National Seniority List
05-10-2021 | 10:00 AM
#122
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Banned
Joined: Dec 2016
Posts: 223
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From: Sitting
05-13-2021 | 12:16 PM
#124
Gets Weekends Off
Joined: Aug 2015
Posts: 2,613
Likes: 526
From: Guppy Gear Slinger
Acquiring a pilot career, in this case, would be somewhat similar. The seat you'd be buying has no actual assets, like most professional services firms that don't have many real assets and no inventory of goods. Instead, you're buying a profit flow (the annual compensation associated with that seat). You have to put in your own labor to realize that income stream, but the same applies if you, say, bought an accountancy practice.
So let's see. If we assume for a moment that the average widebody DAL CA clears, say, $450K/year, then the going price for that seat would be anywhere from $1.35M to $2.25M. This assumes of course that the purchaser is young enough to be able to occupy that seat for noticeably more than the 3-5 years required to recoup the initial investment.
By this logic a NBFO seat at mainline would retail for around $600K-$1M, assuming average NBFO comp of approx $200K.
And a regional FO seat would go for about $150-$250K.
Alrighty then. Any of you legacy 777 CAs want to retire early, hit me up
(Disclaimer: I am in no way an ERAU kid.)
Last edited by Turbosina; 05-13-2021 at 12:33 PM.
05-14-2021 | 09:01 AM
#126
Gets Weekends Off
Joined: Sep 2020
Posts: 428
Likes: 0
Hmm, let's see, I'm actually curious what the going rate would be. As a very, very general rule of thumb, companies in the service industries with few assets (think professional service consultancies like architecture firms, design firms, legal practices, accountants etc etc) typically sell for anywhere from 3X-5X EBITDA (earnings before interest, taxes, depreciation and amortization).
Acquiring a pilot career, in this case, would be somewhat similar. The seat you'd be buying has no actual assets, like most professional services firms that don't have many real assets and no inventory of goods. Instead, you're buying a profit flow (the annual compensation associated with that seat). You have to put in your own labor to realize that income stream, but the same applies if you, say, bought an accountancy practice.
So let's see. If we assume for a moment that the average widebody DAL CA clears, say, $450K/year, then the going price for that seat would be anywhere from $1.35M to $2.25M. This assumes of course that the purchaser is young enough to be able to occupy that seat for noticeably more than the 3-5 years required to recoup the initial investment.
By this logic a NBFO seat at mainline would retail for around $600K-$1M, assuming average NBFO comp of approx $200K.
And a regional FO seat would go for about $150-$250K.
Alrighty then. Any of you legacy 777 CAs want to retire early, hit me up (Disclaimer: I am in no way an ERAU kid.)
Acquiring a pilot career, in this case, would be somewhat similar. The seat you'd be buying has no actual assets, like most professional services firms that don't have many real assets and no inventory of goods. Instead, you're buying a profit flow (the annual compensation associated with that seat). You have to put in your own labor to realize that income stream, but the same applies if you, say, bought an accountancy practice.
So let's see. If we assume for a moment that the average widebody DAL CA clears, say, $450K/year, then the going price for that seat would be anywhere from $1.35M to $2.25M. This assumes of course that the purchaser is young enough to be able to occupy that seat for noticeably more than the 3-5 years required to recoup the initial investment.
By this logic a NBFO seat at mainline would retail for around $600K-$1M, assuming average NBFO comp of approx $200K.
And a regional FO seat would go for about $150-$250K.
Alrighty then. Any of you legacy 777 CAs want to retire early, hit me up
(Disclaimer: I am in no way an ERAU kid.)
05-15-2021 | 08:37 PM
#127
Line Holder
Joined: Jun 2014
Posts: 495
Likes: 1
From: A320 CA
Heck, I'd be happy to sell my NBCA seat at a mainline carrier for that kind of money. I'd take the money and retire about 13 years early! That'd be enough to push me over the hump financially.
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