CAL - LAX Base

[Yuppyguppy]

Damn right. I'm locked and loaded ready to STRIKE. Time to put the teens on the streets and bring back the flying in house....OR ELSE!

 

[Flopgut]

Here is part of a weekly update from Jay Pierce about 3 weeks ago:

"The concept of posturing might be a good segue into a topic I have wanted to discuss for a while now. During management’s third quarter earnings conference call to the media and various investment types a few months ago Mr. Smisek talked about being at a competitive disadvantage because of the job protections contained in the current CAL contract. In fact, to be accurate, when asked about the 50-seat rule Mr. Smisek said this: "We have been hampered and competitively disadvantaged…" This particular statement has bothered me for some time because it has been my opinion that Continental has performed at the top of the pack financially in comparison to the other legacy carriers during the time period the protections he complains about have been in place. I asked ALPA E&FA to do a little research and see if I was on track, or if Mr. Smisek might be correct in his assertions that we have been disadvantaged since April 2005 when our current contact came into effect. I asked them use Pre-Tax Margins because that particular metric is a good measure of how well a company can generate before-tax profits based on the revenue the company generates. E&FA supplied the following chart to reflect Continental’s performance compared to our peers.

There is a chart here that I can't paste in****

Please note that this reflects the timeline between when our current CBA became effective and now, inclusive of the outsourcing limits he cites as anticompetitive. This provides a comparison between CAL and legacy carriers that, to various degrees, are not as restricted in their ability to outsource flying to the lowest bidders. While the chart above certainly does not represent stellar margins compared to just about any other industry, when compared to our peers in the Airline Industry it most assuredly does reflect competitive, or dare I say industry leading, performance. I would say that one could argue that Continental has been very competitive and that perhaps this is not in spite of, but rather because they have been prohibited from outsourcing their domestic product. As I have said many times, our passengers desire one level of customer service and one level of safety when they travel. It could be that the fact that we are able to generate more pretax profits per dollar of revenue generated is a derivative of the very restrictions that Mr. Smisek complains about. Whatever the reason, it is very plain to see that we have not been less competitive over this time frame. As I said earlier, it is time to stop posturing and get the contract done."

I hope Jay runs with this and adds it to his anti-outsourcing campaign. CAL has been suitably competitive with the 50 seat scope clause. The new UAL needs to keep CAL's scope.

 

[s.o.sJTB]

Damn right. I'm locked and loaded ready to STRIKE. Time to put the teens on the streets and bring back the flying in house....OR ELSE!

You'r posts read like they were written by a pimple faced teen.

 

[Yuppyguppy]

Time for a little of your own medicine.

 

[BID]

system bid out. 60 CA for LAX and 58 FOs 737

anticipated to open in May 2011

 

[bluefin]

When is the MOAB? (mother of all bids) or this is it?

 

[ATRCA]

When is the MOAB? (mother of all bids) or this is it?

We've never had one. This is as good as it gets here. 7 retirements, not replaced. We did well this bid, only 7 reductions.....

The new UAL is shrinking to profitability, get used to it.

 

[tie1on]

this is a reloacation bid. get used to it. the mindset isto shrink to profitability.

 

[Yuppyguppy]

Where are they moving the 737s from? CLE, IAH, or EWR.

 

[bluefin]

We've never had one. This is as good as it gets here. 7 retirements, not replaced. We did well this bid, only 7 reductions.....

The new UAL is shrinking to profitability, get used to it.

OOOOh, I have been watching it shrink for the last ten ********************ing years on the street, just trying to get info while I watch from the grandstands.