Marshmallows & kids

[AvifiskAlly]

OK...here is my one and final attempt to explain status pay. I'll make this real simple. Hourly rates are just for the example and make the math easier.

Industry Standard pay rates
B757 - Captain $200/hr
Dash 8 - Captain $100/hr

Company A (Type Pay)
B757 - Captain $200/hr
Dash 8 - Captain $100/hr

Company B (Status Pay)
B757 - Captain $150/hr
Dash 8 - Captain $150/hr

Now here is the complicated part...
How much is Company A and B paying their Captains for one hour of flying?

Answer $300

See...no one is undercutting the other. (yes I know it's more complicated as you have to factor in number of hours per fleet etc.)

Now...if Company C decides to start with a B757 and offers Captains $175/hr then the pilot who takes that job is actually undercutting the B757 pilot at Company A and the B757 and Dash 8 pilot at Company B.

It comes down to a question of what you want out of your career...if it's all about money then Company A is the way to go...if it's lifestyle then Company B may work better for you.

The big problem with status pay is that you over pay on smaller types and are not competitive corporately just like the issue with Jazz now and you underpay on larger types and you are not competitive from the pilot perspective. It certainly does have its benefits as well but it takes a very stagnant and mature pilot group to rationalize those benefits. It works much less efficiently during times of any movement.