EFTA00846538.pdf

From: Richard Kahn To: "Jeffrey E." <[email protected]> Subject: Pilot Salaries Date: Fri, 11 Sep 2015 13:34:59 +0000 attached is article that references net jets (131,179) and delta pilots (167,437) pay for captains with 10 years experience. see last two sentences of attached NetJets bargaining with pilots' union amid customer gripes By Josh Kosman July 16, 2015 I 9:20pm Modal Trigger `',,NetJets bargaining with pilots' union amid customer gripes Warren Buffett is suddenly flying more union-friendly skies. After two years of refusing to bargain with its pilots' union, Berkshire Hathaway-owned NetJets is now racing to reach a new contract before the end of the summer, The Post has learned. Already new CEO Adam Johnson, who replaced Jordan Hansell in June, is making concessions to the union. He has tentatively agreed not to subcontract more flights without paying significant penalties, according to sources. "The sides are in expedited talks," said one source close to the negotiations. This is a marked reversal from May, when Buffett publicly defended Hansell's hard-line stance with the union by insisting the firm's pilots were well paid. Hansell had refused to meet with the pilots after their contract expired in 2013. His relationship with the union hit a new low even as a booming corporate jet sector led to a pilot shortage that began to crimp NetJets' style. NetJets' roughly 8,000 well-heeled customers, who pay for a set number of hours aboard a private jet each year, were starting to complain about declining service, according to sources. "Service has been getting worse over 18 to 24 months," said a source who deals with clients that complained primarily about departure delays. "You have long-time NetJets owners saying, `I can't take it anymore." Buffett's about-face also follows a rash of bad publicity. The pilots argued they should be rewarded for the rebound in NetJets' business and over the past year turned up the heat on Buffett. EFTA00846538 Some 400 pilots descended on Omaha, Neb., for Berkshire Hathaway's annual meeting, drawing attention to the bitter contract dispute. They also showed up at the Masters Golf Tournament, the Super Bowl and the Buffett- hosted NetJets Poker Invitational at Wynn Las Vegas. "This is about Warren's legacy and not being embarrassed," a source close to the company said. "This is about him being tarred and feathered while taking his victory lap." The luxury jet company had been an embarrassment to Buffett once before, in 2009, after corporate customers cut back on private jet flights. Buffett said the business would have collapsed if not for Berkshire's deep pockets. It appears the pressure finally got to the folksy investor. Last month, he canned Hansell and brought back Johnson, a NetJets former president, in the CEO role. Johnson has been meeting with the NetJets Association of Shared Aircraft Pilots Union and is working toward a new pact by the end of August, sources said. The 2,700 member union wants higher salaries that rival those of commercial airline pilots. NetJets captains with 10 years of experience earn $131,179. By comparison, a Delta pilot with the same experience gets $167,437 — or 27 percent more — and participates in profit sharing. NetJets Union President Pedro Leroux declined comment. The company also declined to comment. Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel fa ce l EFTA00846539