How to Profit as a Pilot - Spirt Airlines as an Example

When completing flight training, it is important to understand the industry that you will be involved in as a pilot. There are several different career paths you can choose from, so make sure it’s the right one for you.

Why A Strike?

Several commercial pilots are experiencing a huge rise in sales as the Spirit Airlines pilots continue to strike for their fourth day.

According to the Orlando Sentinel, 440 pilots, represented by the Air Line Pilots Association, contracted to Spirit Airlines went on strike Saturday, after discussions were failed to solve issues between the pilots and management regarding issues like wages, benefits and scheduling.

Spirit Airlines’ main hub is located at Fort Lauderdale-Hollywood International Airport. It is the only airline to 14 international cities and five US destinations, with roughly 150 flights and 16,680 passengers per day.

Press Release

The Spirits Airlines pilots issued a statement accusing the management of handling the situation inappropriately.
Here is an excerpt of the statement:

“Spirit Airlines management continues to seriously misrepresent its latest pilot contract proposal, which would force pilots to work more hours and pay more to provide health care for their families, while company profits continue to soar and Spirit was ranked as the most profitable U.S. airline by pre-tax profit margin last year.

"We regret that Spirit management's failure to take seriously its pilots' contributions to the company has forced us to strike, but, one way or another, we will make our value clear," said Capt. Andy Nelson, vice-chairman of the Spirit pilots' unit of the Air Line Pilots Association, Int'l (ALPA). "For the sake of the passengers who have been inconvenienced by this situation, we urge Spirit management to get serious and present a contract proposal that is fair and equitable for all of its pilots.

"Moreover, Spirit management should focus its energy at the bargaining table instead of negotiating in the news media," continued Nelson. "Management has hampered our efforts to develop a deal by waiting until hours before the strike deadline to offer any contract increases at all."

Management's latest proposal is worth $62.5 million over five years, while Spirit earned a record $83 million profit in 2009 alone. Spirit's ranking as the most profitable airline by pre-tax margin in the United States in 2009 is based on the Department of Transportation's Form 41 data. Pre-tax margin, which is the profit made by a company calculated as a percentage of sales before taxes, is an important measure of the profitability of a company.

Profit for Competition

This incident may mean a devastating loss of revenue for SpiritAirlines, but it also means a huge spike for competing airlines. Peoplestranded due to the Spirit Airlines were forced to turn to competingcompanies like JetBlue to follow through with their travel plans.