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?

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.

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.

So Long, Rick Wright

A sad note that's not aviation related, but nonetheless related to the title of this blog:

Richard Wright, one of the founding members of Pink Floyd, passed away today after a battle with cancer. He was 65.

Rick wrote several Pink Floyd songs including Us And Them and The Great Gig In The Sky from the album Dark Side of the Moon.

Home, home again
I like to be here when I can
When I come home cold and tired
It’s good to warm my bones beside the fire
Far away across the field
The tolling of the iron bell
Calls the faithful to their knees
To hear the softly spoken magic spells.

The time has gone, the post is over, thought I'd something more to say...

The Great Gig On The Ground

What a year it's been so far. Oil prices began surging. One airline announced a merger (more like an acquisition) with another which, when (not if) complete will create the world's largest airline. Initially, it appeared to create good news for my carrier. In fact, there was so much projected growth that moving my family to my domicile would be a pretty safe bet.

Less than a month after the move, things began to unravel. The projected growth was gone in an instant. Not only that, but many of the 100 plus of the projected 300 new hires that had been hired were either un-hired or hired through completion of training with the expectation of furlough on completion of new-hire training.

August 1st, it was announced that we would be receiving new CRJ-900's. Furloughs were off and things were looking better. On August 20th, as I ended a really great 4 day trip with one of the best crews I've ever been with, it was announced that the CRJ-900's were not coming and to expect a further decrease in flying.

The following week, a displacement bid was released. There are two kinds of bids for pilot positions, vacancy bid and displacement. A vacancy bid is good. It is issued when more pilots are needed, whether for new captains or a different aircraft. A displacement bid is never good. It means that people are either being moved to another base, aircraft or seat position. The displacement bid called for 100 captains would be downgraded to first officers. 100 captains downgraded creates an extra 200 first officers.

Last week the news was released. 210 pilots were to be furloughed. That is back to an April 2007 date of hire. I was hired in August 2007. So the music stopped and there wasn't a chair for me or the 160 or so pilots junior and 50 senior to me. The first half are being shown the door October 5th and my half November 5th.

With my carrier being wholly owned, it appears that it is easier for the parent company to make the deep cuts with us. Can things change before then? Seeing how they've changed so quickly this year, I would say yes. However, hoping for a miracle isn't a good game plan.

A quick word about furloughs. A furlough is similar to being laid off. It's basically an unpaid leave of absence. The difference between being fired and furloughed is that certain employment rights are retained in a furlough. Basically, when an airline with a union represented pilot group furloughs, the airline is subject to provisions of a collective bargaining agreement. Every furloughed pilot has right to recall before any new pilot can be hired. (Not that anyone would be clamoring to work at a place that is being systematically dismantled by the parent company)

At any rate, it's time to make lemonade from the lemons. I have a few interviews set up but, in this environment, decent flying jobs are few and far between. Plans B, C, D etc. are being formulated and remaining positive is the biggest obstacle.

One of the best things to do right now is remember that we, as furloughed pilots, are not alone. This has happened before and will most certainly happen again. Many brothers are on the street and, unfortunately, there are probably more to go before this bottoms out. We all have to help one another, stick together and stay positive.

To my brothers at Express Jet, Trans States, Republic, PSA, Continental, United and others on furlough, not to mention those who were put on the streets by defunct airlines, best regards. 2008 can't end fast enough.

Like any displaced pilot, I'm trying to leave no stone unturned. I'm current and qualified in the CRJ-700 and 900, have 650 hours in the CL65 and hold a CL65 command type. If anyone has a lead for CRJ, Challenger 850/870/890 or any other positions, please let me know.

The Highs and the 'Loughs

Has it really been six weeks since the last post? The last time I posted, the sims were just about over. The oral and check ride (L.O.E. - Line Oriented Evaluation) went fine and, after a few more weeks of waiting, O.E. was scheduled and completed.

That's the Cliff's Notes version. Now the meat and potatoes.

A few posts back, I mentioned the volatility in the airline industry and how it could affect things in the coming months. Well now that we're in the middle of the coming months, things have started to take shape. For better or worse.

One day, the last week of June, a sudden message was released from the company. Effective immediately, all new-hire interviews were canceled. Not only were interviews to be canceled, all new hires were to be placed in a hiring pool and classes were canceled too. The next news was the announcement of a major decrease in block hours for the fall. Instead of projected increases, the company was facing a severe decrease and staffing reductions would be forthcoming.

So in the matter of a few weeks, we went from projected hiring of 400 to furloughing of up to 300. Just like that.

Oil had reached nearly $150 per barrel. Merging airlines were getting nervous. A regional airline that had lost a major Embraer 145 contract won a temporary injunction to continue the contract until a settlement or court decision could be reached. There were many factors.

Furloughing is a messy business. In order to begin the furlough process, staffing levels for captains and first officers in each aircraft need to be projected. Once that is done, a displacement bid is issued for the number of seats affected. Everyone bids. It's kind of like musical chairs. Junior captains that aren't displaced to another domicile are downgraded to first officers. Line holding first officers are downgraded to reserve. When the music stops, it's the junior first officers that are left without a chair.

Once the bid "award" is released, everyone finds out their fate. Last week the music stopped and the "award" showed the bottom 90 first officers to be furloughed effective September 1st. More were expected to be announced soon for October 1st.

Fast forward to last Friday. At the close of business, a brief memo was posted on the company intranet. The displacement bid and award was canceled. If the displacement was canceled, that would mean furloughs were canceled. The memo was vague.

Monday morning, the rumors started flying. The gist: expect good news from the company before close of business. By mid morning, the parent company announced the cancellation of a contract with the same regional partner that it had canceled another contract with earlier this year. This time, it was for CRJ-900 aircraft. The difference this time is that the aircraft are owned by the airline we contract to.

Tuesday, the news was official. Our airline would be awarded the CRJ-900's. Our 50 seat aircraft flying was still being drastically reduced, but the amount of furloughs was expected to be reduced significantly. If there are any furloughs, they won't be expected until October.

Although this is good news for my airline, it's not new flying. It's replacement flying. I would much rather hear good news for everyone involved. I wish the best for my fellow brothers that have already been furloughed.

The price of oil has come down $30 per barrel. Today it closed at $118 and change. Technical analysts say a key support level is $117. If it breaks that, it could go back down near $100. Of course, violence in the Middle East, a category 5 hurricane in the Gulf of Mexico or a variety of other factors could easily take it to $200. With long term futures contracts still trading around $100, it appears that oil is never again going to be a bargain. Here's hoping that new synthetic jet fuel technology, along with new geared turbofan technology is as promising as it sounds.

Everyone strap in, it's going to be a wild ride.

May I have a Diet Coke, PLEASE?

It's been a while since the last post and there has been much happening. Where do I start?

I spent a week in May looking for a home. After a lot of searching, found the perfect home in a nice neighborhood with great schools. I was surprised to find out how much more is spent per child on education in Kentucky vs. Arizona, too. Nice.

The rest of May, I spent doing out and back trips while dealing with the new home. I spent nearly 3 weeks in KY without going home. This left my poor wife to do a majority of the packing. She did a great job and I'm proud of the way she handled all of the stresses of preparing for a cross-country move.

The kids got out of school the Thursday before Memorial Day and we left on the 29th. Without getting in to too much boring detail, it was the move from hell. We had two moving trucks, plus a tow trailer for my wife's car. The main 26 foot truck was the problem. We ended up getting a replacement truck twice. That's right, our belongings had to be swapped two times. Once in Payson, AZ and once in Albuquerque, NM. There were nightmare customer service issues that went along with it. I won't name the company, but the trucks are big and yellow and it rhymes with Pense Key. Never again. I learned that a moving truck with a nice paint job doesn't necessarily run well. Something like a fleet of polished turds comes to mind.

We finally made it to Northern Kentucky 3 days late. I had to miss a day of work which, was of course, without pay. Two and a half weeks in and it's finally beginning to feel like home.

Things I like: cooler weather, grass, trees, friendly neighbors, 15 minutes from the airport, rural feel, proximity to parks and recreation for the kids, much lower utility bills and fireflies.

Things I'm not thrilled about: lack of good Mexican food, lack of family, tornado warnings (thank goodness for basements), the chili (just don't get the Cincinnati chili thing) and the phrase "please?". Apparently, "please?" means "what" here. I was at a restaurant. The waitress said, "Can I get you something to drink?". I said, "Yes, I'll have a Diet Coke." She said, "Please?" I said, "Ok, I'll have a Diet Coke PLEASE." She said, "No silly, I meant what?" Why didn't she just say, "What?" Oh well, it's a regional thing to get used to. At least she didn't think I was being rude.

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The Monday following the move, differences training for the CRJ700/900 started. The first week was ground school. One day of recurrent training, 3 days of systems and 1 day of differences between the CRJ700 & 900 (not very many other than gross weights and a few limitations). On Thursday, we had our final exams which consisted of systems, memory items and limitations. Everyone in the class did better than 93%.

Thursday night was hangar night, where we do emergency drills and a walk around. Not that the CRJ-900 is a big aircraft, but it's very striking how much larger it is than a CRJ-200. You can walk under the wings, the tail section is much taller and the landing gear is much more robust. The CRJ's all carry the same type rating, it just surprised me how much larger the -900 is.

We finished systems class ahead of schedule and had Friday off. With my simulator bid complete, I had six days off to study, work around the house and relax. It was nice. We celebrated Father's Day and my birthday in one day with a trip to Big Bone Lick State Park, just 10 minutes from our house. It's a very nice park with a lot to see and do. We plan on returning before summer ends for a weekend of camping.

Last Thursday, after an enjoyable six days off, it was time for the sims. Unlike many, our class had both captains and first officers. I am fortunate to have been paired with a senior captain. He's a great pilot and a wealth of information. I couldn't have asked for a better sim partner. The differences training only calls for 5 sim sessions total, including two checking events. Day One and Two were straight training events where we practiced Cat 1 & 2 ILS, non-precision CANPA and single engine approaches, V1 cuts, rejected takeoffs, in-flight emergencies etc.

Today was day three and the maneuvers validation. An MVis conducted by an FAA designated examiner and is a maneuvers check ride.

My portion started with a low visibility, crosswind takeoff, then a standard Cat I ILS to minimums and landing. Then with 600' visibility was given a V1 cut and left engine fire. After completing the takeoff, memory items and Quick Reference Handbook items returned to the airport for a hand-flown single engine ILS to a crosswind landing. Next, it was a normal takeoff with standard instrument departure and a CANPA (constant-angle, non-precision approach). I had wind-shear at 300' and went missed and did the wind-shear escape maneuver. Once clear of the shear, the DE failed the flaps/slats and I did a no-flap visual crosswind landing. Last but not least was a rejected takeoff due to cargo smoke followed by a passenger evacuation.

The captain had the same maneuvers as me, other than a CAT II ILS for him (a captain's only maneuver). I usually get sim-itis and today was no exception. However both the captain and I both passed without one bit of criticism. Today was one of those rare days where everything just goes right. A good day.

Tomorrow is a day off, then back to the sims Monday for a LOFT (line oriented flight training) day and a mock oral. Tuesday is the big day, the oral exam and LOE (line oriented evaluation). After the LOE, I will be released to OE (operating experience) on line with a check airman. This is usually only 4-6 legs and can be done in 2 days.

More soon.