SkyWest wasted $3.5 million

[sweptback]

From their 4Q earnings summary:

During the quarter ended December 31, 2006, SkyWest Airlines incurred additional maintenance charges related to the timing of certain maintenance events for aircraft that were transitioned between Atlantic Southeast Airlines and SkyWest Airlines that is not reimbursable under their respective agreements. The impact of the non-reimbursable maintenance charges resulted in a decrease to pretax income of approximately $3.5 million.

All this for 4 airplanes. $875,000 per airplane is what it cost SkyWest, Inc. to try to piss off the ASA pilots and get them to agree to the crap that was the company contract proposal. Guess what, we were too smart and saw right through the lame union busting techniques they tried to throw at us. Hopefully their shareholders can grill them on what seems to be such a blatant waste of their money.

http://biz.yahoo.com/prnews/070207/law043.html?.v=99

 

[FixNFly]

From their 4Q earnings summary:

During the quarter ended December 31, 2006, SkyWest Airlines incurred additional maintenance charges related to the timing of certain maintenance events for aircraft that were transitioned between Atlantic Southeast Airlines and SkyWest Airlines that is not reimbursable under their respective agreements. The impact of the non-reimbursable maintenance charges resulted in a decrease to pretax income of approximately $3.5 million.

"All this for 4 airplanes. $875,000 per airplane is what it cost SkyWest, Inc. to try to piss off the ASA pilots and get them to agree to the crap that was the company contract proposal. Guess what, we were too smart and saw right through the lame union busting techniques they tried to throw at us. Hopefully their shareholders can grill them on what seems to be such a blatant waste of their money."


I totally agree that it was blatant union busting, but they had to hide the money it cost to transfer assets.
Some of the maintenance charges were "related to the timing of certain maintenance events", so the aircraft would have had to have the inspections anyway. My guess is they did this so they could hide the cost of transfering the airplanes.
They couldn't just list the cost of the transfer outright or they would have alot of explaining to do. This way they can just explain it away as "maintenance costs". Some of the 3.5M would have been spent anyway and the effect to the Skywest Inc. bottom line would not be any different for that money.
It is the money it cost SKW Inc. (hidden in this 3.5 million) to transfer assests from ASA to Skywest Airlines which the shareholders (of which I am a part) should be mad about. The fact that they are spending profit just to bust a union at an airline that has lower costs then its sister airline should make investors very upset.

...and to think everyone says JA is a good businessman!

 

[n25na]

on another note, I was reading through the February 2007 Aviation International News and came across an article that said, "SkyWest Airlines and its subsidiary, Atlantic Southeast Airlines, turned the biggest profit margins in the entire airline industry during the third quarter, 12.3 percent and 12.1 percent, respectively."

Looks like they could loosen the purse strings a lil bit.....