Originally Posted by
golfandfly
Have you ever seen deals improve after turning down a TA?
It's at least a six year deal? Why sign a weak TA and have to live with it this long?
Let's get a new team in, regroup and work on a suitable deal. So what if it takes a year or two?
Some good points worth considering G&F. So what exactly is the history of a pilot group voting down a T/A? Mixed to poor outcomes mostly with Billions lost. American, USAir, AirTran (SWA Merger) to name a few that left Millions of dollars on the table in "good" deals. They never recouped those losses and are just now, in American and USAir, just starting to claw their way back.
To your point of 6 years being too long and regrouping. For a suitable deal. Some say the size of the deal may improve, some say it shrinks, lets assume it's neither. So money gets moved around but the at the end of regrouping we are still looking at a 1.68B dollar deal. Even if it's a four year deal with the same money...well what if it takes another 2 years to get the deal?
We could be left looking at the same size deal 2 years from now, for the same money. We end up with the same duration due to the delay, but with less earnings and DC contributions over the same period.
WHY? Risk/Reward? I'd rather know the hand I was dealt than guess at one that may be dealt.