time for everyone to adjust. No longer can a pilot leverage a job offer from Company A to...
I really love salads that aren't mainly lettuce! Especially when it needs to hold up for a few days. Cauliflower is such an underrated veggie, often relegated to the crudites tray, it becomes the star of the show in this salad. It adds a wonderful crunch that will hold up all week long until you, or your pilot, is ready to eat it! Pairing this fresh and flavorful salad with the deep tones of a dense salmon cake really balances each other for a very filling meal. The lack of a starch is intentional but you could easily add some quinoa or couscous to round it out. Cooking/meal-prep does not have to be complicated in my opinion, I don't think someone should have to be a chef to enjoy flavorful meals. You won't find any overly difficult recipes on this page. My goal is always flavor, nutrition, and ease!
SALMON CAKES
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Instructions:
CAULIFLOWER SALAD
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ENJOY!
Right now, the industry is experiencing significant changes, and it's incredibly confusing.
Airlines have shifted from aggressive hiring to reducing recruitment, suspending training programs, and even laying off pilots within a 60 to 90-day timeframe.
Of course, the airlines never disclose the true reasons behind all of these developments. There is minimal public announcement of these changes; instead, information emerges gradually, creating an atmosphere akin to a rumor mill. But if you look closely, there is a wealth of information available, and connecting the dots between them proves challenging.
By carefully reading and understanding how different pieces of news relate to each other, three major stories in the news provide a clear indication of what’s truly happening.
Let’s begin with Southwest Airlines' recent announcement that they will rescind offers and suspend new classes. They mentioned that pilots in this situation would be placed into a separate pool. However, this seemingly considerate action essentially translates to:
"We regret if you quit your job, but we won't be hiring you anytime soon. We'll put you in a pool, maybe next year or sometime after."
To add to this unsettling development, today we received word from two different Raven clients regarding hiring projections at a major airline, one saying they were told by a recruiter that hiring projections are dropping, while the other, interviewing at the same airline, was told hiring would stay the same. Both received this information within 48 hours of each other and are a perfect example of why pilots are feeling fear and unease.
Then there's the news from RAVN Alaska (no relation). They recently laid off 130 employees, including 22 pilots. While this may seem insignificant initially, considering RAVN only has 400 employees – it represents one-third of their staff.
Some news articles link these layoffs with the fact that the pilots unionized two years ago. However, more recent news about Ravn’s expansion into Asia via its 757 routes presents a more truthful view of what’s unfolding.
RAVN Alaska was initially established using Dash 8s for regional flights around Alaska. In 2022 they started operating Boeing 757s aiming to offer more Asian destination flights.
You don’t need to be a rocket scientist to link the recent layoffs to putting more time and resources into those 757 Asian flights.
This leads us to Carl Icahn's hostile takeover bid for JetBlue – because, as I see it, all the examples above are mere microcosms of what we will see happening at JetBlue.
Remember that JetBlue recently experienced an unsuccessful merger with Spirit Airlines and hasn’t turned a profit since Coronavirus.
Therefore, when an activist investor like Carl Icahn enters such scenarios, it typically indicates one thing - future emphasis on enhancing shareholder value.
As a pilot, you might assume this is a good thing- especially if holding shares in the airline or believing jobs are secure due to your essential role in flying aircraft.
But here lies the reality:
While it is true that they need us to fly the planes, they don’t need us to fly planes to destinations they no longer have.
You see, whenever an activist investor assumes control over an airline or when an airline board decides priority lies in increasing share price, their first step usually involves two things:
Accumulating debt and shifting route structures just like RAVN did.
Although these actions do indeed enhance stock prices significantly, they unfortunately come at a cost – potentially impacting pilot compensation benefits, employment opportunities, and even jobs.
This pattern has been consistent throughout history:
And the writings are already on the wall.
Icahn has secured 2 seats on JetBlue’s Board of Directors and owns a 10% stake in the company. If you’re wondering what this means for you, Google his past ventures at TWA, Time Warner, Yahoo, Family Dollar, and most recently, AEP.
Whether you’re a JetBlue pilot, or a pilot looking for a job anywhere but JetBlue, aviation is heavily interconnected. Any disruption at JetBlue will impact pilot hiring everywhere else, including majors, regionals, and corporate operators.
So if you want to know why airlines like Southwest, United, or RAVN are doing what they are doing, keep your eye on JetBlue. Their actions will explain everything.
For them, it will be all about the money for a while.
So you might as well do the same for yourself.
If any part of this concerns you, or you find yourself tied up in any of the above shenanigans, I'm happy to help.
Sign up for a free strategy call and let’s see what’s going on and your options.
Safe travels,
James
P.S This post serves as an important reminder of why pilots should use their critical thinking skills while reading the news.
Below are the articles if you want to read more:
✈️ RAVN Alaska Lays Off 130 Employees, 22 of Which Are Pilots.
✈️ ICAHN Takes A Stake in JetBlue
✈️ RTX Issue Will Ground 350 Planes Per Year Through 2026
✈️ Southwest Airlines Suspends First Officer Training Classes
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