Originally Posted by Whiskey4

Question:

Assuming that AAG management truly seeks to maximize returns for shareholders, wouldn’t providing WO regional pilots with AA seniority numbers have been the best way to do that? Granted, APA would’ve needed to be involved in that process...and that may have cost a pretty penny.

However, it feels like handing out millions in new-hire bonuses, likely having to match EDV and Republic payscales at some point (making the regional model less lucrative), funding massive budgets for recruiting efforts...all could have been prevented by providing numbers.

My assumption, which could be completely wrong, is that pilots would be lining up for their AA seniority number without all of the bonuses and the major recruiting efforts. Pilots at WOs wouldn’t be as upset when AA suddenly increases the size of classes, which currently devalues the metered flow model.

So, you spend a ton less cash thereby boosting shareholder value, you improve morale at the WOs thereby increasing stakeholder value. Seems like a win-win. Also, you can maintain the regional model far more effectively than other majors since you have pilots flocking to get the seniority number while they are still desperately competing in the arms race that is the current increasing regional compensation race.

The biggest downside I can see is this being a turn off for some AA street hires (mostly military pilots) since WO pilots would be leapfrogging them in seniority for several years. However, the advantage they have over the regional pilots is that, by getting hired directly into AA, they earn the higher wages and have the better work rules from the get-go. Is that too much of a risk to balance out he shareholder and stakeholder benefits??

Anyways, just thinking about this while reading an article about airlines trying to maximize profits and shareholder value. It just seems like a ton of money is being wasted when providing that “simple” piece of career security would balance the equation.