Transat pilot layoffs

[dagger]

http://www.newswire....-foreign-pilots

Layoffs of Air Transat pilots - The union denounces the outsourcing of flying to foreign pilots

MONTRÉAL, Nov. 24, 2011 /CNW/ - The Air Transat pilots', represented by the Air Line Pilots Association, Int'l (ALPA), reacted to the announcement of the layoff of 17 pilots and denouned the airline's holding company (Transat A.T.) subcontracting strategy which utilizes seasonal foreign workers.

Last Friday, Air Transat sent layoff notices to 17 of its pilots. Based in Toronto, and hailing from Québec, Ontario and Alberta, these pilots will be out of work starting December 19. Air Transat cited its recent financial results and a decrease in flight hours as justification for the layoffs. The Company has not yet ruled out the possibility of more layoffs. The holding company, Transat A.T., has an agreement with CanJet Airlines to operate a portion of Air Transat flights to southern destinations this winter. Canjet will use additional seasonal aircraft and hire foreign pilots to meet its staffing needs.

"These layoffs are a major blow, not only to Air Transat pilots, but to all Canadian pilots," said Captain Sylvain Aubin, chairman of Air Transat pilots' master executive council. "The fact that Transat A.T., through CanJet, is using foreign pilots when its own pilots are out of work is reprehensible. It's time to put an end to these practices.

Despite there being unemployed pilots in Canada, the federal government has authorized some airlines to hire foreign pilots under the Temporary Foreign Worker Program. Reports indicate that this winter alone, Canjet and Sunwing have hired over 35 and 180 foreign pilots respectively.

Capitan Dan Adamus, President of ALPA's Canada Board, added: "The hiring of even a single foreign pilot, when there are unemployed Canadian pilots, is unacceptable. The issue of hiring foreign pilots and its impacts on the labour force are subjects that need to be taken seriously by the federal government. Some airline managements have been abusing the Temporary Foreign Worker Program by using it for competitive advantages instead of filling a labor shortage as originally envisioned by the legislation."

ALPA Canada has been lobbying the government for changes to the Temporary Foreign Worker Program and will be raising the issue again when it appears before the Senate Permanent Committee on Transport and Communication next Wednesday. The need to protect the jobs of Canadian pilots is a priority issue for ALPA.

Air Transat is known for its international experience and wide-body aircraft operations. The company markets its fleet in 26 countries, with approximately 90 destinations throughout the world. Air Transat employs 430 pilots based in Montréal, Toronto and Vancouver.

[blues deville]

I find it interesting that AT cannot use these pilots through the normally busy Canadian winter season. However the 17 furloughed pilots will be happy to know A330 crews are in global demand.

[rudder]

If the Feds terminate the ability to hire seasonal foreign pilots rather than Canadian pilots, what prevents Canjet or Sunwing from hiring seasonal lift via wet lease akin to the WJA deal with North American last season and Thomas Cook UK this season?

[Gumbi]

I find it interesting that AT cannot use these pilots through the normally busy Canadian winter season. However the 17 furloughed pilots will be happy to know A330 crews are in global demand.

Before 1997, AT used to systematically furlough pilots in the fall and recall them for the spring, as the summer season required positively more crews because of the European schedule. Since then, there's been more homogeneity between the summer and winter seasons, and AT managed to support excess pilots in the "in-between" months (april & october-november), scheduling recurrents, sim training, etc., to cover for the reduction in flight hours.

This current event seems to be different in nature, though...

[jkavafian]

I find it interesting that AT cannot use these pilots through the normally busy Canadian winter season. However the 17 furloughed pilots will be happy to know A330 crews are in global demand.

Different aircraft type is needed in winter to fly 737-800s while A310s and A330s in summer.

[rudder]

Different aircraft type is needed in winter to fly 737-800s while A310s and A330s in summer.

So are you suggesting that a year round business model based on 21 Canadian based A330's is fatally flawed? What do you believe will be forthcoming from the Dec 15 deadline operational review at Groupe Transat? Will JME reconsider the benefits of owning lift vs renting lift?

[jkavafian]

So are you suggesting that a year round business model based on 21 Canadian based A330's is fatally flawed? What do you believe will be forthcoming from the Dec 15 deadline operational review at Groupe Transat? Will JME reconsider the benefits of owning lift vs renting lift?

There are several parts to your question. 1) The A330 is absolutely the wrong aircraft type for Transat in any season. At 342 seats it's too big an aircraft. The focus on seat cost is the same trap Michel Leblanc used to fall in which is why he was always caught with too big an aircraft in his target markets. In order to convince 342 people to go to Cancun all on a Friday evening requires price concession.

2) Transat has grown by acquisition without giving much thought as to how all those separate companies fit together.

3) JME hates the airline component but that's because he doesn't know how to make efficient use of it. See 1) above. I believe that his mind is not made up on whether to own lift or to rent it. In conversations I have had with him he was always adamant that unless you control the lift the tour business would be in trouble. You need security of supply that you can only get from ownership. It's just that you have to structure that ownership in a way that would be profitable year-round. Look at retailers, they make all their profits in the six weeks leading up to the Chirstmas season and yet they remain profitable for the whole year.

I'm generally negative on Transat's prospects because it has grown into an unmanageable company. But that's a long discussion. Suffice to say that we are no longer discussing winning the race but just to keep the ship afloat.

[rudder]

There are several parts to your question. 1) The A330 is absolutely the wrong aircraft type for Transat in any season. At 342 seats it's too big an aircraft. The focus on seat cost is the same trap Michel Leblanc used to fall in which is why he was always caught with too big an aircraft in his target markets. In order to convince 342 people to go to Cancun all on a Friday evening requires price concession.

2) Transat has grown by acquisition without giving much thought as to how all those separate companies fit together.

3) JME hates the airline component but that's because he doesn't know how to make efficient use of it. See 1) above. I believe that his mind is not made up on whether to own lift or to rent it. In conversations I have had with him he was always adamant that unless you control the lift the tour business would be in trouble. You need security of supply that you can only get from ownership. It's just that you have to structure that ownership in a way that would be profitable year-round. Look at retailers, they make all their profits in the six weeks leading up to the Chirstmas season and yet they remain profitable for the whole year.

I'm generally negative on Transat's prospects because it has grown into an unmanageable company. But that's a long discussion. Suffice to say that we are no longer discussing winning the race but just to keep the ship afloat.

On the September analyst conference call JME stated that the corporate objective was to not lose money and that one response might be to reduce capacity. He then went on to describe his options which included either parking one to three AT power-by-the-hour A310's with nominal residual minimum monthly charges or reducing subcontracted lift from Canjet subject to minimum guarantees. He said that parking A330's was off the table due to lease expense.

It would appear from this announcement that 1 A310 is being parked. Is that the extent of the reductions? Further reductions may be much more complicated due to hotel capacity that is likely already contracted. I understand that package pricing is fairly soft to many southern destinations and that there is generally a surplus of capacity.

So, is Groupe Transat's problem a winter problem, summer problem, or both? It is generally considered expensive to layoff, particularly if the reductions are only short term.

[blues deville]

Somehow Max Ward used to fill large aircraft all year long. I guess a different time and pre deregulated market place

I think the problem for everyone else in Canada's is Westjet dominatation in the sun charter market utilizing their versitial fleet of NG's. I think the only fly in WS's soup is having to wet lease a foreign large aircraft for their Hawaii program. That would probably be a good route for a parked A310. I am sure TC is giving them a good rate on the lease as that aircraft would be parked somewhere too if not for WS.

Just my opinion......I could be wrong.

bd

[Mitch Cronin]

I hate it when people try to rewrite history.

Malcolm,

First off, PWA bought Wardair, not Canadian. ...and secondly, There's no way he was "in the process of going under". The financial situation had changed rapidly following dereg and the entrance to sked service with the 310's, but the holiday stuff was still all gravy. ... and I'm thinkin' Blues was referring to that.

[blues deville]

I hate it when people try to rewrite history.

Malcolm,

First off, PWA bought Wardair, not Canadian. ...and secondly, There's no way he was "in the process of going under". The financial situation had changed rapidly following dereg and the entrance to sked service with the 310's, but the holiday stuff was still all gravy. ... and I'm thinkin' Blues was referring to that.

Thanks. Yes I am referring to the pure charter version of Wardair.. Not the unfortunate decision to become a scheduled carrier version.

[Thebean]

There are several parts to your question. 1) The A330 is absolutely the wrong aircraft type for Transat in any season. At 342 seats it's too big an aircraft. The focus on seat cost is the same trap Michel Leblanc used to fall in which is why he was always caught with too big an aircraft in his target markets. In order to convince 342 people to go to Cancun all on a Friday evening requires price concession.

2) Transat has grown by acquisition without giving much thought as to how all those separate companies fit together.

3) JME hates the airline component but that's because he doesn't know how to make efficient use of it. See 1) above. I believe that his mind is not made up on whether to own lift or to rent it. In conversations I have had with him he was always adamant that unless you control the lift the tour business would be in trouble. You need security of supply that you can only get from ownership. It's just that you have to structure that ownership in a way that would be profitable year-round. Look at retailers, they make all their profits in the six weeks leading up to the Chirstmas season and yet they remain profitable for the whole year.

I'm generally negative on Transat's prospects because it has grown into an unmanageable company. But that's a long discussion. Suffice to say that we are no longer discussing winning the race but just to keep the ship afloat.

JK has hit the nail squarely on the head.

Transat has become the increasingly mouldy slice of baloney in the sandwich.

The entire model required a dramatic rethink, and that likely entails bringing in some fresh thinkers with the lattitude to make the hard decisions req'd. That's a tough reality JME will have a hard time swallowing.

Make no mistake about it. Wardair was within 90 days of collapsing prior to PWA's takeover.

[AME]

I hate it when people try to rewrite history.

Malcolm,

First off, PWA bought Wardair, not Canadian. ...and secondly, There's no way he was "in the process of going under". The financial situation had changed rapidly following dereg and the entrance to sked service with the 310's, but the holiday stuff was still all gravy. ... and I'm thinkin' Blues was referring to that.

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0006042

[Kip Powick]

http://www.thecanadi...s=A1ARTA0006042

Canadian Airlines International Ltd., formerly doing business as Canadian Airlines was the principal subsidiary of its parent company Canadian Airlines Corporation. The new airline was formed on March 27, 1987 when Pacific Western Airlines purchased Canadian Pacific Air Lines, which in turn had recently acquired Eastern Provincial Airways and Nordair.

In 1989, Canadian Airlines acquired Wardair, giving them access to new routes including long sought-after routes to the UK and Europe. Its major hubs were at Montréal-Dorval International Airport (now known as Montréal-Pierre Elliott Trudeau International Airport), Toronto Pearson International Airport, Vancouver International Airport, and Calgary International Airport.

[Mitch Cronin]

Just 'cause it's written on a web site, does not make it so.

PWA Corp. -owner of recently created Canadian Airlines - bought Wardair for $250 million (quite a princely sum for an outfit Rattler claims was "in the process of going under") , initially saying it would operate both CDN and WD as separate entities... You were there Kip, you don't remember?

[Maverick]

Just 'cause it's written on a web site, does not make it so.

PWA Corp. -owner of recently created Canadian Airlines - bought Wardair for $250 million (quite a princely sum for an outfit Rattler claims was "in the process of going under") , initially saying it would operate both CDN and WD as separate entities... You were there Kip, you don't remember?

To split hairs between PWA corp and CAIL is purely semantics Mitch, I was there too. Max blew it, there is no doubt about that. He was attempting to become the third major domestic carrier in Canada and it was doomed before he ever turned a wheel. It could also be argued that WD and it's $600 Million in unpaid for China was the the last straw that would lead to the death of CAIL.

If they had instantly reshaped it into a stand-alone charter outfit maybe, but that is increasingly distant history.

Like many things, they are more fondly remembered as time passes.

[Kip Powick]

Just 'cause it's written on a web site, does not make it so.

PWA Corp. -owner of recently created Canadian Airlines - bought Wardair for $250 million (quite a princely sum for an outfit Rattler claims was "in the process of going under") , initially saying it would operate both CDN and WD as separate entities... You were there Kip, you don't remember?

Yup, I remember and it is all semantics.....CP was owned by PWA Corp ...so in the 'background' one could say CP bought WD but as we all know PWA Corp actually bought WD to place under the CP umbrella.....I think you and I, as well as many others, knew the "two separate airlines" was all BS...especially when the new CEO , (Kevin),of the WD connection was buying a house in YC as he stood and told us about the separate companies!!!

[Lakelad]

(quite a princely sum for an outfit Rattler claims was "in the process of going under")

If not Rattler, how about a prognosis from someone a little closer to the action:

wardend.mp3

[Specs]

Just curious why nobody is up in arms about hiring foreign pilots?

Is it because the reciprocal effects benefits everybody?

During the Damn Rich People Thread I was thinking about the impact that shipping manufacturing work overseas has had on our economy. Nobody really complains because those folks are invisible and our stuff becomes cheaper. We're protected from that because folks like us are in a service sector.

But then they started shipping heavy maintenance work overseas. i suppose we still have Line Maintenance work where you need to be on site. At least I thought so until yesterday.

I met a group of Indian contractors doing programming work here on site herein YYZ for a local company. There's probably a hundred of them in total. They're on multiple 6 month contracts that keep getting renewed and they're making peanuts by our standards. Needless to say they're taking jobs Canadians coud be doing.

Shouldn't there be more of a hue and cry about this trend of importing foreign workers? A few days ago I would have thought it was nonsense to imagine imported Indians or Mexians would be fixing and flying our planes but today I ain't so self assured.

[Fido]

.... and there are tens of thousands of Canadians working in countries around the world.

[Seeker]

Just curious why nobody is up in arms about hiring foreign pilots?

Ahhh, there are people up in arms over this - ACPA's President, Paul Strachan, has met with the minister responsible for this several times and reports significant progress on limiting or eliminating work permits for foreign pilots.

[blues deville]

Shouldn't there be more of a hue and cry about this trend of importing foreign workers? A few days ago I would have thought it was nonsense to imagine imported Indians or Mexians would be fixing and flying our planes but today I ain't so self assured.

Yes probably but no one seems to mind (or notice) the hundreds of migrant farm workers flown in from Mexico every year to pick fruits and vegetables across rural Ontario. Your average Canadian is not interested in this kind of labour so I guess its not a problem.

[blues deville]

Ahhh, there are people up in arms over this - ACPA's President, Paul Strachan, has met with the minister responsible for this several times and reports significant progress on limiting or eliminating work permits for foreign pilots.

Whatever progress he has made so far with the minister responsible is having little effect as Chorus, CanJet and Sunwing are still importing a few hundred foreign pilots for the 2011-2012 winter season

With all due respect, I believe Paul is only concerned about pilots on AC's seniority list. Eliminating foreign pilots from working in Canada will only benefit Air Canada's charter programs and handicap the competition.

[Guest]

Whatever progress he has made so far with the minister responsible is having little effect as Chorus, CanJet and Sunwing are still importing a few hundred foreign pilots for the 2011-2012 winter season

No foreign pilots at Chorus.

[rudder]

Whatever progress he has made so far with the minister responsible is having little effect as Chorus, CanJet and Sunwing are still importing a few hundred foreign pilots for the 2011-2012 winter season

Suggesting that Chorus is in the same foreign pilot hiring game as CanJet and Sunwing is a load of crap.

CHR added both a new equipment type and new international operation and needed to outsource line training of it's own seniority list pilots for the startup season only. As CHR was using Thomas Cook aircraft, Cook had a vested interest in having some pilot reps on site for quality control. As a result, about 8 out of 20+ temporary contract pilots were non-Canadian. The rest were ex-AC, ex-SSV, ex-Zoom (in other words: ALL CANADIAN).

No foreign pilots are part of the 2011-2012 Thomas Cook Canada winter season. The CHR pilots are ALPA pilots and fully support the ALPA National position on foreign pilots. Sorry the facts do not support your allegation.

And as far as ACPA is concerned, you are correct. All that ACPA cares about is ACPA. Don't forget that it was ACPA that allowed AC to subcontract freight lift using Gemini Airlines - foreign pilots and foreign aircraft. And for a second time WJ has subcontracted lift to a foreign airline using foreign pilots.