United News

[iflyjetz]

46Driver, Busdriver and myself are out on furlough. When I return at second year pay rates (let's say it's 2007; I'm trying to be optomistic), I will make $56.26/hr under the new contract. I'll probably just continue to suck up man days in the reserves for quite a while rather than return immediately. On the TOP end of the pay scale, we have a few that are just barely making $200k/yr (777 & 400 captains), but in order to do that, they've got to put in 986 credit hrs/yr. Not exactly the life of Riley. Pilot salaries have been grossly overstated by the public; it's incredible that an actual pilot would do the same. I suggest that you have one of your furloughed UAL buddies go to alpa.org and download the new salary structure for you.
As for the RJ, high rev business travelers hate them because they're uncomfortable in the back. Better than a prop job, but when RJs get added to routes that are flown by 737s, business travelers will always pick the 737. Nothing against you or the RJ, but it's frickin' uncomfortable in the back.
I can't find anywhere in this thread where either Busdriver or ZMan wished a furlough on you or any other ACA pilot. They were both stating their view of ACA's future, much as you stated your view of UAL and U's future. Quit being a drama queen.
I notice that you bust Mesa's chops over their poor quality product. Have you taken the time to compare ACA's performance with Mesa's? Pot, meet kettle.
You seem to be counting on a lot of cities coughing up money to set up a travel bank to subsidize your operations. News Flash! States, cities, and municipalities are currently facing budget shortfalls. The difference is that they have to balance their budgets. And you're expecting extra money from them? Good luck.

Don't be surprised to see TED shadow ACA's routes if ACA starts independent service. Yeah, UAL will lose money on those routes, but only until ACA's toast. If you were a passenger, would you rather fly on a UAL A319 (with frequent flyer perks) or on an ACA RJ? Yes, I know that your management is eyeing 737s and Airbuses, but what is ACA's capitalization? How long do you think that ACA can handle heavy losses?

 

[atabuy]

iflyjetz,
I was under the impression Ual contracts the rj'a for a certain price and all the revenue goes to Ual from the sale of the tickets.

It is harder to figure a cost per mile for a feeder. Since aca makes money on the contract, and Ual has to reach a break even point of so many passengers on each plane before they are above costs.

Pax's might not like the rj's but costs are what put them in business. They can afford to pay these pilots a lot easier than it is to pay the major's pilots.

That is why you and so many of your buddies are on the street right now. Ual could not afford your wages, even though they have been reduced.
Since 911 rj's have increased seats while all the large airlines have reduced capacity.

I never thought our wages were too high. Fares are way too low today, and that is why pax will fly in an rj.

Regulation wasn't the best, but it did keep the services up. Nice leg room and great food.
With this drive toward Lcc's, sardines would bee-itch about the room they have in their seat.

When the seats are less than the demand, even the lcc will up their prices.

Just my thoughts.

 

[Busdrvr]

"was under the impression Ual contracts the rj'a for a certain price and all the revenue goes to Ual from the sale of the tickets."

"It is harder to figure a cost per mile for a feeder. Since aca makes money on the contract, and Ual has to reach a break even point of so many passengers on each plane before they are above costs."

Ual Does pay a fee for departure. Currently, that averages just north of $2900. Cost is EASY to figure out. You take total cost and divide by ASM's. Or you can just pull the number straight out of the 10Q. We don't contract RJ's because they are CHEAPER per ASM, quite the contrary, they are MUCH more expensive. here's why we throw out the RJ's

Lets say you serve a small city. That city typically has 40 customers that pay around 20 cents per RPM so that they can get to business destinations, or onto international flights. Now lets say the same city has 50 pax per day who will only fly on the internet special 2 cents per RPM ticket. Do you load a 737 up, at a LOWER CASM, or do you throw an RJ on thinking you can fly "just' the 40 big spenders? The RJ has a LOWER total cost to operate, but a HIGHER CASM. Now where the ACA guys are fooling themselves is in the belief that they will attract the 40 high yield guys. Won't happen. No feed to Europe. another problem with the east coast is the fairly high concentration of population centers. You may not be willing to drive from Colorado Springs to Kansas City for a lower fare, but you WOULD drive SAV to CAE or CAE to CLT. That gives a carrier like SWA a HUGE advantage over ACA when the "premium" traffic is gone. Spheres of influence.....

 

[atabuy]

Lets say you serve a small city. That city typically has 40 customers that pay around 20 cents per RPM so that they can get to business destinations, or onto international flights. Now lets say the same city has 50 pax per day who will only fly on the internet special 2 cents per RPM ticket. Do you load a 737 up, at a LOWER CASM, or do you throw an RJ on thinking you can fly "just' the 40 big spenders? The RJ has a LOWER total cost to operate, but a HIGHER CASM. Now where the ACA guys are fooling themselves is in the belief that they will attract the 40 high yield guys. Won't happen. No feed to Europe. another problem with the east coast is the fairly high concentration of population centers. You may not be willing to drive from Colorado Springs to Kansas City for a lower fare, but you WOULD drive SAV to CAE or CAE to CLT. That gives a carrier like SWA a HUGE advantage over ACA when the "premium" traffic is gone. Spheres of influence.....

Busdrvr,
Maybe the airline is more interested in the high yield than the internet traveler. High yield is what the airlines were always about and they have a hard time changing.

To attract a high yield pax they are willing to feed them from remote destinations.
If you fill the rj it only cost the airline 58 dollars to get them to the hub. Probably less than advertising per pax.

The rj is no less comfortable than a plane that has 25 seats added to it.
Props suck but the jets are a little better.
Point A to B

 

[Bizman]

Just ask Midway. And they weren't even competing against U, UAL, and SWA who all have hubs in the IAD metro area.

Midway didn't have to compete against any of them. They had Robert Furguson runiing the airline. He did enough damage on his own. Remember, he was the one who pulled CAL out of Den to make "more money" at a new hub in GSO. Everyone knew when he became the CEO of Midway it was only a matter of time.