Air Canada outsourcing US Regional

[midwingcrisis]

Air Canada to Undertake Request for Proposals for Certain U.S. Regional Transborder Routes



http://finance.yahoo.com/news/air-canad ... 00312.html


MONTREAL, Sept. 23, 2013 /PRNewswire/ - Air Canada today announced that it will undertake a Request for Proposal (RFP) process to select a new regional airline to operate certain existing U.S. regional transborder routes, starting in mid-2014. Select Canadian and U.S. regional carriers will be invited to participate in the RFP process and submit their respective pricing and other terms and conditions of carriage.

"The launch of a request for proposals is an important next step in our regional airline diversification strategy and ongoing cost transformation program," said Kevin Howlett, Senior Vice President, Regional Markets. "Over the past two years, Air Canada has made significant changes to its strategy and relationship with its regional partners, now all operating under the Air Canada Express banner. Most recently, we transferred the operation of our Embraer 175 aircraft to a regional carrier whose cost structure is more in line with the U.S. regional carriers, and as low cost operators continue to grow in the rapidly evolving North American regional markets, it is critical for Air Canada to take the necessary steps to ensure its cost structure in these markets is also competitive."

Air Canada currently has capacity purchase agreements with four regional airline partners: Jazz, Sky Regional, Air Georgian and EVAS.

Air Canada is Canada's largest domestic and international airline serving more than 175 destinations on five continents. Canada's flag carrier is among the 20 largest airlines in the world and in 2012 served close to 35 million customers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 67 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,328 destinations in 195 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax that ranked Air Canada in a worldwide survey of more than 18 million airline passengers as Best Airline in North America in 2013 for the fourth consecutive year. For more information, please visit: www.aircanada.com.

[tiguan]

Great, outsource more jobs to US pilots. As if there aren't enough United Express aircraft on the ramp already.

[midwingcrisis]

I understand the the RFP is above and separate from that of United. Could be a bigger boon to American Regional Carriers due to their lower cost structures

[FICU]

$18K per year regional F/O jobs coming soon to a Canadian 705 airline near you... just like Amerrrrica!

[midwingcrisis]

AC has the highest CPA lift cost. So long as ASA's expand, US Carriers will be all over this.

[Krimson]

$18K per year regional F/O jobs coming soon to a Canadian 705 airline near you... just like Amerrrrica!

Who would/could accept this??

Probably wrong, but I don't even think 200 hour wonders with stars of big jets in their eyes would financially be able to accept that. But I guess if the states can do it so can we...

[Fanblade]

This doesn't mean a US regional will be selected. What it does is put all Canadian bidders on notice of what the expectation is. IOW this will put further downward pressure on the likes of even SR and Georgian.

Didn't take Mr. Howlett long in his new role to lower the bar again. Inside 2 years AC and WJ have turned the regional job market on its ear.

Well done ACPA and the WJPA. Bravo!

Not

[Inverted2]

Of course having the lowest bidder and least paid pilots looks good on paper for the CEO's but remember you get what you pay for:

[cpt.sam]

Aside from "young up n comers" not taking these jobs..... i know i know......What can we do?
As pilots.
As the driving force behind our industry!
We mustn't be completely hapless in our lives.

This college of pilots..... Is this something that will help us?
I don't see the unions doing us any favors!

There must be someone on here that knows something!
We can't just wait for the proverbial shaft to chase us down....can we?

[peice]

Wish I could say that this is illegal It's unfortunate to say the least!

[Nirvana]

So, Air Canada should pay more for pilots and pay the (Canadian) regionals more and then what? Bankrupty again? Every aspect of Air Canada and all unions...yes, all unions have had to give to make the company a going concern going forward. It's straight up competition and thats how the business world works. Stay focused on the big picture of what Air Canada wants to do....just read the Investor day presentation, look at what's happened in Europe, US airline markets. It is what it is. Wanna be part of a College, quit the airline business and go to med school or law school. Oh yeah, don't forget the long days and long hours these professions put in! They don't have duty days.

[TrailerParkBoy]

So, Air Canada should pay more for pilots and pay the (Canadian) regionals more and then what? Bankrupty again?......Stay focused on the big picture of what Air Canada wants to do....just read the Investor day presentation, look at what's happened in Europe, US airline markets. It is what it is. Wanna be part of a College, quit the airline business and go to med school or law school. Oh yeah, don't forget the long days and long hours these professions put in! They don't have duty days.

Doctors and lawyers may work a lot, but they also get paid a hell of a lot more then $17000 per year!

[Teamflyer]

$18K per year regional F/O jobs coming soon to a Canadian 705 airline near you... just like Amerrrrica!

I seriously hope this doesn't happen, it's just plain criminal with those salaries. as one of those young lads my self just starting out, I know I won't work for such a low salary.

[Nirvana]

So, Air Canada should pay more for pilots and pay the (Canadian) regionals more and then what? Bankrupty again?......Stay focused on the big picture of what Air Canada wants to do....just read the Investor day presentation, look at what's happened in Europe, US airline markets. It is what it is. Wanna be part of a College, quit the airline business and go to med school or law school. Oh yeah, don't forget the long days and long hours these professions put in! They don't have duty days.

Doctors and lawyers may work a lot, but they also get paid a hell of a lot more then $17000 per year!

Yes they do.....Pilots at Air Canada and Jazz, Georgian, Sky Regional also make more(way more) than 17K....I don't mind the arguement, but please compare apples to apples. Show me a GP or Lawyer that make's $250,000 for working 9 days a month at 15hrs a day....sorry, don't buy it. Based on a widebody at AC.....current rates. Plus, there is nobody making 17K or even less than that at the regionals in this country...post the facts....not what you think it is. At the professional level, pilots are very well compensated for what they do. As far as professional level, I make reference to 2nd even 3rd tier up to mainline. They may have taken pay cuts as has every one else, but its a damn good paying job for the hours worked. Cry me a river!

[loopa]

Of course having the lowest bidder and least paid pilots looks good on paper for the CEO's but remember you get what you pay for:

Exactly my thoughts

[Mig29]

So, Air Canada should pay more for pilots and pay the (Canadian) regionals more and then what? Bankrupty again? Every aspect of Air Canada and all unions...yes, all unions have had to give to make the company a going concern going forward. It's straight up competition and thats how the business world works. Stay focused on the big picture of what Air Canada wants to do....just read the Investor day presentation, look at what's happened in Europe, US airline markets. It is what it is. Wanna be part of a College, quit the airline business and go to med school or law school. Oh yeah, don't forget the long days and long hours these professions put in! They don't have duty days.

I wonder if you are a professional pilot or just here to irritate people. Maybe if you got paid 20k/year your opinion would change dramatically??

[lot lizard]

Nirvana,

A 777 Captain is responsible for a $225 000 000 machine with up to $3 000 000 000 of liability attached to it. I earned every cent.

[Bede]

Nirvana,

A 777 Captain is responsible for a $225 000 000 machine with up to $3 000 000 000 of liability attached to it. I earned every cent.

+1.

Pilots are remunerated for the responsibility they have, as are CEO's. If there is an opportunity for you to flush a billion dollars down the drain because of your lack of skill, you should be compensated as such.

[Rockie]

There's just one problem with Air Canada's thinking, they're assuming there will be regional pilots in the states to take Canadian flying. All those guys forced to go to 65 because the robber barons stole their pensions are starting to retire. The aggregate age of the pilots flying for the majors in the USA is very high, and they're starting to leave the industry in huge numbers leaving the regionals holding the bag. The amount of people entering the industry has plummeted because who wants to make $17,000 a year after shelling out massive amounts for training? Now the Americans have implemented the 1500 hour rule because of Colgan.

This should be fun to watch...except for the smoking craters caused by airline management who think pilots are bus drivers and proper training and experience doesn't matter.

[Mach1]

Of course having the lowest bidder and least paid pilots looks good on paper for the CEO's but remember you get what you pay for:

I'm quite sure the CEO and the Board all got their bonuses that year, just like nothing ever happened.

Yes they do.....Pilots at Air Canada and Jazz, Georgian, Sky Regional also make more(way more) than 17K....I don't mind the arguement, but please compare apples to apples. Show me a GP or Lawyer that make's $250,000 for working 9 days a month at 15hrs a day....sorry, don't buy it. Based on a widebody at AC.....current rates. Plus, there is nobody making 17K or even less than that at the regionals in this country...post the facts....not what you think it is. At the professional level, pilots are very well compensated for what they do. As far as professional level, I make reference to 2nd even 3rd tier up to mainline. They may have taken pay cuts as has every one else, but its a damn good paying job for the hours worked. Cry me a river!

I'm going to comment on the two bold comments, and the one bold/italicized comment.

1. When you say 9 days and 15 hours a day, are you taking into account that it isn't 9 days and 15 hours. That's just the accounting talking. In reality, when on the road it is 24 hours a day for the entire time you are gone because, unlike the person who works in an office and can come home and fix/deal with/work on any issues at home, the flight crew is gone. Unable to address any issues at home until their return.

2. Pay cuts like everyone else... except the executives of every corporation in North America. Their wages keep climbing at well beyond inflationary rates. Are they really performing so much better than past executives? The answer is no.

3. Spoken/written like an office worker who has never had to work on the road nor dealt with shift work and multiple time zones. Full of disrespect and disdain for anyone's job but your own.

[+RA]

I agree with Rockie. Recent events have indicated that the low salaries we saw in the US regional market five years ago are no longer sustainable. I have to wonder how much of a cost advantage, if any, the US regionals will be able to provide in relation to their Canadian counterparts in the coming years, especially considering the low wages we are now seeing in the Canadian regional market.

Nirvana, I know a few ER physicians who work fourteen eight-hour shifts per month, with a take home salary of over three hundred thousand dollars per year. WIth an undergraduate degree consisting of four years, followed by four years of medical school and then three to five years of residency, a person could become an attending ER physician by the age of 29, holding the aforementioned salary and schedule. You'd have a difficult time finding an AC pilot with the salary and schedule you had quoted under the age of fifty. Furthermore, the reason pilots have duty days is to ensure safety on each and every flight. If the same numbers of people were killed per year in pilot-error related crashes, as there were due to iantrogenic causes, the aviation industry would be virtually nonexistent. As well, note how the medical industry is now trying to implement many of safety systems aviation has been using for decades. One of these systems is a set duty day, which ensures a rested physician who is less likely to make errors in judgement.

[Fanblade]

Again. The US regional thing is almost guaranteed to be a red Herring. It is mentioned only to encourage the Canadian bidders even lower.

This CPA carrier would have to abide by the Air Canada Partisipatioin act. IOW provide French on many routes.

It is also true US regional wages are likely bouncing off the floor.

However, although it is true Canadian Regional wages are better than the US, I would suggest that the reason they are better is simply because of the high bar the AC regionals have set. Once that bar is reduced to a new lower normal the rest will respond in kind as they compete with each other.

In fact that is exactly what we are watching right now. First SR. Then Encore. Now..... These CEO's will keep one downing each other until the market doesn't provide applicants.

[Nirvana]

So, Air Canada should pay more for pilots and pay the (Canadian) regionals more and then what? Bankrupty again? Every aspect of Air Canada and all unions...yes, all unions have had to give to make the company a going concern going forward. It's straight up competition and thats how the business world works. Stay focused on the big picture of what Air Canada wants to do....just read the Investor day presentation, look at what's happened in Europe, US airline markets. It is what it is. Wanna be part of a College, quit the airline business and go to med school or law school. Oh yeah, don't forget the long days and long hours these professions put in! They don't have duty days.

I wonder if you are a professional pilot or just here to irritate people. Maybe if you got paid 20k/year your opinion would change dramatically??

I am not here to irritate anybody. I am entitled to my opinion and lets leave it at that. I have worked in this industry for many years and I think I may have learned a thing or two to along the way. You can disagree all you want and thats fine. Please, keep the insults to yourself.

[Nirvana]

Of course having the lowest bidder and least paid pilots looks good on paper for the CEO's but remember you get what you pay for:

I'm quite sure the CEO and the Board all got their bonuses that year, just like nothing ever happened.

Yes they do.....Pilots at Air Canada and Jazz, Georgian, Sky Regional also make more(way more) than 17K....I don't mind the arguement, but please compare apples to apples. Show me a GP or Lawyer that make's $250,000 for working 9 days a month at 15hrs a day....sorry, don't buy it. Based on a widebody at AC.....current rates. Plus, there is nobody making 17K or even less than that at the regionals in this country...post the facts....not what you think it is. At the professional level, pilots are very well compensated for what they do. As far as professional level, I make reference to 2nd even 3rd tier up to mainline. They may have taken pay cuts as has every one else, but its a damn good paying job for the hours worked. Cry me a river!

I'm going to comment on the two bold comments, and the one bold/italicized comment.

1. When you say 9 days and 15 hours a day, are you taking into account that it isn't 9 days and 15 hours. That's just the accounting talking. In reality, when on the road it is 24 hours a day for the entire time you are gone because, unlike the person who works in an office and can come home and fix/deal with/work on any issues at home, the flight crew is gone. Unable to address any issues at home until their return.

2. Pay cuts like everyone else... except the executives of every corporation in North America. Their wages keep climbing at well beyond inflationary rates. Are they really performing so much better than past executives? The answer is no.

3. Spoken/written like an office worker who has never had to work on the road nor dealt with shift work and multiple time zones. Full of disrespect and disdain for anyone's job but your own.

Lets agree to disgree. As far as your personal insult directed at me, shows how professiaonal you really are. You must be just a joy to fly with. Funny, because I take a different view then you...I must be an office worker and or management. Sorry, wrong. I still stand by my opinion and its just that, my opinion.

[Rockie]

Nirvana

Working 9 days a month at 15 hours a day for $250,000 betrays what you don't do for a living. That's a canard corporate executives fling out to the public making it appear all pilots make that when you clearly know how few do and how many years they have to put in before they come anywhere close to that.

I find the corporate types have no respect for what pilots do until that dark and dirty night with lots of turbulence/windshear/icy runway etc. Then they're scared shitless and would sell their soul if only that crew up front saves their ass. How much would they be worth then?