Good question in a way. Depends on who you ask. A pilot will say his value is higher than he is being compensated for, regardless. A manager will say the market value is what he is already paying. Neither get what they think a pilot is worth. The manager pays more, the pilot gets less.

A better way of looking at it may be to say what does market itself dictate and what does that typically look like. Historically we have been able to pattern bargain, where we match and receive a margin above the industry standard. In most cases that's the industry leader. That margin has been usually in the single digits, say 1-5%. This seems reasonable when you look at from the manager's perspective. He has to compete in the market for profits and shareholder value. He doesn't want to distance himself from the industry standard cost structure for fear of becoming uncompetitive.

I want much more at all times. That is natural. What is possible is another thing altogether.

Take for instance this TA. If nothing happens and this airline remains on the current trajectory, our pay will exceed AA by nearly 15%. That is a good margin for RA to eat. But, he has some hedging. If we remain this profitable, there will be plenty of profits to endure a period of relative uncompetitiveness until other airlines pattern bargain on our rates. If we lose a degree of profitability, that margin shrinks to 3.5% (when we have no profits). In this way his labor costs don't run away when he can least afford it. Smart thinking.

My preference would have been to sell another 5% PS and make that margin at 0 profitability 8.5%. That may be too rich for RA's blood.