Originally Posted by
Bucking Bar
Delta's course concerns me. As it shrinks, costs will increase & revenue base decrease. As costs increase, it will wish to outsource. While saying we are in "Comair mode" is an exaggeration, the pattern is the same. In the second quarter comparison, Delta's non fuel cost per seat mile was up nearly 5%, compared to the next highest 3% at United. Airlines that aren't shrinking are keeping their non fuel CASM increase below 1%.
Also, as we shrink we cede market to our competitors.
History shows, airlines do not shrink to profitability. Bastian told investors our early retirements and other measures will help reduce costs to 2010 levels. I'll go on record now and state, I doubt that will happen.
Great post Bar!
Whats worse, we have for better or for worse hitched our careers to a seniority based system.
Seniority determines pay
Seniority determines base
Seniority determines days-off
Seniority determines vacation
Seniority determines seat
Seniority determines equipment
Seniority determines furlough
Seniority determines recall
In short seniority pretty much determines the trajectory of an entire pilot career.
Unless you are #1, seniority is relative.
#10 out of 10 and you are the plug
#10 out of 100 and you're still reserve
#10 out of 1000 and you are doing good
#10 out of 10,000 and the world is your oyster ;-)
When we stop growing, every pilot on the list takes a hit in relative seniority.
Watching an airline with 1000 pilots hire 250 would require 2500 hires to achieve the same seniority gains at an airline with 10,000 pilots.
Which airline do we work for?
Cheers
George