Airline Pilot Central Forums - New AA Contract Offer

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Quote:

Originally Posted by buddies8 (Post 1762777)

Right. You cannot strike because you are to big to shut down would effect the economy is what will be said by the NMB and president of usa.

Delta plus 4 percent with profit sharing with the quality improvements and scope will be bartered away. Check delta and United scope in arbitration aa scope will be increased in management's favor.

Scope cannot be changed in arbitration. That's already been agreed to in the MOU.

I belie there are trying to change definition of large RJ now. Currently 51-76 seats is large. Trying to change it to 71-76 seats is large

So maybe they are giving up the 5 seats in "good faith," in order to get a concession from the pilots to allow more large jets.

It's clear what they are doing. 17% of all domestic flying was done by regionals in 2001. In 2012 it was 53%. Now you have E-175s flying routes like Houston to Montreal, and I'm willing to bet AA charges the same wether they use a 175 or 737. But they make more on that ticket if they use a 175 flown by a regional. It's good business from a management standpoint, but stinks for us.

Quote:

Originally Posted by ArcherDvr (Post 1762878)

.....and I'm willing to bet AA charges the same wether they use a 175 or 737.

And I'm willing to bet a lot more that aircraft type has very little to do with what an airline charges for a given ticket. I suggest doing a little research on yield management.

Quote:

But they make more on that ticket if they use a 175 flown by a regional.

Eh, don't think so either. Pretty sure the cost to move one seat a given distance is more expensive on a regional aircraft than a mainline one. Having large regional fleets have allowed airlines to sell frequency and flexibility, which thus far has proven easier to sell that one mainline flight at a lower cost into a given smaller destination.

Quote:

Originally Posted by TallFlyer (Post 1762975)

And I'm willing to bet a lot more that aircraft type has very little to do with what an airline charges for a given ticket. I suggest doing a little research on yield management.

Eh, don't think so either. Pretty sure the cost to move one seat a given distance is more expensive on a regional aircraft than a mainline one. Having large regional fleets have allowed airlines to sell frequency and flexibility, which thus far has proven easier to sell that one mainline flight at a lower cost into a given smaller destination.

There are a lot of variables that go into that. It's cheaper to use a mainline plane on the longer routes, but cheaper to use a regional on the shorter routes. Planes such as the E175 finds a balance between the two.

Quote:

Originally Posted by TallFlyer (Post 1762975)

To your first point, I believe that is what I am trying to say.

To the second point, you probably know more about it than I do. What I meant was they make more money using the regional 175 vs a 175 flown by mainline pilots because of lower payroll which is a huge expense for companies.

More and more we see routes flown by regionals vs. mainline, and I'm not talking small destinations either, I'm talking like IAH to ORD, DFW -IAD. Why would they be doing this if it wasn't making them more money.

Quote:

Originally Posted by ArcherDvr (Post 1762996)

I often wonder exactly how much of a benefit it presents. You're not paying just for payroll but for the overhead of running an entirely different airline. Obviously, it must be some appreciable amount, but doubling up on admin costs can't be cheap.