Serious Discussion About The New Plan

[diogenes]

diogenes,

"dave himself said there were still 2 cents in non-labor costs to wring out of the CASM's."

I mentioned it in passing in another thread, but here is what the company is now saying in answer to ALPA's questions:

"The company's CASM (excluding fuel) in 2006-2007 will be approximately 2.1 cents lower than it is today if the Transformation Plan can be enacted."

Jim

Thanks, Jim.

I know there is nothing in agent contracts preventing Transformation (when I hear the Palace use that word, I get a vision of a bunch of veeps on a hillside, waiting for ascension into heaven!), nor was there PRIOR to BK.

I assume there is nothing currently in ALPA, AFA or mech language standing in the way of Transformation, but I am prepared to be shown my assumption is in error.

Given that, what are we waiting for?

Granted, some baby steps are now being taken, but the way I interpret that is, the company, one way or another, will NOT show a profit until every last sou is wrung from labor.

I have issues with that. At this stage, every other option should be excercised before coming back to the grunts who have kept this airline operating.

 

[BoeingBoy]

diogenes,

As far as the ALPA contract is concerned, the only thing is the 85 hour per month cap. More flying (either extra utilization or more planes) means recalls as long as that is in place. Of course, the company wants more flying at less cost (about the same W-2 with higher employee share of benefit costs).

I know the f/a's have different "options", up to 105 hours per month. What I don't know is if the number of f/a's allowed on the higher options is limited by the contract.

Jim