Thread: Arbitration
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Old 11-05-2017 | 02:17 AM
  #268  
EA CO AS
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Originally Posted by ASpilot0936
It's very feasible.

25% profit margin.

I'll say it again.... 25% PROFIT MARGIN (Remember when 10% was the magic holy grail number we needed to attain?)

You DO remember that the 10% ROIC number was what was needed to sustain growth during the "Flightpath" sessions several years back, BEFORE getting squeezed at SEA by DL, at LAX by AA, and before B6 made a bid for VX, forcing the company's hand into a it's-now-or-never approach to committing to growth in CA, right? All while fuel was substantially lower than it is today, and with yields far higher than they are today due to increased competition in our core markets? (Hint: those 25% ROIC numbers just aren't coming back; ever.)

Or did you forget those very important factors that mean a cost advantage is a NECESSITY for AS to compete and grow? Obviously the arbitrators looked at those factors when coming to a decision that was well over what the company wanted, but obviously short of what ALPA asked.
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