The pay cut is a moot point for profitability and it is insulting that SM thinks we can't do the math to realize a 7% cut for 1 year would do nothing.

The real problem is the contracts we have. My brief experience with United has shown me that UAL values cheapness over anything else. The way the A terminal at IAD is run seems like they are willing to spend a dollar to save a penny. The Q is an efficient airplane that should easily make money. It would be in the best interest for UAL to modify the contract to keep Pinnacle around because it would cost a lot more money to start up a Q400 operation at another regional. However, I cannot imagine UAL being able to comprehend the idea of paying more money upfront to save money in the future. All it will take is GoJet to say they will buy Qs and underbid us.

It is a little depressing, but management always wins. They have more information than us and have been planning this for months before they ever said anything to us. They will get their pay cut one way or the other. It is not hard to find a judge who would grant a 25% pay cut and undo the ISL.