RAH files for Chapter 11 bankruptcy
03-01-2016, 08:26 AM
#341
Gets Weekends Off
Joined APC: Mar 2014
Posts: 569
One of the more interesting quotes in the article: "Raymond James & Co. analyst Savanthi Syth in a note said that SkyWest was "already benefiting from issues at Republic Airways," noting that if Republic stays true to its pledge not to reopen its pilot contract in Chapter 11 it is unlikely to emerge with substantial cost advantages."
03-01-2016, 08:43 AM
#342
Gets Weekends Off
Joined APC: May 2010
Posts: 310
Seems pretty obvious that everything you hear from the executive team right now is pure BS. They semi-mean it but don't actually believe it to be the case.
In other words, when they say there are no intentions to change the labor contracts that's solely dependent upon every other piece of the bankruptcy proceedings going as planned. They are shooting for the moon in the other contract negotiations and eventually those negotiations won't amount to what they are asking for and then the execs will come back and say "we were unfortunately unable to acquire the necessary cuts in our CPA agreements and other contracts, so we will be going forward with asking the court to mandate 20% cuts from all labor contracts immediately."
In other words, when they say there are no intentions to change the labor contracts that's solely dependent upon every other piece of the bankruptcy proceedings going as planned. They are shooting for the moon in the other contract negotiations and eventually those negotiations won't amount to what they are asking for and then the execs will come back and say "we were unfortunately unable to acquire the necessary cuts in our CPA agreements and other contracts, so we will be going forward with asking the court to mandate 20% cuts from all labor contracts immediately."
03-01-2016, 09:34 AM
#343
Gets Weekends Off
Joined APC: Jul 2012
Position: 767 FO
Posts: 280
03-01-2016, 09:39 AM
#344
Banned
Joined APC: Oct 2014
Posts: 2,137
Yeah I know, that's where the 750, 1000, and 1250 hour carve outs came from for military, BS, and AS degrees with aviation concentrations. Interpret it anyway you like but the law is the law. It WILL take an act of Congress to lower the time requirements any further which is doubtful because few senators and congressmen are willing to risk their political careers because some regionals can't get pilots.
03-02-2016, 10:21 PM
#345
Gets Weekends Off
Joined APC: Nov 2015
Posts: 212
Yes mesa was almost bought 2 years ago heavy discussions. Problem is mesa has ****ty contract right now, but we have strongest scope clause of any regional. Pilots are tied to the planes through bank not company. Lay men terms someone buys us we get Integrated with that company. No mainline will ever touch us because now we get into their seniority. It sounded foolish when the contract was signed years ago. But depending on how you you look at it. Could be a great thing
03-03-2016, 08:59 AM
#346
Seat 0B
Joined APC: Dec 2007
Position: 777 FO
Posts: 793
Well I suppose we will have to agree to disagree. I still contend that no one at the FAA is willing to fall on their sword by lowering the hour requirements any further than they already have, as defined by public law 111-216 with the 750-1000-1250 reductions, lest there be another incident with someone with less time that is required now in the cockpit just because Reverend Bedford says he can't find pilots. It would end the careers of anyone and everyone involved in the decision.
03-03-2016, 09:23 AM
#347
Gets Weekends Off
Joined APC: Jun 2010
Position: Just another RJ guy
Posts: 906
Seems pretty obvious that everything you hear from the executive team right now is pure BS. They semi-mean it but don't actually believe it to be the case.
In other words, when they say there are no intentions to change the labor contracts that's solely dependent upon every other piece of the bankruptcy proceedings going as planned. They are shooting for the moon in the other contract negotiations and eventually those negotiations won't amount to what they are asking for and then the execs will come back and say "we were unfortunately unable to acquire the necessary cuts in our CPA agreements and other contracts, so we will be going forward with asking the court to mandate 20% cuts from all labor contracts immediately."
In other words, when they say there are no intentions to change the labor contracts that's solely dependent upon every other piece of the bankruptcy proceedings going as planned. They are shooting for the moon in the other contract negotiations and eventually those negotiations won't amount to what they are asking for and then the execs will come back and say "we were unfortunately unable to acquire the necessary cuts in our CPA agreements and other contracts, so we will be going forward with asking the court to mandate 20% cuts from all labor contracts immediately."
03-03-2016, 09:32 AM
#348
Line Holder
Joined APC: Mar 2011
Posts: 84
This is exactly what will happen and don't think it's not pre-planned. The ONLY reason they're saying labor contracts aren't expected to be impacted by this bankruptcy is because they want to shield potential new hires and current junior pilots from either not showing up to class or bailing for a greener pastures. OF COURSE management will come back to the labor contracts and attempt to gut them as much as they can once "all other avenues of cost savings have been exhausted". If you don't think that they'll come after your pay rates then you're living in a fantasy land!
Why would they gut the pilot contract to save money when all that would do is cause everyone to run for the hills and good luck getting a new hire to sign up. They will be gutting something but it won't be the pilot contract.
03-03-2016, 09:39 AM
#349
Gets Weekends Off
Joined APC: Mar 2014
Posts: 569
The creditors committee won't let the largest expense at an airline go unscathed. They are in the business of getting their money out of this process and they don't care if it puts the airline in a bad place with attracting new hires. The management runs the airline to their best abilities after the BK process is complete. It's their mess to clean up. The creditors merely want their money and don't care about the aftermath.
03-03-2016, 10:01 AM
#350
Banned
Joined APC: Oct 2014
Posts: 2,137
The creditors committee won't let the largest expense at an airline go unscathed. They are in the business of getting their money out of this process and they don't care if it puts the airline in a bad place with attracting new hires. The management runs the airline to their best abilities after the BK process is complete. It's their mess to clean up. The creditors merely want their money and don't care about the aftermath.
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