Originally Posted by
Sunvox
+1000 - Until industry consolidation happened airlines lost more money than they made over their entire history. Since consolidation the industry has been profitable in a way never before believed possible for airlines so much so that Warren Buffet decided to invest in the industry as a whole. UAL just posted a Year over Year increase in profitability and raised their full year earnings guidance in the face of a 40% increase in fuel cost and did so while sticking to a 5% growth strategy AND reaching their highest customer satisfaction rate since the merger
Just remember, a rising tide lifts all boats (even leaky ones). Let's see what the profit sharing check has to say March 2019.
Originally Posted by
baseball
Often we forget what really happened and we only remember what feels good or sounds good.
Gordon hired a guy named Jacques Lapointe. I think Jacques, along with allot of the other CAL dinosaurs are with Kellner at their Crystal River financial company.
The CAL concessionary contract that was thrust upon us was brought to us by Gordon. Kellner, being new on the scene got stuck with it, but the building blocks were all put in place by Gordon.
Management scared the pilots with liquidity shortfall and threats of bankruptcy. This poor cash position was a result of Jacques Lapointe being allowed to single handedly (unilaterally and without supervision) put the company in a bad cash position.
Our liabilities in the CPRP and the CARP were too high. And, the funding of those retirements was too low. The investments were all aggressive and reckless. The pilots could only observe, and had no vote on how our retirements were invested.
Gordon knew how to use the ALPA bureaucracy against us. He used the SCABS to great effect. So, I don't put Gordon on such a huge pedestal. At the end of the day, Gordon got paid well. This is a business, and now it's my turn to be paid well.
Not to imply scabs be let off the hook but.....
The pilots did have a say in the investments. The CPRP invested in mortgage backed CDO's. There was an ALPA rep on the investment committee (later became IAH CPO) and not a scab...who was silent on the investment that was later written off.
Also, the R&I chairman (full term striker) that negotiated the pension freeze, did not even to attempt to require a snap back , as well as that stupid "50% 401(k) PCRA conversion, that Kellner fixed 2 weeks after the contract was signed. (Good for him). He wanted to go with the prevailing ALPA national wisdom and move everyone to a DC plan. Which was fine, but left a lot of older pilots holding a half empty bag. (That guy retired with about 80% of his A plan intact.