How a Strike is Perceived by those In and Out of the Industry

On the morning of June 12, 2010 at 5AM, the end of negotiations and the beginning of a strike by the Spirit Airlines Pilots Union began.  Headquartered in Fort Lauderdale since 1999, the airline announced its transition to become America's first Ultra-Low-Cost Carrier in 2007 alongside a re-branding effort.  Continuing the race to the bottom, charging passengers for baggage, carry-ons and drinks, Spirit Airlines is asking for more.  Targeting not only the pilots wages, which are currently 30% below industry standards, as well as work rules dealing with fatigue and pilot seniority, Spirit Airlines is fighting.  Just a little after three years of failed contract negotiations, the National Mediation Board "permitted" the pilots the right to strike.  Since then, various media outlets from the New York Times via The Associated Press to the Miami Herald and MSNBC have failed to mention the certain plights that members of the striking pilots union have gone through, have lived with and are being asked in the company proposal. Since when does a sports athlete without a contract show up to practice or continue to play the game?  Rookies don't practice until they have a firm contract and heck, even seasoned veterans sometimes holdout even before their contract expires!  In what other industry do we see contract negotiations outlasting their expiration and workers forced to continue laboring under older work rules which can sometimes be up to ten years old?  In the case of Pinnacle Airlines pilots, they are still flying without a contract going on five years with negotiations currently stalled.  It took Atlantic Southeast Airlines right around 5 years to negotiate a new contract that was amending a contract created 3 years prior to the start of negotiations!  Back in 2007, Atlantic Southeast Pilots were getting paid rates that were negotiated back in 1998!

The mindset of the mass public, due to misinformation from the media as well as an old school mentality left over from the golden age of flying, is that most pilots make upwards of $200,000 a year.  I'll admit that some do but the majority do not.  I'll tell you right now that in 2006, the average wage for a first year commercial airline pilot ranged from $14K-$50K.  A public website called Airline Pilot Central has most of the US Carriers wages listed as hourly but taking a closer look, an hourly wage earned by a pilot doesn't calculate to 40 hours a week.  It varies throughout the airlines, but an average month can range between 65 hours to 80 hours of pay.  Taking that into consideration, max flight time is federally regulated to 30 hours in a seven  day period, 100 hours in 30 days and 1000 per year.

I pulled data from the public website Airline Pilot Central, specifically these airlines; [Spirit Airlines, AirTran, Virgin America, Southwest, JetBlue].  I have done the easy part and posted the wages that are current of this publishing comparing airlines that fly comparable equipment.  In this specific case, ignore the A321 category under Spirit as well as the E190 category under JetBlue.

Taking a look above specifically at the 6 year scale moving clockwise (highlighted in red boxes), captains make $118 / $124 / $120 / $193 / $147 where first officers make $67 / $74 / $72 / $129 / $96 on an hourly basis.  These graphics do not take into account the vast differences in medical benefits, compensation and work rules.  Note that Virgin America is the youngest of these airlines and is already offering to pay their pilots more than Spirit Airlines.  One might inquire on why Southwest Airlines is incredibly higher in pay?  It's because they did not take contract hits as much as the Major airlines in the post 2001 collapse and have maintained an industry leading management / employee relationship.  Southwest was once the lower paying of the bunch.

I hope that I have enlightened you to some simple facts where the media has miserably failed in its duties.  Furthermore, I have included a website that details the history and current issues that plague Spirit Airlines.  I encourage you to read further and comment away.

http://www.spiritairlinesscabs.com/THE_LONG_ROAD_TRAVELED.html

Here is an excerpt from the aforementioned website:

~~~~~~~~ POST STRIKE ~~~~~~~ Understanding the hostilty and frustration, one can easily see why this strike occurred: In the last 30 days, the Investors (1) publically threatened to close the airline if a strike occurred; then (2) went back to the bargaining table while informing customers that if the pilots went on strike it would (fully knowing it could not) continue operating "through the crisis" using other carriers; and (3) today, every Spirit flight has been cancelled stranding thousands of passengers; passengers, many of which chose not to make alternate travel arrangments based on the promises put forth by Spirit.

Their pattern is self-evident. This is exactly how the Investors have approached federally mediated negotiations for the past four (4) years. They have outright lied, stalled and been blatantly deceitful -- so much so -- that at one point ALPA brought suit in Federal court to enjoin their blatant refusal to bargain in good faith. Pointedly, the Judge dismissed the case finding, essentialy, that the Court lacked jurisdiction to enjoin the right to bargain any way one wants.

And to this deceit, where do the needs of the passenger fall? Right behind the pilots'.

I want to fly first class but I don't want to pay for it!

It is cooler than ever to save a buck.  With the invention of things like Amazon, Expedia, Google, and the explosion of Walmart stores all over the nation, it is becoming more and more socially acceptable to shop, eat, sleep and travel on the cheap.  Let’s talk about a particularly effective niche for saving money on travel.  The bargain airline ticket, rental car, hotel room websites. On the surface, this really seems like a win-win for travelers and providers alike.  We get a cheap flight and the airlines are ensured sales to a broader market base.  As with anything else involving the exchange of the ever-influential dollar, it’s far more complex than that.  Many argue these bargain sites have driven the airline industry into the sheep herding business it feels like today.  I tend to agree.

Before the airlines were deregulated in 1978 under Jimmy Carter, the U.S. government strictly controlled their routes, fares and schedules.  This was a stabilizing force for the industry allowing them to anticipate costs and gains years in advance.  The government was also obliged to ensure the airlines retained a reasonable rate of return.  When the price of oil went up, they increased airfares to match it.  This is what many refer to as the “golden era” of flight.  The spotless flight crews, luxurious accommodations, and the feeling of being privileged were all part of the show.  Not so anymore.

The end of regulation marked the beginning of the race toward the bottom.  Prior to deregulation, getting into the airline business was nearly impossible.  This allowed airlines such as American, Delta, Pan Am and United to dominate the market.  After deregulation, airlines like Southwest, US Airways, America West and more recent airlines like JetBlue and Frontier were able to grab a significant share of the market simply by making fares cheaper.  Now the airlines had to deal with the dreaded idea of competition.

Add to that the Internet and the low fare search engines and we have created the perfect storm for low class, low cost flying.  The industry now is narrowing profit margins and charging to the bargain basement as low prices become the driving force behind ticket sales.  And with lower fares the airlines are forced to operate as efficiently as possible, with nothing to spare (including passenger comfort).

The good news is the industry appears to have hit bottom and is headed in the other direction, but not like you might think they would.  Instead of offering luxury meals as part of the ticket price, they are now beginning to offer surprisingly decent meals for purchase in flight.  Want to sleep all the way to Sydney from Los Angeles?  Buy a first class ticket and get yourself a lay flat seat.  Don’t care for the in flight movie?  Choose your own in the back of the seat in front of you for $5.

What’s to be learned in this?  For one, if you just paid $39 for your ticket from Atlanta to Orlando, look at the person sitting next to you if you feel like complaining about the service you received.  Your fellow travelers known as the flying public are responsible for this climate.  If you want to be pampered you’re in luck.  Throw down a few extra bucks and sit up front!  First class is getting better and better with each passing year as multimedia entertainment systems and lay flat seats become the norm.  And it's still a bargain compared to prices of the past.  A 1996 Government Accountability Office report found that the average fare per passenger mile was about 9% lower in 1994 than in 1979. Between 1976 and 1990 the paid fare had declined approximately 30% in inflation-adjusted terms.

The golden age of flying is long behind us but we’re smack in the middle of the silver age!  Just make sure you have that credit card handy when you take your seat and let’s hope we don’t go bronze.