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Old 05-29-2020, 06:43 AM
  #231  
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Originally Posted by OTZeagle1 View Post
We are not looking to become one of the big 4, we are about responsibly growing our brand.
AS is too small to get away with that long term.

You can probably sustain a niche business model, catering to specific customer demographics (ULCC, biz travel, vacation travel). But the days of niche regional legacies are over, too many 800 pound gorillas ready to eat your lunch.

HAL might be the only sustainable example because of their unique geography and brand (assuming they survive this).

Eventually AS is going to have to responsibly team up with somebody. They essentially spent $4B to keep JB out of the west coast... how often can they do that sort of move going forward?
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Old 05-29-2020, 07:32 AM
  #232  
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Originally Posted by rickair7777 View Post
Eventually AS is going to have to responsibly team up with somebody.
But, who?
​​​​​​
What do you think is the likely horizon for that to happen?

Will it be in 5 years when they come to realize that is the best option, or will they be proactive and do it early to take advantage of an airline's weakness?

Last edited by All Bizniz; 05-29-2020 at 07:47 AM.
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Old 05-29-2020, 07:44 AM
  #233  
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Originally Posted by OTZeagle1 View Post
I will make this really simple:

Alaska made 8,781,000,000 in 2019

If revenue returns at 70%, that means AS has a 6,147,000,000 dollar pile of money for 2021.

The costs to run our full operation are about 7,718,000,000, that means we would be short or lose (1,571,000,000) for the year. That would not work.

If we reduce our operating costs by 20%, our expenses will be roughly, 6,174,000,000


70 % 2919 revenue 6,147,000,000

Minus 80% 2019 costs -6,174,000,000

Equals a survivable negative number (27,000,000)

We are not Southwest, we do not have Southwest cost structure. We are determined to survive this and take advantage on the backside. We are not looking to become one of the big 4, we are about responsibly growing our brand.
With all due respect I haven’t seen much meaningful growing of the brand anywhere outside Seattle even before the virus sent things south. It seems there strategy even before all this was to consolidate into Seattle as much as possible and leave some token regional service in California.
Southwest might well be targeting AA, but I wouldn’t be surprised to see them take a good percentage of our Hawaii market share(once Hawaii opens again), In the meantime we’ll be sitting around with hundreds of furloughs and airplanes parked with no way to react quickly enough.
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Old 05-29-2020, 07:52 AM
  #234  
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Originally Posted by rickair7777 View Post
AS is too small to get away with that long term.

You can probably sustain a niche business model, catering to specific customer demographics (ULCC, biz travel, vacation travel). But the days of niche regional legacies are over, too many 800 pound gorillas ready to eat your lunch.

HAL might be the only sustainable example because of their unique geography and brand (assuming they survive this).

Eventually AS is going to have to responsibly team up with somebody. They essentially spent $4B to keep JB out of the west coast... how often can they do that sort of move going forward?
Will be interesting to see if the OneWorld alliance gets much business for ALK in the long run. With the alliance they get American, British Airways, Japan Airlines, and Qantas as partners to name a few. There is also a disadvantage to the 800 pound gorillas. Really hard to make radical changes with all the fleet types. Southwest has the advantage of a single fleet and I personally think that ALK is headed that way. I do thing they need some "clarity" both on the MAX and on business demand to make a decision on the fleet which they don't have right now.
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Old 05-29-2020, 08:00 AM
  #235  
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Originally Posted by flysnoopy76 View Post
With all due respect I haven’t seen much meaningful growing of the brand anywhere outside Seattle even before the virus sent things south. It seems there strategy even before all this was to consolidate into Seattle as much as possible and leave some token regional service in California.
Southwest might well be targeting AA, but I wouldn’t be surprised to see them take a good percentage of our Hawaii market share(once Hawaii opens again), In the meantime we’ll be sitting around with hundreds of furloughs and airplanes parked with no way to react quickly enough.
I think Southwest will take market share in OAK and SAC for sure. Don't think it will cut into the PNW to Hawaii market too much and Alaska will probable do okay in the SJC and SAN to Hawaii market. LA area and SFO hard to guess.
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Old 05-29-2020, 10:40 AM
  #236  
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Originally Posted by Costanza View Post
I think Southwest will take market share in OAK and SAC for sure. Don't think it will cut into the PNW to Hawaii market too much and Alaska will probable do okay in the SJC and SAN to Hawaii market. LA area and SFO hard to guess.
We didn't have much market share in either places anyway compared to SWA. At any given time there might be one AS plane at a gate compared to 10+ SWA
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Old 05-29-2020, 10:45 AM
  #237  
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Originally Posted by OTZeagle1 View Post
There are strong rifts in our union, many will not talk to others, save me all the BS and kumbaya, I actually know what is going on.
Since you actually know, why don't you tell all the pilots? This is a small audience and the entire pilot group could benefit from your "knowledge." A quick email to the entire pilot group from your outlook account would work.
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Old 05-29-2020, 10:51 AM
  #238  
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Originally Posted by snackysmores View Post
We didn't have much market share in either places anyway compared to SWA. At any given time there might be one AS plane at a gate compared to 10+ SWA
The sad thing is in a lot of markets it will likely be 11 SWA planes and no mainline AS aircraft in a year or two. I'd give the current podcast a good listen. If anything it shows our management team to be, well the nicest way to say it: our management team does not inspire confidence.
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Old 05-29-2020, 12:11 PM
  #239  
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Originally Posted by OTZeagle1 View Post
We are not Southwest, we do not have Southwest cost structure. We are determined to survive this and take advantage on the backside. We are not looking to become one of the big 4, we are about responsibly growing our brand.
”We are not Southwest” - 💯 true. They’re aggressively responsible. We’re passively responsible.

“We are determined to survive this and take advantage on the backside.” - How? I’ve heard only one “plan” since I’ve been here. “Most West Coast”, and we packed up that slogan like a cheap suit and retrenched SEA long before the Covid. And, I know I’ve heard that “we don’t like to Telegraph our moves/plans. We keep our cards close to our vest.” Passive aggressive? Ok! But JUST passive?

“....we are about responsibly growing our brand.” - to WHOM? The part of PNW market that doesn’t already use us, is unfamiliar with our product?

Before Covid, SEA seemed like it was in full on panic mode to save gates from being allocated to Delta. The big four are gonna be quite a bit leaner in the aftermath too. With a serious reduction in International flying. I would think our little gold nugget of PNW and AK flying would look pretty appetizing to one or more carriers to go after and try and recoup some of their Covid loss.

I’m not taking a “tone” here at all. I’m just saying that words are empty and if “ifs” and “buts” were candy and nuts we’d ALL have a Merry Christmas.”

I dont doubt our ability financially to produce dividends. But, I’ll believe we’re gonna do that through gaining market share when I see it.
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Old 05-29-2020, 05:07 PM
  #240  
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Originally Posted by OTZeagle1 View Post
Yes, regularly. “We have to wait, let the whole thing play out”- is the just of the response. I feel that is irresponsible, reckless, and unkind to those affected. Surprisingly, there are strong differences of opinion amongst the union ranks. I would argue all wish for the same outcome but path, poster, and stance varies greatly. Some are intelligent and have common sense, others only guided by anger and bitterness. There are strong rifts in our union, many will not talk to others, save me all the BS and kumbaya, I actually know what is going on.
Once again you show your true colors. On here to spread your BS line on the union. No union at any airline ever sees eye to eye amongst themselves and rifts occur on many a item and at all levels. This is by far the strongest union leaders we have had assembled in sometime and one that is more than capable of dealing with the ever changing environment that lies ahead and has been going on. One that is more than capable of dealing with a management team that will not cooperate with them during this unprecedented time. Each base/group of pilots here, will for the most part have similar wants and needs. However they also have differences and items they will not agree upon. That is normal and occurs at all unionized pilot groups.

They are in the business of dealing with facts and the information at hand, not some info that is coming from a union busting management plant. But yet it appears that the union busting management plant will continue to come on here and tout the BS line and get their ego stroked and never be able to stay away.
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