DOJ Looks Into Price Fixing/Regional Salaries
 

The DOJ is investigating the major airlines for limiting seats to keep prices up. After 90 years its about time the airlines made a profit.

DOJ subpoenas airlines over keeping ticket prices high - CNNPolitics.com

I don't think they will find any smoking guns here. There are so few major airlines after the mergers that it doesn't take much to communicate an agreement without actually saying anything. American can cut a few flights to Denver and United sends a thank you by cutting flights to Dallas.

What the DOJ should investigate is the Majors controlling pilot salaries at the regionals. I think there is direct communication there and coordination between the majors and the regionals. The pay is so uniform. Additionally the majors help the regionals control the pilots by controlling the carrots. When the pilots at Republic threaten to strike, United sends out the message that they are "considering" moving flying away from Republic, or are "increasing" flying at regional X, etc in order to send the clear message to the pilots. The message it "take what your are given if you want to eventually get to a major." Also, make waves and we will take your flying away, you will be a FO for years!

Delta was able to payback the Comair pilots for going on strike by closing the airline down. They just moved the planes to Gojet and others. The Comair pilots who came to my airline went from making 120k per year down to 20k. In a few months to a couple of years they were able to upgrade to capt making 60k; still a long way from 120k. I think there was more than Comair not being competitive, there was payback to the pilots in order to send a message to the rest of us.

A captain on a crj-700 can make how much going overseas, 120k to start? I'm not sure so feel free to give me accurate numbers. I'm sure it is much more than here in the US where a captain starts at 60k.

Am I paranoid and full of crap or is there something here?

This from a GoJet guy??? Hum interesting but to your point as long as people show up for work there's nothing to see here. They pay what the market demands if you show up for 60k the. That's it if enough people show up for 40 that's what it will be.

Very misleading thread title.

Delta needs to be investigated for anti-competitive trade practices by bailing out Pinnacle/Endeavor and then using the new Endeavor airlines as a means to force price cuts among its regional service providers by having the clause that no regional can charge more than the second lowest provider. Stacking the deck, I would say! Also, interesting why the Endeavor pilots union didn't pursue this.

Who really thought that this was not going on.

Very true!

You forgot about how Pinnacle was also bankrupted in the first place, then bailed out, purchased and used as a tool of leverage.

I don't see where the article talks about regional salaries :confused::confused::confused:

This isn't to help a CRJ captain get paid more, it's to help consumers get a fair price. You and others have to start realizing that the world doesn't revolve around you and you need to take what you want, don't expect it to be handed to you. If you keep showing up to work for your salary that's what they'll pay you. If you think the government will fight for you to make 120k you're out of your mind you nutty person!

Unfortunately, the DoJ doesn't give a **** what pilots are paid. Obviously, even with the supposed shortage, the airlines are still paying what salaries the market will bear since pilots are still showing up for class at most places.

Though I agree with you that they won't find much of any proof of price fixing between the airlines. It is the basic law of supply and demand, combined with the fact that empty seats equal a monetary loss. Limiting the number of flights/seats, will limit the number of empty seats thus reducing loss while also reducing supply and driving up the prices. With so few airlines in the game, it doesn't take collusion for the airlines to figure out how to make economics 101 work in their favor.

The failure of compensation and whipsawing lies squarely on the shoulders of our bargaining agent. Lee Moak was at the table when Pinnacle was negotiating the bk contract. Lee Moak is a Delta pilot. That bk contract seems to be working out well for Delta. Not so much the pilots. We have to get our own camp squared away before we should expect the guvment to step in.

My point is that they pay what the market demands because they fully control the market. At least they did until they controlled it so much that there are no more pilots out there.

There is American, Delta, United and a little bit with Alaska, and they control the entire regional market in the US. They have decided what regional pilots will be paid and that is set. There were some differences with Comair, Eagle, and Skywest but 2 of those 3 are gone now. All the other salaries were pretty uniform and any threats to those levels were quickly dealt with by the airlines.

Basically, the message from the majors has been to take what you are given or we will take flying away and you will be an FO forever.

I can only think of two Regionals that ever negotiated themselves good contracts and those were Eagle and Comair.

Even now, with no pilots out there, salaries are not going up. The only ones getting more money are new hires who are getting those bonuses. Why should Republic or Gojet pay their pilots more when they can just give the new hire a one time bonus. The contracts can drag out another 5 to 10 years and nobody will say a word or do anything.

The moral of this story is similar to the reflection seen in my MBA class, as long as I control the purse strings I run the show.