That was not the context of the question in which he was replying. So, I'll answer it with clarity.

Your chances of getting on at AA, through the front door, from another regional carrier are very slim.

Where are you based? Do you commute?

The $40/HR caused the company to go into bankruptcy and renegotiate all of its CPA's with mainline. Raises could happen again, but it's a long and risky scenario for the pilots and is something that the mainline will get tired of dealing with.

They are building up the WO's so they have leverage with companies like RAH that will have trouble staffing at $40/HR and will have to renegotiate CPA's again.


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Are you sure about that?
:confused::confused:

Home based in EWR. Can't say I agree that the new contract was the cause of bankruptcy. If it were, it would have been slashed. And there were dozens of 145s parked but being paid for at a cost much greater than our pay raise. Those are gone, as well as everything associated with operating a second aircraft. RAH is much leaner than before. Cancellations are way down.

They will have to deal with their own WOs raising pay, why is it going to be that difficult dealing with the others doing the same?

Good grief. The contract didn't create the bankruptcy. Poor staffing due to a lack of contract did. They (management) rushed the contract through so it would already be in place before the ALREADY planned bankruptcy.

I enjoy how people not here try to twist the facts to fit their agenda.

Btw, we've already had a contractual raise at the end of oct AND the second half of our signing bonus paid out. I love how outsiders said this wasn't going to happen.

Regardless. RAH has contracts in place through 2024 with all the legacies. We aren't going anywhere. I'd be more worried about being "comaired" at a WO as that's already a proven mgmt strategy vs breaking contracts with non WO lift providers. It's a real concern. No cost or penalty to redoing wo lift. Good luck boys. I hope your flow comes through!!!

Because their WOs are viewed completely different from a financial perspective than non-WOs.

As someone with a financial background, not really. This isn't a parent-child relationship where the parent doesn't mind pouring money into the child. The WOs have to make economic sense and they need to convince AA they are worth the time and investment.

And pilot pay is an expense, it isn't coming back to AA's bottom line anymore than increased pilot pay at Republic.

Thats the financial perspective. The WOs matter more from a strategic point of view, not so much financial.

AA looks at its WOs as a cost, not a profit machine. Non-WOs have to make a profit not only for their investors in many cases, but for their mainline partners. That is the fundamental difference. And having a "financial background" has absolutely nothing to do with understanding the airline business and doesn't lend you any more credibility than you may or may not already have.

AA, like every other company, tries to minimize unnecessary costs and only runs the WOs because they expect them to contribute to mainline profitability, if not directly then indirectly. If their WOs have a higher cost than third parties, they will lose flying. Take it to an extreme and they get shutdown like Comair.

Having a financial background means I can more easily pick out certain silly statements often made by sales people (I.e recruiters) trying to attract applicants. Or pilots looking for $5k in referral fees and a boost to their flow numbers.