Re: Big aircraft makers line up at Air Canada's door

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Total costs.. total costs.

I think WN now pays some of their 737 captains MORE than United.

Once you create a pot of pilots, f/a's, ground crew, mechanics, baggage
handlers and so on, I believe the picture looks like this.

Labour Costs Per Rev. Mile @ WN = Labour Costs Per Rev. Mile @ Comair

and

Labour Costs Per Rev. Mile @ WN *1.5 = Labour Costs Per Rev. Mile @
<INSERT US MAJOR HERE>

I still stand by the assertion that the only reason regional jets are
most cost effective for the majors is because of the labour rates and
contracts that exist that distort those costs.

As you pointed out, the fact that AirTran/JetBlue and so on can operate
bigger-birds profitably is proof.

(Assuming it's full) the Boeing 747 has the lowest cost per seat going
all things being equal. But alas, they are not. That's why US Airways
might soon be simply a brand name surrounding 5 contracts to US Air
Express affiliates.

Matthew

On Friday, September 12, 2003, at 10:24  AM, Alireza Alivandivafa wrote:

> In a message dated 9/12/2003 10:14:52 AM Pacific Daylight Time,
> mmontano@xxxxxxxxx writes:
>
> << Because the most profitable carriers have labour contracts which
> allow
>  them to fly bigger birds with cost-structures that only exist within
>  the regional 'arms' of the majors.
>
>  If Air Canada/United/USAirways/Delta had the per-seat-mile labour
> costs
>  that their subsidiary/affiliates have like AC
>  Jazz/AirWisconsin/Comair/Mesaba etc then they would be more
> competitive
>  (note I said more, not 'as') with the companies you mentioned. >>
>
> Um, WN is the most organized airline in the US (according to a captain
> no
> less) and their crews are paid on par with anyone else in the
> industry.  B6
> actually pays its F/As higher than WN (citing the fact that they are
> based in NY)
> and the pilots are competitive too (and if they want to keep unions
> out, they
> will soon get comparable to WN).  Labor cost is a misconception (come
> get me
> Grant, as you love to defend over priced carriers) as what keeps costs
> down for
> major low fare carriers in the US.  They keep costs down in other
> areas, like
> fleet commonality and catering

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