How long for a contract?
11-28-2023 | 01:23 AM
#261
Line Holder
Joined: Jul 2008
Posts: 431
Likes: 7
From: Zee Airboos
You are delusional if you think we will be anywhere near legacy rates whenever we get a TA in 5-6 years. The negotiations will go into mediation and the company will use Allegiant as our "peers" for setting pay rates.
11-28-2023 | 05:13 AM
#262
On Reserve
Joined: Jan 2010
Posts: 129
Likes: 2
From: Airbus (the wide ones)
The Allegiant model we're following is a survival tactic. Since about 2018, we have clearly been targeting AA but now they have their feces collacted and are working out solutions to their debt. And, the longer contract negotiations drag out is the longer mid/jr CAs and FO have to contemplate/make the jump there and make up the seniority $ loss. So, the AA market share confiscation plan didn't work.
Then, the brilliant plan to purchase NK got trumped by a more desparate airline. Consolation prize was that JB overpaid and there was a $100M payout but ultimately that didn't work either.
Now, UA is offering street CA practically and have opened up bases in Vegas and Orlando. UA has clearly targeted our pilots and now DEN, LAS and MCO bases may see some retention issues.
We tried to expand in DEN by buying gates (w/o jet bridges mind you) but fornicated the dog horribly with that and the lack of city of DEN planning.
Despite the utterly poor mgt decision making, we still find a way to make money in some quarters (and probably will for this one we're in now).
Fortunately (or unfortunately depending on how you view it), there are still tons of "tricks" to try. Multiple bases and day trips is just the next one. This move will probably make up some ground in the short term but will be countered by the big 3/SW in the near future to where our mgt will cook up some new idea.
I'm really surprised we don't haul cargo yet.
Then, the brilliant plan to purchase NK got trumped by a more desparate airline. Consolation prize was that JB overpaid and there was a $100M payout but ultimately that didn't work either.
Now, UA is offering street CA practically and have opened up bases in Vegas and Orlando. UA has clearly targeted our pilots and now DEN, LAS and MCO bases may see some retention issues.
We tried to expand in DEN by buying gates (w/o jet bridges mind you) but fornicated the dog horribly with that and the lack of city of DEN planning.
Despite the utterly poor mgt decision making, we still find a way to make money in some quarters (and probably will for this one we're in now).
Fortunately (or unfortunately depending on how you view it), there are still tons of "tricks" to try. Multiple bases and day trips is just the next one. This move will probably make up some ground in the short term but will be countered by the big 3/SW in the near future to where our mgt will cook up some new idea.
I'm really surprised we don't haul cargo yet.
We lost -5% @ 50M in Q3 and they forcast to lose -6 to -9% in Q4 so maybe -50M to -90M in Q4.
11-28-2023 | 06:46 AM
#264
Line Holder
Joined: Mar 2021
Posts: 1,768
Likes: 28
More than one green Kool-Aid Captain has said that (good for them for being positive, but...)
11-28-2023 | 07:13 AM
#265
Almost there
Joined: Apr 2021
Posts: 1,969
Likes: 109
11-29-2023 | 04:12 AM
#267
Line Holder
Joined: Apr 2015
Posts: 339
Likes: 1
Over 300? We should be shooting for $400 by the time we arrive at a contract in a couple years.
11-29-2023 | 05:48 AM
#268
Line Holder
Joined: Jun 2021
Posts: 1,363
Likes: 102
From: Joystick Operator
Big point I made in both surveys and to my reps. I do not want a contract in 2025-26 that starts at 2023 pay rates of everyone else. I want our first year to be matched to their "current" year, and then the % increase over the course of the contract from there.
11-29-2023 | 08:17 AM
#270
Line Holder
Joined: Jun 2021
Posts: 1,363
Likes: 102
From: Joystick Operator
Because like every other industry, the prices of your expenses rise and fall... Currently, the price of a 12year airbus A321 CA is ~$360/hr.
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