Chronic Jetlag started a post here which started with a narrative several paragraphs long. Here's a paragraph from it:
AAPAG faces the unique challenge of not only trying to request for a new pay rate without the true power of negotiation under the proper legal forum enjoyed by other union carriers but is also trying to unite all of its pilots to show resolve and fight for a common cause built on mutual interests. AAPAG’s diverse pilot group consists of but not limited to legacy furloughees, corporate, regional, and cargo pilots to pilots that have crossed picket lines during a strike. Some of its pilots fundamentally believe that the success and growth of Allegiant is reflected and dependent upon low labor cost and its very survival is inextricably tied to their below industry average pay; but this notion is not held by most others whom contend that Allegiant’s very own business model and financial statements prove otherwise and it is paying substandard pilot wages simply because it can.
If ANY pilot at Allegiant believes this, it is utter nonsense. In fact, if there's one airline in the entire industry where this statement is nonsense, it's at your airline. Your airline is wildly profitable, especially for an airline, and especially for an airline in the market conditions we are in. Let me throw some numbers at you that I got off of your full year results for 2008 and from the Bureau of Transportation Statistics (you guys are G4).
In 2008 (the last full year results availble), your airline made $35,407,000 on total revenue of around $504,000,000. FYI, that is HUGELY profitable for an airline. It means that Allegiant Travel Company got to keep around 7% of the total revenue it brought in. That's huge for an airline. Every airline CEO in the industry WISHES they had those kinds of margins. Every airline CEO inthe industry WISHES they had half of those kinds of margins.
Allegiant Air Company told the BTS that they paid their pilots $17,459,000 for all of 2008. That's a pittance compared to the rest of the industry:
Allegiant pilot costs per ASM flown: .393 cents/mile
United pilot costs per ASM flown: .557 cents/mile
Continental pilot costs per ASM flown: .608 cents/mile
American pilot costs per ASM flown: .7049 cents/mile
That doesn't look like much of a disparity, but it's pretty huge. Gallagher is getting the deal of the century from your pilot group, and he's taking it right to HIS bank account. That's why he says he only cares about the shareholders. Tilton says the same thing.
Gallagher could give you guys a 50% raise TOMORROW and Allegiant Air Company would still be WILDLY profitable based on its 2008 numbers.
And now he wants to get 757's and keep pay rates the same? Of course he does! I have some numbers from 2007 concerning UAL's 757 and 737-300 fleets. They might not be 100% accurate but the 757 is about 29% more efficient at producing seat-miles than the 737-300 is at our airline. My understanding is that 757's are some of the most efficient producers of seat-miles out there, all else being equal. I suspect this aircraft will be more efficient than your MD-80's as well.
So he wants to keep the pay the same for the 757 AND not pay you more, even though he can afford to because the 757 will be a much more efficient aircraft? I mean, c'mon? WTF? He can most certainly afford to pay you guys more just in the fact that he has a more efficient aircraft. He's just trying to pocket some more $$ while giving you guys the shaft.
If any pilot at Allegiant thinks low pilot wages are needed in order to keep the airline successful, they seriously need their head examined.
AAPAG faces the unique challenge of not only trying to request for a new pay rate without the true power of negotiation under the proper legal forum enjoyed by other union carriers but is also trying to unite all of its pilots to show resolve and fight for a common cause built on mutual interests. AAPAG’s diverse pilot group consists of but not limited to legacy furloughees, corporate, regional, and cargo pilots to pilots that have crossed picket lines during a strike. Some of its pilots fundamentally believe that the success and growth of Allegiant is reflected and dependent upon low labor cost and its very survival is inextricably tied to their below industry average pay; but this notion is not held by most others whom contend that Allegiant’s very own business model and financial statements prove otherwise and it is paying substandard pilot wages simply because it can.
If ANY pilot at Allegiant believes this, it is utter nonsense. In fact, if there's one airline in the entire industry where this statement is nonsense, it's at your airline. Your airline is wildly profitable, especially for an airline, and especially for an airline in the market conditions we are in. Let me throw some numbers at you that I got off of your full year results for 2008 and from the Bureau of Transportation Statistics (you guys are G4).
In 2008 (the last full year results availble), your airline made $35,407,000 on total revenue of around $504,000,000. FYI, that is HUGELY profitable for an airline. It means that Allegiant Travel Company got to keep around 7% of the total revenue it brought in. That's huge for an airline. Every airline CEO in the industry WISHES they had those kinds of margins. Every airline CEO inthe industry WISHES they had half of those kinds of margins.
Allegiant Air Company told the BTS that they paid their pilots $17,459,000 for all of 2008. That's a pittance compared to the rest of the industry:
Allegiant pilot costs per ASM flown: .393 cents/mile
United pilot costs per ASM flown: .557 cents/mile
Continental pilot costs per ASM flown: .608 cents/mile
American pilot costs per ASM flown: .7049 cents/mile
That doesn't look like much of a disparity, but it's pretty huge. Gallagher is getting the deal of the century from your pilot group, and he's taking it right to HIS bank account. That's why he says he only cares about the shareholders. Tilton says the same thing.
Gallagher could give you guys a 50% raise TOMORROW and Allegiant Air Company would still be WILDLY profitable based on its 2008 numbers.
And now he wants to get 757's and keep pay rates the same? Of course he does! I have some numbers from 2007 concerning UAL's 757 and 737-300 fleets. They might not be 100% accurate but the 757 is about 29% more efficient at producing seat-miles than the 737-300 is at our airline. My understanding is that 757's are some of the most efficient producers of seat-miles out there, all else being equal. I suspect this aircraft will be more efficient than your MD-80's as well.
So he wants to keep the pay the same for the 757 AND not pay you more, even though he can afford to because the 757 will be a much more efficient aircraft? I mean, c'mon? WTF? He can most certainly afford to pay you guys more just in the fact that he has a more efficient aircraft. He's just trying to pocket some more $$ while giving you guys the shaft.
If any pilot at Allegiant thinks low pilot wages are needed in order to keep the airline successful, they seriously need their head examined.
