Spirit Tops All LCCs with 7% profit margin in Q1

[FlyAirtran]

He was talking about Allegiant....Did Airtran have a 12% profit margin?

probably not. oops missed the second post, just saw the response about how airtran and spirit should merge then a reply about aay...

 

[freightdogfred]

I cant think of one merger that the pilots of the "bought" airline thought worked out well.

Well, you should talk to the guys who flew for Flying Tigers, after being "bought" by FedEx.

 

[IronCityBlue]

What is Spirit's ticker symbol?

 

[enigma]

What is Spirit's ticker symbol?

Spirit is not publicly traded. Spirit belongs to Oaktree Capital and Indigo Partners (Texas Pacific Group).

 

[IronCityBlue]

Spirit is not publicly traded. Spirit belongs to Oaktree Capital and Indigo Partners (Texas Pacific Group).

I knew they weren't public. So why are they press releasing a specific profit margin when: A. it doesn't matter and B. there is no real way to proove it as the company is not beholden to anyone to justify the numbers they come out with?

 

[enigma]

I knew they weren't public. So why are they press releasing a specific profit margin when: A. it doesn't matter and B. there is no real way to proove it as the company is not beholden to anyone to justify the numbers they come out with?

You asked about the ticker symbol, do private companies have ticker symbols?

There could be many reasons that they released the profit info. Foremost would be Spirit's well known plan to accomplish an IPO. In order to hit an home run in the market, potential investors (stock buyers) need to know that the company is profitable before they invest. It's quite simple actually.

All airlines, public or private, must release certain data to the US Dept of Transportation. Financial performance, albeit limited, is part of the DOT form 41.

Finally, what do you care?

 

[RedTailSwinger]

Spirit pilots' compensation package is one of the lowest in the industry

First: Which Airbus operator has a contract that you would rather have than Spirits?

Second: Why did you accept the job at Spirit if they are the lowest in the industry?

 

[enigma]

Second: Why did you accept the job at Spirit if they are the lowest in the industry?

free airbus type rating and a better life than flying a turbo prop?

 

[gatorbird]

First: Which Airbus operator has a contract that you would rather have than Spirits?

Second: Why did you accept the job at Spirit if they are the lowest in the industry?

First: As for the encompassing contract as a whole, I can't say. I am not entirely familiar with the QOL language in other Airbus operators' contracts, but am mostly pleased with my own. I believe I have aired this in other posts. There are areas that could (always) use improvement, but as a commuter that values time at home, I'm happy with my job.

The reason for the post was PAY, so here goes:

I took averages of the following carriers that fly A320 family aircraft (318s, 19s, and 20s...excluded the 21): United (Ted), USAir (east and west payscales), Frontier, and JetBlue.

I looked at the following longevity: FO- 2, 3, and 5 years. CA- 3, 8 and 12 years.

The result? FOs averaged -10%, -18% and -18%, respectively. CAs averaged -12%, -6.5% and -6.5%, respectfully.

Second: I accepted the job for a multitude of reasons. I had an opportunity to review the pilot contract before I ever applied here, and I realized I could enjoy a much greater quality of life at Spirit than at any regional carrier, as well as most LCCs.

I believed (still do) that the business plan of focusing on a Latin American/Caribbean market was a smart one.

With the anticipated aircraft orders, I felt could advance fairly quickly (seniority-wise) within an organization poised for growth.

As enigma said, I could get an A320 type rating coming out of the gate. Valuable asset if the stuff ever hit the fan. Plus, it beat a turboprop (thanks, enigma).

As well, I had met many Spirit pilots I thought I would enjoy working with. This has held very true.

With all of that said, why should I not believe the pilot group at this airline does not deserve to be at least par with their counterparts in compensation? That was the purpose of the post, after all. We all have made sacrifices the last 6 or 7 years. Airlines have had trouble turning profits. Pilots have been furloughed. Jobs have been scarce. But now? Profits are beginning to rise. Costs are down. Airlines are leaner, more efficient. Newer aircraft burn less fuel (ie NK--MD vs Airbus).

I don't believe we should demand so much from a company that it renders them uncompetitive. That said, why should work groups continue to accept sub-par compensation while hedge-fund managers, upper management brass, and other select few enjoy resounding profits that line their portfolios?

thanks for listening,

gator

 

[IronCityBlue]

You asked about the ticker symbol, do private companies have ticker symbols?

It was a retourikal kwestshin.

There could be many reasons that they released the profit info. Foremost would be Spirit's well known plan to accomplish an IPO.

That was the only spin I could think of that made any sense.

In order to hit an home run in the market, potential investors (stock buyers) need to know that the company is profitable before they invest. It's quite simple actually.

Yes, it is simple. I bet SkyBus will soon post some rosy numbers as well in advance of their impending IPO. Expect the phrase "Ryan model of Europe" and mention of high load factors to be thrown around every milisecond leading up to their IPO, regardless of their actual financial viability or lack thereof, which brings me to:

All airlines, public or private, must release certain data to the US Dept of Transportation. Financial performance, albeit limited, is part of the DOT form 41.

And all airlines have the ability to move things around the balance sheet quarter to quarter to get the short term "results" they want. Ever hear of the infamous "one time charges" as just one example? Don't underestimate the power of spin when it comes to quarterly profit/loss reports from airlines, as they have plenty of shells they can hide the rock under to get the results they want/need (i.e. in contract negotiations versus in advance of an IPO).

Finally, what do you care?

Just trying to keep a finger on the pulse of what's going on around the industry. I have nothing against Spirit or their pilots. Maybe there is a backroom deal going on with JetBlue for all I know. In any case, is Spirit kicking but and taking names, entrenching themselves as one of the nations premier LCC's? Possibly. Are they running up the numbers to cork their bat as they go to the plate and swing for the fences in an IPO? Not out of the realm of possibility either.

Finally, why so defensive?