Article: Envoy needs 47% fewer pilots
05-04-2014, 09:38 AM
#61
Gets Weekends Off
Joined APC: Feb 2013
Posts: 2,936
Shrinking Envoy by 47% is not as easy as it sounds.
The labor cost structure depends on a certain amount of pilots making the lowest wages to offset the pilots that make the highest wages.
From Unions and Airlines
Consider two regional airlines where new pilots earn $20,000 per year and pilots who've been with the airline for 20 years earn $80,000 per year. Airline A and Airline B fly the same types of planes, have exactly the same cost structure, and have the same percentage of junior versus senior pilots. Suppose now that a fluctuation in demand causes Airline A to have slightly fewer customers and Airline B to have slightly more customers. Airline A will have to furlough a few pilots and Airline B will hire a few.
Airline A would naturally like to furlough its most senior pilots, the ones costing $80,000 per year, or perhaps cut all pilots' monthly hours slightly. Union agreements, however, force it to furlough the most junior pilots. Airline A is thus left with a pilot group that, on average, has more years with the airline than before and therefore has a higher average cost. Airline B, by contrast, just hired a bunch of new pilots and is paying them just $20,000 per year. This means that Airline B's average cost for a pilot is lower than before. Airline B can now move into Airline A's region and offer lower fares. Customers start choosing Airline B over Airline A and the furloughing and hiring intensify.
Union agreements add positive feedback to an already unstable industry. An airline that is successful and growing will enjoy lower costs because of the new pilots being hired for almost nothing. An airline that is shrinking will see its labor costs spike as nearly all flights are operated by highly paid senior crews.
The labor cost structure depends on a certain amount of pilots making the lowest wages to offset the pilots that make the highest wages.
From Unions and Airlines
Consider two regional airlines where new pilots earn $20,000 per year and pilots who've been with the airline for 20 years earn $80,000 per year. Airline A and Airline B fly the same types of planes, have exactly the same cost structure, and have the same percentage of junior versus senior pilots. Suppose now that a fluctuation in demand causes Airline A to have slightly fewer customers and Airline B to have slightly more customers. Airline A will have to furlough a few pilots and Airline B will hire a few.
Airline A would naturally like to furlough its most senior pilots, the ones costing $80,000 per year, or perhaps cut all pilots' monthly hours slightly. Union agreements, however, force it to furlough the most junior pilots. Airline A is thus left with a pilot group that, on average, has more years with the airline than before and therefore has a higher average cost. Airline B, by contrast, just hired a bunch of new pilots and is paying them just $20,000 per year. This means that Airline B's average cost for a pilot is lower than before. Airline B can now move into Airline A's region and offer lower fares. Customers start choosing Airline B over Airline A and the furloughing and hiring intensify.
Union agreements add positive feedback to an already unstable industry. An airline that is successful and growing will enjoy lower costs because of the new pilots being hired for almost nothing. An airline that is shrinking will see its labor costs spike as nearly all flights are operated by highly paid senior crews.
05-04-2014, 12:36 PM
#63
Are we there yet??!!
Joined APC: Apr 2006
Posts: 2,010
Originally Posted by Bzzt
The % is probably over 90, everyone up to Oct 2011 has a flow through and we didn't hire many past that point.
05-04-2014, 01:17 PM
#64
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Joined APC: Jan 2013
Posts: 1,648
Originally Posted by Thedude
Based on approx 2000 or 90%, it doesn't sound like a reduction in manpower would be an issue. It sounds more like the reduction at Eagle will almost take care of itself over the next 5+yrs through flow/attrition.
05-04-2014, 03:27 PM
#65
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Joined APC: Apr 2011
Posts: 49
Originally Posted by seafeye
Your short term memory is failing you.
Bill Clinton left with a balanced budget. George Bush doubled the national debt and military spending was up to almost $800 billion. 1/2 of the worlds total.
If you rack up $100,000 in credit card debt then pass it on to your kids, it grows to $125,000. Is it really your kids fault?
Bill Clinton left with a balanced budget. George Bush doubled the national debt and military spending was up to almost $800 billion. 1/2 of the worlds total.
If you rack up $100,000 in credit card debt then pass it on to your kids, it grows to $125,000. Is it really your kids fault?
Clinton did NOT have anywhere close to a balanced budget,,, until Newt and his 'Contract with America' took over. Look it up.
Clinton even said himself that the budget would not be balanced, but the short lived fiscal responsibility that ended the Clinton administration was not of Clinton's doing. He was too busy putting out fires he lit with his pants down. The Republicans, not of the RINO variety which seem to be the only kind that exist today, were in charge of both houses of Congress if memory serves.
But that certainly doesn't keep Bill from trying to take credit for it.
Last edited by WBTYM; 05-04-2014 at 03:42 PM.
05-04-2014, 03:35 PM
#66
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Joined APC: Apr 2011
Posts: 49
Originally Posted by bedrock
The ace in the hole for the bankster state is the military and the petro dollar. As long as oil is traded in dollars only, there is artificial demand for the currency. Anyone who decides to try and trade out of the currency like Saddam or Qaddafi meets an unfortunate end.
Iran and China have been prevented from building a pipeline due to the US presence in Afghanistan. The Chinese aren't dumping the dollar because they are being allowed to buy up gold at cheaper prices due to Goldman-Sachs suppressing paper gold prices through massive shorting. As long as there is a world demand for oil, the US dollar can survive on the backs of the rest of the world.
Iran and China have been prevented from building a pipeline due to the US presence in Afghanistan. The Chinese aren't dumping the dollar because they are being allowed to buy up gold at cheaper prices due to Goldman-Sachs suppressing paper gold prices through massive shorting. As long as there is a world demand for oil, the US dollar can survive on the backs of the rest of the world.
IF Russia and China do dump the dollar in trading oil, this could trigger a bad sequence of events. The end of the petrodollar would bring all those dollars home, where they would manifest in inflation and rising interest rates. That is when things get interesting...
Six months from now could be a whole different world.
The BitCoin intrigues me. If it can recover from the Mt Gox disaster, it could be seen as a refuge or lifeboat for wealth that will otherwise be ****ed away as inflation hits double digits.
05-04-2014, 03:37 PM
#67
Banned
Joined APC: Nov 2013
Posts: 962
Originally Posted by WBTYM
/\THIS/\
IF Russia and China do dump the dollar in trading oil, this could trigger a bad sequence of events. The end of the petrodollar would bring all those dollars home, where they would manifest in inflation and rising interest rates. That is when things get interesting...
Six months from now could be a whole different world.
The BitCoin intrigues me. If it can recover from the Mt Gox disaster, it could be seen as a refuge or lifeboat for wealth that will otherwise be ****ed away as inflation hits double digits.
IF Russia and China do dump the dollar in trading oil, this could trigger a bad sequence of events. The end of the petrodollar would bring all those dollars home, where they would manifest in inflation and rising interest rates. That is when things get interesting...
Six months from now could be a whole different world.
The BitCoin intrigues me. If it can recover from the Mt Gox disaster, it could be seen as a refuge or lifeboat for wealth that will otherwise be ****ed away as inflation hits double digits.
05-04-2014, 03:47 PM
#68
Line Holder
Joined APC: Apr 2011
Posts: 49
Originally Posted by ClarenceOver
They might dump it along with everybody else when it collapses and since its the world federal reserve there will be nowhere to run.
05-04-2014, 04:55 PM
#69
Gets Weekends Off
Joined APC: Feb 2013
Posts: 2,936
Originally Posted by bedrock
The ace in the hole for the bankster state is the military and the petro dollar. As long as oil is traded in dollars only, there is artificial demand for the currency. Anyone who decides to try and trade out of the currency like Saddam or Qaddafi meets an unfortunate end.
Iran and China have been prevented from building a pipeline due to the US presence in Afghanistan. The Chinese aren't dumping the dollar because they are being allowed to buy up gold at cheaper prices due to Goldman-Sachs suppressing paper gold prices through massive shorting. As long as there is a world demand for oil, the US dollar can survive on the backs of the rest of the world.
Iran and China have been prevented from building a pipeline due to the US presence in Afghanistan. The Chinese aren't dumping the dollar because they are being allowed to buy up gold at cheaper prices due to Goldman-Sachs suppressing paper gold prices through massive shorting. As long as there is a world demand for oil, the US dollar can survive on the backs of the rest of the world.
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