Just received this in an email:
Fellow Spirit pilots:
Yesterday the MEC chairman, vice chairman, and a representative from ALPA’s Economic and Financial Analysis department met with the company, at their request, to discuss Spirit’s financial status and the state of the industry. Historically, these meetings usually accompanied a request for pilot pay concessions, or the threat of a reduction in force. Like you, we had heard all the same rumors percolating on the line and leaking out of Miramar . Since we were not provided an advance agenda, we decided any information on the meeting was purely speculation. What we learned immediately was:
Spirit management told us they are committed to Spirit’s business plan. They believe in the business plan but have to be concerned in our high oil environment (these talks were in reference to the $125-130/bbl range). They told us they will continue to adjust and fine-tune our operation to reduce our CASM from its present 5 cents to 4.5 cents through aircraft utilization improvements, operational efficiencies, and outright cost control wherever possible. As an example, efficiency improvements may include a further reduction in turn times from the current 30-minute turns to 25-minute turns, to keep the airplanes aloft longer, and revisiting our current average stage length to help increase revenue and reduce fuel cost.
I think this was one of the wiser moves by management, to address the situation in a timely fashion before the rumor-mill festered. Everyone here knows the DOT numbers were just released 2 days ago, and this could have really escalated the grumblings had it gone into weeks or months with no news from the company.
By no means are we in the clear, but at least we know we've got a fighting chance (until $150/barrel oil...). I for one intend to carry myself as professional as possible and do my part to save the place a dime when I can; I would encourage all other NK pilots here to do the same, lest we quicken our steps toward the unemployment line. They didn't come knocking asking for consessions from me, so my hat's off to that decision.
Fellow Spirit pilots:
Yesterday the MEC chairman, vice chairman, and a representative from ALPA’s Economic and Financial Analysis department met with the company, at their request, to discuss Spirit’s financial status and the state of the industry. Historically, these meetings usually accompanied a request for pilot pay concessions, or the threat of a reduction in force. Like you, we had heard all the same rumors percolating on the line and leaking out of Miramar . Since we were not provided an advance agenda, we decided any information on the meeting was purely speculation. What we learned immediately was:
- <LI class=MsoNormal>There will be no bankruptcy. <LI class=MsoNormal>There is no talk of liquidation or merger.
- There is no planed furlough or reduction in force.
Spirit management told us they are committed to Spirit’s business plan. They believe in the business plan but have to be concerned in our high oil environment (these talks were in reference to the $125-130/bbl range). They told us they will continue to adjust and fine-tune our operation to reduce our CASM from its present 5 cents to 4.5 cents through aircraft utilization improvements, operational efficiencies, and outright cost control wherever possible. As an example, efficiency improvements may include a further reduction in turn times from the current 30-minute turns to 25-minute turns, to keep the airplanes aloft longer, and revisiting our current average stage length to help increase revenue and reduce fuel cost.
I think this was one of the wiser moves by management, to address the situation in a timely fashion before the rumor-mill festered. Everyone here knows the DOT numbers were just released 2 days ago, and this could have really escalated the grumblings had it gone into weeks or months with no news from the company.
By no means are we in the clear, but at least we know we've got a fighting chance (until $150/barrel oil...). I for one intend to carry myself as professional as possible and do my part to save the place a dime when I can; I would encourage all other NK pilots here to do the same, lest we quicken our steps toward the unemployment line. They didn't come knocking asking for consessions from me, so my hat's off to that decision.
