Pilot Strike

[aftstrake]

http://www.pilotstrike.com

[cbty]

Wow, someone is trying to remember there are rights and not just duty.

[airspeed250]

US regionals have been paying low salaries for close to ten years now. Why are these pilots wanting to strike if they knew what they were signing up for?

[leftoftrack]

US regionals have been paying low salaries for close to ten years now. Why are these pilots wanting to strike if they knew what they were signing up for?

So you don't belive in changing the status quo? Pilots are litteraly voting to loose their jobs rather then lower the bar any further. I feel like this type of job action will do far less than the 1500 hr requirement that Congress has set. Hopefully companies like great lakes will be run out of business not by other airlines but rather the inability to fulfill their contract due to a lack of pilots.

[airspeed250]

So you don't belive in changing the status quo?

I never said I don't want the industry to improve. My comment was simply that the terrible conditions in the US regionals have existed for a long time. I don't know how you squeeze the employer though. Where do the funds come from to pay better wages?



Republic Airways:
Revenue: $1.3 billion
Net income before tax: $81 million
Net income after tax (plus an after tax charge of around ~26MM): $26 MM in annual profit.
Return: 4.7 % (After tax) on $552 million shareholder equity.

Wages were $342 million. Let's assume wages go up across the board by 10% since FA's and operations staff probably do not make much either, and can use a raise. That's ~$34 MM in additional expenses. That essential negates the annual income.


SkyWest / ExpressJet:
Revenue: $3.3 billion
Net income before tax: $90 million
Net income after tax: $59 million
Return: 4.2 % (After tax)

Wages were $1.2 Billion. Again, use a 10% wage increase, that's an additional $120 million which wipes out the pre tax income.

[timel]

Republic Airways:
Revenue: $1.3 billion
Net income before tax: $81 million
Net income after tax (plus an after tax charge of around ~26MM): $26 MM in annual profit.
Return: 4.7 % (After tax) on $552 million shareholder equity.

After all the accounting manipulation it probably comes out dry 26$M... isn't that bad after all expenses.

Wages of 342M / 50k salary per person = makes a good 6840 employees to run the company. Probably more. The 10% raise in my would be much less than 34M for pilots and FA. It is light calculation. (Raise a 21k copilot of 10% = 2.1k jeeze... Still so ridiculous)

From an other perspective, they now lack of pilots more and more. They can dig into profits, shareholders money, but a plane grounded is more expensive than pilots salaries.

Now multiple airlines share the big cake, and they are quite a few, they all seems to get their fair share and it seems profitable. I am sure there is space for higher salaries. It would that tight and stretched they wouldn't be all doing business.

Plane flying : mechanics work, rampies work and all the auxiliary services get to work.

[RustyDeuce]

It's a good thing pilots don't run airlines.

[timel]

It's a good thing pilots don't run airlines.

Haha! probably but feel free to share your opinon.


Anyways all I am saying is :
Airspeed it is pretty light numbers to argu over

And all those airline wouldn't do business if it wasn't worth it.

So yes there is money for decent pays out there and if airlines lack of pilots they will have to pay.

[airspeed250]

The 10% raise in my would be much less than 34M for pilots and FA. It is light calculation. (Raise a 21k copilot of 10% = 2.1k jeeze... Still so ridiculous)

I used 10% across the board to keep this analysis simple. Even at 10%, a captain goes from 60k to 66k... not exactly a lifestyle jump after taxes are paid, and a FO, as you said, would hardly see any difference. Remember, if pilots get a raise, everyone will want a raise, so I applied it to the total wages paid.

After all the accounting manipulation it probably comes out dry 26$M... isn't that bad after all expenses.

$26 MM in after tax profit on $1.3 billion in gross revenue is a 2% profit margin. That is terrible. There is zero room for costs to unexpectedly go up, or revenue to drop.

And all those airline wouldn't do business if it wasn't worth it.

Sure they will. Raise money, run the business for as long as possible (collect a nice wage and bonus at the exec level), go bankrupt, fleece your investors, and start over again.

[snowcone]

Or every airline can raise the fare by $5 and f/o's maybe able to supersize their combo.

[mbav8r]

I can't say with absolute certainty but the Jazz CPA with Air Canada is for a mark up of 12.5% over controllable cost, meaning if wages go up, the cost are passed through to Air Canada. This is the main reason for having multiple feeders, most cost are fixed or uncontrollable(fuel) the only savings to be realized is to have employees do the same work for less.
Air Canada didn't invent the CPA model so it stands to reason the US regionals are set up the same and any wage increase would be passed through and the 2% margin would be intact. That being said, ALL regional pilots will need to set the park brake to make a material change in wages, otherwise any new work will just go to the lowest bidder, as has been happening for the last 20 years or so.
American Eagle pilots have my utmost respect for turning down the Embraers for a further reduction in wages and lifestyle, let's hope the rest of them have the same intestinal fortitude!

[Takeoff OK]

I can't say with absolute certainty but the Jazz CPA with Air Canada is for a mark up of 12.5% over controllable cost, meaning if wages go up, the cost are passed through to Air Canada. This is the main reason for having multiple feeders, most cost are fixed or uncontrollable(fuel) the only savings to be realized is to have employees do the same work for less.
Air Canada didn't invent the CPA model so it stands to reason the US regionals are set up the same and any wage increase would be passed through and the 2% margin would be intact. That being said, ALL regional pilots will need to set the park brake to make a material change in wages, otherwise any new work will just go to the lowest bidder, as has been happening for the last 20 years or so.
American Eagle pilots have my utmost respect for turning down the Embraers for a further reduction in wages and lifestyle, let's hope the rest of them have the same intestinal fortitude!

I can pretty much guarantee you that no wage increase costs flow up the ladder to any mainline in the US. Jazz's CPA model here in Canada is going to die with Jazz.

As to those scoffing at american regional pilots' wages: just wait. The model has arrived. Sky, GGN, and whoever comes next are all hoping newbies will buy the idea that the regionals are but a stepping stone leading to Big Red, and therefore will accept the crap pay as a necessary evil. Unfortunately, as AC sheds more and more lift to whatever feeders pop up, you will find that next step drawing further and further away.

In actuality, the parking brake that is being set is the one on many hopeful newbies' long-term career goals.

Thanks again, ACPA.