Originally Posted by
dracir1
That has to be factored in...
The pay tables for the Big 4 are out there until 2028. The longer the negotiations, the higher the rates. It's simple math (and time) formula. If Indigo was smart, they'd TA section 3 NOW while rates are lower. Prolonging saves money on labor costs but also decreases retention.
CASM is one thing. But RASM is another.
It’s not locked it. Rates increase over 3 years starting amendable date. Every day indigo holds out they save whatever that difference is. Now that difference will need to be captured with retro. Meanwhile they can use that savings and get a 5% rate of return guaranteed worst case. They save nothing by paying now. They lose millions annually.
Management would be fired immediately if they were to agree to proposed rates day one with nothing to show for it.