The Role of Regional Airlines

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10-19-2013 | 02:21 PM

#11

sulkair

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Quote:

Originally Posted by USMCFLYR

No idea. All I know is that in 1989 SWA pilots were telling me they would never make as much as a Legacy pilot but they were happy. 20 years later, and with the gutting that I understand the legacies took in their contracts SWA pits are some of the highest paid in the industry?
Is it more likely that SWA jacked up pay or that other companies cut pay?

Jenny pays Johnny $20 to sweep out her garage.
Sarah only pays Jimmy $10.

After 6 months, Sarah cuts Johnny's pay to $8.
Jimmy is now the highest paid garage sweeper in the neighborhood.

This is what I've heard. Is it true? Somewhat true?
It seems John Carr's post makes sense.

Ok, I get it now - I was reading too far into what you were trying to say. Haha! Thanks guys!

Yes, I totally agree with John Carr regarding what the market will bear, but it seems like pilot contracts have a frustrating lag time to find equilibrium with the true market. Heck by the time a good-times one is ratified, it's already the bad times and vice versa.

10-19-2013 | 02:53 PM

#12

GlobeTreker

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From: Auto

Quote:

Originally Posted by John Carr

I'd consider that to be a valid statement.

But the argument could be made that UAL and DAL's pre 9/11 compensation levels weren't sustainable. AA and NW were next in line for contracts. USAir used a "parity +" method. Even before 9/11, UAL's CFO was quoted that with downturn the economy was taking in 2001 that they'd be "getting some of that money back". Meaning, UAL would probably be asking for concessions down the road.

The new DAL and UAL pay rates aren't much more than their concessionary pay scales adjusted for inflation. And they pale in comparison to pre 9/11 numbers.

But I'd say sulkair's post pretty much summed it up in a nut shell. And ALPA national/Lee Moak's stance ISN'T going to help any.

I would argue that executive compensation industry wide is unsustainable.

10-19-2013 | 03:16 PM

#13

John Carr

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Quote:

Originally Posted by sulkair

pilot contracts have a frustrating lag time to find equilibrium with the true market. Heck by the time a good-times one is ratified, it's already the bad times and vice versa.

True. But along the lines of other posts in this thread, meaning being summed up in a nutshell, it's the RLA that affects that process the most.

Quote:

Originally Posted by GlobeTreker

I would argue that executive compensation industry wide is unsustainable.

I would argue that the sad reality is that it IS sustainable in the corporate American/Wall Street Driven/Shareholder value orientated style. But make no mistake, I DON'T like it.

I would NEVER argue that executive compensation is TOO much. But another reality is that "you get what you negotiate". When it comes to pilot pay and negotiations, pilots can usually only play checkers while management gets to play chess. And again, I DON'T like it.