No.
02-05-2021 | 12:28 PM
#211
Gets Weekends Off
Joined: Jan 2008
Posts: 4,630
Likes: 15
From: blueJet
****from a Chief (keeping it vague purposefully)********
It's worth a read
Fellow JetBlue Pilots,
I would like to humbly offer for your consideration the following opinion, and would solicit the same from all who wish to share their individual thoughts on a very important decision we are collectively facing. After carefully reviewing LOA 13 and the latest financial data available from both companies party to this agreement, I have concluded the following:
Current financial picture:
While our company negotiated this deal from a position of strength relative to American, our once strong balance sheet has been weakened during the pandemic, along with the industry. It is true that we are well poised for aggressive growth in the inevitable recovery, and entering this agreement significantly increases our potential when that takes place. AMR on the other hand, while enjoying the highest revenue generation in the industry, is hindered by significantly higher costs compared to all other airlines. This is due in part to large debt obligations taken prior to the pandemic. The possibility of bankruptcy or even liquidation is a real threat which has forced them to offer JetBlue what our CEO has termed a “once in a generation” deal. I believe he is correct. This is a desperate attempt by AMR to relieve debt through contraction and reducing obligations, while limiting the loss of valuable revenue generated by those capital resources. In short, AMR needs this for survival and would never offer JetBlue this opportunity unless they were running out of options.
What it means for the long term:
AMR will probably survive. Meanwhile JetBlue will grow and surely generate billions in future earnings beyond 2021. Our Executive Leadership has shown us how valuable they believe this alliance to be through a coordinated information campaign joined by predictable suggestions of furloughs and contraction in an attempt to solicit buy-in from our pilots and other Crewmembers without an offer to share the benefits before the negotiation of our next CBA. This would most likely occur no sooner than a 2024-2025 time frame. There will most certainly be large financial rewards given to our Executive Team in the form of salaries, bonuses and stock grants for enacting this alliance similar to what was given them after reaching their $250-300 million in structural cost savings, realized between 2016 and 2019, and potentially much larger. These are standard rewards for successfully bearing the burden of that level of responsibility.
Opportunity for the MEC to take a leadership position among all JetBlue Crewmembers:
I believe strongly that this deal is a huge windfall and should be entered into by our company. I don’t feel it was negligence, possibly inexperience or lack of vision; no matter the reason, our MEC has offered our support in the form of scope relief and asked the pilots to vote for that relief in exchange for a simple one time cost of living adjustment to our pay and furlough protection for a mere six month period. Similar to JetBlue’s position at the table with AMR, our MEC currently holds leverage to negotiate a share in the financial rewards that this alliance represents for our shareholders and Executive Leadership. I strongly support this alliance, but will vote no for any scope relief that does not provide our Pilots and other Crewmembers a reasonable share of the financial benefits JetBlue will earn. Our MEC should take the lead in bargaining for a company wide profit sharing plan that mirrors Delta or an equity share (stock grant to Pilots) of equal value tied to our granting scope relief. We are leaders in our workplace and should model the example set by Delta’s MEC during past financial downturns. This alternative option would be a no cost obligation for JetBlue, until future profits from this alliance are realized, then would offer significant benefit to our pilots (and all Crewmembers) for our efforts in partnering with our Leadership to facilitate growth and rebuild a strong financial future for our company. I will vote no to the current offer and encourage others to do the same.
Respectfully,
It's worth a read
Fellow JetBlue Pilots,
I would like to humbly offer for your consideration the following opinion, and would solicit the same from all who wish to share their individual thoughts on a very important decision we are collectively facing. After carefully reviewing LOA 13 and the latest financial data available from both companies party to this agreement, I have concluded the following:
Current financial picture:
While our company negotiated this deal from a position of strength relative to American, our once strong balance sheet has been weakened during the pandemic, along with the industry. It is true that we are well poised for aggressive growth in the inevitable recovery, and entering this agreement significantly increases our potential when that takes place. AMR on the other hand, while enjoying the highest revenue generation in the industry, is hindered by significantly higher costs compared to all other airlines. This is due in part to large debt obligations taken prior to the pandemic. The possibility of bankruptcy or even liquidation is a real threat which has forced them to offer JetBlue what our CEO has termed a “once in a generation” deal. I believe he is correct. This is a desperate attempt by AMR to relieve debt through contraction and reducing obligations, while limiting the loss of valuable revenue generated by those capital resources. In short, AMR needs this for survival and would never offer JetBlue this opportunity unless they were running out of options.
What it means for the long term:
AMR will probably survive. Meanwhile JetBlue will grow and surely generate billions in future earnings beyond 2021. Our Executive Leadership has shown us how valuable they believe this alliance to be through a coordinated information campaign joined by predictable suggestions of furloughs and contraction in an attempt to solicit buy-in from our pilots and other Crewmembers without an offer to share the benefits before the negotiation of our next CBA. This would most likely occur no sooner than a 2024-2025 time frame. There will most certainly be large financial rewards given to our Executive Team in the form of salaries, bonuses and stock grants for enacting this alliance similar to what was given them after reaching their $250-300 million in structural cost savings, realized between 2016 and 2019, and potentially much larger. These are standard rewards for successfully bearing the burden of that level of responsibility.
Opportunity for the MEC to take a leadership position among all JetBlue Crewmembers:
I believe strongly that this deal is a huge windfall and should be entered into by our company. I don’t feel it was negligence, possibly inexperience or lack of vision; no matter the reason, our MEC has offered our support in the form of scope relief and asked the pilots to vote for that relief in exchange for a simple one time cost of living adjustment to our pay and furlough protection for a mere six month period. Similar to JetBlue’s position at the table with AMR, our MEC currently holds leverage to negotiate a share in the financial rewards that this alliance represents for our shareholders and Executive Leadership. I strongly support this alliance, but will vote no for any scope relief that does not provide our Pilots and other Crewmembers a reasonable share of the financial benefits JetBlue will earn. Our MEC should take the lead in bargaining for a company wide profit sharing plan that mirrors Delta or an equity share (stock grant to Pilots) of equal value tied to our granting scope relief. We are leaders in our workplace and should model the example set by Delta’s MEC during past financial downturns. This alternative option would be a no cost obligation for JetBlue, until future profits from this alliance are realized, then would offer significant benefit to our pilots (and all Crewmembers) for our efforts in partnering with our Leadership to facilitate growth and rebuild a strong financial future for our company. I will vote no to the current offer and encourage others to do the same.
Respectfully,
Where was this letter published?
02-05-2021 | 01:53 PM
#214
Gets Weekends Off
Joined: Feb 2016
Posts: 108
Likes: 0
You should PDR this question.
I think it deserves an answer from someone more knowledgeable than me.
1). I'm not sure there will be another offer. They can still run the codeshare with LOA 15. Granted, it is more limited than with LOA 16, but It can be done.
2). from and MBA prospective, you don't want to always "sweeten the deal " after turning down the first offer. It sets an expectation among employees that you can always say no and get something better on the second try.
3). I'm sure they have a plan in place for a no vote. Maybe it is a merger, maybe it is a reduction in force, etc. But I have no idea what that plan would or could be.
Don't think for one minute that they need us for this code share. They need us for some enhanced aspects of the code share, but they can and will run it without our sign-off.
I think it deserves an answer from someone more knowledgeable than me.
1). I'm not sure there will be another offer. They can still run the codeshare with LOA 15. Granted, it is more limited than with LOA 16, but It can be done.
2). from and MBA prospective, you don't want to always "sweeten the deal " after turning down the first offer. It sets an expectation among employees that you can always say no and get something better on the second try.
3). I'm sure they have a plan in place for a no vote. Maybe it is a merger, maybe it is a reduction in force, etc. But I have no idea what that plan would or could be.
Don't think for one minute that they need us for this code share. They need us for some enhanced aspects of the code share, but they can and will run it without our sign-off.
Incorporating such a game theory/expectation bias analysis into our assessment of LOA 13, we should therefore assume it is an absolute low-ball, bottom-dollar offer from management, and that rejecting it will serve the dual purposes of:
1) re-calibrating their (and our MEC’s) expectations of pilot behavior in the future, insulating us somewhat from future attempts to push through low-ball offers
2) quickly resulting in a “real talk” about how we can achieve a mutually beneficial scope relief provision which more rationally aligns pilot compensation with the amounts of money and “once in a lifetime” gate access we are giving them the keys to with our votes
02-05-2021 | 03:13 PM
#216
Line Holder
Joined: Feb 2008
Posts: 855
Likes: 16
From: B6
****from a Chief (keeping it vague purposefully)********
It's worth a read
Fellow JetBlue Pilots,
I would like to humbly offer for your consideration the following opinion, and would solicit the same from all who wish to share their individual thoughts on a very important decision we are collectively facing. After carefully reviewing LOA 13 and the latest financial data available from both companies party to this agreement, I have concluded the following:
Current financial picture:
While our company negotiated this deal from a position of strength relative to American, our once strong balance sheet has been weakened during the pandemic, along with the industry. It is true that we are well poised for aggressive growth in the inevitable recovery, and entering this agreement significantly increases our potential when that takes place. AMR on the other hand, while enjoying the highest revenue generation in the industry, is hindered by significantly higher costs compared to all other airlines. This is due in part to large debt obligations taken prior to the pandemic. The possibility of bankruptcy or even liquidation is a real threat which has forced them to offer JetBlue what our CEO has termed a “once in a generation” deal. I believe he is correct. This is a desperate attempt by AMR to relieve debt through contraction and reducing obligations, while limiting the loss of valuable revenue generated by those capital resources. In short, AMR needs this for survival and would never offer JetBlue this opportunity unless they were running out of options.
What it means for the long term:
AMR will probably survive. Meanwhile JetBlue will grow and surely generate billions in future earnings beyond 2021. Our Executive Leadership has shown us how valuable they believe this alliance to be through a coordinated information campaign joined by predictable suggestions of furloughs and contraction in an attempt to solicit buy-in from our pilots and other Crewmembers without an offer to share the benefits before the negotiation of our next CBA. This would most likely occur no sooner than a 2024-2025 time frame. There will most certainly be large financial rewards given to our Executive Team in the form of salaries, bonuses and stock grants for enacting this alliance similar to what was given them after reaching their $250-300 million in structural cost savings, realized between 2016 and 2019, and potentially much larger. These are standard rewards for successfully bearing the burden of that level of responsibility.
Opportunity for the MEC to take a leadership position among all JetBlue Crewmembers:
I believe strongly that this deal is a huge windfall and should be entered into by our company. I don’t feel it was negligence, possibly inexperience or lack of vision; no matter the reason, our MEC has offered our support in the form of scope relief and asked the pilots to vote for that relief in exchange for a simple one time cost of living adjustment to our pay and furlough protection for a mere six month period. Similar to JetBlue’s position at the table with AMR, our MEC currently holds leverage to negotiate a share in the financial rewards that this alliance represents for our shareholders and Executive Leadership. I strongly support this alliance, but will vote no for any scope relief that does not provide our Pilots and other Crewmembers a reasonable share of the financial benefits JetBlue will earn. Our MEC should take the lead in bargaining for a company wide profit sharing plan that mirrors Delta or an equity share (stock grant to Pilots) of equal value tied to our granting scope relief. We are leaders in our workplace and should model the example set by Delta’s MEC during past financial downturns. This alternative option would be a no cost obligation for JetBlue, until future profits from this alliance are realized, then would offer significant benefit to our pilots (and all Crewmembers) for our efforts in partnering with our Leadership to facilitate growth and rebuild a strong financial future for our company. I will vote no to the current offer and encourage others to do the same.
Respectfully,
It's worth a read
Fellow JetBlue Pilots,
I would like to humbly offer for your consideration the following opinion, and would solicit the same from all who wish to share their individual thoughts on a very important decision we are collectively facing. After carefully reviewing LOA 13 and the latest financial data available from both companies party to this agreement, I have concluded the following:
Current financial picture:
While our company negotiated this deal from a position of strength relative to American, our once strong balance sheet has been weakened during the pandemic, along with the industry. It is true that we are well poised for aggressive growth in the inevitable recovery, and entering this agreement significantly increases our potential when that takes place. AMR on the other hand, while enjoying the highest revenue generation in the industry, is hindered by significantly higher costs compared to all other airlines. This is due in part to large debt obligations taken prior to the pandemic. The possibility of bankruptcy or even liquidation is a real threat which has forced them to offer JetBlue what our CEO has termed a “once in a generation” deal. I believe he is correct. This is a desperate attempt by AMR to relieve debt through contraction and reducing obligations, while limiting the loss of valuable revenue generated by those capital resources. In short, AMR needs this for survival and would never offer JetBlue this opportunity unless they were running out of options.
What it means for the long term:
AMR will probably survive. Meanwhile JetBlue will grow and surely generate billions in future earnings beyond 2021. Our Executive Leadership has shown us how valuable they believe this alliance to be through a coordinated information campaign joined by predictable suggestions of furloughs and contraction in an attempt to solicit buy-in from our pilots and other Crewmembers without an offer to share the benefits before the negotiation of our next CBA. This would most likely occur no sooner than a 2024-2025 time frame. There will most certainly be large financial rewards given to our Executive Team in the form of salaries, bonuses and stock grants for enacting this alliance similar to what was given them after reaching their $250-300 million in structural cost savings, realized between 2016 and 2019, and potentially much larger. These are standard rewards for successfully bearing the burden of that level of responsibility.
Opportunity for the MEC to take a leadership position among all JetBlue Crewmembers:
I believe strongly that this deal is a huge windfall and should be entered into by our company. I don’t feel it was negligence, possibly inexperience or lack of vision; no matter the reason, our MEC has offered our support in the form of scope relief and asked the pilots to vote for that relief in exchange for a simple one time cost of living adjustment to our pay and furlough protection for a mere six month period. Similar to JetBlue’s position at the table with AMR, our MEC currently holds leverage to negotiate a share in the financial rewards that this alliance represents for our shareholders and Executive Leadership. I strongly support this alliance, but will vote no for any scope relief that does not provide our Pilots and other Crewmembers a reasonable share of the financial benefits JetBlue will earn. Our MEC should take the lead in bargaining for a company wide profit sharing plan that mirrors Delta or an equity share (stock grant to Pilots) of equal value tied to our granting scope relief. We are leaders in our workplace and should model the example set by Delta’s MEC during past financial downturns. This alternative option would be a no cost obligation for JetBlue, until future profits from this alliance are realized, then would offer significant benefit to our pilots (and all Crewmembers) for our efforts in partnering with our Leadership to facilitate growth and rebuild a strong financial future for our company. I will vote no to the current offer and encourage others to do the same.
Respectfully,
