Quote:
Originally Posted by tailendcharlie
You want "Plan B?" Then just do it. Furlough, downgrade, base consolidation, bump-and-flush bid. Just do it. Set the airline back 3-4 years. I heard back-of-the-envelope estimate many many hundreds of training events will be triggered. Moving expenses. And when they want to spool up, think in terms of years not months. Go ahead and back yourself into a corner.
I don’t think MG is concerned about setting the airline back I terms of total growth. He’s been consistent on earnings calls since 2017 that he does not want a scenario where we buy planes just buy planes (hence SS swampland). Management would rather fly less and have the highest operating margin in the world (something they love to brag about) than fly more and have a more modest op margin. When NK and F9 were adding huge orders of neos, MG told investors that he’s not interested in an “arms race” and then proceeded to sell them on SS swampland.
Growth might be real slow which concerns me for the bottom 200, I think the furlough might last longer than just 6-9 months.