rickair7777

Yes it's pretty good, about 5% profit. The global industry as a whole made about $5B profit on about $500B revenue, or 1%, last year...which is a ridiculously thin margin for a dynamic and risky industry. This might explain why Jerry is reluctant to go branded unless absolutely necessary.

In perspective...

- The global industry LOST about $40B in 2001-2005. The risk inherent to this industry is a lot greater than you can cover with a 1% profit margin.

- 2008 is expected to be about $3B profit, down to due to economy and fuel. This assumes no catastrophes.

Most manufacturers generally like to earn 30% profit, to cover capital costs and risk.

The only industries which routinely and cheerfully run 1-2% profit margins are large-volume, zero-risk industries such as grocery stores...people still need to eat regardless of the economy, war, terror, etc.

fosters

Yeah I realize 5% is pretty normal for airlines, I just find it funny that as pilots we think we deserve more money because our company made a profit when they are barely squeaking out a profit as it is. SkyW (and airlines in general) take a lot of risk to make just a few $$ it seems.

The Juice

Yeah, we are crazy to think we derserve more than poverty wages when mgmt rewards themselves with bonuses and raises...yeah that is very funny.

fosters

What's the typical pay for mid level managers at SkyW? I bet most pilots on their second year and up make more.

I do think it's a sham the extreme upper level management make millions in stock options. That just is not fair, and it has gotten out of control in America.

flyfresno

That's a pretty bold statement...

iahflyr

Yes, it is a bold statement. But it is one I believe to be true. I don't believe that "rebel" Skywest pilots come to these boards. I think these boards turned Skywest pilots into "rebels."


Disclaimer... The word rebel is relative to the rest of the Skywest pilot group. It is a compliment. I just could not think of a better word. Perhaps non-koolaid drinkers would have been better.

Nevets

How can they "settle" for anything when they don't have real bargaining?

Skywest has been thee most successful regional with the best balance sheet and future. What is wrong with the pilots feeling they deserve just a little bit more?

So its okay for pilots to get paid the same as a mid level manager but not okay for the upper management to get paid what they get paid. Skywest upper management obviously knows what they are doing. Instead of bringing people down, maybe some need to focus on pulling people up. Sorry, I'm just not a fan of class envy.

Koolaidman

People who voted YES to the pay proposal said two things regarding why they voted yes. 1) Factor in our bonuses after years one and two and then look at W2's. 2) They didn't even have to give us a raise considering our current rates were effective until the end of 2010.

While I don't agree with either of these statements, that is what I commonly heard when I asked why guys voted yes. I think it was around a 3% increase on average for CA's, 1.8% for brasilia guys and I really don't have any idea on average for the FO's. Overall, it wasn't as bad as I originally thought. However, I still would have voted no for it just to see if they would negotiated like they said they would.

Koolaidman

And yes, I think Tony Williams and slappy were the only two on here who voted yes.

fosters

Absolutely nothing! You have to look at it like this though - what's better - to be the highest paid with no future (a la ExpressJet) or the lowest paid and growing wildly (a la Colgan). There is a fine line obviously. But I think people put too much emphasis on pay alone. You don't want to burden your company with high pay rates that make you uncompetitive IMO. On the same token you don't want to work as *****s so the upper management takes your money for themselves.

If ALPA was a true union there would be one contract for all ALPA carriers regardless of company. Then we wouldn't have much to worry about in terms of undercutting.

As a SkyWest pilot you have never been on the other side of the fence where a company underbids you (unless you count the small amount of Colgan flying down in Texas and a few EAS routes from Mesa).

I'm not really sure what you are saying here. In regards to class envy, that's one thing (ie poor wanting the rich to pay all the taxes, I am against that) but when CEO's and BODs vote in huge pay increases and stock options for themselves that just is not right. I read an article that was discussing the differences in pay packages from CEOs here in the US and abroad. The funny thing was the foreign companies (such as Toyota) paid their CEO's significantly less multiples of the average employee salary than the unprofitable and bankrupt companies here. Reference past US Air CEOs, UAL CEOs, NWA CEOs in our industry. That's what I was referring to. It just isn't right IMO. I just don't think people are worth millions upon millions for running companies into the ground. If an average worker were to do that they'd get their butt fired with NO PAY. It's a corrupt system but there really isn't any way to change it.