MD88driver;
You are correct, LUV did not cut rates. It is not set in stone, but CAL, AMR, UAL and DAL all look at each other to see what the other execs are doing or willing to do.

I want C2K+30. We all do. That is not the point. I want to get as close as we can to what we are all demanding. That is a no brainer.

What I am stating is reality. Not what a balance sheet states, not what a CEO or a VP of HR states. I am simply stating that how far our management team is "willing" to go will depend on where the other airlines are, and also when their CBA's are due. Both of those come in to play.

We got C2K because UAUA got their and so on. If CAL and AMR sign a deals shortly before ours, they will have thee plus years at those costs before they are even amendable. That means we stand strong for three years, or take a "patterned" gain on or near the amendable date, with a three years amendable date so that we are all due at the same time. We take a four year duration and hope to pattern up again. It depends on your input to your reps.

The biggest gains have been in a patterned approach. Normally they are more sustainable.

Our team in management is paying off debt. Great, that means less to the banks and more to my bank. It means we are that much less over the barrel when it comes to debt service. It also means that you may get a PWA that costs more than CAL or AMR. In that regard you are dead on. A lot needs to happen both with our financial position and other airlines financial and contractual positions for us to make the "offer."

AMR has a big apple to bite. Not APA but AMR. Their is a precarious position. I want to see significant gains there. Why? It will be that much easier for us. I believe that by 2012 we will see a surviving CAL PWA, a DAL PWA, and a AMR PWA. It will be those three that will set the costs for the legacy carriers. Players that we can leverage are Jet Blue, Luv and AS, but the footprint is very different.


Do not get me and I assume PG wrong. We want what you want, but there are ways to skin the cat. A quick agreement with a shorter duration may set us up well for 2015. I am not saying lie down and give up. I am stating watch the market, our financial position, the industries position, government regulation, cap and trade, ect. It all comes it to play. We are no more than a line item cost.
We want to get paid the absolute maximum we can and on the other side of the table they want the opposite. Duh!