Another Reason Fares Will Keep Coming Down
05-12-2016 | 06:55 AM
#21
Runs with scissors
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From: Going to hell in a bucket, but enjoying the ride .
05-12-2016 | 07:20 AM
#22
Runs with scissors
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From: Going to hell in a bucket, but enjoying the ride .
05-12-2016 | 07:27 AM
#24
Moderator
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From: DAL 330
Well if we are truly coming up on a worldwide pilot shotage One would think these LCC's will eventually have to increase compensation.
It seems to me a lot of the "low" in LCC just refers to compensation. Fuel costs the same, aircraft cost the same. I really don't see how they can provide a substantially cheaper product unless they are making up the difference with mostly labor savings.
Hopefully the law of supply and demand will somewhat limit the ability of LCCs to grow and prosper like they did in the very unique time period in the early 2000's.
Scoop
It seems to me a lot of the "low" in LCC just refers to compensation. Fuel costs the same, aircraft cost the same. I really don't see how they can provide a substantially cheaper product unless they are making up the difference with mostly labor savings.
Hopefully the law of supply and demand will somewhat limit the ability of LCCs to grow and prosper like they did in the very unique time period in the early 2000's.
Scoop
05-12-2016 | 10:11 AM
#26
Gets Weekends Off
Joined: Sep 2015
Posts: 1,034
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From: I got into this business so I wouldn't have to work.
Well if we are truly coming up on a worldwide pilot shotage One would think these LCC's will eventually have to increase compensation.
It seems to me a lot of the "low" in LCC just refers to compensation. Fuel costs the same, aircraft cost the same. I really don't see how they can provide a substantially cheaper product unless they are making up the difference with mostly labor savings.
Hopefully the law of supply and demand will somewhat limit the ability of LCCs to grow and prosper like they did in the very unique time period in the early 2000's.
Scoop
It seems to me a lot of the "low" in LCC just refers to compensation. Fuel costs the same, aircraft cost the same. I really don't see how they can provide a substantially cheaper product unless they are making up the difference with mostly labor savings.
Hopefully the law of supply and demand will somewhat limit the ability of LCCs to grow and prosper like they did in the very unique time period in the early 2000's.
Scoop
In any case, I can't understand how they can thrive given the pilot shortage that really exists, and was put on steroids by 117.
05-12-2016 | 10:21 AM
#27
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Joined: Dec 2007
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From: DAL 330
Well if the Pilot shortage does kick in and does affect them it will happen slowly over the course of a few years. It might only have a minimal affect but then again maybe it will force a substantial change in compensation.
Time will tell.
Scoop
05-12-2016 | 12:03 PM
#28
Gets Weekends Off
Joined: Jan 2014
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From: DAL A320 CA
Just imagine if DL signed off on our opener with no concessions..there'd be a measurable impact on LCC's and the ME3 as pilots moved to all of the legacy's who would be next to match the new "Delta Dot".
Barring another 9/11 or SARS/Bio/nuke event..we will become the critical commodity in our industry..until they figure out how to turn a Maddog into a unhackable UAV!
Jmho..CG
05-12-2016 | 12:17 PM
#29
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From: Flying the SEC
Here's an accounting reason they would like to trade our next pay raise for profit sharing: Taxes.
If instead of giving us say, $1 Billion in profit sharing, they gave us a $1 Billion pay raise, they would pay income taxes on $1 Billion -less- profit.
We see it as a wash, either way we get $1 Billion, but if it's profit, they have to pay income tax on it first, then give it to us too. The bankruptcy income tax write offs are about to expire, at a time when the company is making unheard of profits, so you know they are trying to limit their next income tax bill.
If instead of giving us say, $1 Billion in profit sharing, they gave us a $1 Billion pay raise, they would pay income taxes on $1 Billion -less- profit.
We see it as a wash, either way we get $1 Billion, but if it's profit, they have to pay income tax on it first, then give it to us too. The bankruptcy income tax write offs are about to expire, at a time when the company is making unheard of profits, so you know they are trying to limit their next income tax bill.
05-13-2016 | 06:41 AM
#30
Sick of whiners
Joined: Jun 2015
Posts: 507
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From: 767 VEOP
Could that be a reason the company is investing so much in offshore airlines. Could they park some of the profits offshore and avoid the 35% corporate income tax rate a la Apple? If the company kept that cash overseas, how would that affect our profit sharing calculations or ability to extract compensation increases?
.
DAL-AMS <- All JV revenue will be sequestered offshore at this entity. We must be absolutely certain that corporate profits remaining overseas and out of reach of the IRS are still included in OUR profit sharing formula.
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