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Old 24th Jul 2010, 17:09
  #270 (permalink)  
O360A1A
 
Join Date: Aug 2008
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Fantasy

Regarding placing Kelly and Vilven on the Embraer and "uplifting" their pension to 777 F/O rates.

It is unusual for someone to receive a pension and a salary in the same company.

Consider the case of a complainant who is recently retired as a 777 Captain, is still completely current on that aircraft and has never seen the Embraer. Will AC then train that person on the Embraer at a cost of $40,000, then pay them as a 777 Captain. How about 50 such individuals?

AC loses the benefit of reduced training costs that comes with fewer retirements; average seven courses for each retiree at $40,000.

If AC continues to pay pension and salary, AC loses the improvement to the Pension plan that comes from paying out for fewer years, and loses the benefit of pilots paying into the pension for more years.

What if some of those pilots stay for only brief periods; what is the cost then?

How will Flight Ops Management justify this to the the AC Board?

AC has nothing to gain with this; there is more here than meets the eye.
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