Originally Posted by BeatNavy (Post 3306206)

Tech startups fail a lot as well. They don’t always turn into Google or Facebook or Twitter. It’s always a gamble. But with an airline like breeze set to grow from nothing to a 100-150 airplane company in 5ish years, that valuation will potentially grow rapidly. And it isn’t really a financial plan, it’s more of part of the risk/reward equation for going to a startup (along with seniority), and a monetary one that *may* compensate for initial low wages. The idea with the airline startup paying in equity is to have it long enough for the airline to go public, still in growth stage, at which point you have the option to cash out (or hold, I guess, but holding stock long term in the company you work for isn’t a great idea). That was one reason B6 got away with low wages initially, and some of those guys made out really well (some didn’t). It’s just something like profit sharing in that that isn’t guaranteed to pay out, but can move the needle in getting people in the door, and is an IOU of sorts, not really a scheme or promise that the stock will go parabolic and get rich…just something additional on top of and to partially make up for initial low wages.

I’d cut the breeze guys more slack if this were the case. Instead, they got a chance to put their own money into the company. Which is insanity when you think about it. It’s one thing to receive equity as compensation, but when you have to pay your own money, while already being underpaid, to invest in an airline startup at which you work…yikes.

Originally Posted by rickair7777 (Post 3306273)

I know guys who do tech startups. They fail a lot. But they only have to win big once.

An airline is going to be a long slog, and it's only likely to gain so much. An app can acquire 100 million new users in a month. An airline can only grow one plane at a time.

Not saying it won't happen, just that it's not a good rationale for working at a startup airline. If you want to get rich on startups, do it in the Bay, not Utah.

Originally Posted by rickair7777 (Post 3306273)

I know guys who do tech startups. They fail a lot. But they only have to win big once.

An airline is going to be a long slog, and it's only likely to gain so much. An app can acquire 100 million new users in a month. An airline can only grow one plane at a time.

Not saying it won't happen, just that it's not a good rationale for working at a startup airline. If you want to get rich on startups, do it in the Bay, not Utah.

Originally Posted by Margaritaville (Post 3306146)

I'm home every night at allegiant. Do a little industry research.

Originally Posted by MartyM (Post 3306313)

To me Breeze is a regional since it pays like a regional. If someone wants to go there to build up time and bounce, cool. If they want to go to a different regional to build up time and bounce, cool. If they want to stay, there's probably a reason other than finances for them to stay, like QOL, family, can't move, etc. If they want to go there, I don't care, it doesn't bother me. Why some are getting so worked up about what other people choose to do, is beyond me. If you don't like it, don't go. My body, my choice! Wait, different discussion...

Originally Posted by BeatNavy (Post 3306206)

Tech startups fail a lot as well. They don’t always turn into Google or Facebook or Twitter. It’s always a gamble. But with an airline like breeze set to grow from nothing to a 100-150 airplane company in 5ish years, that valuation will potentially grow rapidly. And it isn’t really a financial plan, it’s more of part of the risk/reward equation for going to a startup (along with seniority), and a monetary one that *may* compensate for initial low wages. The idea with the airline startup paying in equity is to have it long enough for the airline to go public, still in growth stage, at which point you have the option to cash out (or hold, I guess, but holding stock long term in the company you work for isn’t a great idea). That was one reason B6 got away with low wages initially, and some of those guys made out really well (some didn’t). It’s just something like profit sharing in that that isn’t guaranteed to pay out, but can move the needle in getting people in the door, and is an IOU of sorts, not really a scheme or promise that the stock will go parabolic and get rich…just something additional on top of and to partially make up for initial low wages.

I’d cut the breeze guys more slack if this were the case. Instead, they got a chance to put their own money into the company. Which is insanity when you think about it. It’s one thing to receive equity as compensation, but when you have to pay your own money, while already being underpaid, to invest in an airline startup at which you work…yikes.

Originally Posted by fastneat (Post 3306334)

Sir, may I make a statement? I have a pilot friend at Breeze who bought in in August 2020. Ten months later when they released B shares, his initial investment at Breeze was valued at 5x. (on top of his options..)

he's pretty good with it.

Originally Posted by BeatNavy (Post 3306345)

Until it’s publicly traded, it’s kind of hard to place a valuation on the company. And that 5x was based on a basically self-proclaimed 1.5bn valuation if I’m not mistaken. Pretty aggressive if you ask me. I’m not saying that early investors won’t do well. It probably will. I’m not arguing the merits of an investment in breeze. I am arguing that they are underpaying, and as a start up, ought to at least be providing equity in the company to compensate for low wages and poor work rules. But, no real reason to do it when “it’s better than my regional, barely” keeps classes full, and attrition doesn’t cancel flights or cost more money in hiring/training than paying enough to keep people.