Originally Posted by
Trowserchilli
What money involved? How much would it cost Indigo? How much COH does Indigo have?
What money involved?? Let me spell it out.
1) quick strike - the cost per day for an airline shut down. Yes, I agree Indigo has plenty of cash on hand for a 6 day strike. Actually dollar amount per day to shut us down? Go talk with Biffle. He'd tell you a good estimate.
2) long strike - loads of money lost. All the money Indigo has made off his initial investment would be lost. Why would Indigo spend that kind of money to keep Frontier pilots from a pay raise and disrupt his sale/IPO? Stupid, and Franke ain't stupid. This scenario is by far the least likely. I'd give it zero chance.
2) close the doors - Indigo will lose out on a sale or IPO. As I mentioned previously we are taking BILLIONs of dollars involved. Franke is a very smart guy, but even he is human and could go the nuclear option simply to please his ego and prove a point for taking him to a strike. He's made a nice return on his investment as it stands today, so he could just walk away. I give this a very slim chance because of all the other stakeholders involved. Airbus, GECAS, etc. will put huge pressure on Franke not to go nuclear. But a smart pilot will have 3 months supply of cash on hand to transition to another airline, wherever that might be.
I feel like I'm repeating myself...