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JetPilot500 said:
Labor is not the only problem.

But if UAL, for example, could cut an average of $50k per pilot per year, that would equate to $500 Million (10,000 pilots) saved per year...make some cuts with other labor groups and guess what, now you're really saving some money.

$500 Million is no chump change!

A $50,000 savings per pilot equates to about a $35,000 change in salary. So, a pilot making $185,000 now makes $150,000 after the change...BIG DEAL!

JetPilot500

Would you listen to yourself for a moment? You are saying that losing $35,000 is no "BIG DEALl" How would you like it if your employer told you that he was going to give you a 25% pay cut because profits had dropped and he didn't want to reduce his own salary or go about the trouble of re-thinking his business model that is so obviously flawed? That's what we're talking about here! Pilot's salaries did not cause these problems, so why should they be cut to solve the problems? The root cause of the problem needs to be addressed. You admit in your post that labor is not the cause of the problem, but you want them to give up their hard earned money to fix it. There is no logic in that.
 
crj200fo,
I thought you just said a couple of posts earlier that labor costs were not the problem. Now you are saying that the LCC's are surviving because of low labor costs and it will catch up with them when they have to start paying for retirements. I hope the LCC's are not thinking the same thing, it won't be long before no one has a retirement plan.
 
Deftone45075 said:
Just as labor costs are not the real problem with the major's, labor costs are also not the only reason SWA and other LCC's are doing well.

There is always more to look at in the picture. The LCC's do not face the same expenses as UAL, DAL, NWA, and so on.

However, these major carriers could most likely turn a profit if many changes were made, starting with management, ten labor cost reduction and so on.

Like Jetpilot pointed out, a lot of money could be saved by a reduction in pilot salaries, it would only be fair then to also impose a reduction in Mngt. Salaries...then that much more could be saved.

I would agree that pilot salaries could be reduced to help the problem if the other changes were also implimented. But mgmt never does that. They say that they want the concessions now, and they'll worry about everything else later.

Example: In the early '80s EAL was losing money like crazy. Mgmt went to labor time after time for concessions and promised that they would later impliment other cost saving ideas. But guess what? Frank Boreman never did any of the other things. And when the first few pay cuts for the pilots and mechanics didn't solve the problem (because they never do), then he came back for more concessions. This is where the BOHICA pins and stickers that the pilots had came from: "Bend Over, Here It Comes Again."

Mgmt is never willing to do anything other than cut pay to solve problems. And they never take pay cuts themselves, it's always the pilots, FA's, and mechanics that get screwed. Need another example?

Mesaba Aviation: 50 pilots were recently furloughed. Did mgmt take a pay cut? Of course not. Mgmt decided to buy Big Sky airlines and give their CEO a $1.6 million dollar bonus for the year. Why doesn't mgmt have to take cuts when we do?

I think it's time you learn from history. Concessions have never helped save an airline from bankruptcy and they never will. It's going to take a lot more than that.
 
CRJ200FO said:
Example: In the early '80s EAL was losing money like crazy. Mgmt went to labor time after time for concessions and promised that they would later impliment other cost saving ideas.

You were born in 1982, and you remember this??? HHmmm..



CRJ200FO said:
But guess what? Frank Boreman never did any of the other things.


No YOU guess what... Frank Borman was an Astronaut (Commander of Apollo 8), not the CEO of EAL when it failed... I THINK you mean your buddy Frank Lorenzo who drove it into the ground!
 
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Falcon Capt said:
You were born in 1982, and you remember this??? HHmmm..






No YOU guess what... Frank Borman was an Astronaut (Commander of Apollo 8), not the CEO of EAL... I THINK you mean your buddy Frank Lorenzo!

Better stick to what you know...

A wise man once said: "Better to be thought a fool than to open ones mouth and remove all doubt..."

Words to live by!

You have just displayed your own ignorance very well. Frank Borman was Commander of Apollo 8 AND he later became CEO of EAL. I believe he took this position in the mid 70's. He sold it to Frank LORENZO (in 1983 I believe) because the unions refused to give him yet more concessions and he saw his airline beginning to fail. Frank Lorenzo later drove EAL into the ground, but Borman started the whole mess with his p*ss-poor mgmt techniques. Look it up. There are many books on the subject.

And a little tip: the next time you call somebody a fool, you better check the facts a little better first, lest you make yourself look more the fool.
 
jetpilot"I bet to differ. In fact, I would guess that 30 years ago, a 747 Captain was probally making around $85,000...that was a ton of money back in 1972. If that is the case, today he should be making $206,000 based on average inflation...not $320,000 which is what UAL pays (before concession). That far exceeds the average inflation rate...by about 50%.

Your "guess" is way off. A study published showed the actual buying power of airline pilots had decreased over the last 30 years. It compared several occupations and the salary trend. I will try to find the article and post it, or maybe someone else has a copy...
 
JetPilot500 said:
I beg to differ. In fact, I would guess that 30 years ago, a 747 Captain was probally making around $85,000...that was a ton of money back in 1972. If that is the case, today he should be making $206,000 based on average inflation...not $320,000 which is what UAL pays (before concession). That far exceeds the average inflation rate...by about 50%.

DCitrus9 said:
Your "guess" is way off. A study published showed the actual buying power of airline pilots had decreased over the last 30 years. It compared several occupations and the salary trend. I will try to find the article and post it, or maybe someone else has a copy...


Not to start a flame war with you DCitrus9, but I'll bet the source of your study came from ALPA or Kit Darby or some souce like that. Here is the Math:

$85,000 + 3.0% Annual Inflation over 30 yrs = $206,000
$85,000 + 4.5% Annual Inflation over 30 yrs = $320,000

So to get from 30 Years ago to today, the top end major airline payscales have increased 4.5% per year annually. This is far higher than the average working man. Don't beleive me here is the math:

$20,000 + 3.0% Annual Inflation over 30 yrs = $48,500

The average working man in 1972 was making around $20,000 per year. Now he's getting around $45-50,000. There is your 3% annual inflation.

Besides, everyones buying power is going down. Increased taxes, heath and insurance cost are hurting everyone.

JetPilot500
 
CRJ200FO said:
Would you listen to yourself for a moment?


How about you listen to yourself for a moment. You say that SWA is only successful due to low labor costs. Then you say that high labor costs are not an issue at the Big Airlines? What's it gonna be.

The point is this: If the comany can find a way to save $500M here and $500M there and another $500M over there, it all adds up to at least break-even in hard times and maybe even profitability. You are very right in saying that labor is not the only problem.

If you think that the airlines are not finding other ways to save money then you are blind.

I'll say it again, retirement fund money and 401k money do not come out of the same pot as daily operating money. Those funds are separate. Therefore it doesn't matter if 1 guy retires or 1000 guys retire.

I really think you need to put your book, "Flying the Line" down for a while. Those books are one sided and tell about a different time. Get with the times and think a little for yourself.

JetPilot500
 
JetPilot500 said:
I really think you need to put your book, "Flying the Line" down for a while. Those books are one sided and tell about a different time. Get with the times and think a little for yourself.

JetPilot500

Actually, Flying the Line was written from an objective viewpoint. It is not one-sided. ALPA did not write the books, they just made themselves available for interviews. The books were written by an independent author/professor.

And as for the numbers you gave for pilot's salaries from 30 years ago. Citrus was not referring to the inflation being wrong. He was referring to your belief that a 747 CA was only making 85,000 dollars. That figure is very questionable.
 

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