Raise pilot pay- an easy solution?
#12
Some (SKW) have publicly stated they'll go out of business before they'll raise pilot pay to attract and retain enough pilots. That could just be rhetoric but I suspect they mean it because the problem is quite serious. Their basic business model is predicated on an endless supply of cheap labor to keep things moving. That means they really can't do business without a ton of cheap pilots and the cost of redesigning things is so high that it is not practical in the market segment where they are forced to compete. This dependence on endless cheap labor is common in the regional airline industry and it is a serious problem much like fuel hikes and recessions of the past.
#13
Gets Weekends Off
Joined APC: Jul 2013
Posts: 9,941
Mr. Stakeholder, we can accept a lower margin to recruit and retain the manpower necessary to operate this company, or we can maintain the higher margin and cease to be a going concern once our contracts are revoked due to poor performance due to lack of pilots.
Which is a better use of your capital?
If you would prefer us returning pennies on your dollar following the 1113 process, that certainly is something we can look at.
Which is a better use of your capital?
If you would prefer us returning pennies on your dollar following the 1113 process, that certainly is something we can look at.
Or, maybe you can park marginally profitable leases and consolidate operations to maximize profits. The point being, it's far more complicated than, "raise wages, get more FOs, everyone wins."
#15
Gets Weekends Off
Joined APC: Apr 2010
Posts: 595
Mr. Stakeholder, we can accept a lower margin to recruit and retain the manpower necessary to operate this company, or we can maintain the higher margin and cease to be a going concern once our contracts are revoked due to poor performance due to lack of pilots.
Which is a better use of your capital?
If you would prefer us returning pennies on your dollar following the 1113 process, that certainly is something we can look at.
Which is a better use of your capital?
If you would prefer us returning pennies on your dollar following the 1113 process, that certainly is something we can look at.
Regionals will only make more when they can demand more from the majors, and I don't know when/if that will happen. Until then any appreciable raise in pilot pay would bankrupt most, if not all, regionals.
Skywest's $3.3 billion in revenue in 2013 only resulted in $59 million profit. Do you know how quickly that would be eaten up by a couple dollar an hour raise to pilot payscales?
#16
Gets Weekends Off
Joined APC: Feb 2013
Posts: 2,932
Mr. Stakeholder would simply find another vehicle to invest in.
Regionals will only make more when they can demand more from the majors, and I don't know when/if that will happen. Until then any appreciable raise in pilot pay would bankrupt most, if not all, regionals.
Skywest's $3.3 billion in revenue in 2013 only resulted in $59 million profit. Do you know how quickly that would be eaten up by a couple dollar an hour raise to pilot payscales?
Regionals will only make more when they can demand more from the majors, and I don't know when/if that will happen. Until then any appreciable raise in pilot pay would bankrupt most, if not all, regionals.
Skywest's $3.3 billion in revenue in 2013 only resulted in $59 million profit. Do you know how quickly that would be eaten up by a couple dollar an hour raise to pilot payscales?
That's a 1.78% return on investment. Investors would be better off putting their money in a low yield CD or money market checking account with 0 risk.
#17
The majority of airlines have and to a certain extent, are controlled by their CBAs. Changing payscales is an example of a tough cookie to crack. Bonuses are the sidestep, until a judge determines that they violate the spirit/letter of the CBA. The regionals were created by, and for the major partners. Eagle, pinacolaba and all the others are feeling the pinch, even Skywest is trying to poach typed pilots for cash. If this isn't proof that there is a shortage of pilots willing to walk through the door, what is?
#18
Line Holder
Thread Starter
Joined APC: Sep 2014
Posts: 89
I find it interesting that not one reply mentioned that, by the most part no a CEO of a regional can even if they want to increase pay and benifits, without going back the the negotiating table and restructure a completely new contract, which would then have to be ratified by the members, so how many of the pilots that replayed to this actually regional pilots ?
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