Originally Posted by
Itsajob
Generated revenue is a significant piece of the pie, but leverage at the negotiating table is the biggest piece. Pilots at the legacies all have restrictive scope clauses which force the company to deal with only them. What is left over is sold to the lowest bidder and those companies have to keep cost down to a minimum to be competitive for contracts. The regionals just don’t have the same leverage. If one says no, another will say yes. If United pilots say no, the company is stuck dealing with United pilots.
It’s not so much the restrictive scope clauses, it’s more that you can’t tell a Delta pilot to take these concessions or we’re giving your flying to AA. Scope plays a part, but not the largest part. You hit it on your last sentence.
You can have 100% of the leverage, and you’re still not going to get more than the plane’s revenue will support.