Oracle of the Industry, I like that.
I guess I tipped over the "Citrus" cart.
First of all, my knowledge of economics does not stem solely from a work of fiction. I incorrectly assumed that a degree in Business Admin, entrepeneurial success and failure, and a lifetime of study qualified me to BS on an internet message board, but apparently not. Many individuals would pick up an economics textbook only if a gun were held on them. The novel I reffered to is merely illustrative of the principles contained within the academic tome, and more "accessible." Of course the last 50 years has in no way changed the impetus for production, but whatever.
I believe you are referring to "Hard Landing: The Epic Contest for Power and Profits That Plunged the Airlines into Chaos," by Thomas Petzinger. If so, it was a wonderful read. I would also recommend G. Hopkins' work, "The Airline Pilots, A Study in Elite Unionization," and "Flying the Line," Volumes I, and II.
FL717 said:
AirTran by the way IS NOT at the bottom, regardless of what you "think", and your "thinking" is incorrect. Our contract is equal to and in some cases better than our peer group (MidEx, Sprirt, Frontier, etc)...........Most B-1900 operators are bottom end. Many regional codeshares are bottom end. SWA is not. As far as your koolaid comment.. it really sums up your true knowledge of this Mr. Kamikazi
I did not say that. I said "bottom-half of the industry," which includes the "peer group" you mention. In any case the comparison is not being made between FL and F9, it is between the Old Line majors and the upstarts. And yes, I can tell you a thing or two about being bottom end, as well as being happy in life and in work despite such a position. Most B1900 operators equal or exceed DALPA 2000 payrates on a per seat basis, which is more than can be said of you. One of the poolies lurking around here has a screenname of Kaptain Koolaid or something like that. It's hardly an insult, they seem to take it as a compliment. And it's Kamikaz
e.
Moving on. Let us remeber that it was ALPAs stated goal since the early days to "remove pilot pay from the competitive equation." As you all said, compensation is a large part of your competitive advantage. Setting aside some external factors, whoever can supply a commodity at the lowest cost will in turn see the greatest demand for their goods. Pilots supply labor, and of the course the cheapest supplier will see the highest volume, i.e., growth. Thus we get thrown into the boom and bust cycle that generates so much frictional unemployment and angst on these boards.
Ty Webb said:
I want to have the least chance of wearing the orange apron (furlough) or starting over in mid-stream. I want to upgrade quickly, so I can fly with my favorite captain every day
Mr. Webb, you are in essence trading lower pay for your rapid advancement to the captains seat. Thats well and good for you now, but what about those hired below you? Its the ExecJet syndrome. "Upgrade in 6 months!" That is dependent on an unsustainable rate of growth. Once that growth slows you're a captain, congrats, but your FO bretheren get to reap the benefits of that lower and now stagnant pay. It's the same effect Crandalls B Scale offered. Quick advancement and a kick in the nuts to those who brought up the rear. In a perfect world we would all see about the same wage, and would all walk if offered anything less. That will never come to be, however it is a noble goal. Removing pay from the realm of competition does everybody a long term favor, not that there aren't short term gains made by the lowest bidder.
Since the "self-proclaimed Orace of the Industry" was asked how much the pilots of a 117 seat aircraft should make, here are some good numbers. I'll give you three guesses as to where they came from:
CA
Yr
1 202.80
2 204.32
3 205.99
4 207.63
5 209.29
6 210.95
7 212.61
8 214.26
9 215.91
10 217.58
11 219.26
12 220.88
FO
Yr
1 54.00
2 109.31
3 127.92
4 131.02
5 134.15
6 137.54
7 141.38
8 144.63
9 146.17
10 148.17
11 149.53
12 150.86
Now ask yourself if you couldn't take that money, bank the difference between that and Airtran numbers, and end up with enough cash to last through a furlough, put your kids through college, and have an independent retirement savings.
One example. New England has a very stable populace. People don't move in, people don't move out, and the region has seen almost no immigration in the last 75 years when compared with the rest of the country. Numerous acquaintances of mine, with no education beyond a HS diploma, and in some case without even that, make an amazing amount of money in commercial cleaning, in some cases their labor nets them in excess of $100 per hour. There are but two tenuous factors that sustain them. 1) The distate for cleaning found among the local WASP population, and 2) An utter lack of competition. Such money
cannot be made in CA, TX, AZ, or FL. Hordes of immigrants humble enough to clean for a living have rapidly sapped the margin from that business.
We find ourselves in a similar situation. The phrase is cliche, we can either "race to the bottom" or hold the line.
My final point. Let us not fool ourselves that a perfect capitalistic model is what we are working with. Nothing could be farther from the truth. All kinds of external factors dilute the competitive environment, not the least of which is unionization itself. Were it not for that factor, we would literally and rapidly be reduced to the level of Federal minimum wage by an overwhelming tide of excess labor. Now let us all join together and "jack up the house," shall we?