X-rated
Well-known member
- Joined
- Dec 29, 2005
- Posts
- 498
Some people are so afraid we'll price ourselves out of business. Well, I don't believe that will happen in our industry if ALL THE PILOTS were to stand up and demand better.
At my last company, it was charter. I don't remember the exact rates, but I think we chartered a Lear 35 for $4500/hour (maybe it was less, maybe more, just throwing out a number as an example). Now, I distinctly remember a particular client whose net worth was somewhere north of $400 million dollars. Now let's say she bought 100 hours of charter every year. At $4500/hour, she was spending $450,000 each year with us. If the pilots had stood up and demanded sizable raises and better benefits, maybe our company would have had to charge $5500/hour for that Lear. So now Mrs. Warbucks has to spend $550,000 in a year for that same 100 hours of charter. Does anyone believe that someone who is worth more than $400 million dollars is really going to blink at that extra money?
I just don't believe that many of the folks who pilot these bizjets have a true idea of the kind of money they are transporting in the back of their aircraft. Sure, our clients bargain hunt for low prices in private jets. Hey, they're people too who enjoy a good deal, even if it's on a different level than what you and I are used to. But if wages and benefits went up across our industry, i find it highly unlikely that these people are going to go back to the airlines.
Just curious why someone so wealthy and willing to spend 5500 an hour is flying around in a Lear 35? Maybe it made sense at 4,500 an hour, but at 5500, she could probably get a Citation X. And, for 8500 she could get a G550. Is it possible she chose the 4500 dollar Lear 35 because she does care what it costs? I agree with your premiss only to a certain extent, and then market realities take over. No one is going to pay G550 rates to fly around in a Lear 35. It doesn't matter how much money you think they have.