Originally Posted by
BoredwLife
Yes 25% was a lot. I believe that it was a knee jerk reaction to try and protect themselves because they do not have the ability to lose money for a long period of time. While others furloughed between 9% and 17%, they are still loosing money hands over fist unlike Spirit. Furloughs mess up a lot of peoples lives, like mine. But this is the piece of crap industry that we choose to work in.
I agree. NK is making money. All this supports my theory even further. Lack of planning followed by panic and overreaction. By the time the cuts took effect, fuel actually was below $100. We could have been making nice profits with the returned planes. The "business plan" is supposed to work up to $110. Right?
Indeed it is a pos industry but I never listen. Too late now.
Originally Posted by
BoredwLife
So as I understand by your statement had they furloughed 5-10% you would have still been employed and that is acceptable.
Not sure how you've concluded that above. You have combined two separate statements into one. My point was about someone not planning properly and as a result putting the company into a cash position where, in their mind, a 25% cut was needed to survive. If I would be a majority owner I would be looking for heads to roll. This was point #1. My relative seniority has nothing to do with the fact that the planning was acceptable or not.
My other point was that I could see a 10% cut coming because it did not take a rocket scientist to see that we are heading into a recession. We were in a record growth phase. The longer it lasts the higher the chance it is about to end. But I have not seen a 25% emergency cut coming to a sooooooooo profitable company. I would have still signed up, but I would be more understanding for our management had I seen a 10% adjustment.
Aside of all that. I don't think Indigo itself is the problem. If you look at the rest of their investment, as far as I know, there were no capacity cuts and by now everyone is taking deliveries. I am starting to believe that the problem is that Indigo doe snot have the same amount of control over NK as it has, i.e. over Wizzair. I am starting to believe that it was not Indigo who did not have more cash to raise to get NK through. I think it is likely that the rest of the owners would have not been able to match an equal cash injection. Pure speculation of course but it is an idea.