Bitcoin

It's the last one. Since most of the recent movement has been by the company you can elimited the first one. Where's the leverage you might be asking? The company really is serious about growing the airline, they have upped the boeing option of 50 to 80 for a total order of 130 if exercised. This is a multi-billion dollar deal. Whether leased or financed the banks do extensive due diligence on their risk assesment and set their rate of return accordingly. With an order this size there could easily be 10 figures in higher total payments for an airline that has the risk of a labor strike along with the unknown forecast of future payroll cost. It's really that simple. Expect a TA soon, most likely before summer if there are no more delays in deliveries.

captnate702

I’ve heard from several ppl that management firmly believes that a deal with AR will take years and drag out because he has no clue how to negotiate or work within the NMB’s mediation process.

I’ve also been told that management doesn’t want ti get a deal done because the ended the attrition problem and are happy to wait for the economy backslide and lock in lower rates for several more years of mediation.

tom11011

Think about what you’re saying. If management wanted AR out, they wouldn’t have TAd a section with him 2 days ago during the middle of an election. They would have waited to see if the other slate won.

captnate702

they don’t need to get a deal to grow the seniority list. They’re growing it rapidly right now. You think management is gonna agree to a deal soon when spirit’s execs testified in federal court that if the merger fails then NK will proceed straight bankruptcy? Why would management agree to rates when the largest ULCC is reasonably headed towards bankruptcy?

I could be wrong but the fact that you think management rolled over to get a TA on section 6 expenses is laughable. What kind of goodies do you think the TA includes? If there were huge gains and industry standard expenses in the TA then AR would have sang every last one from the rooftops - instead we get general flowery puff piece.

I was also told that the TAs for sick and vacation still don’t include the “economics” for those sections (like how much we get paid for a vacation day, or our sick bank accrual). All that stuff is the most important stuff there is in sections 9 and 10 and that’s still not agreed to.

I’d be shocked if management “rolled over to get some TAs”, but if they did, then that is just evidence for Tom and the other doubters that management wants AR to win so they can continue to string him along and delay the process.

tom11011

Basically what you are saying, and it’s not the first time, is that you are receiving confidential information from negotiations. Somehow you always know that the team is doing a substandard job. Nobody else knows, just you. Maybe it’s you who is undermining negotiations.

Bitcoin

Regardess of what happens with spirit the payments for at least 46 more 737's need to be arranged, possibly 126 more. Try running some math on what you think a good rate would be and then double it. Take some estimates on what you think the additional labor risk cost on these lease or debt payments would be and compare it with how much extra a new cba would cost. Did you even read my post? Nobody is disputing the seniority list growth. Did you skim the read to quickly or how did you end up completely missing what the actual leverage is with your reply? NK bankruptcy or not, recession or not, parking more old airbuses or not, these payments will be due and it's no secret the difference will be substantial without a new cba.

captnate702

seriously??? Union said that the TAs on 8 and 9 (this was all pre mediation) didn’t include the most important items because management was dragging their feet and didn’t want to talk economics.

remember, this was a year ago when the union was saying management doesn’t want a deal and that’s why we need to file for mediation. This is all old news, I’m just bringing it up because it’s interesting that the union is singing a different tune now that the election is coming up…

captnate702

EXACTLY. I’ve been on here preaching for weeks that management wants AR to win because they are happy with the status quo. That’s why they were fine doing a TA. Management does not want AR out, they want AR to win.

captnate702

Did MG step down as chairman? Did he not just return as CEO? You think MG increased the order on the Boeing and boxed himself in a corner so that he had to get a new pilot deal to pay for those Boeing?? Are you insane? What in MG’s 40 year history as an airline exec suggests that he would rush into a pilot contract?

He doesn’t need a new contract to grow the airline. Even if we got a new contract tomorrow and doubled the size of our new hire classes we wouldn’t be able to train them, that pipeline would be so backed up.

new hire classes are FULL. People are on the waiting list to get hired here - think about that. Management doesn’t need to rush into a contract to staff the Boeing, at least not right now. The past three months have totally changed the attrition and staffing woes management was terrified about back in January.

tom11011

I think you need to prepare yourself for his re election and the contract taking a while longer.