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REX to transition to ATRs, start domestic jet ops

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REX to transition to ATRs, start domestic jet ops

Old 9th Jul 2023, 19:37
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Originally Posted by Australopithecus
I believe the legacy carrier benchmark in the US is currently at US$ 450,000+ extras. (~AUD675K) Australia is a higher cost country. The US airline pilot unions are militant and their members enjoy the benefits of that. Contrast that to the local dynamics and you get the local crap pay.

As to what is fair: Whatever the market will bear given the industrial laws and the backbone of the union membership.

I get something close to $360/hr. That’s after at least three years of pay freezes in my career and increases below inflation. Absent those things my rate of pay would be over $400/hr.

I think $450k is a reasonable number. But I wonder why I should accept less than our colleagues overseas when our fares are at least as high and the CEO is the highest paid airline exec in the world? For running down an airline that was ranked 18in the world by fleet size to 38th in ten years.

As far as the LCCs go…who else takes lower pay for the same work to offset the employer's revenue model? The difference between my pay and a JQ captain's pay is what? 50c per seat per hour?

And by the way…I think a Dash 8 skipper should get at least $200K based on seats and speed.
Consider the source. That $450K number came from Robert Isom’s (CEO of American Airlines) letter to the media. He was negotiating in public. He was also including everything but the kitchen sink, not just the pay for flying.

Notional 12 Year Delta Captain (320/737NG). 1106 pay hours is a realistic average amount. Some less, some more.

- 1106 credit hours per annum @ $335.00 = $370,579.00 ($554,000 Australian dollars)
- company retirement contribution @ 16% = $59,292.00
- profit sharing @ 10% = $37,579.00
- retirement contribution on profit sharing = $9486.00
- per diem = ~ $6000.00

Total = $482,357 ($721,120.00 Australian dollars)

The retirement contribution you’ll never see nor spend until you retire. The per diem is for food in a hotel, and the profit sharing isn’t guaranteed.

Last edited by JPJP; 9th Jul 2023 at 19:45. Reason: math in public.
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Old 9th Jul 2023, 23:28
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Originally Posted by JPJP
Consider the source. That $450K number came from Robert Isom’s (CEO of American Airlines) letter to the media. He was negotiating in public. He was also including everything but the kitchen sink, not just the pay for flying.

Notional 12 Year Delta Captain (320/737NG). 1106 pay hours is a realistic average amount. Some less, some more.

- 1106 credit hours per annum @ $335.00 = $370,579.00 ($554,000 Australian dollars)
- company retirement contribution @ 16% = $59,292.00
- profit sharing @ 10% = $37,579.00
- retirement contribution on profit sharing = $9486.00
- per diem = ~ $6000.00

Total = $482,357 ($721,120.00 Australian dollars)

The retirement contribution you’ll never see nor spend until you retire. The per diem is for food in a hotel, and the profit sharing isn’t guaranteed.
Also lower tax rates and lower cost of living (unless you live in NY/Cali) which makes that amount of money go much further.

18 hour long call reserve? Sign me up.
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Old 10th Jul 2023, 16:21
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How is it that these overseas airlines can give massive pay rises, enormous bonuses or generous salaries and sign on incentives, yet airlines in Australia (and Rex is definitely one of them) shriek like the whole operation will cease to exist unless an EBA is rolled over with nothing more than a 2 or 3 percent pay rise?
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Old 10th Jul 2023, 19:03
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Originally Posted by Bull_Shark
How is it that these overseas airlines can give massive pay rises, enormous bonuses or generous salaries and sign on incentives, yet airlines in Australia (and Rex is definitely one of them) shriek like the whole operation will cease to exist unless an EBA is rolled over with nothing more than a 2 or 3 percent pay rise?

I will seldom stick up for management in any airline I’ve operated for, however, you might find that those airlines dishing out big bonus’s are those with the least tax liabilities, I do stand to be corrected; I love to be wrong
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Old 10th Jul 2023, 20:43
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Originally Posted by Bull_Shark
How is it that these overseas airlines can give massive pay rises, enormous bonuses or generous salaries and sign on incentives, yet airlines in Australia (and Rex is definitely one of them) shriek like the whole operation will cease to exist unless an EBA is rolled over with nothing more than a 2 or 3 percent pay rise?
The Rex chairman has been quoted saying "I'd rather cut my arm off then pay pilots more".
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Old 11th Jul 2023, 00:08
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Originally Posted by Ladloy
The Rex chairman has been quoted saying "I'd rather cut my arm off then pay pilots more".
That was at a time when all the domestic airlines were in major expansion. As a result, REX lost 60% of their pilots in 2007/08. REX were cancelling flights left right and center but were able to whether the storm due to its (at the time) commendable low debt/equity ratio. Although the thousands of stranded passengers may not have seen that as a positive.

It was however getting to the point where rational pragmatism (survival) may have started to have an influence. Then came along the GFC which ultimately saved the day!

Last edited by KRUSTY 34; 11th Jul 2023 at 00:52.
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Old 11th Jul 2023, 00:44
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Originally Posted by KRUSTY 34
That was at a time when all the domestic airlines were in major expansion. As a result, REX lost 60% of their pilots in 2007/08. REX were cancelling flights left right and center but were able to whether the storm due to their (at the time) commendable low debt/equity ratio. Although the thousands of stranded passengers may not have seen that as a positive.

It was however getting to the point where rational pragmatism (survival) may have started to have an influence. Then came along the GFC which ultimately saved the day!
history is repeating itself currently.
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Old 11th Jul 2023, 03:21
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Meanwhile…

https://rex.com.au/BlobViewer/BlobVi...67764B3637453D
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Old 11th Jul 2023, 08:59
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"Ice Pilots, Our Heart is in the Country" Sounds like a good tv series.
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Old 15th Jul 2023, 06:10
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Let's hope it doesn't result in a smoking hole in the ground.
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Old 15th Jul 2023, 07:36
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Originally Posted by Maisk Rotum
"Ice Pilots, Our Heart is in the Country" Sounds like a good tv series.
Aren't the ice pilots in Bali? Confused.
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Old 17th Jul 2023, 09:55
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Are there any updates as to when/if the 2 x ex SQ B738’s that we’re due in June/July are still arriving?

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Old 17th Jul 2023, 10:57
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Originally Posted by Tom/PER
Are there any updates as to when/if the 2 x ex SQ B738’s that we’re due in June/July are still arriving?
1st one is going through acceptance flights this week.
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Old 18th Jul 2023, 13:04
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aSX release today said mid July and September, they took longer to finalise the leases than initially outlined, read into that what you want….
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Old 18th Jul 2023, 13:55
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Krusty 34,
Surely Rex can’t be having a pilot shortage! When AAPA was started, it was sold to all as a savour to Rex ever having a pilot shortage, “ever again”. Refer to press releases of the time.
Yet at a guess this would be the second or third shortage since 2006/7. Something is broken, shareholders should be asking the question as to why.
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Old 19th Jul 2023, 02:15
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$35m loss. Ouch.
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Old 19th Jul 2023, 10:50
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Talking

Originally Posted by assasin
Krusty 34,
Surely Rex can’t be having a pilot shortage! When AAPA was started, it was sold to all as a savour to Rex ever having a pilot shortage, “ever again”. Refer to press releases of the time.
Yet at a guess this would be the second or third shortage since 2006/7. Something is broken, shareholders should be asking the question as to why.
Yeah! Funny that?
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Old 19th Jul 2023, 12:48
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Originally Posted by KRUSTY 34
Yeah! Funny that?
Probably not enough are prepared to make a “solemn promise” and do weeding on their days off.
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Old 1st Aug 2023, 03:53
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Can anyone shed any light on what their staff travel looks like? TIA
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Old 1st Aug 2023, 04:09
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Originally Posted by VH-RME
Can anyone shed any light on what their staff travel looks like? TIA
Do you like emailing forms that were designed for fax?
When I was there it was ID90 off the highest fare, so sometimes travelling regionally it was cheaper to buy a full fare ticket
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