I thought this discussion could use its own thread.
Ok, there is a lot of discussion about whether to grant a lower ALV or not. Everyone knows what camp I’m in. Here are some figures I came up with. I made certain assumptions and here there are: 1. ALV lowered to 55hrs, 2. 13,000 line pilots, 3. 85 hour normal monthly average per pilot, and 4. Average pay per hour of $250.
Using my numbers above it’s a 30 hour savings a month for each pilot. 30hrs X 13,000 pilots X $250 = $97,500,000 saved in a month. Think about that. This is less than 2 days of cash burn according to our Management. I feel like I’ve been pretty generous with my assumptions. over a 6 month period that would add a maximum of 14 days.........and I’m being generous there according to our Management.
This is not a problem that can be solved with give backs, pay cuts etc. It’s a revenue crisis on an unprecedented scale.
In answer to the question I posed, we should not lower ALV because, in the long run, it won’t make a lick of difference if the revenue side does not come back...
Fire Away!
Denny