maybe they’re using the financing to pick off assets from their failing competition on fire sale.

 

yes Dracir I got your post the chiding was directed at Vision, I see your confusion. It was a two fold reply to his comments. The people that only post negative doom and gloom are as bad as the people who can’t see anything but sunshine and rainbows. Drives me nuts but free will is still on the books so here we are

 

lol. Sorry for being so negative. I’ll be neutral.

we exist. We sell some seats. At a neutral fare.

we make neutral profit or losses. We can afford a neutral contract. I’ll neutrally vote no/yes. Leaning heavily to expect a pay neutral to the average pilot compensation for an a321 aircraft.

 

I don’t even know what this means.

 

Or, most likely, they have it in reserve to use to ride out the softening demand (if needed).

Let's look at possible options:

1). The company is overstaffed (we know this) and I think I read in another post by 30%. I have no idea if this is correct but let's go with that number. Of the 2200+ pilots and 5k FAs let's say the company furloughs. 30% is 650ish pilots and 1500ish FAs, so the bottom FOs get a WARN letter then are on the street after mandatory waiting time (I think it's 90 days by law). Same w/ the bottom 1500 FAs. For the pilots, that triggers mandatory downgrades of about 300 CAs to get a 800 / 750ish mix which is a fairly significant training cost (both time and money). Of course, this would trigger attrition (both of the furloughed and non-furloughed). And, factoring in the stalled contract talks, loss of profits lately, etc., the stock price would plummet (not sure they care about this) and it's a VERY BAD LOOK given all the "double digit profit" talk just a few months ago. There will certainly be additional losses attributable to the even more obvious mismanagement of things. So, despite the savings in labor, the cost of this action is probably much more expensive than paying the pilots and FAs (after asking for voluntary COLAs) for a year or two of not really flying much and it's much easier to ramp up when needed. The only burden now is an exercise in keeping people current. The VP of Flt Ops confirmed that THIS HAS BEEN and CONTINUES TO BE DISCUSSED.

2). The company could sell. In this market, domestic only airlines are cheap (given demand) and Franke/Indigo aren't in the habit of selling in buyer's markets. Despite the fact that we're the hot chick (F9 is the ONE airline that is operating at/near breakeven in a down market, isn't in debt and has cheap labor), the two strongest guys aren't really interested AND we think we're hotter than we actually are.

3). The company could buy/merge. Only problem with this is the only airlines that make sense are so far in debt, it would take many years to break even (and that's starts AFTER the market turns around). Buying NK or JB right now is buying labor and some real estate (significantly overpriced given the debt).

4). The company could INVEST in itself. Obviously, this is the biggest risk but an infusion of cash to improve the customer experience while paying labor groups current market wages might lead to more tickets sales (once demand returns). Of course, it could not work out and Indigo is just throwing more money into a bad situation (chasing).

Which would you do? (Before you answer, think like the greediest Billionaire you've ever imagine that count's every nickel...)

 

maybe you haven’t been keeping up on current events, but spirit is done dude. There’s nothing for Barry to mishandle.

Barry might grab some pieces if there’s a fire sale. But, TC ain’t running the show over there anymore. So I doubt he gets any preferential treatment.

they’re selling planes to keep the lights on. All you’d be getting is overpriced pilots and debt.

move on.

 

this is correct

Christ the savior coulld not take a injured race horse with an amputated leg and heal him back tomwin a horse race

just aint happening

 

You obviously don’t know the story of Christ The Savior. That’s exactly what HE does. Only if it’s God’s will, will it happen.

 

All the doom and gloom posters are either management plants trying to negatively influence pilot’s expectations for a contract or newbies who don’t know what bad really looks like. If you were here from 2008 to 2013, you would know.

 

Once Spirit is gone, the legacy carriers will raise fares on Spirit’s former routes since they’ll no longer be forced to compete with ultra-low-cost pricing. Those higher margins will give them the financial flexibility to move into Frontier’s markets. With that additional revenue in hand, they can then aggressively compete on Frontier’s core routes—using profits from the former Spirit markets to subsidize cheap seats where Frontier operates. Ultimately, this allows the legacies to pressure Frontier from both sides: charging more where Spirit once flew, while undercutting Frontier where it still tries to compete. Frontier pilots should be hoping for some sort of Spirit miracle.