Simply put, the flow is NOT contingent on new hires. Envoy will continue to flow and will shrink to whatever size that pilot retention and attraction allows. If we get 40 new hires a month, expect to see upgrades to be 300 - 360 a year as a one to one replacement for flows and even a little growth. The more new hires we get will result in more flying and more upgrades. I believe that Doug Parker's plan for envoy has always been for it to be a 1500 pilot company. If we have more pilot than that, great, but he doesn't see a recruitment problem until we approach that target. I believe that it will be at that time that we will start to see endeavor style bonuses as a recruitment tool.
I think that contractual gains by the Republic pilots is great but if Bedford does file for bankruptcy, the pilots there could still be in a bad position. I think that as the pilot "shortage" deepens, we will see Doug Parker more apt to pay out financial incentives to the wholly owned companies before he will pay more to contractor companies like Republic. This protects AAG assets and makes it easier for him to remove those costs when he no longer feels they are necessary.