Originally Posted by
andy171773
You do realize that pilot pay is 1% of the big picture right?
Actually, its a lot higher than that at XJT. Especially considering that XJT only pays wages, maintenance, and overhead as part of the new CPA.
Originally Posted by
ToiletDuck
The where they have trip/duty rigs along with the option to put 15% of their check away to purchase stock at a 15% discount below it's lowest price over the 6month period. That stock option is a gold mine, especially now. It's more than just numbers.
Just pointing out that its not a contract. That is why they are "at-will" employees.
Originally Posted by
contrails
The CPA that XJT entered into with CAL is actually so bad for XJT that they cannot really make a profit with the current budget. Even with labor concessions the CEO has been quoted as saying, to paraphase, 'I'm not sure we have a viable business plan.'
So that is the problem.
But, they could not negotiate higher rates because RAH, SKW, PCL, Colgan, etc. are also interested in capturing new flying and so XJT basically had the option of losing flying or signing a less lucrative deal.
Keep in mind that XJT had a gun to their head when signing on the dotted line. It was give CAL "savings on the magnitude..." or lose all CAL flying with the wind down starting in 365 days.
Originally Posted by
Nightsky
This is my take as well - this company is in horrible shape financially, so much so that concessions will not let it avoid BK. They still won't be making money. The economy is only going to get worse. The industry overall will continue to contract in response. Additionally, we didn't furlough enough people. I hate to say it, but it's true. How can they seriously ask for concessions, when I don't see them doing whatever it takes elsewhere to save $? These concessions will not save us, and in fact will lower the benchmark for the BK judge to start with. So go ahead and vote yes, you won't save the company, but you will make less money in the interim.
Folks, it's the same tactic used by airlines throughout their history. Give in or else. Fear. It's the single best weapon management uses against pilots, and it's apparently working. What's ironic is that I think they are right in this case, we will go BK without concessions. But - I think they aren't telling us the whole story. Personally, I think the company knows and even expects we will be bankrupt despite the concession results.
You assume it will go into chapter 11 and not chapter 7. The fear is that at some point the hedge funds that own most of the stock will just want to shut it down and cash out whatever money is left over.
Originally Posted by
ToiletDuck
SKYW wasn't going to do it at a loss. They have a lower operating cost.
Well, no, not at a loss because they were asking for 12-16% concession from the pilots. Who knows what they had in store for the other union groups.
Originally Posted by
ToiletDuck
You pay 2% though and get to take a pay cut.
Are you talking about union dues? If so, keep in mind that not everyone pays the 1.95% dues. First year pilots don't and many that do get an income tax deduction from it. So the effective dues rate is lower for many pilots.
Also, that 1.95% kept all the pilots from taking the 12-16% pay cut that SKW would have implemented without negotiations.
Originally Posted by
SAABaroowski
Still puts us at the top of the list compensation wise, Eagle & Willy I believe are above........
I beleive Eagle captains will make more for the first year and then XJT captains will go back to the top. As for FOs, they will still be in the top third. AWA is the only ones who currently pay more than XJT.
Originally Posted by
STILL GROUNDED
...time to see if they are willing to stand in it and protect that industry leading contract.
Even if this gets ratified, it will still be close to a industry leading contract for 50 seat aircraft.