llowwelll
Well-known member
- Joined
- Apr 5, 2002
- Posts
- 81
I am trying to make some important career decisions right now and one of the important and hard-to-predict variables that goes into those decisions is what the airline industry is going to become. I'd like to bounce my theory off of you all as to what is going to happen to see whether or not I'm out to lunch on this issue.
Here's my theory. The rise of the low-cost-carriers (LCC's) like SWA and JetBlue and to a lesser extent, the regional airlines, will force the former major airlines (UAL, DAL, American, etc) to contract and begin to fall by the wayside. The major airlines cannot and will not be able to compete domestically with the LCC's and such due to the disparity in cost efficiencies and debt load between them and the LCC's. Along with this, we will no longer see extremely high ($200K or more per year) pilot salaries for pilots with advanced seniority. Pay scales will more closely align themselves with the likes of the LCC's (which aren't bad at all...they just aren't REALLY high the way they are today for say a 30-year Delta captain). Pilot salaries will still be good but will be lower on average in the future than they are today. No airline will be able to afford to pay pilots so much anymore and stay competitive. I think that the LCC model for running an airline will become predominant and that the majors of today will either adapt themselves to niche roles like international routes, conform themselves to a LCC model at great cost, or simply go bankrupt. Maybe one or two will survive. As a result, hiring for the majors of today is probably many years off (at least five) but hiring for the LCC's will continue at a slow pace for now and pick up steam as the economy recovers over the next several years.
Again, I'm certainly no expert, I may be entirely out to lunch on this whole thing and I really hope I'm wrong but that's what I'm conjecturing right now and basing career decisions on. Please let me know what you all think.
Here's my theory. The rise of the low-cost-carriers (LCC's) like SWA and JetBlue and to a lesser extent, the regional airlines, will force the former major airlines (UAL, DAL, American, etc) to contract and begin to fall by the wayside. The major airlines cannot and will not be able to compete domestically with the LCC's and such due to the disparity in cost efficiencies and debt load between them and the LCC's. Along with this, we will no longer see extremely high ($200K or more per year) pilot salaries for pilots with advanced seniority. Pay scales will more closely align themselves with the likes of the LCC's (which aren't bad at all...they just aren't REALLY high the way they are today for say a 30-year Delta captain). Pilot salaries will still be good but will be lower on average in the future than they are today. No airline will be able to afford to pay pilots so much anymore and stay competitive. I think that the LCC model for running an airline will become predominant and that the majors of today will either adapt themselves to niche roles like international routes, conform themselves to a LCC model at great cost, or simply go bankrupt. Maybe one or two will survive. As a result, hiring for the majors of today is probably many years off (at least five) but hiring for the LCC's will continue at a slow pace for now and pick up steam as the economy recovers over the next several years.
Again, I'm certainly no expert, I may be entirely out to lunch on this whole thing and I really hope I'm wrong but that's what I'm conjecturing right now and basing career decisions on. Please let me know what you all think.