Mooneyguy

barry sure loves having you here

AutoBrksMedium

It seems all levels of operations on the corporate side have a very stunted ability to look down the road. For example if there is an MEL that requires some sort of MX procedure before each leg, have those resources ready when the aircraft arrives. The resources have to be utilized anyway. So, what is the problem? Is it too costly to think ahead? This example almost always turns into a circus and a delay and I have even experienced timing out and flight cancellations over it. I can't imagine the latter being more profitable than the former.

there are so many "cost neutral" things the company could do to make us efficient and profitable. Mostly just thinking is involved.

My question is, what is the company worth to Franke? Could he just take it or leave it? No big deal if it all goes under? In this contract negotiation we should be willing to remain rigid and force that question to the people that have been reaping the benefits of running a leasing company rather than an airline.

It's true in our current condition F9 can't afford to pay us a penny more. A proper contract would mean changing the way the company operates to afford the new contract. My 3 cents. (Inflation)

Stayontarget

Nn #36 tldr:

Fupm.

sinsilvia666

agreed. Fupm. Everyone be extra safe out there

DontStahl320

At this point I have a bad feeling that we won’t be seeing a contract. F9 will be lucky if it stays in business. Everything Spirit is trying isn’t working and without those leasebacks F9 would have been in negatives. These routes are failing, the profits aren’t based on flying, and there is no way a judge will allow a failing / unprofitable airline strike. Even worse by the time if f9 gets something, delta will be opening their compensation sectiion again.

ERAUAV8R

We’ll get a contract when the majors are a year out from opening negotiations. Keep us one cycle behind. The only thing that will delay that are Cadets and a steady stream of new hires.

HSCompressor

Wow. I actually completely agree with everything you just said here.

I think that’s been the plan all along. Guys will get fed up and take what is offered. It’ll be sub par, but eventually they’ll be worn down enough to take it.

zoooropa

It has been stated before, the sale lease back transactions are NOT part of revenue, they are a line item on the balance sheet. Not a penny from a SLB is baked into the net profit. You can read about the SLB transactions in the 10k and 10q and you can see the actual line item on the balance sheet. You can also read the "fare revenue" as well as the "non-fare revenue", it is all in black and white. Please stop suggesting the only reason F9 turns a profit is because they execute a sale lease back, it has absolutely nothing to do with profits and losses.

The filing labels SLB's as "Gains recognized on sale-leaseback transactions" and the average return is around $5 million per SLB (each agreement is different, one might be $3 and one might be $7). The gains recognized on sale-leaseback transactions is entered AFTER net income. In other words, all expenses are deducted from all revenue (eight line items of revenue, none including SLB's) and then SLB's are added to the balance sheet.

Unrelated to SLB's but related to your post, comparing what Spirit is doing to what F9 is doing is futile and meaningless. We both fly airbus and we both operate a ULCC model. That is where the similarity ends. One turned another profit last quarter, one is operating at a negative double digit margin (with esimates going as low as -30% margin). One has zero long term debt (zero, only aircraft deliveries and PDP's which can be deferred), the other has more than $3 billion in debt. I could go on and on, but I hope you get the point.

BobSacamano

Here’s another key difference discussed in some detail. https://weekly.visualapproach.io/p/s...asm-casm-chasm

Chimpy

"Put another way, with Spirit’s labor costs, Frontier would have posted an operating loss of 11.6%."

You guys are by no means in good shape and I wouldnt expect a CBA anytime soon. Good luck