|Quoting HPRamper (Reply 50):|
I'd like to know how you think MSP fits in the WN network but not the AS network.
I don't think it's a matter of network fit -- it's about critical mass. WN
already has 10 destinations from MSP
and well-known national brand with consumers (not just A.nutters). AS
has one destination from MSP
and a brand not well recognized outside of the West Coast and Alaska. As a result, I believe WN
would have a much better chance than AS
to build out a profitable base in MSP
's assets. (That's not a slam on AS
; I've flown it many times, and I respect its management from both a customer and an industry/investor perspective. Its financial performance is nearly impossible to criticize.)
|Quoting LCCflyer (Reply 43):|
Perhaps there are more factors at work here other than the easy headline $137ph pay rate? Since it is privately held we may never know what SY's cost base looks like.
We know the airline is barely breaking even. The article in the OP has a link to the DOT data:
|Quoting bennett123 (Reply 42):|
If the median rate for a job is $188, how can giving more than $137 break the bank. Are SY's non wage costs that high.
No, but its revenue per seat-mile is 20% below any of the majors (also in the DOT data). That's even harder to fix than costs. Several people have been commenting on SY
's casino charters, but I've done financial analysis for two airlines that ran those, and I can tell you that full charters don't mean a thing. The casino pays the airline a flat fee per departure, the same way most regionals are paid by mainline carriers -- and the profit margin is razor-thin. It's basically utilization flying to help the airline spread its fixed costs (maintenance, etc) over more flight hours.
I'm not arguing that SY
pilot pay is fair or unfair -- other people can judge that for themselves. What I see is that the airline's would have lost money the last two years if anyone's pay had been raised (management included). If SY
management is holding the line on pilot wages, it's probably because they think the operation is unsustainable with higher costs. The financial evidence certainly bears out that view.