Legacy vs LCC

[kaisersose]

Ok, EXCEPT the ONE legacy that HASN'T taken pay cuts. TC

P.S.--But I'd like to see the disparity between CAL CA's and JB CA's come W-2 time...

We have taken cuts. Not as deep as some but too deep nonetheless. You can't take the rate of pay and figure what the W2 will be at CAL. It is too variable. For some you can take the rate of pay and multiply by 1000 and others you could add $50,000 to that and still be low. Just like the 150% at B6 there are ways to make more.

 

[Caveman]

Deleted

 

[cipolini]

The cost difference isn't in pilot pay. The hourly pay for JB, AT and the legacies are either the same of more for the LCC.

The difference is in infrastructure. None of the LCC's have multiple overhaul bases or multiple res centers. They don't have bloated middle management ranks, either.TC

Actually SWA has 6 res centers and 4 MX bases.

 

[Skyboss]

It suddenly occurred to me that our entire industry has been thrown into complete chaos because of the fear of half a dozen or so LCC's that collectively have less airplanes than any one legacy carrier? Why is that?

Because those planes have been placed on major trunk routes sucking the ever living life out of them and putting upward pressure on yields from smaller markets to improve the financial picture. You need small markets to make large markets sustainable with the pressure from LCC's. You jack up fares in small markets (which network carriers have had to do to offset losses on the trunk routes), people start driving, you then lose demand and spiral into a pit.

 

[FR8mastr]

Maybe it is "just desserts". At one point the legacy carriers crushed any start-up that dared to tread on their turf. Now the 800 lb gorilla legacys are running scared from the little guys. What goes around comes around.

They would do this by offering $49 fares out of the city in which the new carrier operated, this got the politicians in an uproar so they decided that doing so was not competetive and banned predatory pricing. Jump ahead 5 years and the wonder airlines do the exact same thing, and everyone thinks its great.

So the Majors cant compete against an airline with a fraction of the infrastructure of themselves so they need to consolodate. But no, they are not allowed to do this until very recently and it is very limited (so far).

True competition would demand no regulation and allow the carriers to do whatever they deem fit to survive. But they are not allowed as the result would be the demise, or at the very least, the pulling back of the wonder airlines.

Deregulate for real or re- regulate the airlines Either way you would find out what comes around

 

[kaisersose]

I often wonder what the difference is between the American and Vanguard anti competitive pricing on the DFW-MCI route of the 90's and and $25 introductory fares today. I guess they feel it's ok for the big guy to suffer but not the little guy.

 

[YourPilotFriend]

One thing is for sure in this business, someone can always do it cheaper. No airline is immune from the slide of this industry, and even the best carriers are soon to feel the hit. I might be wrong, by in my opinion, SWA will be taking pay cuts by 2008. It is inevitable in this industry, thats what this industry is, and anybody who thinks otherwise is fooling themselves.

 

[Take A]

pay comparisons

It isn't fair to compare pay between CAL and JetBlue. It is nice that JB pilots, with their overtime scheme, can bring in some big pay if they want to fly 90 hours a month. Some people would rather fly 40 hours with a 70 hour guarantee each month.

Not everybody wants to fly 90 hours a month

The good thing is that there is something for everyone out there.