Why wouldn't they? They need to whipsaw us and SkyWest in the west coast. Although any mainline OO pilot would disagree and tell you mommy D is about to pull all of our flying.... tomorrow.

 

We have 56 a/c, 20 are aa. I doubt envoy could staff 240 pilots just immediately... and the cost would be higher to suddenly attract that many pilots. Doesn't make any sense to me, but maybe it does to a higher up, idk.

 

AA and DL contracts are both 10 year contracts. So aa is way more than 3 years away. Our DL birds are also a heavier max TO weight than every other airlines. I feel we will be just fine. What airline is gonna be able to take that much growth? Especially now when every airline is struggling to attract new hires and the talent pool for everyone is dwindling FAST. I just dont see them leaving to any other carrier from a financial standpoint, and logisitical/staffing standpoint.

 

I think our pay is totally respectable when compared to other regionals. The thing we lack is some shiny signing bonus that the others are waving around. I recently talked to a CFI student that was amped up about GoJet's 75K/yr first year pay. You know, even though they count the value of commuter hotels, insurance, bonuses before tax, 500 hours a month of per diem, etc into those numbers. Hell my friend send me an Air Wisconsin screenshot that said 3rd year pay was 240K/yr because "you'll be at a major by then"

 

That gave me a good chuckle.

 

You're forgetting about Republic. Just a guess, but I'd be surprised if Delta keeps all three. One thing with Delta, it's hard to predict their next move

 

Quickie off topic- when is per diem taxed and not taxed?

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Taxed when you do day trips and return to your base. Not taxed when trips are longer than one day.

 

Do you know for sure AA is 10 years? I was told it's 5 plus the option for 5 more. I tend to believe the 5+5 more. From the business standpoint, I'd be really surprised if AA signed away their options for 10 years straight.

Don't forget why we have the AA contact in the first place. They needed to teach Envoy a lesson. Now that the lesson has been learned, AA is in the business of keeping its wholly owneds running, and that includes staffing. And the most cost effective incentive for people to come to Envoy is the continued growth that they can give them almost for free, by simply not exercising the option to renew our contract. Much cheaper than bigger bonuses or higher salaries across the board.

All of the above is speculative. None of us rely know what's in the contacts. All I'm doing is pointing out that there's a real possibility that Compass may fall on hard times in 3 years. I really hope it doesn't happen, I like this place, warts and all, and I hope that my brethren who come aboard now will have a good time here and successfully move on. But it's important to keep one's eyes open to possible downsides.

 

The AA contract is till 2020 with 2 x automatic renewals in 2020 and 2022 if certain performance metrics are met...I'm assuming D0 and CCF...Delta is till 2020, I'm not worried about DL at all, performance is getting better and we are cheaper than the other 2 E175 carriers under DL...2020 is a long ways away anyways, the seniority list will probably almost completely turn over by then...there's no sense in worrying about it unless you're going to be a lifer here or are potentially just starting...