FWA,
in your attempts to argue how poorly compensated DL employees are, you failed to properly interpret the data you even cite.
Negative, WT. I wasn't arguing that DL employes are poorly compensated. I was merely observing that FA pay at AA has exceeded FA pay at most of the legacy peers for most of the past several years.
First, all of the statistics clerarly show that DL is above average in productivity for a network airline... despite all of your and others attempts to argue that DL employees are low-paid, the statistics actually show that they have low costs BECAUSE they are productive.
I don't understand this paragraph. Yes, DL's FAs are more productive than AA's FAs, leading to a huge cost advantage for DL. Doesn't change the fact that AA's FAs have much higher average W-2 wages than DL FAs. My observation was not about DL's costs; it was that AA's FAs have enjoyed higher average pay than most of the legacy peer FAs. And yes, the lack of productivity at AA increases AA's costs dramatically.
Second, you point out DL FA's average salary in the statistics while failing to notice that DL benefit costs are just a fraction lower than AA's - which are the highest in the industry. When you combine DL average benefit costs and FA salaries, you will see that DL FAs are actually the 2nd highest compensated in the network industry - and nearly identical to WN's labor costs.
No, DL's average mainline per-employee benefit costs are substantially less than AA's average mainline per-employee benefit costs. Bob Herbst does not report the average benefit costs per flight attendant (unless I missed it somewhere). Perhaps you have it? Bottom line: For the past several years, DL's FAs have had substantially lower annual wages and DL employees have lower per-employee benefit costs, meaning that DL's FAs have had substantially lower total compensation than AA's FAs.
You will also notice that if you take CO's FA costs and average employee benefit costs that CO FAs are not the 2nd highest paid at all - which is not surprising because as I have noted, CO doesn't pay the reitrement or healthcare benefits of the network carriers because CO is a much younger airline.
Without data for the average CO FA's benefit expenses, there's no way to tell. CO's W-2 wages are comparable to AA's FA's W-2 wages.
You probably also missed the statistic that shows that DL has the highest benefit to salary ratio in the network industry.
Nope, but it's irrelevant to my observation that AA's FAs make more money, on average, than DL FAs.
You will also note that DL has the lowest percentage of management costs of any of the network airlines - and there is absolutely truth to those that argue that AA's management costs are WELL above average.
But again, part of the reason why DL's labor costs are lower is because they are growing.... you attempt to argue that other airlines' employees are low paid because the average compensation is lower than AA's - while failing to note that DL is hiring 1000 FAs this year while AA has many still on furlough.
My observation about FA pay was over the last few years. Excluding the ones you're hiring this year, how many FAs did DL hire off the street from 2003-2010?
Again, average employee costs keep going up when no one is being added to the payroll and the existing employees just keep moving up the payscale.
When you look at all fo the statistics together - average salary AND benefits as well as growth rates, number of hires and furloughs, and productivity - then it becomes alot easier to see the picture for what it is - AA has a senior workforce with low productivity and the company is being driven by solely incremental benefits in cost while other carriers are seeing costs down through hiring new employees and growing new revenue streams.
Yes, AA has a relatively senior, mostly topped-out workforce and has not hired off the street for almost a decade. That will cause average compensation to climb.