How will LCCs respond?

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06-18-2022 | 11:33 PM

#11

kangaroopilot

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Quote:

Originally Posted by Otterbox

More Aussies and 1500hr Cessna pilots…

Yes. There are literally dozens of us! I’ll see you in class soon. Crikey!

06-20-2022 | 07:16 AM

#12

ImSoSuss

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Quote:

Originally Posted by planejoe

Hopefully other regionals outside of AA WO start offering similar pay / incentives to stay.

So that leaves the question how will LCC carriers respond? Either they can update their contracts substantially and the regional exodus will continue or they can start general hiring of Commercial Multi pilots outside of the select few flight schools that have that opportunity now. Heard stories LCC interview groups have people still on IOE at their regional so really how far away are we from that anyway?

If a year 2 FO at a regional is making CA pay at $146, that is about year 4-6 FO pay at an LCC roughly.

There is a merger war going on right now. As they stated themselves, there will be no new contracts while that is going on.

06-20-2022 | 08:27 PM

#13

jetlag q

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Quote:

Originally Posted by ImSoSuss

There is a merger war going on right now. As they stated themselves, there will be no new contracts while that is going on.

what indications are you seeing that makes you believe mergers on gonna happen? Outside of spirit and big blue.

06-21-2022 | 06:44 AM

#14

rickair7777

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From: Engines Turn or People Swim

Quote:

Originally Posted by jetlag q

what indications are you seeing that makes you believe mergers on gonna happen? Outside of spirit and big blue.

B6 + NK in and of itself is an indication that other mergers are more probable. Few want to get left without a dance partner once the party starts.

Merger appetites vary depending on whether you're a shareholder, board member, or company exec. Ultimately the shareholders can drive the board to do something that managers would rather not do (because it will cost them their jobs). But it depends on the specific corporate dynamics.

06-21-2022 | 07:05 AM

#15

ImSoSuss

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Quote:

Originally Posted by jetlag q

what indications are you seeing that makes you believe mergers on gonna happen? Outside of spirit and big blue.

You left out Frontier in that dace. What is left? Allegent? Sun Country? They both just got new TAs. SWA? They really aren't in the same league as their pay is much higher than any of these other LCC/ULCCs. So when you ask "How are these LCCs going to respond?" What are you left with? Frontier, Spirit, and Jet Blue.