Monday, December 29, 2008

The Regional Airline Shell Game

Watch the jet. Can you find it yet? Wherever it lands, you're sure to fret.
Do you wanna make a bet?

The world's largest airline has been busy reducing capacity. The biggest target is 50 seat regional jets. Since the beginning of 2008, Delta has reduced the number of 50 seat RJ's utilized more than any other carrier.

The first catalyst was the cost of fuel, which peaked last summer. The need to decrease capacity continues due to the dismal state of the economy.

Where the cuts come from and how deep is a constantly changing equation. At this point, I don't even think Delta knows. Since wholly owned subsidiaries don't have contractual capacity purchase agreements, it's easier to make changes with them. That is why they have put the screws to Comair.

Another way Delta is trying to reduce regional capacity is by canceling contracts of under-performing carriers. In May, Delta canceled their 50 seat contract with Freedom Airlines, a subsidiary of Mesa Air Group claiming poor completion and on-time performance. Mesa sued and received a temporary injunction to maintain the flying until the case goes to trial sometime in the first quarter of 2009.

In July, Delta announced that they were canceling Freedom's contract for 76 seat CRJ-900 flying as well. Those particular aircraft were owned by Delta and leased to Mesa/Freedom. Mesa had no recourse and Delta began the process of re-assigning the aircraft to other Delta Connection carriers.

First, they announced that the 15 aircraft (some of which have yet to be delivered by Bombardier) were going to Comair. By mid-August, Delta reversed that decision and temporarily assigned the aircraft to Pinnacle Airlines. This, along with the reduction in 50 seat aircraft, was the primary catalyst for my furlough, along with 205 and another 92 on January 16th, 2009.

In November, Delta announced that the remainder of the CRJ-900's were going to be placed with Mesaba, which has experienced tremendous growth in 2008. Now the reasons for that growth are another story entirely. To make a long story short, Mesaba was shrunk and squeezed a few years back and the pilot group is just now returning to it's original size.

Today, a memo was released by Mesaba. The memo stated that 10 of the 15 CRJ-900's that were assigned to them would now be given to ASA. ASA is the major Delta Connection carrier in Atlanta and is owned by Sky West. ASA has a great pilot group and they have been experiencing some reductions, including the loss of their ATR-72 turboprop fleet. Apparently, the awarding of the 900's was a 2 for 1 swap for 50 seat CRJ-200's. This ends up being a net loss of 10 aircraft. With and industry average of around 6 crews per aircraft, that means about 120 fewer pilots. So I wouldn't call it good news for ASA either.

Many of my fellow furloughed pilots had been recently hired by Mesaba and were due to start class on Monday, January 5th. I was glad to see them find work. Late this afternoon, they all received notice that their classes had been canceled. This just sucks.

2009 looks to be a very difficult year in the airline business. The hiring boom of 2007 was short lived. Too short lived. Rest assured there will be another, but with the increase in the mandatory retirement age to 65, it's going to be 2011 or 2012 before mass retirements become a factor and there is any substantial hiring at the majors.

I know there will be another "panic" hiring boom at the regionals before too long, but it won't necessarily be a healthy one. It will be due to the fact that there are so few people going through commercial flight training. The costs have skyrocketed and the lack of available credit for student loans will decrease the number of qualified entry level pilots. Best case scenario would be such a lack of newly trained pilots that the airlines are forced to offer competitive compensation for highly qualified pilots that have either walked away or gone overseas in search of better income. That is a subject of its own and would involve a virtual dissertation.

One thing is certain. Delta is going to continue to dangle larger regional aircraft like carrots in front of it's regional partners in order to drive costs lower. Regional airlines will fight for larger airframes and try to force their remaining pilots to fly bigger aircraft for less money. Scope will continue to be etched away. Until things change, (no I don't have the answer) the race to the bottom is going to be dirty, painful and destructive. The only thing I can do now is watch from the sidelines and hope for the best.

I will also continue to seek the answer to this question: If the CEO of DAL stated that there would be no loss of front line jobs as a result of the merger, why have over 300 pilots been furloughed from a wholly owned carrier?

Saturday, December 27, 2008

U Fly Mike Update

With all of this downtime, it's time to catch up a little. The U Fly Mike has generated a lot of interest here and I've received a bunch of emails with questions about how it has held up over the last 2 1/2 years. So here's what I have to say about the U Fly Mike/QC2 combo since it was purchased...

After about 1200 hours of use, I can say that the QC2/U Fly Mike combination is still performing flawlessly. Both the QC2's and the U Fly Mike have stood up to the rigors of heavy duty part 121 flying. Some days, the set would be put together, taken apart, plugged in and unplugged as many as five times. After a 14 hour duty day, no fatigue from the headset.

Cosmetically, they're a little worse for the wear but that hasn't affected performance whatsoever. Considering the amount of abuse they receive, they look pretty darn good.

Battery life has remained constant. I can usually count on about 22 hours before the indicator light begins flashing. Never once has the battery died while in use.

The only issue I've had was my own fault. One day I was in a hurry to catch a deadhead home. Instead of unplugging by pulling the plugs, I hastily yanked the cord. This was a bad move and caused an intermittent short. After a week of intermittent noise and having the play with the plug to get it "just right", I called U Fly Mike to set up a repair. Unfortunately, they were at Airventure in Oshkosh and wouldn't be back for a week.

It just so happened that I was flying with a captain who has a headset business on the side. He offered to do the repair for me when we got back to base. He replaced the plug set with a set from David Clark. It works great and I have to say that the David Clark cord is much sturdier than the cord that is sourced by U Fly Mike (I think it's Sigtronics). However, the short was my fault and it would probably still be working fine with the original plug had it not been yanked out the way it was.

I've also heard from some people that say the U Fly Mike is not legal to use because it isn't TSO'd. All I will say is that I have had feds on the jumpseat while I was using the combo, one who even had the U Fly Mike, and have never been violated for it. From what I can determine, there is no regulation or requirement under part 91, 135 or 121 or part 25 FAR to use a TSO'd headset in any aircraft, by any crew member.

The best feature? The ability to disconnect the mic and just use the headphones while commuting or deadheading. Even without listening to music, they're great. After hearing "shouldn't you be up front/who's flying the plane?" jokes 1,001 times, it's nice to just put the headphones on and enjoy the silence. Nothing says, "I'm really not interested in talking right now" more than wearing headphones with no wires attached.

So after all is said and done, would I buy the U Fly Mike again? Most definitely. Everyone I've flown with that owns the combo has felt just as strongly.

Friday, December 26, 2008

2008 - Good Riddance!

How do I start? It's been a long time since the last post here...which was only to say farewell to an admired artist. The title says it all, but is a little broad.

November 5th came and went. That was the date of the furlough from the airline I worked for. My last official day was the 4th. My last leg was from Cincinnati to New Orleans in a CRJ-700. When I arrived back at company operations, I went to the chief pilot's office and handed in my badges and company manuals. Then an intern escorted me from the building to the curb. Nice, huh? I was among 206 guys that experienced the same treatment. Another 92 will get the treatment on January 16th.

The actually tried to make me sit ready-reserve my last day. Unfortunately, I was sick. I think a lot of other furloughees were sick that day too. Something was definitely going around. The best case for recall is 2010. Worst case is never. Based on what Delta is doing to my airline, I'm leaning towards worst case. However, I'll hang on to my seniority number as long as possible. There's also a chance of a merger between all of Delta's wholly owned regional carriers. Who knows. Wondering gives me a headache.

Now let's back up to August. That's when the bad news was flowing and rumors of furloughs were rampant. I started looking for work. Having a family to support, going back to another regional airline for first year salary was unthinkable. Only one airline was doing any significant hiring and it was another wholly owned subsidiary of the world's now largest airline. I couldn't see any way to justify going back to first year pay.

I talked with a friend that had done some overseas contract flying and he had some good things to say about it. Noting the dismal state of the US economy and airline industry in particular, I decided to look abroad.

In October, I went to London for a job interview for a growing airline in Africa. I wasn't thrilled with the specific location of their base and had other pots on the fire. However it was the first interview that I was offered and I wasn't going to pass the opportunity.

The job that I was most interested in involved flying in the Middle East. The money was very good, the terms were good and people that had worked with them had nothing but good things to say. I had sent my resume to them in early September and had sent them all documentation and done a phone interview in late September.

At the end of the final day in London, I received an email from the contractor representing the Middle East operator. It was a job offer with a signed contract! This was the job that I had been most interested in.

Even though I was in London interviewing for another job, I signed the contract and returned it immediately. A bird in the hand is worth two in the bush, especially when it's the one you wanted originally. I had an extra day in between interview events and went in to the city for the day. Here are a few photos:


This is Sir Winston Churchill's office in the Cabinet War Rooms, part of the Imperial War Museum. The Cabinet War Rooms are underneath The New Public Offices between Parliament and No 10 Downing Street. Worth every penny.


Buckingham Palace, just after the changing of the guards ceremony.


Piccadilly Circus

The Royal Horse Guards Parade Ground, with Big Ben in the background.


With all that being said, there are always downsides. This is an expatriate job that will take me away from home for weeks at a time. However, I will get substantial amounts of time off in between rotations. Being away from my family for extended periods of time will be very hard. Thanks to the internet, especially Skype, it will be somewhat easier.

Would I take this job with a good domestic economy? Maybe, but most likely not. The income is nearly 2 1/2 times what I was making here, but money isn't everything. I moved across the country to stop commuting and be with my family. Now it's going to be an 18,000 mile round-trip commute. Good times.

The bottom line is that this is a great opportunity during a bad time and I am fortunate to have a job. When I first told my co-workers about this job, most had nothing good to say. After a few months of searching the domestic flying job market, opinions change. Lately, my phone has been ringing with requests for help getting a job there. Unfortunately, over 300 pilots applied for only 12 positions.

I am thankful for having the last 2 months off to spend time with my wife and children. It was a gift to be home for Christmas. I've been able to travel to see some friends and get things in order at home. The new job starts in January. It will be nice to fly again. My wife is actually looking forward to me being gone after 2 months of being at home...every...single...day...after...day.

It's been a tough year for people everywhere, not just us. For 2009, it's going to be back to basics for myself and many others. Who knows what's in store? All I know is that I count myself thankful for family, friends, good health and lemonade from lemons.