Originally Posted by
DrunkIrishman
I don’t understand why some of you keep saying this is a revenue problem not a cost problem. It’s both just as it was after 9/11. If you don’t have any revenue coming in, you have to preserve cash which IS a cost problem. If you don’t, you’ll go bankrupt plain and simple.
The reason people (me) are saying it’s a revenue problem and not a cost problem is because of the SCOPE/SIZE of the problem and how the Company got to the point of where it is. If the current revenue environment continues lowering the ALV by 20hrs for every one for a month saves around a $100 Million. At current published burn rates that saves 2 days or less. In other words it’s not gonna help us unless the Revenue side returns.
I’ve heard some pilots say bankruptcy is inevitable so we should not do anything to reign in cost. That is one helluva self-fulfilling prophecy. I’m sorry how bad things were in the past and I recognize our profession was nearly destroyed financially. That should not, however, prohibit us from reducing our monthly credit. This is very different from reducing our payrates.
Can any of you say that maintaining high cost compared to revenue is wise?
If revenue does NOT return, we absolutely ARE headed to another bankruptcy..........or gubmint bailout. There is no way to avoid it. In the current revenue environment we could fly for free and still end up in BK. Again, reducing monthly credit by 20 hrs system wide for a month only saves 2 days or less at current burn rates put out by EB.
Denny