Latest UA pilot offer exceeds $8 Billion over 4 years
Jun 14, 23, 12:44 pm
#1
Original Poster
Join Date: Sep 2006
Location: HNL
Programs: UA GS4MM, MR LT Plat, Hilton Gold
Posts: 6,447
Latest UA pilot offer exceeds $8 Billion over 4 years
UA pilots wanted a better deal than Delta - and it looks like it is on the table.....
https://nypost.com/2023/06/13/united...lion-in-costs/
United Airlines Holdings Inc (UAL.O) is offering its pilots a contract in excess of $8 billion in cumulative increases in pay and benefits over four years, in possibly the richest labor deal by a major American carrier, if ratified by the union.
The move comes at a time when pilots in North America are pushing for better pay and working conditions in their talks with company managements over new employment contracts.
https://nypost.com/2023/06/13/united...lion-in-costs/
United Airlines Holdings Inc (UAL.O) is offering its pilots a contract in excess of $8 billion in cumulative increases in pay and benefits over four years, in possibly the richest labor deal by a major American carrier, if ratified by the union.
The move comes at a time when pilots in North America are pushing for better pay and working conditions in their talks with company managements over new employment contracts.
Jun 14, 23, 2:14 pm
#3
Join Date: Jul 2022
Programs: United MileagePlus
Posts: 324
Jun 14, 23, 3:10 pm
#5
Join Date: Sep 2013
Posts: 1,102
sharehodlers expect profit to stay the same or go up.
theres a ceiling on how much they can charge so the other lever to pull is reducing cost.
selling a seat for miles is a cost for the airline but selling a seat for money is revenue.
Jun 14, 23, 3:20 pm
#6
Join Date: Mar 2010
Location: DAY
Programs: UA 1K 1MM; Marriott LT Titanium; Amex MR; Chase UR; Hertz PC; Global Entry
Posts: 9,882
if they are spending $8b more they need to trim costs from somewhere to make up for it.
sharehodlers expect profit to stay the same or go up.
theres a ceiling on how much they can charge so the other lever to pull is reducing cost.
selling a seat for miles is a cost for the airline but selling a seat for money is revenue.
sharehodlers expect profit to stay the same or go up.
theres a ceiling on how much they can charge so the other lever to pull is reducing cost.
selling a seat for miles is a cost for the airline but selling a seat for money is revenue.
Jun 14, 23, 4:42 pm
#7
FlyerTalk Evangelist
Join Date: May 2007
Location: Houston
Programs: UA Plat, Marriott Gold
Posts: 12,495
Sure, you can view it that way, and the more of the liability they reduce for each ticket the better.
Jun 14, 23, 4:45 pm
#8
Join Date: Sep 2019
Posts: 68
Hopefully its a decent deal. They have some .... work rules. The idea of global reserve or airport standby is worse than what I experienced at the regionals. Luckily they voted down the Tumi TA that helped us at widget a bit. Hopefully they beat our rates and catch up to a lot of our work rules.
Jun 14, 23, 5:25 pm
#10
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,680
Nobody "jumps ship" from a major US to a different major US carrier. Sure, from a regional to a major, or from a major to a foreign carrier when retirement age was an issue. Seniority=equipment, position, and schedule, and those 4 things are all that matters when it comes to pay and quality of life (scheduling.) As each contract comes up, it meets, or exceeds the last contract benefit from the previous contract to settle, so to jump ship, when the next time your contract is up, you will now be top dog, is cutting your nose off. Pilot contract in major airlines is the only scale that constantly always grows with each new one signed by anybody. Way too much leverage on one side of the equation.
Jun 14, 23, 6:13 pm
#11
Join Date: Sep 2013
Posts: 1,102
maybe not. But it also isnt getting revenue. If they devalue the miles its less liability in the books and more likely to be a revenue warning seat
Jun 14, 23, 6:16 pm
#12
Join Date: Jul 2010
Location: Small town near RNO
Programs: Delta 1MM/PM, BAEC GGL, Asiana Diamond Plus(Lifetime), AC *Tangerine
Posts: 869
One place to look for the money might well be in the C-Suite! There's been a distinct lack of big picture there in way to many areas.
Jun 14, 23, 6:27 pm
#13
Join Date: Feb 2022
Location: LAX
Programs: UA
Posts: 1,492
Depending on where the miles are coming from, it could be revenue. For example, when someone transfers points from Chase to United, Chase is buying those miles from United, and the cost that Chase is paying for them is greater than the cost for United when redeeming as an award seat. This is part of the reason airline loyalty programs are profitable to begin with.
Jun 14, 23, 9:11 pm
#14
FlyerTalk Evangelist
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,077
Cant begrudge the pilots for striking while the iron is hot. In this industry its historically profits and happy times one day and bankruptcy and ripped up contracts the next.
They should capture everything they can while they are in high demand and the airlines have the cash flow to fund large contracts since theyll eventually be ripped up and re-tooled when the pendulum swings the other way
They should capture everything they can while they are in high demand and the airlines have the cash flow to fund large contracts since theyll eventually be ripped up and re-tooled when the pendulum swings the other way
Jun 14, 23, 9:36 pm
#15
Join Date: Aug 2017
Programs: Alaska 75K, Delta Silver, UA 1K, Hilton Diamond, Hyatt Discoverist, Marriott Platinum + LT Gold
Posts: 9,636
Think of this way, United is required to accrue a cost to all of its members accumulated miles = cost/expenses. By increasing amount on award redemption, the amount of required accrual decreases, which would be considered as a cost reduction.
