hayimcow

After listening to the webcast, I felt it was pretty positive. Still high growth, 20% in 2018, 2019 growth will be less than prior years but still upwards of 10%. There are no plans to stop growing. It was also mentioned that the new pilot contract is directly correlated to new AC orders.

Tranquility

Oh dear.... I sincerely hope you’re just regurgitating what was said and don’t actually believe that. Otherwise, you’re management or incredibly naive. The planes will/will not come REGARDLESS of a pilot deal!!! It is not up to this pilot group to make their business model work. We just move the aluminum....

hayimcow

Well, like many people I've heard mention and hope is that the company will want to get a deal done so they can order more aircraft. So how is that not positive for us? Either way, I was just repeating what was said. Take it as you will.

ShyGuy

Except it won’t be “want to get a deal done so they can get more aircraft.” It’ll be “here’s an order of 50 new planes we can do, just sign this contract and then they’ll come.”

Tranquility

If they wanted a deal done, they could have had it 2 years ago likely at a much cheaper cost than now. Their fault, not ours. Now the real question, why don’t Wall Street analysts ask why management bypassed a cheaper deal earlier for something more expensive now?

Super EZ E

Airlines growth mirrors GDP. 1% to 4% is the normal. When you see crazy growth numbers it is usually hard to manage and profits fall sharply. IMHO!

Feng

What more expensive deal? If you wait 5 more years, that deal’s going to be even more lucrative.

Pogey Bait

Exactly, the company is saving millions by dragging it out. Although in the end rates will be paid at a higher rate.

Feng

Yeah? IF say a deal was offered 2 years ago at DOS for a 20% raise and then 3% each year thereafter...for the sake of simplicity, say it went from $100/hr to $120 to $123 to $127...$131...$135 to $139 by year 5.

If the contract gets dragged on for 5 years. Do you see the final result being getting an 40% raise to $140 or for some reason the company will cave and give you an 80% raise to $180?

I'm not sure the "we're winning because the ask just went up" holds any water as far as how much more money you'll actually get in your pocket when it's all said and done considering the time value of money lost.

I think at some point, ALPA will use Spirit as a case study of what not to do during negotiations. Whether you deserve it or not, I don't see the NMB and the administration allowing a strike when a 20%-40% raise is/was offered.

JMHO

Name User

AA’s big failure was always swinging for the fences. Delta did the opposite, slowly building upon each successive contract. I’ve said time and time again on here take the short term small wins. Collectively they are worth more.