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Spirit of NKS, Part II

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Old 10-28-2015 | 04:44 AM
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Originally Posted by Softpayman
With current fuel it absolutely is sustainable. High fuel price would hurt AA more than Spirit in this battle, but for now AA seems willing to fight.
It could be a lengthy fight based upon the oil forecast.
Old 10-28-2015 | 05:16 AM
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Originally Posted by Softpayman
With current fuel it absolutely is sustainable. High fuel price would hurt AA more than Spirit in this battle, but for now AA seems willing to fight.
Agreed. Baldanza was even saying last night on MadMoney that when fuel is this low capacity discipline goes out the window and this is the result. This is exactly the type of practice that got everyone into trouble before but I guess they can do it as long as they want if fuel remains low and their quarterly profits exceeded $1,500,000,000.00
Old 10-28-2015 | 05:33 AM
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Originally Posted by JoeyMeatballs
Agreed. Baldanza was even saying last night on MadMoney that when fuel is this low capacity discipline goes out the window and this is the result. This is exactly the type of practice that got everyone into trouble before but I guess they can do it as long as they want if fuel remains low and their quarterly profits exceeded $1,500,000,000.00
So why is it only AA's job to practice capacity discipline? Are they to allow NK, Frontier, and ALG to grow unrestrained while they practice capacity discipline.

Your right, this did get the industry in trouble before, but you also had 8 different airlines trying to grow with cheap oil, now they have consolidated.
Old 10-28-2015 | 05:42 AM
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Originally Posted by Tranquility
Uhhhh, lots more than just Seattle (which is a modest population growth city).

IND, BNA, RDU, CLT to name a few large growing metropolitan areas we don't serve...
STL & MEM might have shrinking populations, but they seem to have our customer base...

Connect those dots with our core market.
This thread is just like the SWA threads of the middle 90's when the inter webs was new and their pilots would say, " were a growing airline and can't afford pilot pensions, retiree health care, and good pay" well eventually the rest of the industry flamed out over time and their pensionless pay model without retiree medical became the standard (if not the bar) for pilot compensation, at least flying NB aircraft.

If the focus is just on making NK the biggest, cheapest airline in the US, then y'all are on the right path.
If the goal is to make sure that NK is a place where a "professional" pilot wants to have a career as a destination airline, then that's good as well.
Right now NK mgmt seems to have y'all focused on using your "cheap costs" to grow ever larger, hopefully you'll be as proud of the destination as a place to work as mgmt will be in manipulating you to get there.
Old 10-28-2015 | 05:46 AM
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Originally Posted by full of luv
This thread is just like the SWA threads of the middle 90's when the inter webs was new and their pilots would say, " were a growing airline and can't afford pilot pensions, retiree health care, and good pay" well eventually the rest of the industry flamed out over time and their pensionless pay model without retiree medical became the standard (if not the bar) for pilot compensation, at least flying NB aircraft.

If the focus is just on making NK the biggest, cheapest airline in the US, then y'all are on the right path.
If the goal is to make sure that NK is a place where a "professional" pilot wants to have a career as a destination airline, then that's good as well.
Right now NK mgmt seems to have y'all focused on using your "cheap costs" to grow ever larger, hopefully you'll be as proud of the destination as a place to work as mgmt will be in manipulating you to get there.

Luv,


Why do you assume our labor costs (specifically pilot compensation) is the primary reason our costs are so low? Are our current rates and pilot compensation lower than AA?, yes, where they lower than US Airways or CALs Rates before these recent contracts? No.

Pilot compensation is not as big of an airlines costs as you seem to believe, either that or you just like to troll and make it appear we make so little as pilots that's the sole reason Spirits margins are so high.
Old 10-28-2015 | 05:57 AM
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Originally Posted by JoeyMeatballs
Luv,


Why do you assume our labor costs (specifically pilot compensation) is the primary reason our costs are so low? Are our current rates and pilot compensation lower than AA?, yes, where they lower than US Airways or CALs Rates before these recent contracts? No.

Pilot compensation is not as big of an airlines costs as you seem to believe, either that or you just like to troll and make it appear we make so little as pilots that's the sole reason Spirits margins are so high.
No, I actually don't know much about NK's costs, pilot or otherwise. Every pilot group that I can think of has loopholes, concessions or otherwise areas of improvement in their contract that could be had.

What I am commenting on is that pilots in this thread seem to be focused on the demise of AA at at the expense of NK's growth and as a pilot I'd want a company that has the best wages and QOL to succeed and have the others focused on keeping up. No I do not fly for AA.

I understand that you are wed to NK so you cheer for their world domination, but in the end, putting effort into making sure the job is worth having is also an admirable goal.
Do I want my airline to succeed? Absolutely, but I want it to get there providing me with compensation and QOL that I can enjoy during the meantime.
The path of "maintaining low costs" and "explosive growth" usually helps mgmt way more than it helps the pilots or any other labor for that matter.
Old 10-28-2015 | 06:20 AM
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Originally Posted by Normann
What is next? They said 20 (?) new destinations in 2016.
Did they say 20 new "destinations" or 20 new "markets?"

Someone can correct me if I'm wrong, but my understanding is that a market is a city pair (DEN-BOS), not a city. So we can add 20 new markets, connecting cities we already fly to, without adding cities.
Old 10-28-2015 | 07:09 AM
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Originally Posted by TerrainOnND
Did they say 20 new "destinations" or 20 new "markets?"

Someone can correct me if I'm wrong, but my understanding is that a market is a city pair (DEN-BOS), not a city. So we can add 20 new markets, connecting cities we already fly to, without adding cities.
I believe Ben said 20 new "Routes", so not necessarily new Destinations. (Right @ the 5 minute mark)
Old 10-28-2015 | 07:51 AM
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Never thought I'd see the day when Virgin's stock price would be higher than Spirit. Different market cap though, but spread about 1.5 billion and closing. It's time to get the mergers rolling at the LCC-Major level. IMO it's the only way we can somewhat "guarantee" long term success. The players left are Alaska, Hawaiian, jetBlue, Spirit, Virgin, Frontier, Allegiant, and to a far lesser degree Sun Country. Some combinations should be allowed by the DOT to better compete with the 4 legacy carriers.
Old 10-28-2015 | 07:51 AM
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Originally Posted by Normann

True that. But where do you connect them into? ORD? DFW? Where? I don't think so.
Well, we cater to leisure travelers. Where do leisure travelers go?? FLL (cruises), MCO (Disney), Vegas (gambling, hookers, blow)... Start with that, or, look at the city pairs we launched in our newer markets (MCI and CLE). I honestly can't remember what our first routes there were. We're not a hub and spoke airline so, while we may add ORD and DFW to the mix, I don't this those would be the first routes out of a new market. I could be wrong....
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