Airline profit vs pilot contracts

[208starcheck]

Now that oil is below $50 a barrel and dropping, the airlines will probably start reporting record profits the next couple years.

Do any of the labor contracts have profit sharing or a renegotation clause if the airline reports too much profit, or do all the profit go to the executives and shareholders? Simply put, if a company can ask for consessions in bad times, one would expect more reward in the good times.

Granted the accountants can hide the money, but a quality contract can address those issues.


I'm not trying to flame. Just curious how this is going to work.

 

[pgcfii2002]

10 pages minimum.........

 

[Thedude]

Simply put, if a company can ask for consessions in bad time, one would expect more reward in the good time.

When it comes to renegotating a labor contract, its always a bad time financialy speaking

 

[AA717driver]

"...although we made a (record) profit last year, we believe our position within the industry and of the industry as a whole is tenuous. We would be very hesitant to jepordize our fledgling recovery by granting pay raises we might not be able to afford should the recovery stall..." (That won't affect management payouts, though.) TC

 

[SoCentralRain]

Oil will not stay below $50/barrel for long. Wishful thinking, yes. But it won't happen.

Cheers, though.

SCR

 

[Guitar Guy]

When contracts are up for negotiation, there is no such thing as a "profit". "Management retention and performance bonuses", yes but "profits" no.