NJI rats leaving the sinking ship

[knowone]

Well the pilots got their well deserved raises but no one else is going to theirs. The rumors are true about people looking for other jobs because no raises are going to be given out, and if they are given out it will only be around 2%. Not even a cost of living increase

 

[h25b]

Ahh but the losses were recorded for the period BEFORE the pilots received raises. So that is NOT what changed.

I'm not so sure about that one... I believe the losses included a chargeoff to pay for a portion of the new contract. According to the AIN article, "they recorded a special charge of 20 million in the 4th Qtr. for prior periods' compensation related to a new labor contract with its pilots and flight attendants."

 

[gunfyter]

I'm not so sure about that one... I believe the losses included a chargeoff to pay for a portion of the new contract.

a chargeoff... One time that does not happen again.....

$80 million in losses. Pilots did not get $80 million. There were $85 M in Selloffs! Thats where you look.

 

[h25b]

a chargeoff... One time that does not happen again.....

Correct, but you stated that the losses were incurred BEFORE any part of the CBA was accounted for, which is incorrect. It has yet to be revealed how the additional costs of the CBA will affect the bottom line moving forward. They just decided to take a 20 million dollar hit in the 4th Qtr. to ease the pain of the additional costs in fiscal yr. 06... This is just a way of making the 2006 numbers look like a substantial improvement (hopefully) over the same time period of 2005.

Trust me, I've been around the Fortune 500 working world to have seen this numbers game played out more than once... It's all about juggling the numbers to look good on Wall St.

 

[gunfyter]

No the chargeoff was for 4 yrs of back pay that they called a signing bonus.. or $5M per year.

 

[h25b]

No the chargeoff was for 4 yrs of back pay that they called a signing bonus.. or $5M per year.

Think we're going in circles here. The retro., signing bonus, back pay (whatever you want to call it) was part of the CBA. The 20 million special charge was to pay for that. So yes, the loss included a special charge that pays for a portion of the CBA. Like I said, no one has any idea (outside management of course) how the additional cost of the CBA will affect the bottom line moving forward. So I'm not sure where we're not understanding each other here...

It's very true that sell-offs accounted for a large portion of the rest of the $80 million along with the unbelievable amount of waste that would naturally occur in an operation like NJA...

So here we go with the math...

$20 Million (Retro. Pay portion of the CBA)
$30 Million (Operating Loss on Sell-Off Charter)
$30 Million (Operational Waste)
______________________________________________
=$80 Million Loss

 

[notaNJApilot]

notannjapilot-

Everyone has to blame someone. You just happen to believe the spin from bridgeway and believe that pilots are causing a loss.

Whatever

You must have misread my post.

I'm not blaming the pilots; if anything, I'm blaming the Company approved pilot salaries. I just think it was too sudden of an increase and the Company is taking a big hit in the form of a corporate hiring freeze, and in the process, they are scaring the corporate employees which is causing some of them to seek other employment.

 

[h25b]

One other item... The article said that there were $85 million worth of sell-offs. I can tell that the company likely loses about 30% from a sell-off when compared to what they could fly the trip with its own aircraft for. With that in mind the sell-offs created about $25 Million of that total $80 Million dollar loss.

 

[gutshotdraw]

Dude, first Wolfpack and now you. One o in lose. As in "NJA will lose money in 2006." One o.

Resume discussion.

 

[h25b]

Dude, first Wolfpack and now you. One o in lose. As in "NJA will lose money in 2006." One o.

Resume discussion.

Oops, thanks... Corrected...