Originally Posted by
Lakeaffect
Jetblue may have incentives for Spirit to keep labor cost as low as possible, but thats about all they can do. Their was nowhere in the agreement that I saw that allows JetBlue pull out of the transaction of paying Spirit shareholders $34/share if pilot pay gets too high. The deal is with shareholders, not the pilots, labor costs are not a factor in this equation. Just because some management person said something, doesn’t mean it’s true. They raised F9 pay once during the merger talks, so what you were told was not even true.
Maybe the merger you had experience with was with private companies. That would make more sense. But it doesn’t with publicly traded companies in this situation. Also, we’re not trying to look attractive to JetBlue, they approached us and already signed on the dotted line. Done deal.
Granted, my exposure was with private companies. Don’t have any experience with publicly traded companies and mergers.
I just don’t think that NK can offer whatever can be agreed upon without it having some sort of bearing on the merger. No one knows the details so who knows how this will go. I sure as hell hope I’m wrong in every aspect because something needs to give to stem attrition and turn a profit.