Thread: Alaska / Virgin
View Single Post
Old 04-06-2016 | 03:46 PM
  #20  
gooddeal's Avatar
gooddeal
Gets Weekends Off
 
Joined: Jul 2013
Posts: 194
Likes: 0
From: Wicked Artsy, Moderately Fartsy
Default

Originally Posted by PNWFlyer
To pay for this merger it is safe to say Alaska may not turn a profit for a few years. Nice way to head into negotiations with your pilot group.
Not totally true....with a no-compete clause in place for common routes, VA/AS can set a fare-pricing model against other competitors now...even as separate operations. Even with VA as a prior competitor, AS and recently VA have been profitable.

This was a largely cash transaction...money that was never set aside to fund labor contracts. The potential for greater profits are not foresaken on this transaction. Even if AS debts double as part of the integration of both operations, there is ZERO reason to expect concessions into the coming TA. The only thing that needs to change are the "I got mine/I need to get mine" yes-to-any-meager-pay-increase voters to be outnumbered by the visionary longer-term NO voters should the company try to push a insufficient contract across the table.

There is no whipsaw, there is no gloomy economic forecast, there is no reason to choke down an 8-yr contract or fear mgmt playing one pilot group against the other. Just be ready to COLLECTIVELY BARGAIN with a company who has been very profitable for more than a decade now.
Reply