Originally Posted by
54baldwin
Everyone always compares our # of seats to a legacy for an A320/321. Now compare the revenue difference between the 2. Just because we carry 240 people doesn’t mean our revenue for that flight even comes close to a legacy. Get a grip and learn how to read SEC earnings fillings.
So let me ask you 54baldwin...
Do you have any say-so as to the configuration of the planes? Were you consulted when this company became a ULCC? Did BB or Franke or ANYONE give you a call and ask you what the best business plan would be? I'm assuming the answer to that (as well as EVERY OTHER EMPLOYEE) is "no."
The reason for asking is simple - it's their job to determine the BEST way to make money. We could've become Jet Blue and went w/ upper scale services. Mgt could've decided to provide INTERNATIONAL travel and purchased widebodies. They could've come up with just about any business model - they chose ultra low cost. That's certainly their right. They had the money to buy the airline so they did what they wanted. You and I and every employee had the option to NOT work here. But we do. Someone has to or there is no business. The only problem is that this airline is in what's called a MARKET. It's not the only airline. There are several others - all w/ varying business practices. And despite those differences, there is a GOING RATE for the services of many of the labor types. Right now there are about 6 different airlines operating/headquartered in the US that all pay approximately the same hourly rate - in fact, many have CLAUSES that automatically raise their rate should a competitor airline pilot group raise theirs.
Again, you and I can always vote w/ our feet and walk away. But, in the ONE CASE OF ALL DOMESTIC AIRLINES, there's a unique quality of labor and that is the seniority system. It's not something we developed or even wanted (some did maybe way back when it was formed) but regardless of that, it's here. The structure of the seniority system places an undue pressure on each company's labor group to negotiate to market standard. And, because THEY picked the # of seats, it's the company's job to configure the seats in such a way that they can AFFORD to pay those rates as those rates increase.
It is what it is. Neither you nor I nor ALPA nor any airline can change it - that ship has sailed. So, given the constraints of it, this is the situation we are all (labor AND the company) are in. They know it just as much as we do. It's not a secret. The market is the market. Trying to justify anything less is counter to the market (and shows a moderate level of business ignorance). Even if one side is successful in doing so, it would be just a short time victory as over time it will never work. Eventually, the market will dictate either that pay equalizes to the rate of everyone else or THAT business will have a difficult time hiring and keeping employees (and probably eventually fold). It's where we are now. The short time of success is over. And Indigo knows this.
The ONE THING that seems to be absent in every argument trying to continually support paying us the lowest rates in the industry is the fact that the CEO and upper level management charged with the ever so important operational business decisions ARE NOT the lowest paid in the industry. I wonder why that is?