Analyst recognize B6 rates...

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[font=Arial, Helvetica][size=+1]JetBlue achieves ultra-competitive pilot pay on Embraer 190s
Dateline: Friday July 09, 2004

JetBlue Airways' 100-seat Embraer 190s, which begin arriving next year, "will offer better cockpit/seat economics" than larger Frontier Airlines A319s, AirTran 717s and Southwest Airlines 737s, according to JP Morgan analyst Jamie Baker.

In a report released yesterday, Baker said that three-year seniority rates for JetBlue 190 captains will be $74 per hour, or $80 when adjusted for overtime. A 12-year captain on a JetBlue 190 will earn $96 including overtime, representing "a 33%" cost-per-seat advantage versus Southwest's 137-seat aircraft when adjusted for planned pilot pay increases at Southwest. "Whereas airline pilots typically get paid more as aircraft size increases, JetBlue has established its 100-seat pay scale below that of certain 70-seat operators, an obvious competitive disadvantage for the Regional airline sector, at least initially," Baker stated. Pay rates also will pressure regional jet operators. For example, a three-year captain on a 70-seat CRJ700 flying for Comair, a Delta Air Lines subsidiary, earns $74 per hour while captains on Horizon Air CRJ700s earn $75. According to Baker, American Airlines "would require a 757…to approach JetBlue's cockpit/seat economics" based on planned third-quarter 2005 AA pay rates.--Perry Flint

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[Pilotbob3]

how did they "achieve" the pay? LOL

new term...ultra competetive....meaning LOW!!!!!!!!

when is the union vote?

 

[Boeingman]

The article could also be named:

"Airline management drooling over new JB payrates".

 

[lowecur]

Business Week just said Embraers Share Price is too low, and should be valued at $36. I think it will be closer to $80 in Three years.

 

[Lear70]

That's the first thing I've agreed with you on in months Lowecur...

Seriously, if anyone has any extra cash to invest, now would be a FANTASTIC time to acquire some Embraer stock and sit on it, but you'd better get in soon... Stock price has a funny way of fluctuating quickly right after analysts talk - great for day traders though.

All else aside, that article points directly to what everyone on this board has been upset about:

Pay rates also will pressure regional jet operators. For example, a three-year captain on a 70-seat CRJ700 flying for Comair, a Delta Air Lines subsidiary, earns $74 per hour while captains on Horizon Air CRJ700s earn $75.

Obviously the rates aren't exactly correct, but they're close enough to point out the obvious: regionals will be using this rate as a benchmark for all future negotiations, and unions will spend MUCH time and effort creating a strategy to negate those arguments.

 

[chazman]

I hate it when the press uses hourly pay rates for comparison. Most of america doesn't understand that these are flight hour payrates rather than hourly wages.We always come across as making much more money per month when looked at in this perspective.

Just my opinion.

Chaz

 

[Draginass]

Another stupid ignorant reporter. Needleman didn't "achieve" anything. He DICTATED the rates because there's nothing to stop him from setting whatever rate he wants.

 

[Pilotbob3]

I hate it when the press uses hourly pay rates for comparison. Most of america doesn't understand that these are flight hour payrates rather than hourly wages.We always come across as making much more money per month when looked at in this perspective.

Just my opinion.

Chaz

right but we in the industry know that these rates are a new LOW!

 

[sabreliner]

They certainly undercut us pretty badly in our negotiations at ASA.

Certainly going to be tough for us to raise the bar with the SKYW guys flying the 700 at 200 rates, the Mesa guys flying the 700 for peanuts and a Coke, and Jet Blue guys flying a 190 for less that our 700 rates.

The race to the bottom continues. I wonder if guys are ever going to wake up and step up to the plate???

 

[enigma]

Another stupid ignorant reporter. Needleman didn't "achieve" anything. He DICTATED the rates because there's nothing to stop him from setting whatever rate he wants.

Neeleman may have DICTATED the rates, but they won't become effective until some koolaide drinking pilot actually accepts them.

Simply put, unless Neeleman is mafioso, he can't dictate anything. He offers and someone else accepts. If pilots are willing to work for his offered rates, that means that he didn't dictate anything.

As usual, we are our own worst enemies.

enigma