MtnPeakCruiser

I took particular interest in Slide 15, cash generation during challenging environments including “labor disruption” in FY18. Net income jumped from $183mil to $276mil from FY18 to FY19, with the new labor contracts in place and no disruptions. +$93mil, I wish I had the number that new contracts cost them in 2019 so we had some idea what labor disruptions actually cost them. The next ask in contract negotiations is probably going to come easier knowing what disruptions cost them. “Labor disruptions” is strong wording to describe unhappy labor. They need their happy pilots to go outside their duties to un-EFF the hiccups that low-experience contract labor bring to the operation every day. The cost delta from old contract to new was huge but that won’t be the case for the next round of section 6 negotiations, management playing nice should be the clear choice; just as dragging their feet while in negotiations last round was the clear choice.