Originally Posted by
gloopy
We always hear something similar to this though. The real acid test is if this is actually true, why couldn't we give the company a 2:1 return on a nice chunk of that and "Settle" for a mere 3 Billion and give back 300 Million in exchange for no concessions: 150M in direct shareholder return and 150M to BCRF. Shirley they would jump on that? If not, why not?
I have no doubt that its a net gain for us. That's not the point. I do think we frequently undervalue the concessions.
I'd add that we overvalue some gains as well. For example, TAJV production balance and application of 3.b.4 in recent years did not yield the value that was intended. Now look at the much heralded 650,000 block hour floor. Seems there's a giant loop hole allowing the company to fall below 650,000 international WB hours while meeting the TAJV balance % with reduced flying. Granted, the same scenario could happen with current PWA, but don't try to sell it as some huge win and value added when it's value is closer to neutral.