The kind of internecine fighting and, to be quite candid, intra-company bullshit and class envy I've read herein is disturbing.
1) This company has worked too hard operationally, financially, and yes, even spiritually in terms of modifying its culture over the past 10 years to have this kind of rancor. Moreover, there shouldn't be a single person who works at CO
who feigns ignorance over the numbers. Everyone knows. Everyone was briefed, the company has done a stellar job of communicating with employees, not obfuscating the issue, and only coming to employees when it was absolutely necessary. For someone to say that pay cuts aren't necessary now is, apologies in advance, ignorant of the facts.
's component of CASM that is labor--on both an aggregate basis and individual workgroup basis--needs to be competitive. Note that the cuts STILL keep CO
employees above some other majors and well above the LCC scales.
3) Without singling out EWR757, I'll answer the question as to what have the cuts done at other carriers? Well, their cuts were a matter of survival, if not mandate due to bankruptcy proceedings. We haven't gotten that bad, having lost the LEAST amount of the so-called legacy carriers since 2001.
Moreover, our cuts are enabling us to 1) stay solvent, 2) maintain debt payments already on the books, including mandatory pension contributions and still maintain the necessary cash balance we need, and 3) most importantly, GROW. Yes, grow. We're GROWING our way out of it. Not contraction, not retreat, not retrenchment....attack, going on the offensive, not only maintaining our domestic market share, but protecting our hubs and opening new markets internationally on a very aggressive basis.
3) On that topic of growth, that is the very thing that's kept the LCCs able to keep doing what they do. If they stop growing, they die. They need the ASM growth to add new employees at lower scales, increase incremental revenues, etc. CO
is doing much the same thing--you add aircraft, open new markets, that's job security, augmentation of what is already a formidable and diverse global route map and market coverage, and adding new jobs.
There is misinformation out there (and I don't know how) about the A/C order. That somehow the pay cuts are being used to buy the new aircraft. Boeing has these planes and is in essence giving us them for the cost of taking over payments. that's tantamount to owning an apartment building, and having the building across the street open up without having to make any down payment, and only make monthly mortgage payments, but you can start collecting rent from day one. The 757-300s, 737-800s are absolutely a sweetheart of a deal.
Two options and only two options, and they are mutually exclusive:
ONE: don't get the cuts and we shrink to maintain liquidity, lose market share, lose jobs, hinder long term career growth and security. The 737-500s are a perfect example--they're a bloodbath of red ink. The reconfiguration will help stave that revenue shortfall certainly, but shrinking means parking those bastards first. That means fewer mechanics, fewer pilots, fewer flight attendants, etc, etc, etc....
TWO: Get the cuts, maintain our position, grow, and ADD
jobs. Instead of parking airplanes, we'd ADD
them, which means MORE pilots, more left seat gigs open up, more flight attendants, more people to support them, more revenue to make us prosperous.
I love CO
, trust our leadership, trust our people and by Working Together we can keep that going. Each employee should possess the facts clearly when voting on the contract TA
's. Don't buy into rumors, peer pressure, misinformation or disinformation, you know what needs to be done.