Flying The Line 1: CHAPTER 18

The 1960-1962 strike of Southern Airways. I wont highlight any key terms because the entire article is a good read. But stubborn management allowed the strike to continue for so long that the pilot group purchased over 20% of shares (common stock).

The good thing about owning common stock is that it can be sold at any time and you are also entitled to profit dividends (just like in Monopoly (the board game)). In addition, common stockholders receive "preemptive rights"-which affords the common stockholders a priority to purchase newly issued stock in order to maintain a proportionate position at all times. But most importantly it allows the owners to attend and participate at shareholder's meetings.

Northwest airlines and eastern had similar situations where pilot's were afforded stock options. Even though this occurred back in the day, they still are viable options and a great way to ensure pilot's have a say (in addition to collective bargaining). If you guys are gonna do this thing, it would be great to see it done with a long term view, especially since management has put you all in this position before.

If you go to investors-hub/yahoo finance, and look at the share flux charts, you'll notice that for several months (back in 2011), Spirit stock was on average $19-20/share. It has reached $84.25 and, currently is down to $38. If the price falls down to $19-20 expect the company to respond more seriously. remember Spirit stock price didn't climb more than a dollar after announcing the $6 billion order back in 2011, revenues as of the last filing are a little more than 30% of that number. Being a bare-bones operation that purchased aircraft under financing, there will be no redeeming/saving grace to raise stock price/value after a strike, or after stock price approaches $19-20/share.

But yeah, check out that link, good read and eerily similar to what's going on at Spirit now (minus the scabbing...for now).