$0.33 per passenger.
#21
Banned
Joined APC: Oct 2008
Position: Window Seat
Posts: 1,430
You can't have it both ways, the only way terms and conditions at the "regional level" will improve is when people say enough is enough and refuse to work for less than what a day laborer makes to fly a jet aircraft. The fact that you accepted employment at such a company says that your true feelings are that such pay is in fact acceptable... as you have accepted it.
#22
On Reserve
Joined APC: Jan 2014
Position: ERJ175 CA
Posts: 20
My point is simply this: US airlines could easily solve the issues of the pilot shortage and the embarrassingly low regional pilot pay, (which CAUSED the pilot shortage),...... IF they wanted to. And it wouldn't cost them a lot off of the top line or the bottom line.
To my way of thinking, it's closer to a rounding error than an additional cost. Yet apparently they would rather remain stingy and blame congress for the pilot shortage that they, themselves, have created.
To my way of thinking, it's closer to a rounding error than an additional cost. Yet apparently they would rather remain stingy and blame congress for the pilot shortage that they, themselves, have created.
#23
That hypothetical $10 hike in fares, would lead to a decrease in PRASM. It really is that volatile. In a world where passengers will pick one airline over another to save literally a dollar, a $10 hike can take your ticket sale from being #1 on (insert travel website here) to #12 on the list.
There are very smart people (ya laugh all you want, but wrap your head around the complexity and fluidity) that have written very sophisticated algorithms that are constantly adjusting the price of a ticket for a given flight, for a given day, for given demand, second by second. A very minor flaw in one of those formulas cost our company (so they say) several hundred million in revenue in 2013. We still made a profit, but it would have been more. When they looked back at why we were so far behind they found the algorithm was a few minutes behind the competition in adjusting fares.
There are very smart people (ya laugh all you want, but wrap your head around the complexity and fluidity) that have written very sophisticated algorithms that are constantly adjusting the price of a ticket for a given flight, for a given day, for given demand, second by second. A very minor flaw in one of those formulas cost our company (so they say) several hundred million in revenue in 2013. We still made a profit, but it would have been more. When they looked back at why we were so far behind they found the algorithm was a few minutes behind the competition in adjusting fares.
#24
Banned
Joined APC: Oct 2008
Position: Window Seat
Posts: 1,430
Thank you! Those who think you can simply raise fares $.33 or even a couple dollars don't get it. If Delta could hike fares a couple dollars to make a few hundred million more per year, don't you think they would be doing that? It seems to come from the entitlement generation who always got a trophy no matter what place they came in.
#25
Bracing for Fallacies
Joined APC: Jul 2007
Position: In favor of good things, not in favor of bad things
Posts: 3,543
Thank you! Those who think you can simply raise fares $.33 or even a couple dollars don't get it. If Delta could hike fares a couple dollars to make a few hundred million more per year, don't you think they would be doing that? It seems to come from the entitlement generation who always got a trophy no matter what place they came in.
#26
Banned
Joined APC: Oct 2008
Position: Window Seat
Posts: 1,430
I do understand this rationale. Management does have a challenging job. What I am still trying to figure out is Delta taking back their regional flying. I just can't believe Delta would be happy paying pilots and I'm sure all other employees compensation packages worth 2-3 times current regional wages, while United and AA continue with very cheap RJ feed.
#27
Bracing for Fallacies
Joined APC: Jul 2007
Position: In favor of good things, not in favor of bad things
Posts: 3,543
Remember that whole part about pilot salaries being less than 1%... that's how Delta (and all the majors) see it too. Farming out the regional flying was not originally about cheap labor, that was a by product. It stayed around because of the gaggle of people stampeding all over each other to get some coveted RJ time so they could end up at one of the majors.
#28
Gets Weekends Off
Joined APC: Jun 2010
Posts: 781
There is no such thing as raising prices across the board. That's price gouging whether it was premeditated or not. However you are allowed to drop the price on a fare to match the competition. Hence we often see the same ticket prices for 4 different airlines. The airlines are obviously a cutthroat business. Majors would start services to a new city at a loss to gain market share and drive the smaller airlines to an unprofitable point and force them to pull out then raise the prices back up. I do believe the company's survival has to come first. This was true during the recent recession but come on, if you're making record profit now, throw us a bone will ya!
#29
Right, so pilot salaries are just a tiny speck of the bigger picture. So then why does management go to such great lengths to beat down regional wages, and is doing so right now? In fact Endeavor and Enovy got the take pay cuts or be Comaired threat. Oh, and by the way, mainline got pay raises. ???
#30
Banned
Joined APC: Oct 2008
Position: Window Seat
Posts: 1,430
Right, so pilot salaries are just a tiny speck of the bigger picture. So then why does management go to such great lengths to beat down regional wages, and is doing so right now? In fact Endeavor and Enovy got the take pay cuts or be Comaired threat. Oh, and by the way, mainline got pay raises. ???
Any coincidence Delta picked up a bunch of 717s?
10 years from now "regionals" will not exist the way they did in the past.
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