Originally Posted by
AllenAllert
Question there Andy - Since the money issues would be settled with the TA, Why wouldn't Munos (Our Savior) go ahead and negotiate the full contract? I mean there is really no need to delay that part of the contract.
Are the money issues settled with the TA? I've read that it's still too low a number by some.
Here's a question back to you. How long does it take to negotiate a full contract?
I'm used to seeing these things drag out for a couple of years. In comparison, this TA looks like low hanging fruit - able to be grabbed immediately rather than wait until 2019 for a new contract. Can it be done faster? Sure. Are there any guarantees that we'll be able to get most of the section 6 problems fixed? No.
Do you view this TA as an incremental gain or loss? I view it as an incremental gain; better than a lot of (multiyear negotiated) contracts I've seen.
Is it perfect? No, but name me one contract that is perfect. Even C2K gave up some work rules.
Originally Posted by
UAL T38 Phlyer
My theory:
The company feared big losses of revenue due to cancelled or delayed ULH flights. Trailing DAL in earnings, they were anxious to find a way to stabilize it, so Wall Street confidence would not falter.
Then they were given an option for a very lucrative deal for CS100s, but since Bombardier was teetering on bankruptcy, the deal was time-limited. Having seen the RJ writing on the wall, and the need for mainline 100 seaters, they wanted to secure rates BEFORE announcing a buy or delivery....so there would be no delays due to negotiations for rates.
A move for NSNBs could possibly also tie to investor confidence, since that is the trend at the big three, and they would not want to see us lagging behind.
Full Section 6 takes time....they wanted to get the critical pieces done.
That's my theory.
Makes sense. I read about the Bombardier issues ~6 months ago. Teetering on closing their doors; I think they got a govt bailout with strings attached. I think those strings involved selling planes, even if it meant at a loss. Selling a bunch of them to United would keep the lights on and the production lines open for quite a while.