777forever
Well-known member
- Joined
- Dec 18, 2007
- Posts
- 1,535
Bill Swelbar socked it to you guys
Delta was allowed MORE 70+ regional flying by its pilots after the merger. Look at ALL the mainline pilot job loss they've had! Oh wait, they only hired 300 this year, and are predicted to hire another 300-600 next year! You guys might want to go talk to Lee Moak for advice!
At least in Delta’s case, the union recognized that the regional flying being performed today was critical to supporting mainline jobs. Regional carriers were contracted to perform domestic flying in markets where the poor underlying domestic economics remain. The Continental and United pilots should be looking at the very same thing. The unintended consequence of undoing the regional relationships today will be a smaller mainline tomorrow. Smaller network architecture does not produce the synergies promised by a combined United and Continental.
There is a financial concept lost on union leaders today: Net Present Value or NPV. It means simply that cash flows realized in the short term have more value to the firm (or individual) than cash flows generated years down the road. Captain Jay Pierce, the head of the Continental ALPA unit, argues rightly that the company’s action of swapping five 70 seat jets in Continental’s hubs for five 50 seat jets is strictly a way of carrying more passengers and thus making more money. It is what companies should be doing - maximizing the revenue earning power of the network.
The benefits to the new United’s actions in this limited case are obvious. The risks are, well, timid and weak as no jobs are being lost. Energy spent during one of the most traveled weeks of the year should be spent negotiating a joint collective bargaining agreement and not preparing for an arbitration that in reality is nothing more than a desperate grab of leverage that - if the pilots prevail - will result in fewer jobs, less mainline flying, fewer synergies to be shared among pilots and a degradation of the combined carrier’s status within the STAR Alliance.
Delta was allowed MORE 70+ regional flying by its pilots after the merger. Look at ALL the mainline pilot job loss they've had! Oh wait, they only hired 300 this year, and are predicted to hire another 300-600 next year! You guys might want to go talk to Lee Moak for advice!
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