Help with some math and industry POV.
Some of the proposals here (55-60%) would require a non-negligible increase in fares, headed into an economic downturn.
Does anyone know the average pilot wage spread across the group? It would simplify the math.
EBITDA has run around $4B with net running $2B pre-Covid. A $50k increase across 10,000 pilots is $500MM, or 25% of net (approx 2.5% top-line). I get the sense that a $50k increase on avg is not popular here.
The avg fare for 2019 looks like $128 - ish.
If the goal of the pilot group is $75k avg bump or 100k…has anyone run the math on how that affects sales? How many fewer flight will be flown, and how much will the profit sharing be reduced?
Also, is there any discussion to unite the overall employee groups or encouragement to maximize top-line? I read stuff on here that seems counter-productive to the business. Surely everyone understands more total profits and a better customer experience provided by a united hard-working team gives everyone more bargaining power.
I’m concerned (wondering) about hitching my wagon to a group that isn’t focused on being better than the competition to ensure long-term security and revenue. The pie will shrink in a down-turn but it seems like pilots could set a great tone to grow a bigger share of that pie with the slightest bit of focus on where the bread gets buttered.
What am I missing? Some attitudes here are a death march toward automation, and a divided workforce which is easily beaten in negotiations. Check out the rail deal. No savior for unions regardless of party.
I have ZERO 121 experience. Outsider. Wannabe. Clueless.
Educate me.
Tell me why if I was running the union I wouldn’t want every pilot setting the tone, BELOVED by customers, their kids, and ALL of the other staff groups making it happen? Why wouldn’t I want other pilots from other companies jealous as hell of the SWA experience? Why wouldn’t I want the folks on the ramp feeling appreciated as part of one team, with a culture lead by pilots (who might go toss a bag once in awhile)?
Why wouldn’t I want the PILOTS to be the face of the airline, always supporting the brand? When it comes time for negotiations, NOW you hold the cards at the table because you are more than just an expense, you are the top line.
Maybe I’m crazy but the pilots/team are the ones who see the customers every day, not the CSuite. Why not own that, and control the brand?
As a former employer, its so strange to read about members of the team essentially sabotaging profits. The contract and striking becomes the only leverage…thats so backwards in a customer facing environment where the front line has the ability to OWN the brand. Be undeniable, get paid.
Blast away. I want to understand this beast.