Another huge Scab Air lo$$

[Hackman]

Looks like Dougie Stealin's business plan is not so "flawless".

All right finman, give it the 'ol Bean Counter management spin...... 😛h34r:



:unsure: :unsure: :unsure: http://today.reuters.com/investing/finance...S-NORTHWEST.XML

 

[robbedagain]

wow! those SCABS really are costing the company big time. The hotel, transportation, feeding them, all add up. That loss is among the biggest I have seen in recent times. When will it be a good time to show the SCABS the front door?

 

[finman]

Looks like Dougie Stealin's business plan is not so "flawless".

All right finman, give it the 'ol Bean Counter management spin...... 😛h34r:
:unsure: :unsure: :unsure: http://today.reuters.com/investing/finance...S-NORTHWEST.XML

Only a $30M operating loss, so things are definately getting better.

 

[robbedagain]

Only a $30M operating loss, so things are definately getting better.

And the remainder of the total $496 million loss doesnt seem to count for you? Ch11 is costly along with the scabs

 

[finman]

And the remainder of the total $496 million loss doesnt seem to count for you? Ch11 is costly along with the scabs

The "scabs" are saving a couple hundred million on an annualized basis, so that certainly isn't the problem.

Yes, the reorg costs count, but they are not refleftive of the health of the business plan. As I'm sure you're aware from your US days, there are a lot of write-offs/write-downs that are included as expenses during the reorg, but have no impact on cash and are one-time occurrences.

 

[Red Tail Bear]

The "scabs" are saving a couple hundred million on an annualized basis

Saving a couple hundred million for who? Executive management?

 

[finman]

Saving a couple hundred million for who? Executive management?

Yeah, I guess you could put it that way. Executive management is responsible for operating the airline, and the replacements are saving the airline a couple hundred million. Is that couple hundred million going into the executive managements' paychecks? Of course not; it just means NWA would have had an $45M operating loss rather than a $30M loss if AMFA was still on the property under their old contract.

 

[robbedagain]

The "scabs" are saving a couple hundred million on an annualized basis, so that certainly isn't the problem.

Yes, the reorg costs count, but they are not refleftive of the health of the business plan. As I'm sure you're aware from your US days, there are a lot of write-offs/write-downs that are included as expenses during the reorg, but have no impact on cash and are one-time occurrences.

during the 2nd ch11 case, i believe that at least once us did turn a small profit.

as for scabs, they are the ones who are hurting the airline industry. in the airline field, you need a union to protect you from the crooked a** mgmt. all the scabs did was and contiue to do so to this day is lower the wages and steal unionized hard working people's jobs.
and with scabs on the field, shoddy work is now in force and all the while, the crooked a** mgmt collects millions upon millions of dollars not to mention they STILL have a PENSION and able to retire with a healthy chunk of change.
What do the union employees get-----nothing nada zippo sh!t
thats why scabs are not destined for the airlines

 

[local 12 proud]

Yeah, I guess you could put it that way. Executive management is responsible for operating the airline, and the replacements are saving the airline a couple hundred million. Is that couple hundred million going into the executive managements' paychecks? Of course not; it just means NWA would have had an $45M operating loss rather than a $30M loss if AMFA was still on the property under their old contract.

Is the couple hundred million saved by using replacement workers worth the negative Image that it brings with it?

Im only one person who does'nt even work for NWA but know several AMFA strikers who do. I support my Union brothers and sisters in directing anyone I can to avoid your carrier, now mutiply that times thousands. How can this not have an adverse effect?

Im not even going to address the substandard maintenance issue, but the cost for re-work has'nt had time to rear its ugly head. Why do you suppose SWA is bringing more and more work inhouse, as opposed to outsourcing? Its not for lack of third party hack shops willing to ablige I can assure you that.

Yea in the short term a few million may be saved, but in the end it will cost much more than was ever saved.

 

[finman]

Is the couple hundred million saved by using replacement workers worth the negative Image that it brings with it?

Im only one person who does'nt even work for NWA but know several AMFA strikers who do. I support my Union brothers and sisters in directing anyone I can to avoid your carrier, now mutiply that times thousands. How can this not have an adverse effect?

Im not even going to address the substandard maintenance issue, but the cost for re-work has'nt had time to rear its ugly head. Why do you suppose SWA is bringing more and more work inhouse, as opposed to outsourcing? Its not for lack of third party hack shops willing to ablige I can assure you that.

Yea in the short term a few million may be saved, but in the end it will cost much more than was ever saved.

That very well may be the case. Obviously, I hope you're wrong and that the negative impact on revenue is more than offset by the ongoing cost savings, but there is certainly some risk that you'll be right.

 

[jenny@nw]

oh don't get your panties in a bunch, think finman is going by what was stated in some news report or something. I have read that before.

Accounting is a fun thing to do... it's like a big logic problem. You can bounce the numbers around to make it appear what you would like it to appear...

I liked Bernie Han, he was pretty good at it.

 

[finman]

1) oh don't get your panties in a bunch, think finman is going by what was stated in some news report or something. I have read that before.

2) Accounting is a fun thing to do... it's like a big logic problem. You can bounce the numbers around to make it appear what you would like it to appear...

1) I'm not sure what you mean. Are you saying that NWA isn't saving money right now with the replacement workforce compared to the status quo (AMFA at old contract)? Please clarify what exactly you are refuting.

2) How much accounting have you done? I presume very little, otherwise you'd know that GAAP (Generally Accepted Accounting Principles) Accounting actually has very strict and detailed guidelines of how items have to be accounted for in the financial statements. The only way to make the numbers look like anything other than they are is by not complying with GAAP, which the auditors (Ernst & Young in this case) would have to correct if it was material.

If things were like you say (a big logic problem), there would be no stock market, as it's very foundation is the assurance that financial information that is disseminated is formulated using an agreed upon and standardized methodology (GAAP).

 

[jenny@nw]

1) I'm not sure what you mean. Are you saying that NWA isn't saving money right now with the replacement workforce compared to the status quo (AMFA at old contract)? Please clarify what exactly you are refuting.

2) How much accounting have you done? I presume very little, otherwise you'd know that GAAP (Generally Accepted Accounting Principles) Accounting actually has very strict and detailed guidelines of how items have to be accounted for in the financial statements. The only way to make the numbers look like anything other than they are is by not complying with GAAP, which the auditors (Ernst & Young in this case) would have to correct if it was material.

If things were like you say (a big logic problem), there would be no stock market, as it's very foundation is the assurance that financial information that is disseminated is formulated using an agreed upon and standardized methodology (GAAP).

I've done enough... to realize how your posts are carefully constructed. 🙂

 

[ThirdSeatHero]

oh don't get your panties in a bunch, think finman is going by what was stated in some news report or something. I have read that before.

Accounting is a fun thing to do... it's like a big logic problem. You can bounce the numbers around to make it appear what you would like it to appear...

I liked Bernie Han, he was pretty good at it.

When hiring accountants you only have to ask one question:


Q: Whats 2+2=?

You hire the one that answers:

A: What do you want it to be?

 

[robbedagain]

Jenny is sayng that NWA wont be able to save money using scabs. It is already a major issue at NWA maintaince wise as it is a veyr much a shoddy maintaince since last august when scabs took over. All of that cost a lot more in the run due to the aircraft being out of service, loss of revenue and having to rebook those passengers who are actually risking flying on NWA to begin with.