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A modest proposal to brighten your day.

Forgive me if someone else has suggested this but it’s just too good of an idea not to mention. Since 9-11 airlines have been crying and moping that business is down (well, who’s isn’t) and periodically they suggest some sort of huge, government bail out (seems my little business isn’t eligible…) For a while they were claiming that collectively they were losing something like a billion dollars a week I believe it was. (This of course begs the question that if they’re actually loosing that much after September 11th, ’01, just how much had they been earning up till that time? Seems like they would’ve learned to budget like the rest of us and put some back for the proverbial rainy day…) Anyhoo, it’s all on the back burner now, bigger fish to fry at the moment and all that, but it will come to the fore again soon, I’m sure, particularly in light of people being fearful of travel with an impending war looming. When the airline industry again raises the issue (and with tongue firmly in cheek) I have a modest proposal. If the government does indeed decide to bail them out or even subsidize them heavily I have a suggestion as to how it should be done. Instead of giving the airlines cash or credits, instead issue American tax paying households travel vouchers to anywhere. Divide the cost of the bailout among the average household and split it up. If the plan was to give American Airlines a cool 100 million, instead issue 100 million dollars worth of vouchers to would-be travelers. The airline still gets the money but, since we’re footing the bill, we get free travel. It would be no skin off the nose of the carrier except that rather than getting money for nothing they would be EARNING money for doing their job which is hauling our butts from point A to point B. Think about what a shot in the arm this could be for the hotel, restaurant, and other travel related business in cities all across the country (and internationally). The next time you hear talk of government bailouts for the airline industry (and make no mistake, you will, you will) remember my little plan and suggest it to your congressman/woman, senator, or other representative. How’s about it, fellow travelers? Embellish my modest proposal and let me know what you think!

How does free travel help them pay off debt? I don't think the banks would approve a plan like this.

The airline would redeem the voucher with the government to get their money. This is a great idea, which will never fly. ;)

My first thought is to use income tax records to ensure that vouchers are sent out only to people who paid/pay taxes. My second thought is that it would probably cost any government more than a hundred dollars each to process the vouchers.

The government bailout is intended to help bridge the gap between the income that the airline can earn from passenger fares and other fees, and their operating expenses. If passengers were flying "free" using vouchers, the airlines lose significant income from passenger fares. This would only serve to exacerbate the problem.

All the government should do is force the unions into new contract agreements.I come from a family FULL of pilots and can'y believe how overpaid they are.

rnc, That's interesting. I was looking at some statistics that indicated they weren't all that well paid. Can you give us some examples?

200k/year for a 3 day work week. Granted, this is an experienced captain.First officer(right seat)would make around 120k for the same flight time.

The person who made the post at the website below says the data presented was developed by ALPA (Airline Pilot's Association) Economic and Financial Analysis and Retirement Departments so, for what it's worth, check out "Pilot Pay" at... http://www.fool.com/community/pod/2000/000522.htm The person has listed a comparison of selected pilot contract provisions in effect as of April 30, 2000 for 5 major airlines (Continental, Delta, Northwest, United, and US Airways). To be honest, I have a difficult time considering any pilot who has gotten me off and back on the ground in one piece to be "over"paid.

Got to admit, it really doesn't seem unreasonable to me. Seeing what regular old Engineers make here in Silicon Valley.

I don't know about anyone else, but I've seen a significant number of empty seats on most of my flights post-9/11. Since the airline pays the same costs for pilots, cabin and ground crews, gasoline, landing fees, etc., each and every one of these empty seats represents theoretical income which wasn't realized. Seems to me the airlines could bump up frequent flyers to any vacant seats in business or first class, and use empty coach seats for DiAblo's plan, or cheap last-minute walkups (any money is better than none, no?) I tried to fly on American or United in early October right after the attacks, when both were crying about lost business. Neither would honor my (useless) Swissair ticket two days before I was scheduled to leave, nor would they quote me anything resembling a reasonable fare, so their empty seats remained empty. I have no sympathy for the airlines, but plenty for their employees.

Leslie, As soon as airlines start bumping up frequent fliers to empty business seats nobody will buy business seats. We'll all wait for free upgrades. Those business fares subsidize the economy class fares. (preaching to the choir, I know)

What should have happened was the following deal: 1. The US government gives the airlines $15 billion for a bailout. 2. And for the next 10 years US government workers fly for free! That way the airlines get a bailout and the US taxpayers for once, get soemthing for their tax $$$! OTOH, getting something for our tax $$$..... seldomm enters the politicians thinking! US

Now what is the income of train engineers, bus drivers, and cab drivers? They are talking us from point a. to point b. Since the airlines are losing so much money, do you want to pay higher fees or make the pilots salaries more competitive? Some airlines fly safely and pay their pilots far less than others.

Think about it,the airlines that are already bankrupt say they need to change the pilots contract to become profitable and the ones that hav'nt gone bankrupt(AA,Delta) are trying to renegotiate. Lynlor is right,low cost carriers are more profitable since the contracts are lower.

I thought one of the main problems is not the pilots' salaries so much as their retirement benefits. We were once at a hotel with a retired Northwest pilot's convention (more of a get together) going on. While I can't remember the specifics, they said after something like 15 years, a pilot can retire with a full (or very near full salary). So here were all these pilots 40 years old and slightly older being paid full salaries for as much as 30 or 40 years -- after flying planes for only 15. I'm all for retirement, but no wonder the airlines are going bankrupt. I'd suspect they may actually be paying more to pilots who aren't still flying than they are to the pilots who are!

It boils down to two things. Their revenues are too low and their expenses are too high. Should they charge higher fares, and can they get those higher fares or should they reduce expenses, salaries and retirement benefits or maybe both. If these issues cannot be resolved then the airline or airlines will be bankrupt.