Tax reform and negotiations
02-17-2018, 11:11 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Nov 2013
Posts: 120
Tax reform and negotiations
I'm sure we have some smart peers out there that could ballpark some numbers regarding Indigo's windfall with respect to the new corporate tax rate.
I'm not that guy but it'd be interesting during this lull to address it. I'm not savvy with financials but my guess is somewhere around $23 million/year savings for Indigo going from a 35% to 21% rate.
That's another nudge towards resolving this contract. If we were close enough to resolution before this tax cut to continue negotiations without release then we should be wrapping this up or walking soon.
I'm not that guy but it'd be interesting during this lull to address it. I'm not savvy with financials but my guess is somewhere around $23 million/year savings for Indigo going from a 35% to 21% rate.
That's another nudge towards resolving this contract. If we were close enough to resolution before this tax cut to continue negotiations without release then we should be wrapping this up or walking soon.
02-17-2018, 06:14 PM
#3
Gets Weekends Off
Joined APC: Aug 2016
Position: Bus CA
Posts: 658
Based on their conduct in negotiations over the past two years, I believe there is zero correlation between Frontier’s profit and what Indigo believes our pilots should be paid. They started negotiations by asking our pilot group for concessions, not off our new contract proposal, but from our current 2007 bankruptcy contract. The answer will always be for them to pay as little as possible for as long as possible; there is no other strategy in play or it would have shown itself by now.
So it doesn’t matter how much money the tax reform is letting them keep, call it 33 million or 3.3 billion, their strategy will remain the same.
So it doesn’t matter how much money the tax reform is letting them keep, call it 33 million or 3.3 billion, their strategy will remain the same.
02-17-2018, 09:04 PM
#6
Gets Weekends Off
Joined APC: Nov 2012
Position: 1900D CA
Posts: 3,394
Originally Posted by FLYBOYMATTHEW
Will they benefit from the tax law changes if they are able to offset their gains with the debt incurred from the A/C order?
02-18-2018, 07:19 AM
#8
Gets Weekends Off
Joined APC: Dec 2009
Position: what???
Posts: 173
Originally Posted by Kilroy
Spirit spent several years in contract negotiations. If this is correct, you guys have been in negotiations for only 2 years. How close are you really in getting a TA?
02-18-2018, 10:00 AM
#10
Gets Weekends Off
Joined APC: Aug 2016
Position: Bus CA
Posts: 658
Not that it will directly correlate to our negotiations but Spirit entered into mediation roughly around the same time as Frontier. So if you’re comparing apples to apples, it would be based upon when we entered mediation, not when we began with our early openers.
Thread
Thread Starter
Forum
Replies
Last Post
