Good management is a matter of perspective. A company that is able to squeeze more work out of its employees for less money is a well run company by most standards.

We have a safe, efficient airline system that offers a wide range of product options to the general public at a reasonable price. No one cares about regulation except for the pilots.

Skyhigh

 

The value is down simply because they were allowed to create, by many variables including pilot unions and bankruptcy courts among others, way too many options. I don't consider an industry that can say they are going to lose "$8 billion" in a fiscal year and survive to predict a profitable year, "..in serious financial trouble."

Most all of the bancruptcy filings over the last 8 years have been strictly to have labor subsidize management lifestyles and futures. (They knew their futures in stock options were going to be sh#$ for a long, long time and were not going to standby for that.)

I am, 100%, for capatalism in our country when it is not dictated by:

1.) Fraud
2.) Greed
3.) Practices that have since been regulated or under serious consideration. (ie. speculation on natural resources)
4.) Ponzi schemes
5.) Labor contracts without ANY reasonable self help

I'm sick and tired of having the ability to be screwed simply because they are allowed to without proper regulation on their actions or personal ramifications for their actions.

The current system is flawed in a major way. Will regulation fix everything, no. It would, however,go a long way in tying managements hands on what they could and could not do.

It can't work when management has a direct correlation between labor costs and personal benifit. There is too much at risk in our industry with that correlation.

 

As I was driving to work listening to CNN HLN, they were running a story about how commercial truck driving jobs are now highly sought after in this economy because "training is only three weeks and starting salary is $30,000." As I was thinking to myself how pathetic it is that that's more than starting pay at a regional and on a par (I think) with CAL first year FO pay, one of the managers for hiring drivers in the story was talking about how they've seen college grads and former AIRLINE PILOTS applying for trucking jobs...who would of known that Goose's words in Top Gun would have been so prophetic... Now, I certainly don't trust the media to get their facts straight on anything, and I know nothing about the trucking industry, but if this story is accurate, I don't know what else better illustrates the decline in fair compensation for what we do, lives hanging in the balance every day, than this does.

Preach on brother Sully while your 15 minutes ticks down..

 

The thing that must be addressed first is why the company is leaning on the pilot group. When profits are up, it is much easier to raise the bar or at least maintain a stable status quo. When they are not, pressure is applied to lower the bar. Raising it becomes almost impossible. This is the day of the low cost carrier. I think the companies that cannot successfully operate as one have their days numbered, and have for a while.

That said, pilots do need to collectively draw a line in the sand.




"Regional" flying has expanded tremendously, and proven profitable, but the pay has not expanded with it. Then again, I think that is one of the reasons that it has expanded tremendously. Carriers struggling with the modern market have been looking for band-aids to stay afloat, and they found one in farming out more flying to the people that truly excel in bending their employees over.

 

This is a real complex nut to crack. Businesses exist to make profit-period. Airlines should be no different than say the bakery. There are vast differences in the making of the products but the basics are the same. From a board room stand point they have to satisfy shareholders who have invested money. Those shareholders assume some risk as with any investment that company officers are competently finding ways to sell the product to consumers and the enriching the company. If the company makes poor decisions the shareholders can petition the board for redress. So from the business side the officers are obligated to get the best return and produce positive balance sheets.

Now on the operational side the officers are running a factory. That factory produces seats from airport A to airport B. The shelf life of this product is only good until the aircraft pushes back. This makes things a little tricky in how to market and sell them. Competition, market share and controllable cost are the day to day battle. Every businessman knows that a certain amount of spoilage, theft, damage, and loss will occur and this is factored into the cost of the product. It should be no different in the airline industry.

Prior to Deregulation the CAB strictly controlled entry into the market. This kept low ball competitors out of the process. The problem with the Government (CAB) running and in some cases overseeing operations is that corruption usually sneaks in. Regulators were on the take and new and innovative ideas were shelved. The system was dysfunctional fro the customer stand point. When this happens revolution occurs and it did in the form of Deregulation.

Post Deregulation led to no fetters to competition and allowed loosing venues to enter the market. This is akin to the wonder bread company being out sold by the sweat-shop bakery. If bread cost $1 to make and they were selling at $.50 try to get a share of the pie, they could only do this for so long. And so bye bye Peoples Express, NY Air, Apple etal. A few came up with great ideas and manage to thrive through innovation, ie SWA.

My Hunch is that the only way you will see some return to relative security is the removal or massive revision of the RLA. This antiquated Law is the real hindrance to pilots. If you had the same skill sets that you have now in any other business, you would be sought out and compensated accordingly. In Europe there is no RLA, and their pilots let the officers know that every now and then.

 

Take away the RLA and then pilots can strike. Strike leads to company failure. Lower cost airline takes over market share.

How would the extermination of the RLA make things any better? Europe doesn't have the law however they also have Ryan Air that is so cheap that it makes its pilots share a hotel room. I don't think that in the free market things are any better over there.

Giving pilots the ability to take strike action would hasten the demise of what legacy carriers we have left.

Skyhigh

 

Or the pilots can negotiate from a better position with a company that wishes to remain in business by avoiding a strike.

 

You mean overseas routes back then? Not anymore, maybe the only way for airlines to compete with each other should be SERVICE, ulness someone decides to put a hubb in the moon.

It is heading that way guys again looking at Delta Airlines the biggest airline in the world now, and the next merge which may be UAL and Usair or Usair and ? airline.

Lets see who is CAL merge with.

\Total : that make three big airlines, is a reality the stronger always survived at the longer run
.


Trucks driver make a lot more money then a regional pilots do, yes we very pathetic as a pilot group.

 

A better position for most pilots is being employed. Pilots who have had a job for a few decades seem to loose perspective on the outside world. In a blood thirsty quest to punish their employer many would make the false assumption that they were actually worth something to the outside world and let their egos drive them into making a poor decision.

Eastern Airlines pilots learned the hard way. Jetblue, Airtran, Allegiant, VA and SWA are eagerly awaiting the feast of market share if a legacy goes under. If the RLA was removed I think they would get their wish very soon after. The industry is in a race to the bottom. Pilots love their jobs and are willing to sell out the next guy in order to remain in the saddle.

The only way for a legacy airline to survive is to strive to adapt to the lowest common denominator. They need to be able to match the costs and services of their competition. And, there is always a next wave coming that thinks they can do it for less.

Skyhigh

 

My plan would be to get pilots to hate their jobs. If they will not come to work unless they are making a fortune then wages and benefits will return.

Plumbers do not have this problem. Everyone knows that plumbing is a real job that demands real work. No one is going to crawl under your house to take a part your sewer line unless they were making a good living at it.

Whenever you have a profession that others enjoy as a hobby then you are at a competitive disadvantage. To ask congress to regulate the airline industry so that pilots could make more money is just as absurd as if ski instructors were to do the same.

Skyhgih