There are a lot of issues to think about as to why the company is doing this. Are we being bought, are we buying another carrier, are we just cost cutting because our execs are so enamored with their earning power? I don't know about you, but with all the outsourcing and not owning a single thing at this place other than cash, it gets me real nervous about the future of this place. The stock price can't stay this high forever.
I can see the company cutting out any employee group they can prior to a merger or buyout in order to streamline and cost cut.
Having contract ramp and maintenance is working ok now with new airplanes, but what happens down the road when they actually have to fix something instead of deferring it?
What stops Spirit at this point from buying Frontier and operating it on a separate certificate? Deferring aircraft deliveries to Spirit and sending them to Frontier because we want too much in terms of pay and benefits. Management would love a whipsaw like this to drive down operating costs.
There will be consolidation in the ULC market. It's just a matter of time. We are getting squeezed by the likes of SWA, Delta, JB. The only way to survive this without organic growth is through consolidation and to me it seems like they are cleaning house.