CAL - $500M by Feb 28?

[satpak77]

Ch 11 - "good" for marketplace?

http://www.usatoday.com/travel/news/2005-01-06-continental-cuts_x.htm

CAL states its needs to save 1/2 Billion dollars by Feb 28 (six weeks away). If not, layoffs and fleet reductions.

The article states that they have achieved $70 M in concession already, so they only need to magically come up with $430 M in additional savings.

USA Today - Houston-based Continental said that after labor-cost savings achieved by competitors — including carriers operating under bankruptcy protection — its labor costs per mile of flying would be the second-highest among major U.S. carriers.

So since UAL and USAir, in Ch.11, have cut wages and destroyed pensions, now the non Ch.11 carriers are "readjusting" pay scales?

Healthy Airline CEO to Pilots - "We are cutting your pay effective immediately to better compete with Subsidy Air, whose pilots are paid 50% less. Your pay will be adjusted accordingly."

If this is the trend, why even GO to the top paying companies? Your pay will be chopped anyway....

If UPS files Ch.11 and readjusts pay rates, does FDX take a "fresh look" at FDX pay, to "stay competitive?"

Talk about Ch.11 boning everyone in the industry...

How many times are we gonna let an airline go Ch.11? Once? Twice? When to say when?

How does AA and DAL (non Ch 11) and LUV and JBLU (also non Ch 11) compete with UAL and US Air on routes when the latter don't have to legally pay any bills, at least not right now?

Non Ch 11 Airline A versus Non Ch 11 Airline B, hey business is business, marketing, fare prices, etc, etc, fair is fair, may the best man win. However competing with Ch 11 who may be in it for the second or third time around? With ATSB money? Other welfare subsidies?

When will we see new entrants, with Airbus/737, at regional pay rates and NO PENSION, NO MEDICAL? Sh1t, that company should kick everyone elses azz...

I thought CAL was among the healthier of the majors? 7E7s, 737-800s, etc?

Where is Gordon when we need him?

What the he11 happened to this industry? I mean 9-11 had alot to do with it, but come on.....



....just some late night ranting....comments?

 

[jetexas]

CAL states its needs to save 1/2 Billion dollars by Feb 28 (six weeks away). If not, layoffs and fleet reductions.

I wonder just how in the world they expect to do that???

 

[minitour]

I wonder just how in the world they expect to do that???

The second sentence in the text you quoted...

 

[Vik]

Thats how markets readjust themselves. Thats also how every company now wants to outsource jobs. If Company A outsources and chops labor costs by 35%, then Company B has to do the same to stay competitive because "A" will lower prices to increase sales.

Same crap is going to take place with the airlines. I suppose the place to get a job is a LCC because their cost structure is lower and they'll be the last ones to start chopping pay and if they do, it won't be by a lot.

http://www.usatoday.com/travel/news/2005-01-06-continental-cuts_x.htm

CAL states its needs to save 1/2 Billion dollars by Feb 28 (six weeks away). If not, layoffs and fleet reductions.

The article states that they have achieved $70 M in concession already, so they only need to magically come up with $430 M in additional savings.



So since UAL and USAir, in Ch.11, have cut wages and destroyed pensions, now the non Ch.11 carriers are "readjusting" pay scales?

Healthy Airline CEO to Pilots - "We are cutting your pay effective immediately to better compete with Subsidy Air, whose pilots are paid 50% less. Your pay will be adjusted accordingly."

If this is the trend, why even GO to the top paying companies? Your pay will be chopped anyway....

If UPS files Ch.11 and readjusts pay rates, does FDX take a "fresh look" at FDX pay, to "stay competitive?"

Talk about Ch.11 boning everyone in the industry...

How many times are we gonna let an airline go Ch.11? Once? Twice? When to say when?

How does AA and DAL (non Ch 11) and LUV and JBLU (also non Ch 11) compete with UAL and US Air on routes when the latter don't have to legally pay any bills, at least not right now?

Non Ch 11 Airline A versus Non Ch 11 Airline B, hey business is business, marketing, fare prices, etc, etc, fair is fair, may the best man win. However competing with Ch 11 who may be in it for the second or third time around? With ATSB money? Other welfare subsidies?

When will we see new entrants, with Airbus/737, at regional pay rates and NO PENSION, NO MEDICAL? Sh1t, that company should kick everyone elses azz...

I thought CAL was among the healthier of the majors? 7E7s, 737-800s, etc?

Where is Gordon when we need him?

What the he11 happened to this industry? I mean 9-11 had alot to do with it, but come on.....



....just some late night ranting....comments?

 

[mattpilot]

good thing i'm also learning how to fly helo's. They don't get paid 'that' bad. Did i tell you about the time my instructor got a 180$ tip from 2 lesbo's he took on a tour flight for an hour? :/

 

[minitour]

...a 180$ tip from 2 lesbo's...

screw the chandelles...when do we start training for that?

-mini

 

[KPTPK]

good thing i'm also learning how to fly helo's. They don't get paid 'that' bad. Did i tell you about the time my instructor got a 180$ tip from 2 lesbo's he took on a tour flight for an hour? :/

?????What does this have to do with CAL?????

 

[mattpilot]

?????What does this have to do with CAL?????

I'll tell you.....

Airline wages across the board going down to regional levels (as mentioned in the original post) .... Say top 80-110k/year soon? That reminded me of what helo pilots make - usually starts out at 30k/yr as an instructor and tops out at 80-100k/yr as a corporate guru. So i'm thinking that helo pilots will soon be paid the same amount as airline pilots (or the other way around, however you want to look at it ).

m'kay?

.
.
.

Alright.... i'll admit it.. i just wanted to add a lesbo comment. It really didn't have any relevence to CAL

 

[KPTPK]

I'll tell you.....

Airline wages across the board going down to regional levels (as mentioned in the original post) .... Say top 80-110k/year soon? That reminded me of what helo pilots make - usually starts out at 30k/yr as an instructor and tops out at 80-100k/yr as a corporate guru. So i'm thinking that helo pilots will soon be paid the same amount as airline pilots (or the other way around, however you want to look at it ).

m'kay?

.
.
.

Alright.... i'll admit it.. i just wanted to add a lesbo comment. It really didn't have any relevence to CAL

Much better....two women in the helo would be quite nice though. Did he partake in the festivities?

 

[minitour]

Much better....two women in the helo would be quite nice though. Did he partake in the festivities?

LMAO

Thanks!

 

[flipflyr]

.....

 

[FN FAL]

?????What does this have to do with CAL?????

Yea... REAAAAALLY? At least CAL has a "flow through" agreement!

 

[PropsForward]

good thing i'm also learning how to fly helo's. They don't get paid 'that' bad. Did i tell you about the time my instructor got a 180$ tip from 2 lesbo's he took on a tour flight for an hour? :/

Man, some people have all the luck... Got a friend a skydiving pilot gig, and on the first day of "work" he had a naked skydiver....