The Perfect STORM: Oil Gets Above $49 - Not Good....

[miles otoole]

It's funny how the airline industry works. It's a shame that us pilots are not paid as well as representatives at drug companies. That industry is flourishing right now and they are charging people an arm and a leg for their products. The drug industry and airline industry are two different things now, but are people who walk into doctor's offices and drop off samples really worth like 80,000 a year? We pilots have lots of responsibility and should be paid accordingly.

I'd like to know where the 80,000 dollar a year drug rep jobs are. Much like all the airline pilots making 250,000 a year.

 

[jobear]

I'd like to know where the 80,000 dollar a year drug rep jobs are. .

Selling Viagra at Baptist Conventions, yup that's how I made my first million.

 

[canyonblue]

I'd like to know where the 80,000 dollar a year drug rep jobs are. Much like all the airline pilots making 250,000 a year.

I read about it in my latest copy of Drugs Inc.

Apparently there is an upcoming sales rep shortage and I am thinking of getting in to this so I can get rich. The brochure said to call:

Drug Inc.

Dr. Dit Karby

 

[drag]

The gov't envolvement consists of multiple factors. The major airline network needs to be consolidated just like the old steel and auto industry, current drug industry, media industry, telecom industry, banking industry, oil/gas industry, computer industry, and retail industry...just to name a few. Natural market forces.

However, the airlines seem to be excused from this natural progression. UAL/AWA, UAL/UAIR, AMR/UAIR, NWA/CAL, CAL/DAL are all examples of recent attempts. Gov't then FORCES UAL/AA to give up slots at ORD, only to then be filled in by FLYI......more RJ's to ORD. Non-perimeter slot giveaways at DCA to Frontier, AWA, and Alaska. Special gov't privledge at LGA to multiple LCC's. ATA, AWA, and F9 get gov't loans but not UAL. If not for these gov't loans, AWA and ATA would be gone. ATA still has one foot in the grave. AWA has junked transcon fairs out of LAX and SFO......thanks to gov't.

This "artificial" environment has now created an uncapitalistic and unamerican situation. This fake world has destroyed pricing control. It has also produced a fake haven for LCC's. Oil doubles and fares go down??? Let the markets dictate the industry or fully regulate it.

 

[Immelman]

About LCCs/hedges: Anyone know how LONG they (JB, SWA) are hedged for? A hedge, like a stock option, is only good for so long. Sure, you can buy multiple hedge contracts at expiration dates years in advance, but you can only do so for so long (and it only makes financial sense to hedge for so long - a longer term contract introduces higher volatility, and therefore a greater price to buy the contract).

The point of my question: if fuel stays high, it will catch up with LCCs. Does that mean SWA & JB start going for concessions? Does it mean they (and therefore the majors) finally raise fares? Even as a consumer (not an airline pilot) I would hope for the latter.

 

[HA25]

About LCCs/hedges: Anyone know how LONG they (JB, SWA) are hedged for? A hedge, like a stock option, is only good for so long. Sure, you can buy multiple hedge contracts at expiration dates years in advance, but you can only do so for so long (and it only makes financial sense to hedge for so long - a longer term contract introduces higher volatility, and therefore a greater price to buy the contract).

The point of my question: if fuel stays high, it will catch up with LCCs. Does that mean SWA & JB start going for concessions? Does it mean they (and therefore the majors) finally raise fares? Even as a consumer (not an airline pilot) I would hope for the latter.

Fuel costs area already killing SWA's profits... Hedges are temporary like you said.

As for $80,000 drug sales reps.... that's just the bottom of the wage scale. An HS friend of mine living in Dallas with a BA in Biology works for Bristol Meyers and makes over $130,000!

 

[canyonblue]

Special gov't privledge at LGA to multiple LCC's.

You forgot the special Government privilege to SWA at Love Field.

 

[LAZYB]

The Southwest Wing

As for Southwest Airlines, we are more than 80
percent hedged for 2004, a tactic that is expected
to result in offsetting savings of roughly $350
million at current market prices. In addition, we
are approximately 80 percent hedged for 2005. In
the first quarter of 2004, Southwest claimed $63
million in “hedging gains.” Had we not hedged,
we would have failed to report a profit in the first
quarter and, instead, would have realized a net
loss of $8 million.

- AND -

The Company utilizes financial derivative instruments for both short-term and long-term time frames when it appears the Company can take advantage of market conditions. The Company currently has a mixture of purchased call options, collar structures, and fixed price swap agreements in place to hedge over 80 percent of its remaining 2004 total anticipated jet fuel requirements that effectively cap crude oil-equivalent prices under $24 per barrel. The Company is also 80 percent hedged for 2005 with prices capped at approximately $25 per barrel, and approximately 45 percent hedged for 2006 with prices capped at approximately $28 per barrel. As of June 30, 2004, the majority of the Company's remaining 2004 hedges are effectively heating oil-based. Beyond 2004, the majority of the hedge positions are crude oil-based.

 

[miles otoole]

Fuel costs area already killing SWA's profits... Hedges are temporary like you said.

As for $80,000 drug sales reps.... that's just the bottom of the wage scale. An HS friend of mine living in Dallas with a BA in Biology works for Bristol Meyers and makes over $130,000!

WN has most of its fuel hedged through 2005. Not sure where you get they are killing profits. 80 K-bottom of wage scale? Don't think so.

 

[rgd]

80,000 dollars a year is not the low end for a drug rep. 45k to 55k is a good beginning salary for a primary care drug rep. 80k is going to be seen be a hospital or specialty rep. Now, as far as total compensation goes, you do have to throw in the fact they the drug companies pay you a car allowance or provide you with a car and insurance. You also get bonused anywhere from 15k to 40k a year IF you meet your sales goals on top of your salary. If you are in the top 10% of sales in your company, you usually win a nice trip for a week to Cabo, Carribean, Hawaii, etc...The biggest problem I see most pilots would have in this profession is that most do not have the skill set (outgoing, personable, sales experience, proven track record of success in sales, previous pharma experience and so on) to be competitive in the job market. As far as a rep shortage, that is about as likely as a pilot shortage. People are cheap now and you can throw a rock and hit 5 good ones that need a sales job and are experienced. If you wondering how I know this, I own two medical companies and have a sales force of 12 people, 3 of which are former pharma reps that couldn't find a new pharma position. Also, my wife has been a speciality rep in the pharma industry for 8 years, (at one time at Squibb). I don't mean to stomp on your idea, by all means its a great job and great benefits and the best schedule you could imagine, so I would definitely encourage you to try to get into the industry if you can. I often tell my pharma friends that they have the life now that pilots use to.