Originally Posted by
GrassLandings
AA and DL contracts are both 10 year contracts. So aa is way more than 3 years away. Our DL birds are also a heavier max TO weight than every other airlines. I feel we will be just fine. What airline is gonna be able to take that much growth? Especially now when every airline is struggling to attract new hires and the talent pool for everyone is dwindling FAST. I just dont see them leaving to any other carrier from a financial standpoint, and logisitical/staffing standpoint.
Do you know for sure AA is 10 years? I was told it's 5 plus the option for 5 more. I tend to believe the 5+5 more. From the business standpoint, I'd be really surprised if AA signed away their options for 10 years straight.
Don't forget why we have the AA contact in the first place. They needed to teach Envoy a lesson. Now that the lesson has been learned, AA is in the business of keeping its wholly owneds running, and that includes staffing. And the most cost effective incentive for people to come to Envoy is the continued growth that they can give them almost for free, by simply not exercising the option to renew our contract. Much cheaper than bigger bonuses or higher salaries across the board.
All of the above is speculative. None of us rely know what's in the contacts. All I'm doing is pointing out that there's a real possibility that Compass may fall on hard times in 3 years. I really hope it doesn't happen, I like this place, warts and all, and I hope that my brethren who come aboard now will have a good time here and successfully move on. But it's important to keep one's eyes open to possible downsides.