Reactivity

Well, good for them. But is it really an apt comparison? Are we sure Eastern is actually an ACMI company?

They seem to be a charter passenger carrier that used to do scheduled passenger service, some on an ACMI basis, and announced in 2021 the intention to put 35 "converted" 777s into cargo service on an ACMI basis, at least initially. It looks like they haven't actually produced a single cargo 777 yet. (I guess the idea of hand-loading boxes through a passenger door hasn't really caught on.) Their last ACMI contract that I can find was with the New England Patriots, who canceled the contract and sued Eastern after the company tried to change the terms of the contract by demanding more money right before the start of the 2023 season. The Patriots and Robert Kraft's 2/25/94 LLC are suing Eastern for $22.8 million. It looks like the entirety of their business at this point is DOD charters.

In any case, the point of my post was that ATI's guarantee is not ridiculously low compared to its peers in the industry and is entirely sensible given the amount of flying they actually do. Pay rates alone are meaningless. Guarantee alone is meaningless. The product of rate x guarantee is a good starting point for comparison of one job to another.

Cujo665

So what is the MMG after the new CBA?

zeruela

I don’t think they have a new CBA… didn’t they try to strike at some point?

Reactivity

They took a strike vote. They're "ready to strike". There will be no release for a strike any time soon, and everybody knows they can't actually strike if they get one.

zeruela

true that, feel bad for them. Wishing them luck, as the market seems to be cooling down for pilots, which make a bit harder for them get a new contract.

C17B74

Man, you said it - not a prime time to be in contract negotiations. Timing is everything.

hercretired

ATI has been in contract negotiation since ??? mid-2020

zeruela

yeah, i heard they lose pilots left and right, still didn’t help with contract negotiations…treating the strike apparently didn’t work either. The weird part is that ATSG (parent company) owns ABX, which has a better contact than ATI.

Now, imagine those pilots that stayed at ATI, paying union dues, and not having a contrac for over 4 years.

Reactivity

Heavy attrition does not help you negotiate if you're asking for more than the company is willing to give.

It never does in this business, especially when customers can move flying to other companies at will. Ask anyone who was at ABX in the 2016-2020 timeframe how an actual strike works out.

"Better" is in the eye of the beholder. At the moment (for at least a few more days, anyway), the overall cost of our two agreements is about even. We just chose different ways to allocate the money. ATI loves their home basing. We chose to put the value of that in other places that we like more.

zeruela

you have more insights, and you are right. Thanks clarifying.