Originally Posted by
Halon1211
Okay, but where are they going to get the money to pay you what your worth? If they themselves aren’t turning a profit or barely
You realize cutting (or not increasing) pilot salaries doesn’t put us back in the black right?
We are a variable cost, and while yes we are an expensive cost, we are certainly not what is standing in the way of profitability. The more we flights we operate, the more money they make.
Also, Spirit turning massive profits is not the goal, we have a high plow back ratio, which means we put a lot of money back into the company to fuel growth rather than pay shareholders dividends. As long as our bills are paid and we have some operating cash on hand, we don’t expect to turn a massive profit as it all goes towards driving growth.
If we can’t make our obligations, we would have to take on more and more debt, which some airlines did to cover operational expenses. We used cheap govt money which was smart, but we didn’t get over burdened like AA.
Obviously these are very broad strokes, but the point is anyone who tries to rationalize low contract expectations on the belief that Spirit can’t afford to pay us is misinformed.