Fractional player forced to up salaries to stem departures
NetJets Europe has improved the remuneration packages of its 670 pilots and flight attendants in an effort to stem the loss of personnel and attract new staff to its rapidly expanding fractional ownership and charter operation.
The improvements are expected to cost the company $30 million next year, during which time it plans to recruit up to 180 more pilots and attendants. The Berkshire Hathaway subsidiary operates a fleet of 114 business jets and is scheduled to take delivery of up to 30 new aircraft next year.
"We lost 8% of our flightcrew this year, which equates to 50 employees. This is unacceptably high," says NetJets business development manager Robert Dranitzke. "Our crews were telling us that their remuneration package wasn't as competitive as the airlines, so we've raised the bar considerably."
NetJets says the improvements cover three areas: remuneration, rotas and contracts.
The starting salary for a captain has risen to €95,000 ($125,700) compared with €72,000-86,000 previously. A first officer's salary will start at €56,500 up from €45,000-54,000, while a flight attendant will see their basic pay rise from €41,000-46,000 to €48,350. NetJets has also streamlined cabin crew rotas, with all personnel "locked in" for a maximum duty requirement of 50 days a quarter. "We are guaranteeing a roster of six days on and five days off all year, although crews on the our ultra-long-range aircraft, such as the Gulfstream V, will have a seven/six and six/five combination," Dranitzke says.
Crew members can also boost their pay packets further, with the option to work up to another six days a year at a substantially increased rate.
All employment contracts will now be drawn up in the UK and Portugal. "They will no longer be drafted [offshore] in the Isle of Man, which should remove any ambiguity with a crew member's legal and tax status," Dranitzke says.
|NETJETS EUROPE STARTING SALARIES, 1 JANUARY 2007
|Six optional days
|Capt - PIC
|First officer - SIC
Note: Higher levels of compensation are paid to employees of longer tenure based on seniority.
Source: Flight International