Originally Posted by
mkitrn
lol yeah man I’m aware that airlines that pay less money and don’t use hub and spoke and instead use focus cities and don’t fly to Europe or Asia don’t use regional jets well aware...
Yes. Discount Airline Pilot Guys who crow about their badass scope kind of crack me up. The company gave 'em that scope because they weren't going to use it anyway.
Originally Posted by
mkitrn
All that is needed is the appearance of insolvency if you can point to a nail in the coffin like a intentionally underfunded pension that must be taken over by the PBGC you can use it. It happens over and over and over again and history will repeat itself again.
History won't repeat itself as easily as some might think, the BK laws changed in 2007 (no coincidence that EVERYBODY filed right before that went into effect). It's no longer just a an easy trip through the BK drive-through and then back to business as usual... the debtor-in-possession (ie management team) is no longer in the driver's seat. The creditors now have a lot more say in the process, it's easier for them to flush the managers or even force liquidation... whatever they think will get them the most pennies on their dollar.
If the debt's getting wiped out anyway, then the only thing that matters is asset values (planes, gates, slots, GSE, etc) vs. potential future profitability.
Although in this climate, since the fed has already dumped billions into the airlines they would likely intervene prior to a liquidation. But managers can't bank on that because the fed *might* let ONE of the big guys liquidate... nobody wants to go first and press-to-test on THAT.
Originally Posted by
mkitrn
Tighten your scope in times like these see what you get. I’m not saying loosen scope. I actually think legacies should have one single pilot group just like other majors (but pay b scale for small jets). But what I’m saying is try to tighten your scope with current pay rate at legacies in the current environment and see what happens I do not think you you will like the result. There is a time to take more and now is not that time.
I don't think anybody expects to tighten scope right now except AS, which will likely enjoy faster recovery due to geography, has an amendable contract and almost no scope to begin with. The company will probably give them the scope they weren't going to use anyway (100 seaters, something resembling industry standard on 70-seaters).
I think where people will dig their heels in is scope relief, temporary or not. Also, history lesson: voluntary contract relief granted post 9/11 was used by companies in BK court as the new baseline... from which FURTHER contract degradations were extracted. May not be wise to set the table for the company's court case.