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23Jun/160

From the inside: CEO perspective

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6Jun/160

‘Europeans for Fair Competition’

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23May/161

Royal Air Maroc : lies exposed

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Following our previous coverage of Royal Air Maroc's (RAM) refutation of P2F collaboration, despite already proven deals, the time has come to probe the existence of its ties with the rampant cartel involving P2F advocate Baltic Aviation Academy (BAA).

RAM Initial claims

"Slanderous allegations aired on the "Pièces à conviction" TV show. [BAA's] claims according which [our] company resorts to foreign pilot training without "requiring prior evaluation", are untrue [as we] never collaborated with [them] [...] The producers relied on a bogus testimony to bolster erroneous conclusions [so we] will sue"_source

Testimonial credibility

We contacted Julien Fournier that agreed to share his mail exchange with anonymized BAA Projects Manager Renata Kudabaitė, prior the release of the TV show. We enhanced authentication with the provision of Ms Kudabaite's business card collected on site (both recto and verso):

"Regarding your questions: You are right, [€62,5k for RAM] are only for line training [...] during [which] there is no salary [...] To start any of [these] programs, pilot needs to have TR already [...] For [...] RAM and Vietjet, pilots can apply with TR from other ATO's [than BAA]".

The network - insider revelations

Comes the story of John.

Instead of accepting a P2F proposal with Blue Air in Romania, John, B737 Type Rated at BAA's in july 2014, settled for 500 hours with RAM like 27 other pilots, as shown in his communication with BAA Project Manager Ingrida Reket:

Vilnius-based aviation conglomerate Avia Solutions Group (ASG) trading in Warsaw since 2010 (€12m turnover in 2015) oversees 20 services firms in Baltic countries mostly, Russia, Cyprus and the UK (Storm Aviation Ltd) as well as Indonesia (Avia Technics Dirgantara). Chaired by Lithuanian oligarch Gediminas Ziemelis, since 2013 the group capitalizes on Deputy CEO Daumantas Lapinskas's network, former Lithuanian Vice Minister of Economy.

Pilots can also come from AviationCV, the advertising platform (50 hiring partners)...
... and benefit from loans via Cypriot Pilot Management Services (PMS - known for blackmailing pilots) as these documents attest in a deal with Small Planet Airlines, also owned by ASG until 2013.
BAA's Project Managers, such as Mrs Reket (L) & Mrs Kudabaité (R), relay necessary communications to the pilot...
...under the supervision of their Deputy Sales Director, at the time of John's agreement, a Simon Portnoj.
The tripartite 1st agreement involves the pilot with Tritar Consulting Services (TCS), a firm based in Sousse, Tunisia, to which is due a downpayment of €27.5k prior starting ground school...
...TCS being led by Tritar Mansour (that John met Jan.3 2015 in Casablanca), a Sousse local personality (former Rotary club President) and Flight Administration Manager of low cost Nouvelair.
The 3rd party in the 1st agreement is administrated by Zied Zerelli, a former Deputy Consul of the Tunisian Ministry of Foreign Affairs, namely...
...Type Line Training (TLT), registered in Casablanca, Morocco, to which €10k is due upon airline enrollment, another €10k prior starting the sim sessions and €8k after the first flight.

The 2nd agreement is between TCS and Royal Air Maroc. The airline "enrolls" John by screening his titles and selling the flight hours as training.

Another Sousse LLC registered in sept. 2011 was officially aquired by TCS in July 7 2015: Type and Train (TT), that also provides p2f pilots...
... and works "very closely" with Brookfield Aviation, Ryanair's former p2f dealer, selling the job worldwide to this day.
Thus, Tunisair also makes pilots pay to work since 2012 (at least), as shown in a contract edited by Mr Tritar, where 300h sold 56,950€.

RAM then uses CasaAero, its 2005 joint venture with Boeing Flight Training (a Boeing subsidiary) where ground school and sim sessions are performed.
Mr Tritar already working for Nouvelair, it is no surprise TT sells them p2f, as was done as early as 2012 as shown here and there for €62,5k and €59,65k respectively.
Along with Karthago Airlines, also from Tunisia...
...the 3 Tunisian airlines founded ATCT in April 2005 with 2 banks (BH et BNA), EASA TRTO granted in oct.2010, notable stockholders Thales and Airbus, processing P2Fers within this facility.
Since 2012 at least, RAM express also sold 500 work hours €14k via the Toulouse base of the Hong-Kong-registered Malaysian ETOPS LTD
John met CasaAero Technical Director Abdel Ilah Zamrane, that coordinated his ground courses between Jan.6 and 17 2015, a test on Feb.4, other courses between Feb.11 and 23, and the final exam the 23. The sim check didn't take place until May 19. Due to several delays, John rated Mr Zamrane's services as "disorganized, disrespectful and unprofessional".
ATCT gave rise to indivuals like Tarek Benaissi, Quality Manager and contact of the firm. He can be seen "pimping" pilots for Qatar Airways, on social networks here and there, and "recruiting" platforms such as DirectaeroJobs for Lybia or even... on AviationCV of course (see above) !

At this point, every middle man providing no discernible services whatsoever, walks away with a commission... except for the actual pilot. Mercifully, we omitted the involvement of RAM with EagleJet, yet another P2F broker...

Defrauding "customers"

Worst, by May 19,
John and his colleagues waited for
their moroccan licences, badges, uniforms
and be transfered from CasaAero to RAM. One last training day took place in June 9, after which flights were supposed to happen. Mr Tritar tried to reassure his "customers" in June 12, only for John to figure out in Aug.25 only 3 or 4 Captains were willing to fly with them.

Disgusted, John left RAM in Aug.26, 2 pilots having left already with 6 others to follow a few months later. Over 27 pilots, only 3 had their agreement honored and flew with RAM. Judiciary action was attempted but rebutted.

Verdict: guilty

In an industry infested with parasites (such as P2F father Thomas Cooper, disreputable Jean-Marc Bollinger, delusional Michael Hickey, infamous Stephane Hoinville), a sad day has come when a national airline covertly indulges in villainy with pimps and racketeers of that ilk.

In the hubristic exercise of denial that followed, RAM flushed its credibility down the toilet, while the truth remained like the feces that wouldn't.

Edit June 10th: "to put out the fire, RAM had to halt their P2F, grounding several of their aircraft"_Source

Filed under: p2f 1 Comment
16May/160

Frontrunning: May 16

  • Small Planet Airlines : German AOC secured 3 days ago to fly for tour operators TUI and Thomas Cook, echoing controversial strike-breaking wet-lease with Norwegian. Soon more p2f in Germany (in the footsteps of Cockpit4U and Germania) ?
  • Ryanair : internal sources reveal upcoming APCC agreement for new cadets. Roll-out date undisclosed.
    • 6-year agency pilot contract (no direct employment - turnover issue someone ?)
    • Type Rating + MCC + JOC to Ryanair standards
    • Cost €35,000
    • Initial deposit of €5,000, refunded after 6 years
    • To be paid in full if pilot leaves (!)
Filed under: Frontrunning, p2f No Comments
27Apr/160

Avia Solutions Group – sirens aren’t real

Already getting media attention for all the wrong reasons, one of our readers drew our attention on the Avia Solutions Group. As a reminder, the Lithuanian holding (overseeing 20 services firm) owns the largest eastern p2f cashing machine known to date:

Fake Linkedin profiles ?

Reviving Greek mythology, it seems Avia Solutions wants us to believe in Sirens, beautiful creatures luring nearby sailors pilots with enchanting commercial songs to shipwreck transfer money on the rocky coast of their island exotic bank accounts.

... or a model on a wallpaper ? What about...

... who looks a lot like model Sydney W. Not convinced ?

... clearly Emma MacLaren, model for Burberry, Elle, Glamour, Vogue. Still in denial ?

Meet Finnish model Julia Johansen for Vogue, Elite, Giorgio Armani and Chanel Couture.

The Avia Deception Group

Well, we have bigger fish to fry. Either successful models are extremely playful, or someone somewhere understood 96% of pro pilots are male ! Mr Linas Dovydenas might want to check on the tooth fairy, this one is up to no good :

Filed under: p2f No Comments
28Mar/163

Royal Air Maroc p2f scandal

This March 23 aired a French TV report about p2f notably (with our proud participation), exposing Small Planet Airlines, Vietjet and Royal Air Maroc among the offenders.

We knew since 2012 Royal Air Maroc (RAM) was involved in pay-to-fly, selling 500 work hours 14,000€ through its subsidiary RAM Express via the Toulouse base of the ETOPS intermediary agency (as proves this contract), but it seems media caught up to further facts only today, triggering a scandal long overdue :

Obviously, RAM denied everything altogether claiming "false allegations, fake testimonials and defamation" in an official press release the same day :

With a coming challenge to court against the TV report producer, we already know how they're going to spin this, arguing their pilots are screened against selection during the p2f program while the report stated accurately that to reach said program, you only have to pay (and not be screened).

We hope this technicality won't distract future investigators from the facts:
RAM does make some of their foreign pilots pay to work... while local pilots asked 2 extra years of education to reach engineer degrees remain unemployed for some reasons.

Filed under: p2f 3 Comments
29Feb/160

Frontrunning: February 29

  • Pilot "shortage" : ABN AMRO to officially discontinue pilot training financing in Sept.2016 (after admitting weak pilot job prospects in 2012)
    "Under the current conditions, this activity no longer fits in with [our] product offering".

  • fd. : "The job market for pilots is so bad that the banks do not see much incentive to finance the training of new pilots".
  • De Telegraaf : "The risk is too big given the negative market developments, financing pilots in training is not profitable for us anymore"
  • In lieux of airline investment : Swiss Federal Goverment to subsidize pilot training as per a decree in force starting last jan.1st (French|German).
Filed under: Frontrunning No Comments
17Feb/160

Bombardier: $1 billion bailout, 7000 fired

Back in October, Quebec put taxpayers on the hook for a $1 billion bailout of planemaker Bombardier (which was having one hell of a hard time creating a buzz around its CSeries commercial jet program).

Bombardier has been around for nearly 8 decades and employs more than 40,000 people in the province. The company’s role in the provincial economy is “incalculable,” Quebec’s Economy Minister Jacques Daoust said last year. How can I let them go? he asked.

For its money, Quebec would get a 49.5% stake in a new business that will own the assets and liabilities of the CSeries commercial jet program (which isn't exactly going well). In exchange, the company promised to manufacture the aircraft in the province for at least 20 years.

“How confident is Quebec that this will fan out for the economy and taxpayers? That’s what we don’t know, Paul Boothe, a former senior Canadian official

...who was the federal government’s lead negotiator with the domestic units of GM during bailout talks in 2009 said at the time.

Well, now we do know. On Wednesday, Bombardier announced it’s cutting 7,000 jobs as part of a “global workforce optimization.

“Impacted positions are mostly based in Canada and Europe,” the company said this morning, after reporting results that missed estimates on both the top and bottom line. Here’s the breakdown:

So obviously that sounds bad, but don't worry because the job losses will be "partially offset" by hiring in "certain growth areas." Like the CSeries program. Which is "growing" so fast that the company had to take a $1 billion bailout from the provincial government to shore it up.

"Production rates for some models have been modified,"
Bombardier goes on to say, in an attempt to explain the layoffs, "due to macroeconomic conditions." For those who don't read a lot of quarterly reports, that's a polite way of saying this: "demand is really, really soft."

The company says the CSeries program has "generated new jobs at the Bombardier facility in Mirabel, Québec," although the number of new jobs isn't specified nor does the company indicate what the net job creation (or, more likely, "job destruction") will be in Canada after the "optimization" is implemented.

As for the company's 2016 outlook, revenue guidance looks well short of estimates at $16.5-17.5 billion (consensus was $18.2 billion), while FCF usage is generally in line at between $1 billion to $1.3 billion, although if it comes in at the high end, that will be close to the highest analyst estimate. The company burned $1.82 billion in 2015. Here's the full guidance breakdown:

On the bright side, Bombardier and Air Canada announced today that they've signed a Letter of Intent for the sale and purchase of 45 CS300 aircraft with options for an additional 30 CS300 aircraft, including conversion rights to the CS100 aircraft.

Oh, and the company is going to try a reverse split to make it seem like its shares aren't worthless.

So there you go Canada, Bombardier thanks you for the $1 billion you gave it. Any time you want to fork over some more money in exchange for thousands of layoffs, make sure to let the company know. They'll be happy to oblige.

_ZeroHedge

Filed under: Guest post No Comments
31Jan/160

Pilot training: Ryanair’s APCC

Following the pending MPL gutting (only the Spanish & French DGAC were against), and showcased once in specialized media so far, another plan for the future of pilot training is emerging subsequently to a May 2015 meeting of the EASA Pilot Training Advisory Group, led by Ryanair's HT Andy O'Shea :
the Approved Pilot Certificate Course (APCC).

APCC - premises & caveats

With official presentation having occured during last EASA Annual Safety Conference Training in Aviation and echoing his 2014 EATS Conference keynote speech, Cpt. O'Shea's confidential paper reveals the APCC adresses :

"the product of current regulation and training practice [...] many young pilots legally qualified as professional pilots but deficient in the competencies required for them to advance to the standard required to be employed by an EU operator"

Data relevance...
"Ryanair assesses over one thousand different CPL ME/IR MCC qualified pilots every year".

Discarding the inconsistencies that
• cadets are assessed through CAE
• and Mr O'Shea doesn't agree with himself (385 vs 387 figure sample)...

...let's put in perspective
RYR's claimed annual assessment number with only 4 out of 32 EASA pilot unemployment figures :

...or lack thereof :
.
"This is a reasonable sample of the young pilot population in Europe".

We'd be less categorical.

Shall Mr O'Shea agree unemployed pilots are mostly the young ones and including the 32 other countries' data would at least double our established total, it would take 10 years for Ryanair to process the combined unemployed part of the "young pilot population in Europe" alone.

Either the young pilot population is staggering... or the unemployment ratio is, reason why perhaps 13,807 people deem Europe has a more pressing concern...

Yet, even considering Ryanair had cornered the employment market (thanks to practices other airlines wouldn't go down to, like questionnable micromanagement, p2f, outsourcing, subsidies... ) in such an extent that 450 pilots/year below their criteria became a sound base for a European training proposal, numbers point towards high turnover and poor attraction from pilots that'd rather stay unemployed for which "Europe’s favourite airline" has no one to blame but itself.

APCC - the incentive

Pursuing with pilots "deficient in [...] competencies", competency based MPL was specifically designed to "bridge [that] gap", alas :

"[it] is encumbered with some disadvantages that have led to [its] low uptake by Operators and ATOs. It is very complex, heavily regulated and cumbersome. Its structures and processes require very significant long term management and resource investment by the Operator. It is a rigid path that, once set out upon, provides little flexibility for the student or the Operators".

...it was discovered having personnel required investment and long term thinking, reason why instead of fixing the MPL (that can only drop in support from a pilot perspective), Ryanair wants its way to save costs help the "50% of EU pilots not capable of passing a very straightforward assessment of their piloting skills [...] to be [...] safe professional pilot[s]".

APCC - the recipe

"To produce a profitable flexible, efficient and effective [way] to educate our young pilots", Ryanair "utilis[es] and enhanc[es] the currently available training elements":

  • Aircraft Systems Technical Training (new)
  • Operator Standard Initial CRM (cost ?)
  • MCC (from 2300 to 5,500€)
  • JOC (from 974 to 8,800€)
  • Airline Oriented Theoretical Training (new)
  • Operator Standard LOFT (new)

Contrary to the MCC that has regulatory existence as an ATPL(A) requirement (FCL.510.A(a)(2)), other pre-APCC items are only paid for by candidates, not for convenience but only as airlines institutionalize more and more of them as recruitment requirement minima.

Incidentally, here is part of the origin of young pilots' stress no amount of long or "long[er] assessment" will offset :

  • increasing gamble stakes (+€150k) to reach assessment stage alone.

They do "it" already

Occulting (after 12 pages) the data that mattered to them, namely the price of the course and who was going to foot the bill, we leave the guessing to our readers with O'Shea's "three ATOs in Europe currently offer[ing], or hav[ing] offered, training products such as [...] detailed" :

"We deeply regret the latest developments in the fields of aviation that young pilots with no or low hours have to pay their way into the right hand seat instead of being rewarded for their efforts and commitments. But we would like to state that we only cooperate with trusted agencies that have proven to be able to deliver what has been promised"._Kay Wachtelborn, CEO @SKY4u

MPL, APCC & unintended consequences

Based on clumsy grounds, altruistic Ryanair is pushing into obsolescence part of existing regulation almost tailored to them while blindly deflecting Europe from the very root of the problem they're about to worsen for cost's sake, only to discover they're reaping what they sowed : not necessarily the best, but the pilots willing and able to pay (in the meantime, the anti-p2f proposal is being finalized)...

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