Higher profit margin I’m guessing he meant to say, which happens to be more important than profitability.

 

No. Not quite sure what your asking with question 2 but I’ll try and explain another way. We know that the company will have to raise first year pay from the proposed 39 first year to attract new hires at some point in the near future. When they do that it can never be lowered and can’t go above year 2 (that’s what I believe the contractual language will be but don’t know for sure?) The reason that was done was to lower the overall cost of the entire proposal and shift that saving to other areas. We should know what it’s going to be in a few days. We will know for sure what the language is and no idea if the company will publish a different number at that point. Right now classes are filling so it might not come off the 39 immediately. IMO.

 

Your last two quarterly reports paint a dramatically different picture.

 

The details are NOT accurate. Let’s not all get hysterical like a bad Greek tragedy. Breath in, breath out, repeat.

 

So if you owned a business: it would be more important to you to sell 100 items at a 30% markup? Or sell 1,000,000 of the same item at a 10% markup?

 

Speaking of trying to attract new hires, for the past week when I come to this site, all three pop up adds are for Frontier Airlines. “Right career, right lifestyle”. It just started a week ago, or so but they’ve got all three add spots every time I refresh the page. I wonder how much that costs....

Anyway, I hope the new AIP/TA meets your criteria. Don’t forget that they’ve spent years wearing your group down. Don’t vote yes because you’re fatigued from fighting to keep the operation going. And don’t vote yes because the union says this is the best we can do. The details you see in the AIP will be the least amount that management thinks is required to get a 50.1% vote in favor.

Don’t be afraid to send it back. I’m afraid, though, that there are enough pilots that will see the money and do some math and vote yes because it WILL be a substantial raise and bonus. Good luck guys. Hopefully it will be an easy decision but I doubt it will.

 

Um private equity firms “publish” what they want to....

 

This^^^^^^^^ is what will happen

 

Can only hope that the group looks forwards and can overcome the self serving DEN crowd......it’s that simple...........

 

Hi Planepirate, can you explain what you mean with the above quote?

My understanding of profitability, in a very broad sense, is the money from revenue you have left over after expenses are paid. And I would think that net profit margin is whatever is left after costs are subtracted from revenue. In the airlines we use revenue per available seat mile minus costs per available seat mile, or RASM minus CASM equals moolah (dollahs!!!).

If Frontier has a RASM of 10 (10 cents revenue per available seat mile) and their CASM is 5, that equates to a spread (or profitability) of 5. If Delta's RASM is 15, and their CASM is 10, that equates to a spread of 5. That would make them equally profitable, right? And I think these are roughly accurate numbers. But, the numbers aren't my question so much as to what my thought process is.

I don't think economies of scale apply to this discussion because the higher the scale, the higher the distribution. Meaning, you may take in more money, but you have to spread it across more people.

This is why I think Frontier pilots SHOULD be paid on par with legacy pilots as I believe Frontier is among the most profitable airlines in the Country. I'm aware the Alaska arbiter disagrees and that's why I am for throwing the NMB out of negotiations and letting market forces dictate the pressure. Frontier pilots have leverage that the NMB wants to take away from them by telling the Frontier negotiators that their peers are ULCC's. Ones peers should be judged by the relative worth they contribute to the Company's profitability. In my oh so humble opinion, of course.

This is a broader question not just to Planepirate, but anybody else want to chime in on this thinking???