Reducing Fees for Tipping Pilots?

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Cat
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Reducing Fees for Tipping Pilots?

Post by Cat » Fri Sep 02, 2022 9:54 pm

It sure would be nice to be able to give pilots bonus pay for special events without FSA charging such outrageous fees..

Right now for our airline, if I wanted to offer a pilot bonus of $100,000, it would cost our airline $3.9 million in fees for each pilot tipped $100,000.

I do understand it is based on the overall multiplier average of the airline from day 1 but WOW, we are still paying for using the dynamic multiplier 10 years ago.

Suggestion: Use the average multiplier from the previous 18 months or 2 years instead of forever?
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joefremont
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Re: Reducing Fees for Tipping Pilots?

Post by joefremont » Fri Sep 02, 2022 11:35 pm

Hi Sam,

Good to see you on the forum again.

it would not be hard to put a 2 year limit to the average, but something to consider. Your VA's current multiplier is 25x so a 100,000$ tip would still cost your VA 2,500,000$ which in the grand scheme is not that different from the VA lifetime 39x you described.

The basic idea, for those who have not seen this before is that pilots get paid with pre-multiplier money while the VA receives its money after the multiplier is applied. To prevent airlines from enriching there pilots by giving them a zero salary and then making it up in tips the multiplier is backed out of the VA money before the pilot receives it.
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Cat
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Re: Reducing Fees for Tipping Pilots?

Post by Cat » Sat Sep 03, 2022 12:40 am

Yeah, I get it.... I also understand it is in place to keep VA's from changing multiplier to 0, tipping out pilots, then putting it back to dynamic and making multi millions on flights (for newer airlines).

I was just looking for an easy way to give pilots "trip bonus" pay for special events after that event was flown by said pilot, without having to go through the hassles of changing the pay scale in all ranks and essentially "pre-paying" them for something they haven't flown yet.
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