View Single Post
Old 07-22-2011 | 06:36 AM
  #71780  
forgot to bid's Avatar
forgot to bid
veut gagner à la loterie
 
Joined: Apr 2008
Posts: 23,286
Likes: 0
From: Light Chop
Default

Originally Posted by Bucking Bar
Just "asking" would put the Company into bankruptcy

My concern remains that they'll relapse to their old addiction of selling scope for pay. There are a lot of little data points pointing to the outsourcing of 100 seat flying somewhere. For instance, this report from the Denver Business Journal which quotes the President of Republic Airlines Holdings stating that Frontier's Airbus aircraft will be shifted into fee for departure operations.

CEO Bedford: Frontier Airlines well on its way to cost-cutting goal - Denver Business Journal

This press report, quoting an airline CEO correlates exactly with the rumor which started the negotiating committee food fight on this board. Frankly, I thought the rumor was too incredible to post (incredible, as in ridiculous). But this article from a news source experienced with the details of Frontier's plight comes right out and prints it.

The rest of the rumor is ... that in exchange for Frontier's Airbus fleet (flying, whatever) we'll agree to give Bedford or some other operator permission to operate the E190 off property and that we'd get a raise, or alternatively, we'd have some sort of merger with a regional and Delta pilots would perform the flying. The whole thing did not make a lot of sense. But, when you cook off the fat from he Eagle announcement, a pattern just like Moak's scope strategy starts to emerge. So maybe it is true, or parts of it anyway. Who knows?
All in favor of a collective thumbs down say, ai? AY! I? i? AYE!

There was something else here:
Other cost reductions so far, he said, have included:
-- Roughly $30 million in savings achieved by shifting 76-seat planes from Frontier's fleet to the fleets that Republic operates under different names for larger carriers, where the smaller planes can be more profitable. The airline also will shift some of its 100-plus-seat Airbus aircraft to those fixed-fee agreements during the slower winter season, Bedford said.
He is losing money having these airplanes fly for Frontier so how about shift them to DAL and UAL to make more money. Which helps who? RAH. And then who does that help? Frontier. So doesn't that just mean WE ARE FUNDING THE COMPETITION.

How the ALPA lawyers don't see anything wrong with RAH is beyond me. Even if the scope language they wrote sucks how do you not see them saying we're going to shift airplanes from Frontier to Delta to make more money is not STS? If these were truly separate airlines they couldn't be shifted.

-- Using upgraded technology and tighter scheduling to achieve $15 million in fuel conservation savings.
So does this mean they're not conserving fuel when they fly for Delta?