FLOPS Revamping Seniority System?

[Heavy Set]

The following excerpt was copied from Aviation International News. By the way, what sorts of "conduct" is the new CEO talking about? What is he referring to? If you are a FLOPS pilot, how do you expect this "revamping" to affect you?

Read below:


Flight Options Revamping Seniority System

Conceding that the seniority system put in place late last year following the March 2002 merger of fractional aircraft ownership companies Travel Air and Flight Options is “unfair,” newly appointed Flight Options LLC chairman and CEO John Nahill told his employees that he is looking at recommendations from his pilots for a new, more equitable system. “It is critical that we resolve this if we are going to move forward and be a successful company.” Nahill told pilots that any changes resulting from this review “will not lower your pay or change your seat position.” Pointing out that “we have been working on issues everyday to improve the quality of life for everyone in our company,” Nahill said he was “really dismayed by some of the conduct that occurred in the last couple of weeks.” Without elaborating, he said. “I personally request, and frankly expect, each of you to conduct yourselves with the utmost respect for each other. Conduct less than that will not be tolerated. I am asking each of you to let go any barriers that prevent you from doing do so. It is time to heal, unite and grow together.”


Amen....

 

[EMB145]

What happened? Did you guys beat the crap out of each other front of an owner?
You should know better....do it in private!

Good luck to you guys in sorting it out.

 

[mike]

Raytheon's take on it

Raytheon's annual report is out. The FLOPS excerpt follows.

In 2002, the Company formed a joint venture with Flight Options, Inc. whereby the Company contributed its Raytheon Travel Air ® fractional ownership business and loaned the new entity $20 million. The Company’s investment in and other assets related to the joint venture totaled $107 million at December 31, 2002, which includes equity losses the Company has recorded since the formation of the joint venture. There was approximately $59 million of collateral value underlying amounts due from Flight Options at December 31, 2002. In addition, there was approximately $88 million of additional transaction-related receivables that the Company recorded at zero due to the uncertainty of the ultimate realization of those amounts, due to the fact that the new entity, Flight Options LLC (FO), has been unprofitable to date and has not been generating adequate cash flow to finance current operations. Given these operating results, the Company has loaned FO an additional $10 million since December 31, 2002.



FO had been pursuing additional equity financing, but was not successful in that regard. As a result, the Company offered to exchange the FO debt it currently holds for additional equity in the joint venture, restructure other debt, and invest additional funds for additional equity. If this restructuring is completed, the Company will be responsible for FO’s operations, own a majority of FO’s stock, and consolidate FO’s results in the Company’s financial statements. Negotiations related to the restructuring are ongoing. If the Company consolidates Flight Options, it is not expected to have a material effect on the Company’s financial position or results of operations, although the Company would reduce its reported Aircraft backlog by approximately $850 million related to an order received from Flight Options in 2002. In addition, the Company’s reported revenue, operating income, and other expense would change as a result of the consolidation of Flight Options’ results. Flight Options’ customers, in certain instances, have the contractual ability to require Flight Options to buy back their fractional share based on its current fair market value. The estimated value of this potential obligation was approximately $530 million at December 31, 2002.

 

[Cardinal]

How exactly do you "revamp" a seniority system? Seems inherently contradictory on the surface. Is that about like "revamping" the calendar? "Restructuring" the solar system? Must be that new math. And if it doesn't result in anybodys pay or seat changing, whats the point? Call me confused.

 

[LAZYB]

OK

Cardinal "CONFUSED"