5000 Bonus Analysis- Is it worth it?
 

At first glance a 5000 dollar bonus sounds pretty tempting. After thinking about it, I wondered why would a couple of airlines need to offer a 5000 dollar bonus to get pilots to work there when others don’t? Is 5000 dollars enough to outweigh the hidden cost of working at these airlines?

I ran some preliminary numbers at Republic, and Eagle who offer bonus's, vs ExpressJet and Skywest who do not. I have a more detailed breakdown at

Is A 5000($) bonus worth it?

Assuming 5 year upgrades at all of these airlines these were the following accumulated compensation totals after the first 5 years applying a 3% year over year value of money.

After 5 years:
Republic (with bonus) : 187,617$
American Eagle (with bonus): 198,826$
ExpressJet (no bonus): 190,903$
SkyWest (no bonus): 194,216$

Contingent (get furloughed and go to another carrier): 171,020$.

I was surprised that even with the bonus, the wage compensation of some of the carriers was still less than carriers without it. This obviously does not including retirement, work rules, or risk associated with these specific carriers. Including these other factors I began wondering what level of bonus would make those risks at these "bonus" carriers justifiable from a financial standpoint.

5000 Bonus Analysis- Is it worth it?
 

Interesting topic, but just basing it on a flat 85 hour guarantee doesn't give the real picture.. What is the reserve guarantee at each airline, and how long can you expect to sit reserve?

To me... What it really boils down to is this. Ultimately speaking, $5000 isn't that much money. And you would be working for airlines that aren't doing to well. The regional business model reminds me of the Bataan Death March... Everyones marching and no ones winning... But the sick and weak are left to die.

To me, all the numbers look similar. I see the $5000 bonus as a plus and wish I had it. First year pay sucks (It sucks even more the second time). I know if I had an extra $5000 I would actually make it through my first year instead of taking on debt and using my second year raise to pay it off. By the end of year 1 at ExpressJet, I will be about $3,500 in the hole. When I get my second year pay I will have to use that raise to payoff the bills I incurred over this last year. So, since it looks like over a 5 year period ExpressJet only pays $3,000 more, I would rather have that money now when I really need it versus 5 years from now. But you know, I am paying my dues (I don’t know why pilots took that phrase literally).

Only idiots and jack rabbits go for the 5K in this Buisness. Jack rabbits will jump at anything and idiots will spend most of their day chasing jack rabbits.

the 5k is taxed so u might see 3k of it....

even at that point the bonus is pulled off senior pilots backs to lure new blood into the company, rewarding and enticing prospective employees vs rewarding good service to senior veterans. doesnt seem right in principle.

Finally someone ran the numbers! I could only hope someone will be able to see beyond the shiny jet syndrome! Some people will be locked into certain job(s) because of certain reasons (bad interviewing, failed checkrides, etc...) but when looking at "bonuses" there is are many hidden reason(s) why a company has to offer a bonus. #HORRIBLECONTACTNOENDINSIGHT #TICKETONTHETITANIC Take your guess what airline(s) are highlighted. If you are qualified for a company, take your pick, but please be informed. RAH Contract NOW! | Teamsters Local 357 enjoy folks!

Thanks as usual for your work. Just curious why you picked 85hrs though. It seems a bit high. Since guarantee is usually in the mid 70's, wouldn't 75 or 80 be more realistic?

Even with the 5k bonus first year pay will be less at republic, and is all downhill from there!
As far as Eagle, with the new contract that has concessions the 5k dollars would make it less that SKW as well since we have pay freezes. Also if we are to trade larger RJs for smaller ones at Eagle we would be operating them for the pay of the smaller anyway, so that would be a loss. Just things to consider!

We all know that mainline carriers that have 190s have been sucking up 170 FOs well before they upgrade but I'm curious if any CRJ or 145 guys are getting offers before upgrade also?