Originally Posted by
DrSteveBrule
Spirit is not losing money because of high labor costs. Spirit is losing money because they arent moving metal. Started out as meltdowns due to losing below the wing contractors in our largest bases resulting in several meltdowns. Why were we losing those employees? Low pay and a failure to keep up with logisitics companies plucking away at our workers. That issue still remains as i understand, and now they have the pilot attrition issue, costing this company roughly 3 hours of flying per aircraft per day. They ust wanna get back to 12 hours of utilization. They're not even considering 14 hours, unless that's what the red eye talk is all about. But let's get this clear. Pilot pay being too high is not why this management team isnt showing their shareholders a profit. Let's all just take paycuts! Yay!
It's great to see somebody on here that actually understands the business model and business in general. I hear too much that the ULCC model does not work... its NOT the model, its the MANAGEMENT! Spirit has **** POOR management! As someone who spent 5+ years working for 2 Wall St firms at my first career and now running businesses and investing in businesses I have to say that I see too much focusing on the bottomline everywhere. I believe our business schools have really dropped the ball for a long time.
Every company/business out there including airlines have an Income/Revenue problem, NOT an expense problem. We have to stare at the top line, not the bottomline. We need our utilization UP, we need to be more creative in raising revenues in other areas also. That's the problem here. The ULCC is a proven successful model, but will not succeed with poor management at the helm (same with any other business) Stop selling yourselves short because ALPA and managements have trained us how to think for decades. There is absolutely ZERO reason why we shouldnt match Alaska rates for a short 2yr extension. Sadly, I wish the NC would understand business as well. I would join Alpa and work my way up to NC and ive thought about it, but I have so much on my plate. We need experienced business people on our side during negotiations. P.S. is the "status quo" as far as i'm concerned, Ive heard him speak too much