Cash squeeze may put United in a bind
#21
ATI does not equal merger
All the UAL pilots say to manglement is "if this ATI is such a great thing for UAL and CAL lets put some job protections in it for US workers and we're behind it all the way". For some reason UAL manglement won't talk about that, yet continues to say how "great" this would be if they got their ATI.
Hmmmmm
#22
All the UAL pilots say to manglement is "if this ATI is such a great thing for UAL and CAL lets put some job protections in it for US workers and we're behind it all the way". For some reason UAL manglement won't talk about that, yet continues to say how "great" this would be if they got their ATI.
Hmmmmm
Hmmmmm
The common misconception is that it's a UAL vs CAL pilot issue which is not correct. ATI without labor protective provisions (LPP) is bad for all airline labor.
Should the ATI pass without LPP, there is nothing stopping UAL or CAL from creating or expanding revenue sharing opportunities with foreign airlines. The Air Lingus/UAL agreement, that uses neither UAL or Air Lingus pilots is the first shot across the bow.
The ability for global networks to operate in unison with respect to capacity, routes, and revenue sharing creates a virtual network that eliminates the need for cabotage. While the ability to scale efficiency is fantastic for airlines, it has the potential to be beyond catastrophic for labor - especially pilot labor. I don't think that the goal of the ATI is to whipsaw US domestic airlines against each other. Instead, the opportunity to whipsaw US labor against foreign labor via an ATI agreement that includes revenue sharing creates a "virtual cabotage" at the expense of all labor.
Last edited by HSLD; 07-08-2009 at 12:47 PM.
#23
"It agreed to pay 17 percent interest on $175 million in debt in late June that was secured by $583 million worth of spare parts."
This shows the difference in value between the "official" interest rate and the actual price of capital in the real world. The cost of intervention we are all paying for right now.
It is similar to a third world country that has an official exchange rate and a black market rate that has a wide spread. Intervention at work.
This shows the difference in value between the "official" interest rate and the actual price of capital in the real world. The cost of intervention we are all paying for right now.
It is similar to a third world country that has an official exchange rate and a black market rate that has a wide spread. Intervention at work.
A friend of mine is a banker in London. She said triple AAA rated corporations can raise all the money they need, at 10% interest. For laggards like UAL, rates are more like 18+%. Might as well just go to the local loan shark. Or worse, borrow from your friendly neighborhood credit card bankster. (bankster = banker/gangster)
#24
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