Originally Posted by Prancinghorse

I don't have an MBA but you don't have to be Warren Buffett to visualize the following scenario playing out.

Based on SM's memo the reasons the company is in the current financial situation are:
1. Integration delays (blah blah blah)
2. Training costs associated with the ISL and 11-09
3. Loosing money on "pro rate" contracts (ALL 9L FLYING,9E 900 Flying)

So here is what I see happening in simple terms.

A. The company tries to get a 7% paycut and fails. It doesn't matter either way, it's just a pure "money grab" by them. They are filing BK either way.

B. So they go ahead and file BK.

C. Go to BK court and the judge will ask them if them why they are broke and if they have a plan to return to profitability.

At this point if YOU owned this company why wouldn't you just ask the judge to cancel the Bloch award/ISL and dump, spinoff, liquidate, or whatever Colgan and ALL the Colgan pilots. Then you dump the 9E Contracts and aircraft. Furlough some pilots and Bingo!, you're just left with a leaner, profitable airline with all premium Delta CPA flying. In basically one move they solve all the problems that are causing their current financial crisis.

IF a BK judge is doing his job correctly or if he is anti labor groups he won;t give a damn about the Bloch Award, the ISL, or a union contract. He doesn't care if or when little Timmy gets to upgrade, or whether or not employees get to keep their jobs. IN A PUBLIC COMPANY ALL HE CARES ABOUT IS GETTING THE COMPANY PROFITABLE FOR THE SHAREHOLDERS AS QUICKLY AS POSSIBLE!

I know it may appear to be harsh. I'm a 9L guy so this isn't a Colgan bash, but I think everyone needs to prepare for the worst. I hope it doesn't come to that point but you can't sit there and say that at least one bean counter or hired gun hasn't suggested this scenario to Menke.