Quote:
Q: But more than 50% of your pilots will come from a union at United that argued for more pay to the point that, some analysts say, helped push their company into bankruptcy.
A: The competitive environment that existed then is gone, and gone forever. We're in a very different environment today. This is a harshly more competitive environment than we had even 10 years ago. We compete on a global scale. Many people think we compete with the likes of Southwest and JetBlue, and we do. But we also compete with Emirates and Etihad and Air France-KLM and British Airways-Iberia. We can never lose sight of the fact that we have to remain competitive. Whatever wages and salaries and benefits are at a given time have to be in the context of the times.
I wish Mr. Smisek would follow his own advice. Maybe he has and his compensation is relative to other airline executives and doesn't have to match the sacrifice of the employees at the company he runs.Q: But more than 50% of your pilots will come from a union at United that argued for more pay to the point that, some analysts say, helped push their company into bankruptcy.
A: The competitive environment that existed then is gone, and gone forever. We're in a very different environment today. This is a harshly more competitive environment than we had even 10 years ago. We compete on a global scale. Many people think we compete with the likes of Southwest and JetBlue, and we do. But we also compete with Emirates and Etihad and Air France-KLM and British Airways-Iberia. We can never lose sight of the fact that we have to remain competitive. Whatever wages and salaries and benefits are at a given time have to be in the context of the times.
In 2005, pilots at CAL gave up 40% of their pay plus had their pensions frozen. We are two years past the amendable date of our contract.
From 2005-2009, Mr. Smisek's compensation totaled $17 million. He WILL get his $750,000 salary for 2010 since the company will make money (an empty gesture at the beginning of the year). In addition, Mr. Smisek sits on the Board of Directors for National Oilwell Varco, Inc. From 2006-2009, he earned just shy of $900,000 as a director.