Uh-Oh.... "Town Hall Meetings" at ASA

[CFI2766]

I'm as loyal a guy as can be, but my loyalty does have a price, and it's the wage I currently make, and no less.

I agree with this sentiment completely. I'm of the opinion that we are already not paid enough for what we do. Concessions should not be on the table for the pilot group at ASA.

(If we get to a point where concessions are necessary to survive, then let's ensure that it is a team effort. Lower pilot costs? Fine, but for every percent we lower our compensation, all of the other stakeholders take a hit as well. A percent from the pilots? Two percent reduction in the W2's of everyone in the GO with the title of 'manager'. [Afterall, management got us to the point where we are losing money, right?] Another percent from the pilots? Okay, two percent from Bombardier, the utility company, the owner of the GO, etc.; you get my point. Not realistic? Then no concessions from the pilots.)

That being said, I believe that there is not much that SkyWest can do about the situation, as the current rules of engagement allow. Frankly, Delta calls the shots on our existence. Angst towards SKYW, while somewhat gratifying, is probably misplaced.

 

[ACL65PILOT]

You know as well as I do that EV's compensation structure is based upon what is agreed upon with DAL.
Now in year three of the DCI contract, any savings that you realize go directly to the parent company, ie DAL. Everything is a pass though, so there is little incentive to save money.
The only tangible benefit is to lower your costs to be in the bottom two for the benchmark in your contract. It states that ASA will be one of the bottom two carriers based upon cost of all of the DCI portfolio carriers. Pretty difficult with MAG and CPS in that group.
CPS does not have the legacy costs associated with it, and even if you were paid the same you could not beat their costs per block hr. When I was over there, that is the one clause in your contract that sent shivers down my spine. In effect, totally unattainable unless you were to slash the Pilots and FA's contract. That is where DAL will have an open door to totally rewrite or cancel part of this contract.
Two years is about the correct amount of time to start pushing for this.

 

[USCtrojan]

You know as well as I do that EV's compensation structure is based upon what is agreed upon with DAL.
Now in year three of the DCI contract, any savings that you realize go directly to the parent company, ie DAL. Everything is a pass though, so there is little incentive to save money.
The only tangible benefit is to lower your costs to be in the bottom two for the benchmark in your contract. It states that ASA will be one of the bottom two carriers based upon cost of all of the DCI portfolio carriers. Pretty difficult with MAG and CPS in that group.
CPS does not have the legacy costs associated with it, and even if you were paid the same you could not beat their costs per block hr. When I was over there, that is the one clause in your contract that sent shivers down my spine. In effect, totally unattainable unless you were to slash the Pilots and FA's contract. That is where DAL will have an open door to totally rewrite or cancel part of this contract.
Two years is about the correct amount of time to start pushing for this.

If ASA is not the cheapest, they can meet those costs if Inc so chooses. Additionally, set up costs in ATL would skyrocket as well for anyone else taking over. BH has stated we are well on our way to becoming cost effective. I do believe him. There are still things that must happen, PBS is one of them.

Trojan

 

[ACL65PILOT]

Yes, you do have the option to match costs.

Gates in ATL are not part of the equation. It is apples to apples. DAL pays for the gates. It is the crew, and associated maintenance, and operating costs of the jets, as well as the overhead for the managers et al.

 

[CFI2766]

The only tangible benefit is to lower your costs to be in the bottom two for the benchmark in your contract. It states that ASA will be one of the bottom two carriers based upon cost of all of the DCI portfolio carriers. Pretty difficult with MAG and CPS in that group.
CPS does not have the legacy costs associated with it, and even if you were paid the same you could not beat their costs per block hr. When I was over there, that is the one clause in your contract that sent shivers down my spine. In effect, totally unattainable unless you were to slash the Pilots and FA's contract. That is where DAL will have an open door to totally rewrite or cancel part of this contract.

Concur. Pardon the metaphor, but this does have the potential to be the initial frontal passage of a perfect storm for the pilots at ASA. Inc. needs to make a profit to even be in the airline business. (With no profit, try this on for size: ASA sold back to DAL. Does anyone think that a good outcome for the pilots at ASA? Especially with what is happening at/to Comair?) The pilot group is and predictably will be highly resistant to a decrease in compensation or QOL. DAL frankly could care less about the employees of a separately owned subsidiary; costs are most important, followed at some distance by performance metrics. If push were to come to shove, who would win here?


However, what did you mean by 'push' for in two years?

 

[Speedtape]

Concur. Pardon the metaphor, but this does have the potential to be the initial frontal passage of a perfect storm for the pilots at ASA. Inc. needs to make a profit to even be in the airline business. (With no profit, try this on for size: ASA sold back to DAL. Does anyone think that a good outcome for the pilots at ASA? Especially with what is happening at/to Comair?) The pilot group is and predictably will be highly resistant to a decrease in compensation or QOL. DAL frankly could care less about the employees of a separately owned subsidiary; costs are most important, followed at some distance by performance metrics. If push were to come to shove, who would win here?


However, what did you mean by 'push' for in two years?

1. ASA does not report profits.
2. Inc. reports profits.
3. Inc. will still report a profit in the first quarter--4-7million.
4. ASA cancelled 750 more flights than usual in the first quarter--that is HUGE when considering profitability.
5. The majority of those flights were cancelled because of the MTC grounding. That should be a one time event that will have some affect on the 2nd quarter, but none after that.
6. Apparently, there were more WX cancellations this quarter, this year, than 1st quarter last year.
7. Although the 1st quarter profits are pale in comparison to year over, most of the contributing factors are one time events.
8. The results of the fee for departure reset will affect INC. by about $5 million per quarter(this is composite of the operations of Skywest and ASA flights flown for Delta each quarter.)

So, under normal conditions, instead of making $146 million a year, with no other changes, the profits will be reduced to $126 million a year. The contracts all but guarantee INC. a profit, based on revenues--all INC. has to do is perform to some level, and also mangage and maintain costs. The sky is not falling in the West or the Southeast. But, costs are a high priority and pilots need to get ready for the frontal assault!

 

[Dubya]

You guys all sound pretty smart and informed, and I tend to see most of the points made in this thread. The problem is you guys have wasted 4 pages in intelligent discourse and have wasted a perfect opportunity to remind us all that Mesa sucks.

So, get with the program already.


W

 

[crj567]

Damn,
I almost forgot-

MESA SUCKS!!!!!!!!!!!!!!

 

[ACL65PILOT]

Two year before the year five in ASA's DCI contract. Start the push for PBS and concessions now so that in two years when they need to meet the metric they can.

 

[79%N1]

Did anybody attend?

Any news since we have been speculating?