Speedtape
Well-known member
- Joined
- Oct 10, 2004
- Posts
- 1,973
Concur. Pardon the metaphor, but this does have the potential to be the initial frontal passage of a perfect storm for the pilots at ASA. Inc. needs to make a profit to even be in the airline business. (With no profit, try this on for size: ASA sold back to DAL. Does anyone think that a good outcome for the pilots at ASA? Especially with what is happening at/to Comair?) The pilot group is and predictably will be highly resistant to a decrease in compensation or QOL. DAL frankly could care less about the employees of a separately owned subsidiary; costs are most important, followed at some distance by performance metrics. If push were to come to shove, who would win here?
However, what did you mean by 'push' for in two years?
1. ASA does not report profits.
2. Inc. reports profits.
3. Inc. will still report a profit in the first quarter--4-7million.
4. ASA cancelled 750 more flights than usual in the first quarter--that is HUGE when considering profitability.
5. The majority of those flights were cancelled because of the MTC grounding. That should be a one time event that will have some affect on the 2nd quarter, but none after that.
6. Apparently, there were more WX cancellations this quarter, this year, than 1st quarter last year.
7. Although the 1st quarter profits are pale in comparison to year over, most of the contributing factors are one time events.
8. The results of the fee for departure reset will affect INC. by about $5 million per quarter(this is composite of the operations of Skywest and ASA flights flown for Delta each quarter.)
So, under normal conditions, instead of making $146 million a year, with no other changes, the profits will be reduced to $126 million a year. The contracts all but guarantee INC. a profit, based on revenues--all INC. has to do is perform to some level, and also mangage and maintain costs. The sky is not falling in the West or the Southeast. But, costs are a high priority and pilots need to get ready for the frontal assault!