onspeed wrote:fanblade wrote:Q400 at mainline? A joke.
Kinda curious why you think mainline could not fly a q400? your wages are certainly low enough, they start lower than porter or jazz for the embrear... Some mainline ALPA airlines in the US have been saying they would like to take back their farmed out flying because of mainline wage decreases.
It is all about unit cost. The fixed costs that make AC run are spread across each unit (CASM) with wages. Rent, Loyalty lounges, the secretary at HQ, Flt planning coordinator, HR, ect. In the case of AC, employees amount to less than 20% of the unit cost. Pilots are around 4%. Meaning 80% of the unit cost has nothing to do with employees at all. This is unique to aviation by the way. In most other industries employee costs represent over 50% of the unit cost. In this industry fuel is the most expensive. Adding together the volatility of the highest input cost, with an industry that operates on razor thin margins, makes for a very challenging environment.
As you spread the overall cost structure over a smaller and slower aircraft, the break even unit cost becomes higher and higher and uncompetitive. It is why AC farms out to Jazz, smaller slower aircraft. Why Jazz no longer does Tier 3 flying.
I would hazard a guess that pilots could work for free at AC, and a Q400 would still not be profitable because of the cost structure spread across fewer seats, slower moving seats, and shorter stage lengths.
The Continental/United pilots are trying to regain some of the flying lost to the feeders. And they should be aggressive since the regional amalgamation, as long as they are prudent. What they are trying to avoid is permanently loosing flying to tier 2, that could now, post merger, be profitably done at mainline. Two crj700's amalgamated may now make one 737 profitable. They want it back.
As for the low pay for pilots starting out at AC? That would be ME! I wrote this earlier.
If you owned an apple company and your budget for payroll was $1000.00. Within your employee group you have, pickers, sorters and drivers. If one group commands a wage above that of the competition what happens? The other wages must drop in comparison to stay competitive. There is a reason LCC companies pay their pilots better than the legacy carriers. It is because they can. AC cannot. Not until AC is competitive on the cost front in all areas.
Message to everyone who didn't get the message. The other labor groups have more to do with the ability of a smaller type aircraft operating profitably at AC, than you do. The overall cost structure is another hindrance to smaller aircraft operating profitably at mainline.
Securing the flying under a lower cost structure is a good idea with one caveat. All other employee groups get left behind. I am taking CR's offer to other employee groups as optics only. If he actually brings them in? RUN. It is just a scam.
Ground up only.