Blue Dude
Well-known member
- Joined
- Mar 28, 2003
- Posts
- 848
but what if it makes the company non-competitive?
Oh, GMAFB. Pilot pay/benefits is a fraction of overall costs, usually about 10% of the total. In major airline terms, it's somewhat less than one cent of CASM. Given that airline CASMs vary a lot more than one cent from airline to airline, it's easy make the case that pilot pay can never be the determining factor in whether or not an airline is cost competitive. You could have double the pilot cost of your competitors and still other factors would swamp the difference. Pilot costs are a factor in competitive cost structures, but they are never make-or-break items. They're just too small for that. Pilots could work for free and only swing costs about 10%.
It is management's job to periodically make the case to the contrary, such as during an economic downturn, force majeure, or other extraordinary circumstance, when every one-hundredth of a penny of CASM might count. Maybe it's true that an all-hands-on-deck attitude might save the company. But it's far more often true that they're just trying to compensate for their own bad decisions and pilot pay is an easy target. They simply over-inflate the pilot's influence on the organization, and make them feel guilty for being paid so much for the job they're doing - the evil twin of "I can't believe they pay me to do this!". But the day-to-day decisions they make - their real job - has a far higher influence on CASM than the cost of pilots. I can't believe you don't realize this already.