100/hour/5y
Well-known member
- Joined
- Nov 1, 2002
- Posts
- 188
Scope: Checkmate
There seems to be a letter circulating around the L-UAL side that was forwarded to me by a buddy of mine over there that I found interesting. Scope is one of the most important sections we have in any contract and it seems there's a gaping hole in that section. We're so focused on 76 seaters and thinking that's the threat, but what about SNB as replacement a/c? I never even thought of it to be honest with you. Managment has made it known that they're wanting to replace the Airbus's and the 737-500's. So if you read this letter below, it sets up a senario that we might find ourselves in with big pay cuts and loss of seat, not to mention stagnation. Anyhow, worth the read and at the very least, should be brought up during the roadshows.
SCOPE CONSIDERATIONS UNDER THE PROPOSED UNITED CONTINENTAL PILOT'S TENTATIVE AGREEMENT
1. There is nothing in the current TA preventing the Company from replacing current aircraft types with lower paying single narrow bodies (SNB).
2. This would be an enormous cost savings for the Company to the estimate of $685,000,000 over the 5 year term of the contract. This estimate ONLY includes known crew costs and does not factor in unknown variables such as lease deferments, improved maintenance costs, etc.
3. The estimates below are based on the pay scales published in the TA.
4. I would be remiss to omit that there is a certain amount of speculation. However, examining the facts, listening to union representatives on how the pay scales for the SNB came to fruition, and knowing how our management team operates, the following is completely plausible.
Facts:
The more conservative pay of the 319, 737-700, and 737-500 were used for this exercise. All references to pay will be based on 12 years of service.
Captain
A319, 700-500 $181.24
EMB-195 $142.38 ($38.86)
EMB-190 $121.12 ($60.02)
First Officers
A319, 700-500 $123.79
EMB-195 $97.24 ($26.55)
EMB-190 $82.72 ($41.07)
The figures referenced above are the pay rates from the TA. The numbers in () are the differences between the rates from the A319, 737-700, 500 and the published rates for the SNB aircraft. These figures are used in the calculations below.
We have all heard that the company wants to get rid of the Airbus aircraft due to age, reliability, maintenance cost, etc. Additionally, it is known that the 737-500 will be gone prior to mid year 2013. Currently, United has a total of 203 aircraft that are either A320, A319, B737-700 or B737-500. The industry average of 6 crews per aircraft equates to 1218 Captains and an equal amount of First Officers. Assume an average of 80 hours of flight pay time per month for each of the mentioned pilots. Considering the above points and the figures from the pay rates, the following multiples are the staggering results which would support the Company's motivation to move high paying jobs from the current fleets to the lower paying jobs in the SNB's. Please keep in mind this is BASIC crew savings. Subject the same, the following calculations are on a PER YEAR based and SNB specific.
Captains
EMB 195 $45,438,220
EMB 190 $70,180,185
First Officers
EMB 195 $31,044,384
EMB 190 $48,022,329
Total pilot savings
EMB 195 $76,482,604
EMB 190 $118,202,514
Additional Savings--B plan contribution
EMB 195 $12,237,216
EMB 190 $18,912,402
TOTAL CREW COST SAVINGS PER YEAR
EMB 195 $88,721,820
EMB 190 $137,114,916
Note: An additional crew savings of $7-8,000,000 per year is realized with the reduction of the third flight attendant in the EMB 190 and 195.
The potential savings for the Company is HUGE. Additionally, the Company will be allowed to take advantage of the scope provision that allows them to increase the number of 76 seat RJ's by simply adding new SNB aircraft. Contractually, the Company must adhere to the 1:1.25 ratio if they increase the number of 76 seat aircraft above 153. In order to maximize the number of allowable 76 seat aircraft, 325 allowed under the T/A, they must add 215 SNB aircraft (total 76 seat hulls allowed=325, minus 153, 76 seat hulls currently allowed = 172 x 1.25= 215. The current combined number of A320, A319, B737-500, and 737-700 is 203, difference of 12 hulls.
There seems to be a letter circulating around the L-UAL side that was forwarded to me by a buddy of mine over there that I found interesting. Scope is one of the most important sections we have in any contract and it seems there's a gaping hole in that section. We're so focused on 76 seaters and thinking that's the threat, but what about SNB as replacement a/c? I never even thought of it to be honest with you. Managment has made it known that they're wanting to replace the Airbus's and the 737-500's. So if you read this letter below, it sets up a senario that we might find ourselves in with big pay cuts and loss of seat, not to mention stagnation. Anyhow, worth the read and at the very least, should be brought up during the roadshows.
SCOPE CONSIDERATIONS UNDER THE PROPOSED UNITED CONTINENTAL PILOT'S TENTATIVE AGREEMENT
1. There is nothing in the current TA preventing the Company from replacing current aircraft types with lower paying single narrow bodies (SNB).
2. This would be an enormous cost savings for the Company to the estimate of $685,000,000 over the 5 year term of the contract. This estimate ONLY includes known crew costs and does not factor in unknown variables such as lease deferments, improved maintenance costs, etc.
3. The estimates below are based on the pay scales published in the TA.
4. I would be remiss to omit that there is a certain amount of speculation. However, examining the facts, listening to union representatives on how the pay scales for the SNB came to fruition, and knowing how our management team operates, the following is completely plausible.
Facts:
The more conservative pay of the 319, 737-700, and 737-500 were used for this exercise. All references to pay will be based on 12 years of service.
Captain
A319, 700-500 $181.24
EMB-195 $142.38 ($38.86)
EMB-190 $121.12 ($60.02)
First Officers
A319, 700-500 $123.79
EMB-195 $97.24 ($26.55)
EMB-190 $82.72 ($41.07)
The figures referenced above are the pay rates from the TA. The numbers in () are the differences between the rates from the A319, 737-700, 500 and the published rates for the SNB aircraft. These figures are used in the calculations below.
We have all heard that the company wants to get rid of the Airbus aircraft due to age, reliability, maintenance cost, etc. Additionally, it is known that the 737-500 will be gone prior to mid year 2013. Currently, United has a total of 203 aircraft that are either A320, A319, B737-700 or B737-500. The industry average of 6 crews per aircraft equates to 1218 Captains and an equal amount of First Officers. Assume an average of 80 hours of flight pay time per month for each of the mentioned pilots. Considering the above points and the figures from the pay rates, the following multiples are the staggering results which would support the Company's motivation to move high paying jobs from the current fleets to the lower paying jobs in the SNB's. Please keep in mind this is BASIC crew savings. Subject the same, the following calculations are on a PER YEAR based and SNB specific.
Captains
EMB 195 $45,438,220
EMB 190 $70,180,185
First Officers
EMB 195 $31,044,384
EMB 190 $48,022,329
Total pilot savings
EMB 195 $76,482,604
EMB 190 $118,202,514
Additional Savings--B plan contribution
EMB 195 $12,237,216
EMB 190 $18,912,402
TOTAL CREW COST SAVINGS PER YEAR
EMB 195 $88,721,820
EMB 190 $137,114,916
Note: An additional crew savings of $7-8,000,000 per year is realized with the reduction of the third flight attendant in the EMB 190 and 195.
The potential savings for the Company is HUGE. Additionally, the Company will be allowed to take advantage of the scope provision that allows them to increase the number of 76 seat RJ's by simply adding new SNB aircraft. Contractually, the Company must adhere to the 1:1.25 ratio if they increase the number of 76 seat aircraft above 153. In order to maximize the number of allowable 76 seat aircraft, 325 allowed under the T/A, they must add 215 SNB aircraft (total 76 seat hulls allowed=325, minus 153, 76 seat hulls currently allowed = 172 x 1.25= 215. The current combined number of A320, A319, B737-500, and 737-700 is 203, difference of 12 hulls.
