Ok 7yrs, my only point with the 10years is that I fear the company is going to ask for extraordinary things, such as the Eagle duration, in exchange for the outsourcing. I'm not arguing against the enhancement of scope, just that it is going to cost the pilot group to get it back.
If UAL saves $200 million/year by having Skywest and Republic fly 70 seat aircraft then its reasonable to assume that to recapture that flying will cost the pilot contract somewhere near $200 million. (numbers are purely hypothetical only management really knows)
For management a contract has a bottom line and that is all that matters to them. Scope is a major economic issue and when more than 55% of the flying is outsourced it's going to have a huge number associated with it. They don't care about career progression or any pilot's career.
I agree to an extent, but some cost items keep going missed. The cost savings is minimal, if any at all, the whipsaw is what is important to management. There are many other things to factor here:
1. A lot of regionals are paying at the higher end of the payscale due to minimal movement as of late. Newhires at mainline may actually be cheaper.
2. There is no need for a regional CEO and full management team at mainline. Huge cost savings there.
3. No need for a corporate structure, IE, rents, hangers, attorneys, accounting departments, HR departments, etc...
4. No corporate profit for the regional, it is kept at mainline. Compnies like Skywest and Republic are not buying airlines with found money. These monies are corporate profits that are doing this. Huge savings there.
If anyone thinks that the above costs are not being looked at by management in the current negotiations, you have a real awakening coming. These planes can be flown at mainline, economically and rightfully so.
Yogi