CapnVegetto
The Prince of all Saiyans
- Joined
- Mar 24, 2005
- Posts
- 1,981
Ah! FI, where if you don't like a response, you resort to name calling. Such a wonderful tradition. With Internet, if you are $26 RT over a competitor, your competitor gets the fare. And there is always a marginal flyer who will elect not to fly for a $26 raise. BTW I got $500 bonus once in a record year about 9 years ago. With the bonus I made less than most of Captains with my seniority. BTW This is repeat but if fits here. This is a pilot board so saying anything in defense of management is like peeing into the wind, that is, it is going to come back to you. CEO's are not intentionally running airlines into the ground. They would very much like to succeed. For lack of other reason it would make their resume look great, they would be doing something no other CEO had ever done. Top management includes many besides the CEO, the CEO sets direction as requested by the board. The CEO has little control over the airline, the airline is run by regulation and union contracts. They are at the mercy of the purchasing public, who with Internet access has made the airline ticket a perfectly elastic commodity. There is little they can do inside their structure. Other high paid top management personnel, in Operations, Maintenance. Marketing, Legal, Finance, etc. have unique skills in dealing with large organizations. This makes them marketable when shopping for a job, unlike pilots whose skills are nearly universal. Now I will agree that CEO leadership in many cases leaves much to be desired. An issue of ATW in 2002 had an article about "Airline Management a dying breed", the article basically said no one wants to do it. The good track record CEO’s are going to other industries. With tremendous, payrolls, overhead burdens, and extremely low margins, there is no tried and true path to success. Most have tried to increase market share, but this has lead to low price and ridiculous breakeven load factors in 95% range. The consumer with internet ticket price access seeking the lowest fare, drives management to always seek lower costs to stay competitive. What is management supposed to do? Eliminating management will bring the end quicker for the airplane industry, and their salaries are insignificant to the airlines operating costs. Without management you could not operate the airline, The FAA would shut it down without approved Part 119 key management. Would the pilots step up and become management for free in their spare time? Why is every time, pilot salaries come up, they are immediately compared to top management. I saw an article in ATW in 2001 that stated at DAL there were 17 members of top management made more than the top DAL Captain. The combined top 17 salaries equaled less than 1/6 of 1% of the combined pilot salaries. If management worked for free all pilots in the company would get a 1/10 of 1% raise. (for a $100K per year pilot that would be $3/wk increase in take home) Boy that raise would really make the pilot group happy. Top management possesses skills that allow them to move from job to job and command high salaries. And every one of these managers wants to see his/her airline prosper. They just can not do it.
Perhaps I should have been clearer, but that post was not directed straight at you. After rereading it I realized that it came off that way, and that's not what I meant. However, back to what's at hand. Let's go down your post.....
Eliminating management will bring the end quicker for the airplane industry, and their salaries are insignificant to the airlines operating costs. Without management you could not operate the airline, The FAA would shut it down without approved Part 119 key management."
Um.....this is crap. Do you mean to tell me that part 119 of the FAR's REQUIRES that much management? I don't think so. Tons of middle little crap positions could be eliminated that upper management created for their buddies.
Why is every time, pilot salaries come up, they are immediately compared to top management. I saw an article in ATW in 2001 that stated at DAL there were 17 members of top management made more than the top DAL Captain. The combined top 17 salaries equaled less than 1/6 of 1% of the combined pilot salaries. If management worked for free all pilots in the company would get a 1/10 of 1% raise. (for a $100K per year pilot that would be $3/wk increase in take home)"
This is the biggest pile of bull$hit I've ever seen. Whenever management spews crap like this it makes me want to puke. This is true of the BASE SALARY ONLY. What about bonuses? Stock Options? Perks? Benefits? Retirement? Golden Parachute? Please stop with this stupid pathetic attempt at disinformation. We are not idiots. We can read. Larry Kellner at CAL made over $20 million bucks last year in salary and BONUSES, and we're not even getting into the perks and the insane amount of money that the company is required to contribute to his retirement. Glenn Tilton at UAL made even more, and he is widely regarded as the biggest idiot in airline managment today. What about company cars? Insurance? Paid airport parking? Travel allowance? There's more money that's not even included in the reported compensation AFTER BONUSES. What about all these perks that the middle managers get? How much is paid out in bonuses to all management at large companies? Don't compare a crummy little freight operation in Detroit to a billion dollar legacy carrier. I'm happy you got a $500 bonus. But stop comparing apples to oranges and expecting me to care.
The CEO has little control over the airline, the airline is run by regulation and union contracts. They are at the mercy of the purchasing public, who with Internet access has made the airline ticket a perfectly elastic commodity. There is little they can do inside their structure. Other high paid top management personnel, in Operations, Maintenance. Marketing, Legal, Finance, etc. have unique skills in dealing with large organizations. This makes them marketable when shopping for a job, unlike pilots whose skills are nearly universal. Now I will agree that CEO leadership in many cases leaves much to be desired. An issue of ATW in 2002 had an article about "Airline Management a dying breed", the article basically said no one wants to do it. The good track record CEO’s are going to other industries. With tremendous, payrolls, overhead burdens, and extremely low margins, there is no tried and true path to success. Most have tried to increase market share, but this has lead to low price and ridiculous breakeven load factors in 95% range. The consumer with internet ticket price access seeking the lowest fare, drives management to always seek lower costs to stay competitive. What is management supposed to do?
So basically what you're telling me is that multiple CEO's of multiple airlines have been trying to do the SAME FCKING THING for a large number of years and IT IS STILL NOT WORKING. Has anyone TRIED raising fares a small amount to offset increased costs? Is there documented proof of this? Nope. Every manager has done the same thing over and over and over and over. Piss all over the labor, squeeze them till they break, and keep the breakeven load factor at 95%. Don't bother trying to offset costs with surcharges, fees, increased fares. The example you gave earlier from SWA was stupid. It's stupid to more than double a fare, but it's not stupid to raise it a small amount at a time. It's not stupid to tack on a small surcharge. You say it won't work? It'll drive customers away? Who gives a $HIT??? Nobody knows!!! There is NOTHING to substantiate this other than some overpaid statistician consultant that is trying to ACT like he knows. There is NO REAL WORLD DATA. Nobody has the balls to try it. What the hell do they have to lose? They are losing BILLIONS, on the verge of bankruptcy. For the love of God, it's time to try something new. The same old crap that you just spewed out isn't working, hasn't been working, and will continue to not work, and everybody knows it. You say people automatically click on the lowest fare on the internet, I say they don't. Fact is neither one of us knows the truth, we just know what WE'D do. There's only one way to find out. You can't prove that I'm wrong. Nobody can. But I can damn sure prove that YOUR management technique sucks. Look at the balance sheet of every legacy airline. There's my proof.