Originally Posted by XJT Pilot

Were not them. Read this very well written post why were not them and will not except anything that's not industry leading. Sorry if its already been posted.

Judge, I often appreciate what you post, but this one I like especially! This is RIGHT ON! It's known as economies of scale. That is a very important theory to appreciate as we manage OUR OWN expectations!

Even without Skypest, we (ASA/XJT) are the largest regional Airline in the world. IN THE WORLD! We might not be there yet, but let's just explore what that "should" mean to us as far as bargaining power now and in the future.

That means that our parent corporation has a purchasing power greater than any other regional Airline IN THE WORLD! And therefor, everything we buy from toilet paper to MRJ's should be at a price lower than everyone else IN THE WORLD. That means that we should have proportionately fewer entry-level, mid, to executive staff per employee to run the operation, while at the same time, having the ability to hire and compensate handsomely more capable and talented people than any other regional Airline to perform said duties (I know, we're not there yet, but the theory is solid - stay with me). That means that when scheduling our flying we are given more flight segments from our Mainline partners to combine into pairings and lines than any other company we compete with and, can therefor, create more efficient and productive schedules than any other regional, therefor, executing said schedules at a lower cost with less employees. That means that our administrative cost per employee for everything from healthcare, to 401k, to Aerodata services should be lower than any of our competitors. That means that we should be able to achomplish the same requirements of any CPA we bid for at a lower cost than any of our competitors. Without even breaking a sweat! Easy!

So now, let's consider our current negotiations with all of the above in mind. What should we be able to negotiate? It is true, as has been said ad nauseum, you are only worth what you can negotiate. So what should we be able to negotiate? Well, in my mind, we should be able to negotiate the highest rates in the industry for both 50 and 70-76 seat lift in the regional industry. Why? Because we "should" have the lowest cost, by far. Why? Because of our economies of scale. Due to our buying power we "should" have the ability to have lower cost on nearly every line of the accountants spreadsheet than any other regional Airline.

So who, or where, is that money (savings) going to go to? If you believe the scare tactics, it needs to go to the corporation to avoid liquidation and bankruptsy in such troubled times. It needs to go to the shareholders who invest as day traders and need an ROI that will keep them interested in SKYW. I means just look at Pinnacle and Comair and Eagle! We have to adjust our hourly pilot rates to be lower than theirs or we can't compete! Right?

Wrong! As has been said by others, pilot pay is a small, small, fraction of overall cost. I mean there is In-flight, and MX, and management, and sick pay, and retirement, healthcare, and general operating cost, and on, and on, and on. If you think that a $6 or $10 or $14 per hour hourly rate above the competition will be the determining factor to overall CPA bid cost and success in CPA bids you are living on the moon. Is it a factor? Absolutely! Is it the primary determinant in CPA success? Not even close. Is it Managements duty to attempt to reduce any and all cost possible? Yes. Is that my problem? No!

To use a management colloquialism, we have to be competitive! What percentage of that equation does pilot pay contribute? Some. But not all. MX pay, In-flight, management, Aerodata, toilet paper, whatever. They all have a factor.

If we are the largest regional Airline with the lowest operating cost, we "should" be able to pay our pilots at the top of the scale, while at the same time being able to have the lowest cost, and bid successfully for future CPA's. And our MX, and In-flight, and 401k, and soft-time, and whatever should be at the top while still being able to underbid competitors for any future flying.

That, is what we should be negotiating for. That is the "range" of acceptability be should be attempting to determine in negotiations. Not looking back at companies who are bankrupt and negotiating with a gun to their head for rates that are only intended to be a stop-gap for a few years before liquidation.

If Pinnocolaba negotiated $44 CA rates for 76 seat feed, that does not mean that we need $43 rates for 76 seat feed to compete. It's apples to oranges. They are a fraction of our size and would need even lower overall cost to actually compete with Xjt/ASA.

There literally is NO REASON why XJT/ASA should not be the highest paid regional Airline in the world if they are the largest regional in the world. Do I expect a 30% increase in pay? No. But do I expect that I will be the highest paid 50 seat/70-76 seat pilot in the industry? You're **** right!!