Re: where did I go wrong?
publisher said:
Enigma.
The part to the equation that has been left out is the paying customer. They have shown a major reluctance to pay what needs to be paid to support the infrastructure of the large carriers.
I'm a little lost here, I have been offering an explanation based upon proven marketplace economics, market economics means (by definition) that the marketplace will determine the allocation of assets/services. Now you try to say that the paying pax has been left out of the equation; heck, what do you think the market is? I've said before, I think that you are talking micro and I'm talking macro.
I've tried to say this before, but apparently unsuccessfully, so I'll try again. In an unregulated environment, with no bars to the entry of new competitors, ( the free market) supply and demand will determine price. The example that I have used repeatedly is AirTran and DAL. AirTran recognized a demand (lower fares) and offered a product to supply that demand. DAL with its high cost structure can't offer the same product. (and frankly, I'm not totally sure that they want to.) That's the free market. The customer drives everything.
Now, on to how that affects us. DAL's high costs don't allow for it to service the lower end of the available seat market. Airtrans costs do. Even though the DALALPA has a contract that is an effective barrier to entry to any pilot competitors (ALPA has a legal monopoly on pilots for DAL), they can't control the supply of pilots to DAL's competition, Airtran. AirTran has accessed the pool of labor that will work for less and is able to keep its costs lower. Eventually DAL will shrink, (it's already happening) while the lower cost carriers will expand. The total available seat market will probably expand because there are some pax who demand first class service instead of low costs, but the carrier who supplies the product demanded by the largest segment of the market will be the largest. And the pilot who provides his service at the market price will not make very much, until he no longer has any competition for the job. Then he will raise his price until the reward entices new entrants into the job market. Once that equilibrium point is reached, the free market will have determined (without governmental intervention) the most efficient allocation of assets. I am not arguing for a job market manipulated by the union scale, I am arguing for a job market that is not artificially depressed by the continued entrance of uninformed/mislead wannabees.
What I continue to attempt to accomplish is, to make new entrants into the pilot market aware that their desire to work for nothing in order to reach the big money is specifically undercutting their ultimate opportunity to ever get any big money because they are driving the pilot wage market down.
I've suffered too many interuptions for this to flow well, sorry.
On to some of your specific comments. You said, "The next thing you know we are paying a telephone receptionist $30k per year when the fact is that the task is a $14000 a year job and we could get people all day to fill the job." To which I say: you are attempting to spin the debate. We are not talking about an industry where the people at the bottom are working for what the job is worth. The pilots at the bottom of this industry are working for far less in hopes of attaining the top. I'll bet you twenty bucks and will come see you in Lauderdale to deliver it, if you can find a secretary who will work for $7000 a year and pay you $10K for the opportunity to work in your presence for a few years so that he/she can gain that valuable selectric time that he needs to move on to his/her dream job. You are attempting to look at the wannabee pilots in the light of normal job applicants and they are not. They are dreamers, who in large, don't know much about the inside of the industry. Except for what they read in the propaganda press, I didn't say his name

I'll bet another twenty that the willingness to work for almost nothing would evaporate if there was an economic law stating that you could never make more than triple your entry level wage. Simply, these people work for nothing in anticipation of a future reward. Apply that circumstance to your secretarial situation and see what happens.
Next, you wrote, "The guys on top you refer to know that factor and know that they benefit from the new people not having the votes. In life, the last guy on the train rarely cares if the guy behind him makes it." I'm beating my head against the wall here my friend. Your example quit having validity in 1979. Those new people do have votes. They can go to work for another carrier, and they are. Refer to my DAL/AirTran example. Only within the rank and file does your example hold water and it's an insult to a whole lot of senior union members who do attempt to maintain the profession for those who are yet to come. For example, I'll bet that the UALMEC will negotiate a "free" return from furlough policy for all furloughees. They will ensure that all who were on the seniority list before the furlough will be recalled, even those who "resigned" to take another job. Sort of like when they demanded and obtained the rehire of the newhires who refused to cross the picketlines in their last strike. (mid 80's if memory serves)
Finally, I don't want to put everyone at the bottom of the pay scale on the top. I just want the bottom guys to stop dragging the pay scale down because they are in a hurry to get to the top. You state that the senior pilots rarely care about the junior pilots.
I believe that it is the junior pilots who don't care. Speaking broadly of course, because I know many who do care. Most wannabees don't seem to mind stepping all over others on their way up. I remember numerous posts made by pilots who defended their PFT decision because the only thing that mattered to them was how quick they got to a major. I know that you want to attract the best and the brightest, but if you get what seems to be your wish, (busted unions) the best and brightest won't even come close to this industry. Why would the best and brightest want to enter an industry where they possess no control over their own lives? I guarantee you that in absence of union rules, management would have every pilot sitting at the airport for 18 hours a day seven days a week. There would be no guarateed days off, no ability to bid for your schedule, etc. I have worked for a nonunion 121 operator and they treated us just like they treated the airplanes, as if we were at their beck and call 24/7.
later
8N , editing will most likely be required
