Just how much does a pay increase cost?
 

I am at an airline that is negotiating a contract. Focusing solely on hourly pay, I wondered how much a pay increase would cost ticket holders.

Assuming a 50% load, $3 ($6 per crew) per hour across the board (roughly 4-10% depending on seat and current pay) would work out to:
30 pax: 40 cents per hour per pax
50 pax: 24 cents per hour per pax
75 pax: 16 cents per hour per pax


I cannot believe that someone willing to spend $100 on a ticket would be UNwilling to spend $100.40.

Think about that when looking at a TA.

When Joe Pax clicks on Orbitz, given two flights they are going to take the cheapest one 90% of the time. Sadly too, we're WAY beyond a flight being profitable at 50%. But I get what you're saying... at 80-90% it's even less per pax. Hope you guys get what you're asking/fighting for.

The answer is zero. It would cost ticket holders absolutely nothing. It would only increase the operating cost of your airline, which would make it harder for them to compete during contract negotiation time with their major partner. Other less expensive regionals, with less overhead, would offer lower rates.

Remember, if you're at a regional airline, you don't work for the livery on the tail. The customer never buys the ticket from Piedmont, Chautauqua or Comair.

But best of luck during negotiations. Being a sub-contractor is a bit&*.

Doesn't that depend on how much of an increase you get? $2/hr probably doesn't cost as much as $20/hr increase. I'm just sayin'.

Now this guy gets it.

FlyJSH, your contract carrier makes their money from a Fixed Fee 4 Departure agreement. They do not have the luxury of passing their cost on to "their" customer. Your "customer" is whomever you're flying for and not the passengers on your aircraft. Now your agreement with your "customer" (DAL, UAL, CAL, AA, US, etc) states that you are to provide seamless service between their airline and yours for "their customers".......etc.

Keep in mind that most F4D contracts have labor cost increases already negotiated in. That being said there's only so much your carrier has to spend but my money's on it being a lot more than they're telling you. After all it's their job to keep cost down while revenue increases in-order to drive their bottom line. The more successfull they are (errrr Chip “Away” Childs - SKW) the larger their raises and bonuses will be.