Originally Posted by flapshalfspeed

Airlines pay the market rate for fuel, real estate, parts, etc.. They got away with paying below market-rate for pilots for a very long time, because we just went through the worst two decades of aviation employment in US history, all while printing out 250 hr zero-to-heroes that whole time. Labor supply was basically unlimited, so airlines got away with paying bottom dollar.

But like all things, in the long-run, you cannot escape market forces for any business input--Econ 101 always wins in the end (for any limited resource). Even if the 1500 hour rule and age 67 were passed (I hope to god they don't), I firmly believe airlines would still eventually be forced to pay up for pilots--just 5 years or so later. It's a simple long-term market adjustment to the cost and time-investments of training vs. the career outlook/cost/time-investment in other fields, and also a declining millenial-cultural interest in operating machinery with their hands versus building/designing it on a screen.

If your management team reached the expiration of a commodities contract for fuel, and then refused to pay the prevailing (higher) market rate for fuel in the future, fuel suppliers would very quickly stop supplying you with fuel. They'll eventually be forced with the same dilemma if they do not pay you market rate, whether by force from the NMB, or by the force of your feet leaving for greener pastures.

None of the above is emotional or irrational at all--these are not opinions--these are all simple, cynical statements about how the world of business operates in modern capitalist societies. Businesses that cannot generate sustainable profits when paying the prevailing market rate for all costs of doing business--fuel, parts, mechanics, pilots, etc.--are a drag on the US economy and stock markets and they will be eliminated from the sector in the long-run.

I have a lot of buddies over at Spirit and I'm highly confident your management team can afford to pay you market rate and thrive. I believe the same thing for our group here at B6.