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Contract Flying User's Guide
by Michael W. Johnson, Paramount Aviation Resources Group, Inc.
Airliners, Nov/Dec 2008
Losing a job, whether it be from furlough,
bankruptcy or some other some other reason,
is a tremendous disruption to our lives.
Once we reach our “dream” job we do not like change. We have
mortgages, car payments, children to feed and other life
responsibilities. Additionally, we lay roots, settle, get friends
and neighbors, get involved with the community and have a nice
routine. Having to face the unknown and uncertainty of losing
one’s job is a very stressful life event for the entire family.
I know. I’ve been there.
Several years ago I was flying a trip with Jerry, a senior
captain who had spent half of his career on furlough. At that
point I had already begun the perilous backward slide toward the
great furlough chasm. Like my contemporaries, I was dreading
the unknown. As Jerry and I discussed my inevitable furlough
Jerry looked at me and said, “Don’t fear furlough. Embrace it.
It’s an opportunity for you to take a break from your career and
explore other avenues. Your job here will come back.” I was
amazed. What a great perspective.
Sure enough, not long after our trip together I was given my
furlough notice. It was at this time that I was introduced to the
world of contract flying. Up until this point I knew nothing
about this realm. I had a lot of questions and hesitation going
into this unknown arena, but following Jerry’s advice and doing
some due diligence I ended up with my first contract job. It
turned out to be a great experience. There are several aspects of
contract flying that remain enigmatic to many pilots. Here is a
User’s Guide for a few key points.
First and foremost, there are many benefits to contract
flying. In many respects there is a stigma associated with contract
flying – that it is a purgatory for airline pilots. This is not
the case. Many contracts available today are very good. They
have excellent working conditions, compensation packages,
advancement opportunities and stability. The nice thing about a
contract is that it is mutually binding. It binds both parties, not
just you. The contracting company is also obligated to perform
within the parameters of the contractual provisions. The biggest
benefit of this mutual obligation is stability. Almost all flight
crew contracts are term contracts. They last for a specified
duration, usually about three years, which precludes the company
from laying you off during the term of the contract (unless it is
for a reason specified in the contract, i.e., acts of war, violation
of company policy, unsafe practices, etc.). Additionally,
contracts almost always rollover into subsequent contracts.
There are two major benefits of this for you. First, you know you
have a job – a paycheck – for the term of the contract. That is
certainly refreshing, especially considering the instability of the
U.S. airline industry. Second, upon completion of the contract
term you are not obligated to renew if you do not want to. You
can simply walk away free and clear.
Another major benefit of many contracts is that often you
will have the opportunity to fly on equipment and in locations
that you would not have had the opportunity to fly, at least for a
while, at your career job. For example, I was able to fly a jumbo
in transpacific operations, going to places and flying equipment
that I would not have been able to at my legacy carrier. It was an
excellent experience for me professionally and personally.
The reason the airlines are using contract crews in the first
place is because they need pilots to fly their aircraft. For various
reasons – economic, regulatory, operational or others – the
airlines are unable to recruit and hire their own flight crews.
Alternatively, hiring contract crews may simply be a lower cost
option for the airline. Either way, often one of the benefits is a
fast upgrade time. This will happen either because the airline is
taking delivery of additional aircraft, which creates captain
slots, or they are severely short of pilots and as newly acquired
pilots come into the system you are simply pushed up into
the left seat. High retirement levels also create opportunities
for upgrade.
These are a few of the benefits to contracts. However, as
with any job, before signing on the dotted line you must do your
own due diligence.
No two contracts are exactly alike. There are many variables
written into or omitted from any given contract. Here are some
of the factors that are worth considering: contract term, training
duration and location, liquidated damages, scheduling and
compensation. Once given a contract, I recommend having your
attorney explain to you what the contract will demand of you.
Do not allow yourself to be pressured into signing a contract
before you have reasonable time to review and understand it.
Many leasing companies post the prominent terms of the
contract on their websites. This allows you to peruse various
contracts and directly compare the key terms and conditions. If
the terms are not posted, contact the leasing company and have it
provide you with the terms. A direct comparison is a great way
to help you determine whether it is a fair and reasonable
contract. But this is not the end.
Research the Airline – The way a contract works is simple.
You are hired by a contract company – a crew leasing company.
That company in turn leases you to the airline. You are
employed by the leasing company – it pays your salary and
benefits – but you fly under the operating certificate and operational
policies of the airline. It is very important, therefore, to
know what the safety history of the airline is. There are many
ways to learn about an airline: ICAO, blog sites, the airline’s
own web site, informational websites, industry trade publications,
people who currently work or have formerly worked at
that airline and information from the crew leasing company.
Know the airline. There is no job that is worth compromising
your standards, your own safety or your hard earned certificates for.
Like contracts, no two leasing companies are the same. Most
of the major companies are well run organizations or they would
not still be in business. However, there are still companies that
will try to take advantage of crew members. Talk to your point
of contact at the leasing company about the company, about the
airline and about the contract. Ask questions. Have them provide
you with contact information for one of its current crew
members and ask him/her about their experience at the crew
leasing company and the airline. You owe it to yourself to learn
as much about what life is really going to be like on the line once
you start this new job. If you find your questions are creating
more questions than answers or that you cannot get a straight
answer, then proceed with caution. These are strong indicators
of how you will be treated once you sign on the dotted line.
The biggest problem with any job is having a certain expectation
of what you think the job is going to be like and then finding out
that the reality of the job is far below your expectations. Key
factors include: duration and location of training, pass/fail rating,
scheduling, productivity, commutability and compensation.
There are some airlines that have very long training programs.
This is not necessarily bad, but it is something you and your
family need to prepare for. Be aware of high fail rates. Once you
invest the time, energy and money into pursuing a job, you
certainly do not want to end up back on the street because the
fail rate is unreasonably high. It is imperative to know what your
schedule is likely to be once you are on the line. This is closely
tied to productivity. For example, be wary of jobs that will send
you to a destination and then have you sit in a layover hotel for
three days before you fly one leg back. You will be gone from
home for five days but will only be working for two. This is poor
scheduling and very low productivity, and the combination
results in your being away from home more and earning less.
The majority of the current contract jobs for 121 air carriers are
outside of the United States. Therefore, many of the contracts
provide for commuting allowances both with scheduling and
monetary provisions. Finally, know how, when and how much
you are going to be paid. There can be no ambiguity on this
issue. Do not be embarrassed or intimidated to press your point
of contact to answer these questions to your satisfaction.
As Captain Ed Cook said in his last Airliners’ article, this is
the most important aspect: approach the unknown with a positive
mindset. There is no way you can control whether or not you
will lose your job, so embrace the opportunity. You never know
what great new experience will come your way. Ultimately,
determining whether a contract is “good” is a personal decision.
With an open mind, a positive attitude and some due diligence
you will be able to make the right decision.
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