Kirby “DAL Pilot contract will set template”
12-06-2022, 04:49 AM
#1
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Kirby “DAL Pilot contract will set template”
WASHINGTON (Reuters) - United Airlines Chief Executive Scott Kirby said a tentative contract agreement between rival Delta Air Lines and its pilots union would set an industry pattern.
“It’s a rich contract but I think the really good news is it means we’ll all get deals done essentially on the same terms and can move forward,” Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract.
Kirby says the Delta agreement will push pilot wages up across carriers and be passed onto consumers in the form of higher airplane ticket prices.
“The biggest news for an investor perspective is cost convergence in the industry means that what is different now is all the low cost carriers are going to have come up to these much higher pay rates,” Kirby said. “This is going to wind up like oil prices -- it’s going to be a pass through.”
Kirby said demand is still strong for airplane tickets, which he noted are cheaper today than over the last 15 years.
“Prices are still in historical terms 40-50% lower in real terms,” Kirby said. “They are going to go up but it’s still going to be the best value of your travel,” he said, comparing flights to hikes in hotels, rental cars and theme park tickets.
Delta’s contract offer also includes a lump-sum one-time payment, reduced health insurance premiums, and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.
Its union estimates the proposed deal represents more than $7.2 billion of cumulative value increases over the next four years.
American Airlines and United have promised “industry-leading” contracts to their pilots.
Last month, American pilots rejected a proposed 19% pay hike over two years that would have cost the Texas-based carrier about $2 billion. Similarly, United pilots turned down an offer that included more than 14.5% cumulative wage increases and enhanced overtime and training pay.
“It’s a rich contract but I think the really good news is it means we’ll all get deals done essentially on the same terms and can move forward,” Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract.
Kirby says the Delta agreement will push pilot wages up across carriers and be passed onto consumers in the form of higher airplane ticket prices.
“The biggest news for an investor perspective is cost convergence in the industry means that what is different now is all the low cost carriers are going to have come up to these much higher pay rates,” Kirby said. “This is going to wind up like oil prices -- it’s going to be a pass through.”
Kirby said demand is still strong for airplane tickets, which he noted are cheaper today than over the last 15 years.
“Prices are still in historical terms 40-50% lower in real terms,” Kirby said. “They are going to go up but it’s still going to be the best value of your travel,” he said, comparing flights to hikes in hotels, rental cars and theme park tickets.
Delta’s contract offer also includes a lump-sum one-time payment, reduced health insurance premiums, and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.
Its union estimates the proposed deal represents more than $7.2 billion of cumulative value increases over the next four years.
American Airlines and United have promised “industry-leading” contracts to their pilots.
Last month, American pilots rejected a proposed 19% pay hike over two years that would have cost the Texas-based carrier about $2 billion. Similarly, United pilots turned down an offer that included more than 14.5% cumulative wage increases and enhanced overtime and training pay.
Last edited by BobbyLeeSwagger; 12-06-2022 at 07:36 PM.
12-06-2022, 05:32 AM
#3
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Originally Posted by Boeing Aviator
WASHINGTON (Reuters) - United Airlines Chief Executive Scott Kirby said a tentative contract agreement between rival Delta Air Lines and its pilots union would set an industry pattern.
“It’s a rich contract but I think the really good news is it means we’ll all get deals done essentially on the same terms and can move forward,” Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract.
Kirby says the Delta agreement will push pilot wages up across carriers and be passed onto consumers in the form of higher airplane ticket prices.
“The biggest news for an investor perspective is cost convergence in the industry means that what is different now is all the low cost carriers are going to have come up to these much higher pay rates,” Kirby said. “This is going to wind up like oil prices -- it’s going to be a pass through.”
Kirby said demand is still strong for airplane tickets, which he noted are cheaper today than over the last 15 years.
“Prices are still in historical terms 40-50% lower in real terms,” Kirby said. “They are going to go up but it’s still going to be the best value of your travel,” he said, comparing flights to hikes in hotels, rental cars and theme park tickets.
Delta’s contract offer also includes a lump-sum one-time payment, reduced health insurance premiums, and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.
Its union estimates the proposed deal represents more than $7.2 billion of cumulative value increases over the next four years.
American Airlines and United have promised “industry-leading” contracts to their pilots.
Last month, American pilots rejected a proposed 19% pay hike over two years that would have cost the Texas-based carrier about $2 billion. Similarly, United pilots turned down an offer that included more than 14.5% cumulative wage increases and enhanced overtime and training pay.
“It’s a rich contract but I think the really good news is it means we’ll all get deals done essentially on the same terms and can move forward,” Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract.
Kirby says the Delta agreement will push pilot wages up across carriers and be passed onto consumers in the form of higher airplane ticket prices.
“The biggest news for an investor perspective is cost convergence in the industry means that what is different now is all the low cost carriers are going to have come up to these much higher pay rates,” Kirby said. “This is going to wind up like oil prices -- it’s going to be a pass through.”
Kirby said demand is still strong for airplane tickets, which he noted are cheaper today than over the last 15 years.
“Prices are still in historical terms 40-50% lower in real terms,” Kirby said. “They are going to go up but it’s still going to be the best value of your travel,” he said, comparing flights to hikes in hotels, rental cars and theme park tickets.
Delta’s contract offer also includes a lump-sum one-time payment, reduced health insurance premiums, and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.
Its union estimates the proposed deal represents more than $7.2 billion of cumulative value increases over the next four years.
American Airlines and United have promised “industry-leading” contracts to their pilots.
Last month, American pilots rejected a proposed 19% pay hike over two years that would have cost the Texas-based carrier about $2 billion. Similarly, United pilots turned down an offer that included more than 14.5% cumulative wage increases and enhanced overtime and training pay.
It blows my mind how they’re just ****ing away every ounce of goodwill Oscar earned.
12-06-2022, 05:43 AM
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Originally Posted by 01110011
Its an expensive industry Scott. It must suck to be forced to pay your employees what they’re worth.
It blows my mind how they’re just ****ing away every ounce of goodwill Oscar earned.
It blows my mind how they’re just ****ing away every ounce of goodwill Oscar earned.
I mean, isn't he just objectively correct? I didn't really pick up anything extra from that statement other than that it's a big check.
12-06-2022, 05:54 AM
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Originally Posted by Agent62
I mean, isn't he just objectively correct? I didn't really pick up anything extra from that statement other than that it's a big check.
12-06-2022, 05:57 AM
#7
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Originally Posted by Boeing Aviator
Kirby says the Delta agreement will push pilot wages up across carriers and be passed onto consumers in the form of higher airplane ticket prices.
12-06-2022, 06:04 AM
#8
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Originally Posted by 01110011
Its an expensive industry Scott. It must suck to be forced to pay your employees what they’re worth.
It blows my mind how they’re just ****ing away every ounce of goodwill Oscar earned.
It blows my mind how they’re just ****ing away every ounce of goodwill Oscar earned.
So, to your goodwill point, the NC brings us Tumi TA and company and union eventually agree it is severely lacking. The union then proposes, and as of yesterday pulls their followup proposal, because it is apparently still lacking. Like our own counter wasn’t sufficient. Meanwhile SK says sure, we’ll have to match DAL now. This is in your opinion the company burning all of its banked up goodwill. Good stuff.
12-06-2022, 06:07 AM
#9
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Posts: 694
Originally Posted by hummingbear
Wrong. Increases have already been passed onto consumers in the form of higher ticket prices. Reports I’ve read show airfares anywhere from 20%-30% above 2019. So we’re not driving ticket prices higher, we’re just asking for our share of what’s already taken place.
There’s no way DAL’s new contract will have zero impact on prices going forward as other companies move up their salaries to match, exceed or come close.
12-06-2022, 06:10 AM
#10
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He's a CEO/Wannabe Politician/Gambler.
He knows his audience and knows what to say, and when to say it.
Watch what he says tomorrow.. then watch what he says in Jan (at the Quarter and Yearly result presentation).
IF this AIP passes Delta MEC and IF the pilots vote this in.. we are looking at Feb'23 when our union and management team had better get their act together.
It's probably a 2-3 month process so if they don't have something solid, in writing - to offer this pilot group by end of March/beginning of April.. well, good luck with Summer '23.
Not against a survey. But.. as the past two have shown- if you don't have legit questions, the survey is a waste of time.
I would imagine many pilots who were here in 2018 did the survey back then. The union knows what REALLY needs to be fixed, what needs to be fixed and what can basically stay the same.
Lets hope that we see an ILC23 in the Spring and we go into Summer '23 as a Unified Pilot Group and Company, with a fair and honest UPA that recognizes what we bring to this Airline.
If not, oh well...
FS, FP & FtC
Always
Motch
He knows his audience and knows what to say, and when to say it.
Watch what he says tomorrow.. then watch what he says in Jan (at the Quarter and Yearly result presentation).
IF this AIP passes Delta MEC and IF the pilots vote this in.. we are looking at Feb'23 when our union and management team had better get their act together.
It's probably a 2-3 month process so if they don't have something solid, in writing - to offer this pilot group by end of March/beginning of April.. well, good luck with Summer '23.
Not against a survey. But.. as the past two have shown- if you don't have legit questions, the survey is a waste of time.
I would imagine many pilots who were here in 2018 did the survey back then. The union knows what REALLY needs to be fixed, what needs to be fixed and what can basically stay the same.
Lets hope that we see an ILC23 in the Spring and we go into Summer '23 as a Unified Pilot Group and Company, with a fair and honest UPA that recognizes what we bring to this Airline.
If not, oh well...
FS, FP & FtC
Always
Motch
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