Regional sign on bonuses
 

How often has the sign on bonuses changed. Should I expect once a regional airline renegotiates a contract then they can offer a higher bonus than what they currently offer?

What drives an airline to increase the sign on bonus in this climate.

The bonuses tend to be temporary in nature. This allows companies to take it away when they are not needed to attract applicants. A step up from that is when the bonuses are incorporated into pay rates like Endeavor. I’d expect to see more regionals follow suit in some way in the next year. The bonuses will likely give way to higher pay rates, better work rules, etc. In the current climate, I’d say, on average, most regionals will have to make some sort of contractual improvements to attract pilots and stay competitive. The X factor is the language that is negotiated and the timeline for it to be implemented.

With the intent (one of them) of the Regional model being to save and make mainline money, I don’t see how the $20-50K bonuses are sustainable. Once the cost outweighs the benefit, then changes will most likely be made. Just my opinion...

Also worth noting that these bonuses are generally implemented outside of negotiations. They are offered, technically, as pre-employment so your union has no say on it. Can be yanked away at any moment, but I'd expect them to stick around for carriers not in negotiations

Thanks for the insight. I wonder what will happen around 2020/2021 when the mandatory retirements will be at its highest.

DL, AA, and UA will be going to ERAU and UND offering sign on bonuses for CFIs as well as guaranteed B787 positions if they sign on today. :D

Apparently march 1st the program is being rolled out... my app into embryo is in.... fingers crossed..

To avoid the frowned upon technique of asking the same question in multiple forums, I’ll ask this one here.

Are there any regionals that offer part or all of their listed signing bonus free of a contract?

For example: say I take a job, get one or more of the scheduled payouts, then get an offer 4 months in at X major...are there any regionals that don’t require repayment of the paid up to this point bonus?

All of the AA WO have some version of a contract.

I see go jet raised their new hire bonus

26,000 FIRST OFFICER NEW HIRE BONUS
All new hire First Officers are eligible for a $26,000 New Hire bonus, paid over one year.

To be clear - I think a contract makes the most sense for a company, it’s just that some of them state specific milestones at which they’re payed (completion of training, e.g.) and wondering if that’s just recruiter speak.

Are you referring to me?

Nope. Just clarifying the question and my thoughts.

Well,....yes, but the lowly regionals are now flying equipment that lists for $40 million. At only a 4% ROI (or cost of capital) that’s well over $100k just in capital expense alone for every aircraft you park - like Horizon did last year. Count in lost business, etc, it starts to add up to a lot more than a pay raise or retention bonus.

Isn't the "baked in" bonuses like what Endeavor is doing just a bait and switch? Yes you're making X per hour, but aren't you really make Y + Bonus, where Bonus is taxed at 40%, in which case you're still earning just base Y when management decides to yank it? Is there somewhere in writing when a pilot signs up that guarantees that the bonus remains with you if and when they decide to yank it for new comers?

At some point this will not have to be explained anymore. Bonuses are not taxed at a higher rate. They do have a higher withholding, but you will get most of it back at the end of the year as long as you are not in the 40% tax bracket.

You're right, I just looked it up. It's not 40%, it's 25% or more depending on the method executed by the employer.

https://blog.turbotax.intuit.com/inc...-the-irs-8003/

Either way, it's not life changing money. Certainly it's not enough to attract a career changer that's making over six figures.

No, no, and NOOOO! (even aside from ignorance over withholding)

Everything is worth more with the bonus INCLUDED in the base rates. It's simple math...

Vacation pay, critical coverage pay, extension pay, scheduled day off pay, Jr Man pay, sick pay, or whatever category of pay your regional has that references the base rate is worth more...in some cases MUCH more.

If you actually do the math, the entire bonus structure actually encourages pilots to NOT work...or work as little as possible because you are paid more PER HOUR the LESS you work when fixed (monthly or annual) bonuses are paid.

Funny, my buddy at Endeavor tells me that the new hourly rate with the bonus baked in forces pilots to work MORE to get paid.

It is not taxed at 25%. The paragraph at the end of your link clearly points this out.

"No matter what method is used to withhold taxes from your bonus at payout, don’t panic. Remember, taxes may be withheld from your bonus at a higher tax rate at payout, but when you file your taxes at tax time your actual tax rate is based on your total taxable income and overall actual tax rate, which may be lower. Depending on your taxable income, actual tax rate, and eligible tax deductions and credits you may get some of the money withheld back in the form of a tax refund."

You really need to try and understand the difference between withheld and taxed. Bonus money is taxed as ordinary income at whatever rate the individual ends up being taxed at. Effective 1 Jan 18 bonus money is WITHELD at 22%.

Absolutely right. The number of pilots who buy all those old wives takes about taxes astounds me.

Also, like to point out that some regionals (RAH) like to talk bonuses but then deduct the cost of things from your bonus (like flight training when they hire a pilot under the 1500t). Knew a few guys in class a while back that only got $20 for their sign on bonus after deductions and taxes.

Perhaps it's because CFIs make so damn little they have never really paid much in the way of taxes?

:rolleyes: