Frontier pay cuts?

[AnimalMother]

I've got a boat load of friends at F9 that have given blood, sweat and now tears for that company.

I bled once at work....... when I cut my hand on the seat belt latch. It was by no way intentional, I couldn't see myself doing something that crazy for a paycheck.

 

[cale42]

People need to do a little research on these "golden parachutes" before whining so much. Someone finally pointed out that these exist so that companies don't lose their whole leadership team at the worst possible time.. these guys can all easily make lateral moves unlike us pilots.

The thing that gives me the biggest hope for this company is that this is the fairest parachute plan I have ever seen. The most Menke can possibly get is $141K. THAT IS NOTHING. Relative to most airlines, and certainly other industries that is a freaking joke. His salary is less than $300K/yr, his severance is less than half that and his stock options are currently worthless. If there was ever a management team that truly wants to have a company make it through BK it is this one. Unlike Indy air, these guys get practically nothing if it fails.

I'm not saying this is going to save F9, but it sure is nice to see a management team with just as much vested interest as anyone.

cale

Oh and as a sidenote, basic investment banking.. fuel hedges only work if you correctly guess which way fuel is going to go. For every analyst who says its going to hit $150/barrel there is one who thinks it will go back to $90/barrel. Lot of factors in play.. Southwest will have an incredibly difficult time effectively heding future fuel right now.. they guess wrong and its not going to be a pretty picture, because I'm pretty sure w/o their hedges they will be hemorrhaging money just like everyone else.

 

[vixin]

Yet another typical swa hedge response. Some of you guys are just brilliant.

 

[curtis46]

Most of the analysts want to see oil reaching $150, it's becoming a game of excitement no logical reason behind.

 

[cale42]

Yet another typical swa hedge response. Some of you guys are just brilliant.

huh?? Please correct me then. Maybe I misunderstanding hedging, please enlighten.

cale

 

[vixin]

Search the topic and learn for yourself. It has been beaten to death, yet idiots still respond with the "wait until the hedges run out."

 

[cale42]

Vixin,

I never once said they would run out. Just that it would be more difficult. My UNDERSTANDING, and I may well be wrong, is that their hedges are based on a constant rise of fuel. Well due to speculation and a weak US dollar there are many that think fuel may be overpriced right now and correct itself. As a result it is tougher to hedge as effectively since fuel may go either way right now. Southwest can still hedge, just harder to do so with as much value. If you read the price SW has hedged its fuel at it has gone up a good bit over the past few years, ie their hedges are becoming less effective and less of a comptetive advantage. Southwest themselves has said as much. They may be able to position themselves back to have as big of advantage, but right now they are going in the other direction.

THat is what I'm saying.. not that they will run out or somehow start.. just be harder to do effectively.

cale

 

[Colonel Savage]

I'm ex F9 - under the "original" leadership and proud of it...I've got a boat load of friends at F9 that have given blood, sweat and now tears for that company...Feel free to respond, jacka$$...

Fine, then let them take care of what is now their problem.

 

[waveflyer]

I like that signature Colonel Savage

don't buy into the doom and gloom guys..

 

[Colonel Savage]

I like that signature Colonel Savage...

Thank you. I've got some more I'm going to use. Time to change it, actually.

 

[Fubijaakr]

Oil...just like the "Tulip" frenzy in Holland in the 1600s.

And, btw, don't bash SWA guys because they apparently made the right decision and we didn't.