I think that I am actually the only person here ready for the bankruptcy and embracing it with open arms.
There is no question in my mind that United will survive the bankruptcy, and will turn out to be a leaner, stronger flying machine. As we all know, one of the main sticking points with the loan are the wage concessions which will be asked for by United. With the exception of management and the pilots [shudder], every employee is at or below industry standard wages. By no means are any of these people making great money! But on the flipside, with the most senior pilots currently raking in $350,000 per year, about to go up to $400,000, something has to be done with their salaries. If United asks for concessions from only the pilots (where the real labor cost issues are), they're going to scream bloody murder because they would be the only group giving up money.
However, the way I see it with a bankruptcy, no judge is going to ask a flight attendant who makes between $14,000 and $40,000 to give money back to help the company, yet he will order the pilots to give up a good chunk of their enormously large salary. Pilots won't sit there and bitch about being the only group to see wage cuts this time, as it is mandated by the courts.
Just for fun, look at this math:
2,500 pilots make $150,000
2,500 pilots make $180,000
2,500 pilots make $250,000
2,500 pilots make $350,000
If the courts were to cut their salaries by just 33%, the pilot groups would still be making this amount each year:
2,500 pilots would make $100,000
2,500 pilots would make $120,600
2,500 pilots would make $167,500
2,500 pilots would make $234,500
The money saved each year just by dropping those costs by 33% is a pretty good chunk of money which could be ploughed back into the company: $768,500,000.
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