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And you think we should be congratulating them and buying them beers for bringing us a contract that is concessionary in almost every section?This is incredible. The company brass must be laughing everyday...you got the union members pissed off at their own MEC...you got 'em pissed off at their own NC.....
I bet the company just loves this $hit!
Is it any wonder why unions are going down the $hitter?
This is a great example.
anyone know facts about when the leases are up on the 71's??
RV
We lease 79 B717 aircraft through various lessors, under leases with terms that expire through 2022. We have the option to renew the B717 leases for periods ranging from one to four years. The B717 leases have purchase options at or near the end of the lease term at fair market value, and two have purchase options based on a stated percentage of the lessor’s defined cost of the aircraft at the end of the thirteenth year of the lease term. Each of the leases contains return conditions that must be met prior to the termination of the leases. Forty-one of the B717 leases are the result of sale/leaseback transactions. Deferred gains from these transactions are being amortized over the terms of the leases. At December 31, 2006 and 2005, unamortized deferred gains were $59.7 million and $62.4 million, respectively. We also lease facilities from local airport authorities or other carriers, as well as office space under operating leases with terms ranging up to 12 years. In addition, we lease spare engines and certain rotables under capital leases.
Good point on the leases. I imagine there has to be some loophole or clause that would let them dump the 717's early, maybe with a penalty of some sort. But in general, everything is negotiable if the price is right. I am sure they could work something out with Boeing on the 717's in exchange for more 737 orders.
My main point is that we don't want those small jet pay rates in the TA at all. This just gives the company leverage in the future against the NPA.
Or another scenario, which I saw used at a regional that I once worked for, is to use the "carrot jet" scenario. Basically, the company tells the union that they are going to get E-190's (in our case). They say that AirTran pilots can fly them or they can contract it out to (insert name of regional airline). However, (regional airline X) will fly them for rates below ours. So if the AirTran pilots want to keep the flying, we need to lower our small jet payscale even further.
The union doesn't want to see the flying get outsourced, so eventually they cave and AirTran pilots get the flying at an even further reduced pay than what the TA shows now.