Originally Posted by
MAWK90
Folks, this DOESN'T MAKE FINANCIAL SENSE! Consider this:
1. We are FAT, MOSTLY in the S/O seats (727)/(DC-10)
2. Current rates are $123.91 for the 72 or $140.90 for the 10
3. If the company opens those 200 seats up to the over 60 crowd, they all go to $231.65/hr. (at least a $90 pay increase per hour!)
4. The folks they bump out are all around $220/hr ($12/hr difference)
5. Those folks will most likely populate narrowbody Captain spots at $195/hr. ($25/hr paycut - BUT $55 MORE PER HOUR THAN THEY ARE PAYING THE OVER 60 CROWD TO STAY PUT.
To me it makes NO SENSE to do this. What they SHOULD do is NOT open a bid for then next 2 year till the 777 shows up. Then they purge a bunch of the 200 or so that will be over 63 that are in the back now. Negotiate a side-letter that disallows the migration from 60yrs old to a S/O seat where a vacancy doesn't exist (can't believe they have allowed this to happen this long as it is).
In the end, the company would save MILLIONS on pay and training in just the next two years.
PC in his gloomy letter announced there will be a posting in the next week. I suspect this will be the opportunity for the age 60 guys to get back in the saddle. No it does not make sense you are right. What does anymore?