Posts Tagged ‘charter’

Time is Money

Tuesday, September 2nd, 2014

One of the first things people discover about flying is that it requires an abundance of two resources: time and money. The money part is pretty obvious. Anyone who inquires about flight instruction at a local school will figure that one out before they even take their first lesson. The importance of time is a bit more nebulous.

When I began working as an instructor, I noticed that even in affluent coastal Orange County, at least one of those two assets always seemed to be in short supply. Those who had plenty of money rarely had much free time; they were financially successful because they worked such long hours. Younger pilots typically had fewer demands on their schedule, but funds were limited at best. It reminds me of Einstein’s famous mass-energy equivalence formula, E=mc2. But instead of matter and energy being interchangeable, it’s time and money. Benjamin Franklin took it a step further in a 1748 letter, concluding that “time is money”.

time_is_money2

I learned to fly during a period when both of those elements were readily available. It was a luxury I didn’t appreciate — or even recognize — at the time. It’s probably for the best, since I would have been sorely tempted to spend even more on my addiction.

After flying Part 135 for the past three years, it’s interesting to note how those same limits apply to charter customers despite being much higher up on the proverbial food chain. These restrictions are the very reason Part 91/135 business aviation exists at all.

Case in point: I recently flew a dozen employees of a large retailer around the U.S. to finalize locations for new stores. They were able to visit ten cities in four days, spending several hours working at each destination. Out of curiosity, I ran our itinerary through booking sites like Kayak, Orbitz, and Travelocity to see how a group of twelve might fare on the airlines. Would you be surprised to learn that the answer is “not well”?

Our first leg, three hours in length, would have taken twelve hours and two extra stops on the airlines and actually cost more, assuming business class seats. Some of the subsequent legs wouldn’t have been possible at all on the airlines because they simply don’t serve those destinations. Overall, chartering the Gulfstream IV-SP cost less than trying to do the same trip on an airline. As far as time saved, on an airline, each of those ten legs would have required passengers to be at the airport 90 minutes in advance of their scheduled departure time. That alone would have wasted fifteen hours — the equivalent of two business days.

A chartered aircraft waits for passengers if they’re running late. If they need to change a destination, we can accommodate them. Travelers spend more time working and less time idle, literally turning back the clock and making everything they do more productive. And once we’re airborne, they can continue to do business, preparing for their next meeting and using the cabin as a mobile office. They can conference, spread out papers, and speak freely without worrying about strangers overhearing sensitive information.

This time/money exchange is present on every trip. Since I’m based in Los Angeles, our passengers are often in the entertainment industry. Imagine an artist or band who had a concert in Chicago on Monday, Miami on Tuesday, Denver on Wednesday, and Seattle on Thursday. They need to be in town early for rehearsals, interviews, and appearances. These tours sometimes last weeks or even months. Keeping a schedule like that would be nearly impossible without chartering. Imagine the cast of big budget film needing to be at film festivals, premieres, media interviews, awards shows, and such. Or the leaders of a private company about to go public or meeting with investors around the country prior to a product launch. Franklin was right: time is money.

When I fly on an scheduled airline, the inefficiency and discomfort remind me of why charter, fractional, and corporate aviation will only continue to grow. The price point of private flying doesn’t make sense for everyone, but for those who need it, it’s more than a convenience. It’s what makes doing business possible at all.

Contracting: A Great Career Option for the Professional Pilot

Wednesday, April 16th, 2014

As much as one may love flying, it can be a tough career choice. Many pilots struggle through the food chain only to end up discouraged, if not downright hating their job. We’re all aware of the reasons: low pay, long days, little respect, too much time away from home, difficult working conditions, commuting, regulatory hassles, bankruptcies, furloughs, and ruinously expensive training.

Quite a list, isn’t it?

Ours is a small community; word gets around, and it begs the question, how many have bypassed a flying career altogether because of it? I once read a survey suggesting that most pilots would not recommend the field to their children. Of course, many vocations are in this rickety boat. Even formerly high-flying professions like physician and attorney have lost their luster. The message: “it ain’t what it used to be”.

On the other hand, life is often what we make of it. From bush flying to firefighting, there are many different gigs out there for those willing to take Frost’s road-less-traveled. For the past three years, for example, I’ve been flying as a “contract pilot” and truly enjoy it.

The Contractor

Ready to Ride

It’s kind of a generic term, since anyone who flies as an independent contractor rather than a traditional, W-2 employee fits the definition, but I’ll focus on Part 91 and 135 corporate/charter flying because that’s what I know best.

Contract pilots function as a kind of overflow labor. Operators might need temporary help in the cockpit for a variety of reasons: a full-timer is sick, on vacation, leaves the company, times out due to regulatory limitations, or is unavailable for some other reason. God forbid, maybe they ran into trouble with a checkride or medical exam. Perhaps a trip requires multiple pilots due to length or logistics.

Some companies find it advantageous to run tight on full-time labor and supplement with contract pilots since there are no annual costs for training or benefits. They only have to pay contractors when they’re actually used, so as the flight schedule ebbs and flows, they can gracefully scale their workforce up or down without the inefficiency of, say, leaving full-time, salaried pilots sitting at home for an extended period.

For the pilot, there are both pros and cons to life as a contractor.

The Pros

  • You’ve got some control over your schedule and can decline trips. I really hate doing that, because a) I don’t want the company to stop calling me, and b) you never know when things will slow down, so it’s smart to sock away some acorns for the winter. But if you’ve got a big vacation planned or your best friend is getting married? You’re ultimately in control.
  • We can work for multiple operators, which can provide a bit of protection if the flying slows down at one company.
  • You aren’t tied to a seniority system. If you’re an experienced captain at company A, you needn’t start over as the lowest-paid right seater at company B.
  • Contractors earn far more per day than full-time employees, and therefore needn’t work as many days to reach a given income level. That means better quality of life, especially if you’re married and/or have kids.
  • Contract pilots are typically paid by the day. I might have a five day trip consisting of a flight to Hawaii followed by three days on the island before flying home. That’s five days “on the clock”. It can be a more lucrative system than one where you are compensated based on flight hours. Operators are essentially purchasing your time.
  • You’ll travel the country, if not the world. Instead of a few major airports, on larger aircraft like the Gulfstream, you’ll see places you’d never dream of. Though I haven’t been there — yet — North Korea and the South Pole have both been on the table. (Random note: Jeppesen does publish charts and procedures for Pyonyang!)
  • I always get an honest sense of gratitude from the operators for whom I fly, because by definition I’m helping them out when they really need a pilot. For example, I recently got a call from a Part 91 Gulfstream operator whose pilot broke his arm in the middle of a trip. I airlined out the same day and flew that evening’s leg to Las Vegas, keeping the aircraft on schedule.

The Cons

You knew there had to be a few, right?

  • Contractors inherit all the hassles of being your own boss. Does anyone work harder? From providing your own benefits (don’t get me started about healthcare) to paying self-employment taxes, it’s not always the carefree work-and-go-home experience of a full-time employee.
  • You pay for your own training. On a jet, the annual recurrent training costs run in the thousands. I currently allot $15,000/year for recurrent training and associated costs (airfare, hotels, food, incidentals) on my airplane. The expenses are deductible, which helps a bit, but I figure my first month’s work each year is spent digging my way back to financial “zero”.
  • You can’t control when the phone rings. That can mean short-notice trips and/or weird hours.
  • It can be hard to plan your life out when you never know what days you’ll be working. I average about 10 days a month away, so my philosophy has been to just plan my social life as usual, and make sure people know I sometimes have to reschedule or cancel.
  • Work can conflict with itself. I’ve had three operators call me for a trip on the same day. I can only be in one place at at time, so I “missed out” on two of them.
  • No guarantee of work. But then, history has shown that there are no guarantees in life or aviation for anyone, are there?
  • It can be tough getting started. As with many careers, the best entrĂ©e is knowing someone who can get you in the door. Initial start-up costs of obtaining a type rating can be a major barrier.

Throttles

I like contracting because when a trip is offered I know it’s because the operator wants to use me rather than has to use me. Contracting represents some of the best that flying has to offer: adventure, interesting destinations and passengers, phenomenal aircraft, and decent pay for the work I do.

So why don’t more people jump into contracting? Awareness, for starters. Not everyone knows about this little niche. Also, it can be tough to break in to the business. You don’t have to know someone on the inside, but it certainly helps.

The initial expense is probably the largest impediment. The best compensation is found on the larger aircraft, and that means an expensive type rating funded solely by the contractor. Some pilots speculate on their ability to get work by obtaining the type before they have a job to use it on. Unless you’re well-heeled, that’s a big financial risk, but it works out for some people.

There is a rather circuitous way around the type rating burden: start off as a salaried employee and switch to contracting after a couple of years. That way the operator pays for your training and in exchange you accumulate a significant body of experience on the airplane.

FAA to the Rescue! Not.

I should note that contracting in the Part 135 world is a bit harder than it used to be. In the old days, if you were typed and current on an aircraft, you could fly for any charter company that operated that kind of plane. It wasn’t uncommon for a contract pilot to fly for several operators. A few years ago — for reasons no one has been able to adequately explain — the FAA essentially did away with that capability.

Today, a five-figure recurrent only entitles you to work for the certificate holder under whom you trained. It doesn’t matter if you’re a veteran of ten years and 10,000 hours in a Gulfstream IV; if you went to recurrent on Company A’s OpSpec, as far as the FAA is concerned, when you move to Company B you are completely unqualified to operate a G-IV on any Part 135 flight until you’ve been through another recurrent… at your own expense, of course.

At first, this seemed like a potential deal-breaker for contract pilots, but it can help as much as it hurts. Just as the change make it harder for a contractor to work for multiple operators, it also makes it more challenging for that operator to replace a contract pilot since a successor wouldn’t be legal to fly until they went back for recurrent training.

Walking the Aviation Tightrope

Contracting does have something in common with scheduled airlines: it’s not right for everyone. If you’re the type that wants a fixed schedule or has to know exactly how much your bi-weekly paycheck is going to be, this ain’t the place. In addition to all the attributes of a good corporate or charter pilot, contracting requires the ability to run a business and cope with uneven income. Some months will be fantastic. Others, not so much. Even when business is slow, though, I get something valuable: more time at home with friends and family. Like I said at the top, life is what you make of it.

But the ability to earn a six figure income right off the bat while working a relatively small number of days? For me at least, it’s more than worth it. What I want in my flying carer is sustainability, the capacity to survive on this aviation tightrope, and ironically that’s what contracting provides. I want to fly without hating it, and that means avoiding the soul-crushing schedule and monotony of many professional flying jobs.