Airtran Pilots looking at ALK and SW Rates

[scarlet]

Do you think Airtran mangt has even looked at Alasks's and SW payrates in their T.A.s? SW voted theirs down.

New dates next week. Didn't see that coming that fast, (7 days notice) I hope the company and union have their proposals ready.

 

[Fly-By-Cable]

Do you think Airtran mangt has even looked at Alasks's and SW payrates in their T.A.s? SW voted theirs down.

New dates next week. Didn't see that coming that fast, (7 days notice) I hope the company and union have their proposals ready.

AT pilots certainly deserve SW rates. My understanding is that the number 1 issue over there is scope, and rightfully so. Company losses money at 50 seats (already tried with whisky), breaks even at 70 seats (current allowable scope language), and makes money at 86. Fight the good fight guys.

 

[rajflyboy]

Do you think Airtran mangt has even looked at Alasks's and SW payrates in their T.A.s? SW voted theirs down.

New dates next week. Didn't see that coming that fast, (7 days notice) I hope the company and union have their proposals ready.

Have you looked at the price of Gas lately ??

Good Luck with those big pay raises !!

 

[Tejas-Jet]

Do you think Airtran mangt has even looked at Alasks's and SW payrates in their T.A.s? SW voted theirs down.

Please remember that the SW TA did not go down because of the pay. Pay was not the big issue...it became an issue once we saw the other ( more important) issues that we did not agree with.

Pay became just one more reason to vote "No".

 

[Colonel Savage]

"Pay was not the big issue...."

The big issue was Scope, wasn't it?

 

[Slug]

and reduced flexibility in scheduling, and QOL, and equality with other groups, and pro-TA union propoganda, and codeshare, and the list is long

 

[9rj9]

Geez, jetblue got a raise and doesn't even have a union. WTF are the Unions doing over at Airtran and the like?

 

[ATLplt]

The blue dude's don't have our old school, hard nosed management team either. If we didn't have a union we'd be flying those same E-190s for $25 hr, working 15hr scheduled shifts. The new union is more organized than I've ever seen. Hopefully things will get better.

 

[dh82dvr]

I understand scope will be the biggest issue. I think any type should be flown by AT pilots. No contracting. End of story.

 

[maxblast72]

Have you looked at the price of Gas lately ??

Good Luck with those big pay raises !!

Based on the projections our CFO gave at the Merrill Lynch conference this morning ($1.70-$1.75/gallon for Q2 2009), our Q2 2009 fuel bill will be a little over $200 million less than our fuel bill for Q2 2008. Of course with capacity down around 8% and total RASM down 6%, our total revenue will be down around $90 million for the quarter.

We also have hedges in place for about 50% of our fuel requirement for the second half of the year (with protection kicking in when oil goes about $60). If oil avgs $80/barrel for the second half of the year, Airtran pays about $66/barrel for our total fuel requirements according to the chart presented this morning.

I think Airtran will take a $90 million drop in total revenue with a $200 million drop in total fuel costs. Look for an operating profit around $70 million for Q2 and a net profit around $50 million. That is why our CFO said today that 2009 will be one of Airtran's best years in a while (2003 was Airtran's best operating margin).

 

[Eagle757shark]

Have you looked at the price of Gas lately ??

Good Luck with those big pay raises !!

I don't give a DAMN about what gas is right now. Hell gas was down to $35 dollars a few months ago and we made record profits and we still couldn't get a new contract. Don't tie my compensation to the ups and down of the economy. Stop buying into that crap!

 

[Mongolikecandy]

Have you looked at the price of Gas lately ??

Good Luck with those big pay raises !!

You are managements wet dream when it comes to negotiations. Pilot pay has a much less significant effect on the bottom line than management would have you believe.
Besides, Does management forgo their raises and bonuses when the price of fuel gets too high? Why should we have to?

 

[rajflyboy]

Based on the projections our CFO gave at the Merrill Lynch conference this morning ($1.70-$1.75/gallon for Q2 2009), our Q2 2009 fuel bill will be a little over $200 million less than our fuel bill for Q2 2008. Of course with capacity down around 8% and total RASM down 6%, our total revenue will be down around $90 million for the quarter.

We also have hedges in place for about 50% of our fuel requirement for the second half of the year (with protection kicking in when oil goes about $60). If oil avgs $80/barrel for the second half of the year, Airtran pays about $66/barrel for our total fuel requirements according to the chart presented this morning.

I think Airtran will take a $90 million drop in total revenue with a $200 million drop in total fuel costs. Look for an operating profit around $70 million for Q2 and a net profit around $50 million. That is why our CFO said today that 2009 will be one of Airtran's best years in a while (2003 was Airtran's best operating margin).

Great Info. I was wanting someone to put out this information!

Hopefully this guy knows what he is talking about. I have heard the future earnings reports being outstanding before and then company went bankrupt later.

At any rate lower fuel cost is going to mean more profits for the airline industry.

 

[rajflyboy]

You are managements wet dream when it comes to negotiations. Pilot pay has a much less significant effect on the bottom line than management would have you believe.
Besides, Does management forgo their raises and bonuses when the price of fuel gets too high? Why should we have to?

You are correct. Management will take from the pilots long before they will take from themselves. No doubt about this.

 

[troll565]

NEW YORK, June 12 (Reuters) - AirTran Holdings Inc (AAI.N) said it expects unit revenue to fall as much as 7 percent in the second quarter and plans to cut capacity, following a trend seen among most other carriers in the industry.


In a securities filing on Friday, the airline also reiterated its expectation to remain profitable for 2009, but said it would dramatically reduce fleet plans.


AirTran said it expects second-quarter unit revenue, or revenue per available seat mile, to decline between 5.5 percent and 7 percent.
AirTran also said it would cut second-quarter capacity between 7.5 percent and 8 percent.


Airlines have been cutting capacity and trimming costs in an effort to offset weak consumer spending and rising fuel costs.


AirTran said fuel expenses constituted about 27 percent of first-quarter operating costs, but said it had improved its 2009 fuel hedge portfolio.
Shares closed down 1.46 percent, or 8 cents, to $5.40 on the New York Stock Exchange

 

[maxblast72]

Hopefully this guy knows what he is talking about. I have heard the future earnings reports being outstanding before and then company went bankrupt later.

I would hope our CFO could make pretty good predictions about Q2 when over 75% of Q2 is behind us. The range given was $1.70-$1.75/gallon for jet A and RASM down 5.5%-7%.

The only downside to the new projections is that just 6 weeks ago (during the Q1 earning conference call), the company was projecting total RASM to be down only 2 or 3 perecent for Q2. That means the revenue environment for Airtran has weakened significantly in May and early June.

And for as bad as the revenue enviroment is for Airtran, it is even worse for the big guys who depend more on First Class and international for strong RASM performance. I believe most of the big guys are saying RASM has been down around 20% YOY even with the capacity reductions. USAir's CFO even said that RASM performance is worse now than after 9/11.

 

[maxblast72]

In a securities filing on Friday, the airline also reiterated its expectation to remain profitable for 2009, but said it would dramatically reduce fleet plans.

I saw that statement too. I wonder if it means another lowering of projected ASMs for the second half of the year and 2010 or if management is going to try to sell more airplanes. With the tight credit markets right now, you would think we might have difficulty find a buyer with available financing for more 737 sales. The 737 market isn't as strong as it was last year.

 

[Colonel Savage]

Sounds like things have continued to deteriorate; do the capacity reductions mean furloughs again?

 

[Browntothebone]

NEW YORK, June 12 (Reuters) - AirTran Holdings Inc (AAI.N) said it expects unit revenue to fall as much as 7 percent in the second quarter and plans to cut capacity, following a trend seen among most other carriers in the industry.


In a securities filing on Friday, the airline also reiterated its expectation to remain profitable for 2009, but said it would dramatically reduce fleet plans.


AirTran said it expects second-quarter unit revenue, or revenue per available seat mile, to decline between 5.5 percent and 7 percent.
AirTran also said it would cut second-quarter capacity between 7.5 percent and 8 percent.


Airlines have been cutting capacity and trimming costs in an effort to offset weak consumer spending and rising fuel costs.


AirTran said fuel expenses constituted about 27 percent of first-quarter operating costs, but said it had improved its 2009 fuel hedge portfolio.
Shares closed down 1.46 percent, or 8 cents, to $5.40 on the New York Stock Exchange

Bad time to be expecting a big pay raise.

 

[dh82dvr]

Bad time to be expecting a big pay raise.

The current economy might indicate that, however AAI had record 1st Q profit and predict records continuing. That seems to be the time to look for a raise. If there is enough for high executive pay and bonuses, the there is enough to around.