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Old 07-25-2023, 07:35 PM
  #701  
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Originally Posted by OTZeagle1
Economies of scale play a major role in viability and the sustainability of costs. Scale alone creates synergies and the vastness of the network and mileage plan allows for a significant number of points for those cost pressures to be alleviated and consumed.

Going forward in the current market though, I don’t see Alaska being able keep cost discipline with its pilots as the current market will not allow it. They will have to pay market rates to attract and keep this workgroup.
This management group has been habituated to treat the pilot group poorly when it suits them. They have gotten away with it for so long that they can't stop. Now that the market no longer supports this learned behavior, they have failed to change their behavior. They refuse to adapt. I do not see this changing anytime soon. There will be a lot more attrition to come because of the refusal of management to adapt to the new pilot supply dynamic and it will hurt the airline badly in the long run.
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Old 07-25-2023, 08:27 PM
  #702  
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Attrition again?


In my 12 yrs, I’m at 37%. Go count retirement # at AS for the next 10 yrs. What do you think a newhire would be at in the next 10 yrs?

Another question, why would anyone with a 30-45+ career want to come and limit themselves to 5 west coast bases and the 737MAX the rest of their lives?

Let’s not pretend Delta wage or even Delta + 1% is going to stem attrition. Those who want more than 5 bases, 737s, and slow retirements are going to leave regardless. The honest reality is, the angry vocal APC crowd are the ones who are too senior to leave, don’t have resumes out to anyone, and hate the Eskimo tail. They want Delta +1 for themselves, as their career consolation prize. NOT because they want AS to be prosperous and stem attrition.
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Old 07-25-2023, 08:30 PM
  #703  
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Originally Posted by ShyGuy
Let’s not pretend Delta wage or even Delta + 1% is going to stem attrition.
Pure speculation on your part. And we know that your predictive powers are just awful.

We have no idea what the money threshold is to curb attrition. We don't know because it's never been tried at Alaska. What we do know that -10% is not working very well. -13% next year will work even worse.
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Old 07-25-2023, 08:39 PM
  #704  
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Originally Posted by ReluctantEskimo
Pure speculation on your part. And we know that your predictive powers are just awful.

We have no idea what the money threshold is to curb attrition. We don't know because it's never been tried at Alaska. What we do know that -10% is not working very well. -13% next year will work even worse.

Say you’re a 25 yr old newhire at AS, about #3450 on the list, living in LA. Why would you stay?


Pay isn’t going to stop a guy who wants something more than 5 west coast only bases, 737s, and slow retirements the rest of his career.
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Old 07-25-2023, 08:45 PM
  #705  
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Originally Posted by ShyGuy
Say you’re a 25 yr old newhire at AS, about #3450 on the list, living in LA. Why would you stay?


Pay isn’t going to stop a guy who wants something more than 5 west coast only bases, 737s, and slow retirements the rest of his career.
It's never as clear cut as that. Say you like Alaska, but you're on the fence about going. People can be convinced to stay. As of right now, there is very little convincing happening.
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Old 07-25-2023, 08:57 PM
  #706  
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Well, how about a litmus test? If attrition is truly an issue they are concerned about, what do you think will happen:


$318 on Sept 1 and staying that way for 12 months.

or

Mgt approaches the union after Sept 1, they take the new big 5 wages and divide it by 5, tell the union this is the new average, make that 12 yr rate, and slope it accordingly.


Which scenario do you see playing out?
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Old 07-25-2023, 09:49 PM
  #707  
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Originally Posted by ShyGuy
Well, how about a litmus test? If attrition is truly an issue they are concerned about, what do you think will happen:


$318 on Sept 1 and staying that way for 12 months.

or

Mgt approaches the union after Sept 1, they take the new big 5 wages and divide it by 5, tell the union this is the new average, make that 12 yr rate, and slope it accordingly.


Which scenario do you see playing out?
I think it's 50/50. Part of me thinks that they'll take the self-inflicted injury the pilots made by signing such a weak snap all the way to the bank. The other agrees with OTZ, they have to do something.

If I had to make a guess, it'll be a middle ground. Because it will be a gracious extra contract gift, management can do whatever they want. It will be something like $330. A middle ground. We'll match Jetblue, but we won't catch the big 3 at $360. That way ALPA can save face, the company can still get their discount, and everyone is grateful that the company bailed the pilots out from themselves.

That's my prediction.
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Old 07-26-2023, 08:28 AM
  #708  
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Originally Posted by ShyGuy
Well, how about a litmus test? If attrition is truly an issue they are concerned about, what do you think will happen:


$318 on Sept 1 and staying that way for 12 months.

or

Mgt approaches the union after Sept 1, they take the new big 5 wages and divide it by 5, tell the union this is the new average, make that 12 yr rate, and slope it accordingly.


Which scenario do you see playing out?
After listening to the investor call $318 seems likely. Costs were a big focus.
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Old 07-26-2023, 09:22 AM
  #709  
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Originally Posted by clearandcold
After listening to the investor call $318 seems likely. Costs were a big focus.
yeah no way we are getting any early raise but with others congrats going till 2027 management can’t afford to drag negations out 3 years like last time. We would be so incredibly far behind if they did that, that nobody would come here.
I think we get a new contract late 2025 early 26

if not recruiting is gonna be a reaaaalll problem
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Old 07-26-2023, 09:28 AM
  #710  
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Fair enough. I’d say I’d agree on that 50/50, it could go either way.

Wild card is age 67 if that passes, that could slow things a couple of years. That will take us to the second half of this decade where the retirements start mellowing out industry wide.
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