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-   -   So what this next CBA going to look like (https://www.airlinepilotforums.com/frontier/150664-so-what-next-cba-going-look-like.html)

Planedrive 07-12-2025 09:48 PM


Originally Posted by shrsailplanes (Post 3927927)
If we stick to demanding an industry standard contract, which I believe we should, it will force indigo to either run an airline or dump their position and put a for sale sign on the front lawn. Either one sounds fine to me.

Indigo isn’t dumping anything. They’re making $15 million in profit on each sale-leaseback, with 180 aircraft still on order. That’s $2.7 billion in pure profit just from fleet transactions. All they have to do is ride out the current domestic oversupply, and they’ll be back to printing money.

BagMan 07-13-2025 01:59 AM


Originally Posted by BobSacamano (Post 3927897)
Uh. What ?

Bob !!! there you are We have been waiting for you to weigh in on this. What Does a new F9 CBA look like to Bob Sacamano? Before you answer I got to ask Do you work at F9?

shrsailplanes 07-13-2025 03:34 AM


Originally Posted by Planedrive (Post 3927942)
Indigo isn’t dumping anything. They’re making $15 million in profit on each sale-leaseback, with 180 aircraft still on order. That’s $2.7 billion in pure profit just from fleet transactions. All they have to do is ride out the current domestic oversupply, and they’ll be back to printing money.

An industry standard contract would wreck that profit margin. Not only would the contract itself chew up their sale-leaseback profit, they would have to change the way the airline operates to pay for the contract. Frontier was designed to just barely function well enough to pay those leases and not get shut down by the feds.

The way they are printing money right now gives them flexibility to bail. A new industry contract hand cuffs them to the airline. It would require a new CEO, new management and a new vision without the ability to predict profits out into the future the way they can now.

ReserveCA 07-13-2025 03:46 AM


Originally Posted by shrsailplanes (Post 3927969)
An industry standard contract would wreck that profit margin. Not only would the contract itself chew up their sale-leaseback profit, they would have to change the way the airline operates to pay for the contract. Frontier was designed to just barely function well enough to pay those leases and not get shut down by the feds.

The way they are printing money right now gives them flexibility to bail. A new industry contract hand cuffs them to the airline. It would require a new CEO, new management and a new vision without the ability to predict profits out into the future the way they can now.

^^^^^^^^^^^^^^^^^^
so keep picking up any and all available open time and definitely WORK on your days off and vacation 🤪

ginntonic 07-13-2025 04:01 AM


Originally Posted by shrsailplanes (Post 3927969)
An industry standard contract would wreck that profit margin.

Not our problem. The C-suite needs to figure out how to pay market rates for an Airbus pilot, just as they pay market rates for fuel, aircraft parts, food, and even office supplies.



Nemack 07-13-2025 04:28 AM

100% agreed, if you cant pay your employees industry standard rates just raise the ticket prices

ThatsTheSpirit 07-13-2025 04:54 AM


Originally Posted by shrsailplanes (Post 3927969)
An industry standard contract would wreck that profit margin. Not only would the contract itself chew up their sale-leaseback profit, they would have to change the way the airline operates to pay for the contract. Frontier was designed to just barely function well enough to pay those leases and not get shut down by the feds.

The way they are printing money right now gives them flexibility to bail. A new industry contract hand cuffs them to the airline. It would require a new CEO, new management and a new vision without the ability to predict profits out into the future the way they can now.

I've heard this a ton, but I don't get it. How does the Sale-Leaseback make a profit? Please explain to like I am 5... :)

Stayontarget 07-13-2025 05:08 AM


Originally Posted by ginntonic (Post 3927974)
Not our problem. The C-suite needs to figure out how to pay market rates for an Airbus pilot, just as they pay market rates for fuel, aircraft parts, food, and even office supplies.

That is their point

Aero1900 07-13-2025 05:36 AM


Originally Posted by shrsailplanes (Post 3927969)
An industry standard contract would wreck that profit margin. Not only would the contract itself chew up their sale-leaseback profit, they would have to change the way the airline operates to pay for the contract. Frontier was designed to just barely function well enough to pay those leases and not get shut down by the feds.

The way they are printing money right now gives them flexibility to bail. A new industry contract hand cuffs them to the airline. It would require a new CEO, new management and a new vision without the ability to predict profits out into the future the way they can now.

No.

Biffle has publicly said that with new labor contracts in place in 2026 Frontier will still maintain a 40% cost advantage over the competition. Frontier will likely raise ticket prices by $5 to $10 dollars to pass the cost along to the customer. Exactly like what every other airline has already done. We are going to be fine. Just like last time.

Aero1900 07-13-2025 05:39 AM


Originally Posted by ThatsTheSpirit (Post 3927986)
I've heard this a ton, but I don't get it. How does the Sale-Leaseback make a profit? Please explain to like I am 5... :)

When Indigo placed the massive 400 aircraft order back some years ago they negotiated a significant discount on the planes. When we take possession of a new aircraft we immediately sell it to a leasing company and then lease the aircraft from them for 8 to 12 years. When we sell it to the leasing company they pay market rate for the aircraft which is maybe 10 Million more than our negotiated discount price from Airbus. Frontier then pockets the $10 M and we begin making monthly lease payments on the aircraft


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