Spirit Airlines Ch.11
08-03-2024 | 04:10 PM
#211
Line Holder
Joined: Nov 2015
Posts: 1,877
Likes: 199
In the earnings call they said to give ‘em time before these new policies have an effect on earnings. With all the debt due and losing almost 200mil a quarter, how much time do they really have to convince travelers spirit isn’t ULCC anymore? If you’re one of these people that need a better product instead of just a cheap seat, you’re still going with the legacy’s
08-04-2024 | 04:36 AM
#215
On Reserve
Joined: Jan 2017
Posts: 99
Likes: 40
That's the problem, the executives will use the concessions for their golden parachute down the line and the judge will approve it. They will high five each other of what a great restructuring plan they made to only liquidate in 12 months after the plan fails. The Legacy's will now hammer down on the routes NK flies and lower their prices even more or offer more basic economy tickets. I don't see a way out for NK unless they merge/get aquired.
08-04-2024 | 04:54 AM
#216
Line Holder
Joined: Nov 2015
Posts: 1,877
Likes: 199
That's the problem, the executives will use the concessions for their golden parachute down the line and the judge will approve it. They will high five each other of what a great restructuring plan they made to only liquidate in 12 months after the plan fails. The Legacy's will now hammer down on the routes NK flies and lower their prices even more or offer more basic economy tickets. I don't see a way out for NK unless they merge/get aquired.
08-04-2024 | 06:43 AM
#217
Line Holder
Joined: Sep 2014
Posts: 691
Likes: 37
It will happen for sure. Once ch11 goes through, concessions talks between company and alpa, alpa selling it to the pilot group vote yes or close the doors, 70/30 pass, 3-4 yrs working concessions, we emerge and then 3 yrs to negotiate a CBA. So- YES.
08-04-2024 | 07:39 AM
#218
Gets Weekends Off
Joined: Jul 2010
Posts: 3,867
Likes: 116
08-04-2024 | 07:44 AM
#219
That/It/Thang
Joined: Aug 2020
Posts: 3,501
Likes: 364
When they do file CH11, and they will…
Pilot will need to educate themselves on US Code section 1113, rejection of collective bargaining agreements. Bottom line is the bankruptcy judge has the ability to “reject a collective bargaining agreement” if they find that ALPA has not accepted a concession agreement without good cause and the numbers show the company needs these concessions to survive financially (simple terms).
So there is a reason every Chapter 11 bankruptcy comes with a concessionary CBA, because the threat of having the CBA tossed out in court is a real risk.
So the chest thumpers make me laugh, concessions will happen once they file, as it always has before.
08-04-2024 | 09:40 AM
#220
Line Holder
Joined: Nov 2015
Posts: 1,877
Likes: 199
There will be a lot of educating needed for when we DO file chapter 11 and how the process works with CBAs.
When they do file CH11, and they will…
Pilot will need to educate themselves on US Code section 1113, rejection of collective bargaining agreements. Bottom line is the bankruptcy judge has the ability to “reject a collective bargaining agreement” if they find that ALPA has not accepted a concession agreement without good cause and the numbers show the company needs these concessions to survive financially (simple terms).
So there is a reason every Chapter 11 bankruptcy comes with a concessionary CBA, because the threat of having the CBA tossed out in court is a real risk.
So the chest thumpers make me laugh, concessions will happen once they file, as it always has before.
When they do file CH11, and they will…
Pilot will need to educate themselves on US Code section 1113, rejection of collective bargaining agreements. Bottom line is the bankruptcy judge has the ability to “reject a collective bargaining agreement” if they find that ALPA has not accepted a concession agreement without good cause and the numbers show the company needs these concessions to survive financially (simple terms).
So there is a reason every Chapter 11 bankruptcy comes with a concessionary CBA, because the threat of having the CBA tossed out in court is a real risk.
So the chest thumpers make me laugh, concessions will happen once they file, as it always has before.
historically the paycuts on rate alone have been what? Post 9/11 the rates were cut 40- 50% werent they?
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