They aren’t public so we don’t have a good working knowledge of that. Or maybe somebody else does but I do not.

As far as your “F9 sucks at making money” comment I would agree but more along the lines of F9 stock is worth less than an airport water bottle now so I can’t see BB being allowed to reign for much longer. Though I am always cautions to be careful what I wish for because a new boss may come in and make my life harder yet.

 

I maintain you're incorrect. Let's get on the same reference though.

I’ll use F9's June 30, 2024 10-Q as the reference.

Page 14: "The Company recognized sale-leaseback gain transactions of $77 million, $148 million, $17 million and $57 million during the three and six months ended June 30, 2024 and 2023, respectively, which are included as a component of other operating expenses within the Company’s condensed consolidated statements of operations."

Page 27: “Other operating” resulted in a net gain of $1 million during the three months ended June 30, 2024, as compared to an expense of $53 million during the three months ended June 30, 2023. This movement was primarily driven by the increase in sale-leaseback gains….”

Page 4: Is where you find “Condensed Consolidated Statements of Operations"

Page 4: “Other Operating” (described above) is under “Operating Expenses”, and reflects the $1M gain in "Other Operating" on page 27.

These other operating expenses are entered ABOVE and BEFORE “Net income” (loss).

Thus the SLBs affect net income.

 

I stand corrected. Thank you for the references. It is interesting that the "other" doesn't match up with the amount listed in the body nor the cash balance sheet line item.

 

No problem. I wouldn't mind standing corrected either. I appreciate having a dialogue.

Which "other" isn't lining up--not quite sure which specific figures you're referencing.

The SLB gains roll into "retained earnings" on the balance sheet because SLB gains are not distributed as dividends. As you note, the SLBs aren't explicitly mentioned on the consolidated balance sheet. Nor are they highlighted on the consolidated statement of operations. In both places (retained earnings & other OE) they are effectively hidden. I personally wish F9 was more transparent with their investor communications/documents, but I won't hold my breath.

 

G4 pilot here lurking...

How are the pace of negotiations? We are still years away. Management made public some rates back in June to try and get us to jump but nothing has happened. We know how NK is doing but was curious how your neogitations are coming along...

 

Non existent. I believe the last update from our union stated the company is only interested in concessions or cost neutral negotiations.

 

Ya. Sounds to me as if union is moving as fast as it legally can toward a strike vote and then strike.

 

2023 article: https://www.wlwt.com/article/no-need-to-worry-about-us-airline-strike-disrupting-summer-travel-plans/43774995

Last US airline strike was Spirit, in 2010 (15 years ago).

Previous to that, it was Northwest Airlines, 1998 (25 years ago)

Congress is not going to allow a strike

remember when we told everyone during COVID we were "critical workers" and "the nations infrastructure needs us" etc etc. I mean ALPA senior leader level, said all this stuff.

dang it.....hate it when Pilots eat their words

 

I didn’t say we were going to strike. Moving towards a strike is not going on strike. There is a process and we are moving forward with it as we should be.

 

True but . . .

NEWS: Sanders and 31 Senators Call on National Mediation Board to End Delays and Allow Airline Workers to Strike If Agreements Can’t Be Reached » Senator Bernie Sanders (senate.gov)

United Airlines flight attendants vote to authorize strike Reuters

Frontier Airlines Flight Attendants to Vote on Strike Authorization as Management Refuses to Bargain on Business Model Change - Association of Flight Attendants-CWA (afacwa.org)

The reason for the non-strikes is that agreements were made in lieu. Nothing has really ever gotten to Congress since...

Will F9 accept the POS proposal mgt is sure to offer? Will F9 pilots send a TA back if the rates are lower (or justify a yes vote w/ drop/swap/trade and other provisions that look better on the surface but actually end up being about the same or worse than industry standard after the company pivots the business model)?