22-12 Vacancy
09-05-2022 | 11:40 AM
#171
Gets Weekends Off
Joined: Apr 2008
Posts: 1,808
Likes: 0
Really, you could make the COL argument about most of our bases. EWR, IAD, ORD are all very expensive. Even DEN is getting out of control. The reality is, we’ve got bases in some of the highest priced housing markets in the country. This is by design. UAL has long known that their operating costs for keeping hubs in the likes of ORD & SFO are way higher than DAL’s in ATL, MSP, etc. They reason they do it is because it gives them direct access to some very high $$$ business travelers that other airlines don’t have. So they keep their operating expenses higher to maximize their revenue stream.
I’ll say that again.
They spend more money than their competitors so they can make more money.
Fair enough. One of the increased expenses of operating in high cost markets is that you have to pay your employees commensurately. That means when your employees lose 15% to inflation, you can’t turn around & offer them 5% on DOS with modest increases over the next few years.
Management can (and should) shift flying to the central bases, but that can only go so far- especially when they’re trying to grow the airline by thousands of pilots. They need people in the coastal bases & that means paying them enough to be there.
If it’s between a big house in TX & a small house in CA, you can staff a base. If it’s between a big house in TX & commuting from LAS, you’ll continue to see unfilled vacancies.
I’ll say that again.
They spend more money than their competitors so they can make more money.
Fair enough. One of the increased expenses of operating in high cost markets is that you have to pay your employees commensurately. That means when your employees lose 15% to inflation, you can’t turn around & offer them 5% on DOS with modest increases over the next few years.
Management can (and should) shift flying to the central bases, but that can only go so far- especially when they’re trying to grow the airline by thousands of pilots. They need people in the coastal bases & that means paying them enough to be there.
If it’s between a big house in TX & a small house in CA, you can staff a base. If it’s between a big house in TX & commuting from LAS, you’ll continue to see unfilled vacancies.
From your claim that United spends more in it’s hubs, have you distilled this claim from the10K filings? I’m curious about the source.
On the big house vs small house argument, maybe a hypothetical 3,000sq/ft anywhere in the country, to include selling price, taxes, etc provides an Apples to Apples comparison. There are dozens of sites that provide those comparisons which shows the delta. 20 years ago Texas had a lower cost of living (as the joke goes “but you have to live in Texas”) but I’m not certain that holds up today.
09-05-2022 | 11:42 AM
#172
Line Holder
Joined: Jun 2019
Posts: 589
Likes: 24
Yep those power bills generated by ERCOT have been proven to be much more reasonable…
09-05-2022 | 12:13 PM
#173
Line Holder
Joined: May 2015
Posts: 1,200
Likes: 33
From: 777 CA
“Can’t” ??? Not sure I agree with that word choice, but I agree with your point pay incentive is there already. We as a pilot group need to invest energy in QoL improvements such as reserve and scheduling rules such as FSB pay, trip trading max reserves required relative to open trips, cost to company for reassignments, no global reserve for NB (no need for it on a NB fleet), etc… before paying people (carve out money) to “suck it up” and take upgrades to the coasts.
09-05-2022 | 12:44 PM
#174
Line Holder
Joined: Oct 2006
Posts: 1,448
Likes: 6
Heard Oscar & SK explain this strategy in multiple Q&A events. I’m not an econ nerd who enjoys digging through 10Ks, but if it sounds fishy to you, be my guest…
09-05-2022 | 04:22 PM
#176
Line Holder
Joined: Feb 2014
Posts: 1,533
Likes: 49
From: Head pillow fluffer, Assistant bed maker
I think the extra is supposed to be for hookers and blow…not some silly power bill.
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