Originally Posted by Tino
I've also heard the 30 cents/dollar figure kicked around.
That's what I was trying to say. The pilots are asking to give up say, $50K a year, but if the airline liquidates, a senior pilot might lose the equivalent value of a million-dollar pension.
You're still making a fundamental assumption that does not appear to be accurate - that making concessions will result in continued employment.
This company is hemmoraging red ink. The pilots could agree to work for free and that wouldn't alter the fact that the airline is not going to last. 9/30/04 may be the end of the line, concessions or no concessions.
In case I'm coming off like a basher here, I'd like to point out that I fly US regularly and enjoy their service very much. The company financial situation is just too dire for them to overcome with their current business plan. There's a very good reason that everyone on Wall St is predicting their demise...because it's probably true.
Operating 3 hubs - all extremely close to one another - is just an awful model, and WN's entry into Philly was a nail in the coffin.