Originally Posted by
captnate702
I'm hearing something similar but with a different twist: management is expecting fuel to stay high and thinks a recession is coming. The combo of the two is why MG doesn't care if the airline shrinks, accelerates ac retirements, and sheds capacity. bring down the costs and maintain high margins and EPS. I'm hearing that MG only agreed to offer the union full contract with new rates and retirement because he knew that the union wouldn't take it and he wants to be able to tell investors that managmenet tried but the union just wouldn't play ball.
just what i'm hearing...
Imo, that’s very MG. The man plays his chess games to have plausible deniability as to why we will be shrinking and not growing. It would help him out a little more if a nice little nuclear exchange destroyed all of Europe. Full apocalypse is the only type of recession that will slow the Legacy’s from hiring all the FOs. Not that it matters to the investors call in May. They will still nod their heads in agreement with him. MG only cares about two things; High Profit margin and placating the union.
No contract for the foreseeable future. It’s a testament to how uncorrupted our union leadership is. All or nothing. So be it nothing. Nobody gets paid. It will be interesting to see just how much of Plan B gets implemented. I’m guessing slow at first.