Originally Posted by
EA CO AS
Or did you forget those very important factors that mean a cost advantage is a NECESSITY for AS to compete and grow? Obviously the arbitrators looked at those factors when coming to a decision that was well over what the company wanted, but obviously short of what ALPA asked.
Some statistics to counter this effective management driven fallacy that pilot labor costs are a significant factor to an airline's business model and thus it's overall health and growth potential:
Alaska Air Group third quarter revenue: $2.1 billion
Let's assume the third quarter cost difference between Delta 737 rates and Alaska management's proposed rates equals $50 million.
Take that $50 million and divide it by $2.1 billion = roughly 2%
Let's say Mr. Pilot's annual gross income is $100,000. Take that same 2% from $100,000 and you get $2000 bucks. Does a $2000 cost increase threaten Mr. Pilot's entire lifestyle (ie "business model) making $100 grand? Unless he has completely dorked up other budgeting in his life, I would argue no.
Yet as evidenced by the quote above, many still believe this airline's ENTIRE business plan and growth model would be put in jeopardy by this very same cost increase if we were to go to Delta rates. Sadly, the company and this cost propaganda machine fallacy continue to win over many, including a sizable amount of the very people they are most directly deceiving... us pilots.