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CAL vs XJT

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I think I can sum up this thread in four little words:

"To each his own..........."

:rolleyes:
 
In fact I wouldn't be surprised if the next time our Capacity Purchase Agreement with CAL comes up for renegotiation we're the ones who tell CAL we're discontinuing x% of our services with you because we don't make enough profit with your crappy CPA and, please excuse us, because we have bigger fish to fry.


Dude, just stop talking now--that has got to be the dumbest thing I have read here in a long while. Approx. 15-20 million GUARUNTEED PROFIT every quarter--yeah, that's a crappy CPA we have going. You are embarrasing us XJETers talking like that.
 
Dude, just stop talking now--that has got to be the dumbest thing I have read here in a long while. Approx. 15-20 million GUARUNTEED PROFIT every quarter--yeah, that's a crappy CPA we have going. You are embarrasing us XJETers talking like that.

Please do not call me dude. And no, I'm not going to stop yet. You are correct. We make $60-80m a year off of the CAL CPA. Agreed. So you have 3000ish pilots working to produce that net income. That's about $26,000 per year that each pilot contributes to the company profits. All I am saying is what if you could find a deal somewhere in the world where each pilot was capable of delivering far more to the bottom line than $26,000? Where would you want to use that pilot? In the low-profit business, or the higher-profit business? Believe it or not, the CAL CPA is not really a high profit business. It was initiated (part of the IPO/spinoff by CAL) with an artificially high profit scheme for us to make people want to own our stock for a few years. Those high rates are destined to fall, and CAL will be much less of a money maker than in the past--far less. We were making like 10% above costs. The going rate for domestic U.S. CPAs is about 3-4%. There is more money out there in the world than this, and I think XJT will tap into it, because it's out there and because we can.
 
This might be the worst thread ever on the "majors" side of the house. XJT...CAL....who cares. Do what works best for you and yours.
 
Please do not call me dude. Those high rates are destined to fall, and CAL will be much less of a money maker than in the past--far less. We were making like 10% above costs. The going rate for domestic U.S. CPAs is about 3-4%. There is more money out there in the world than this, and I think XJT will tap into it, because it's out there and because we can

Dude, you are making my point for me. Our CURRENT CPA with CAL that you are trashing on your previous post STILL HAS 10% PROFIT! Sure, CAL can reduce our flying more in 09, but it's still the same profit for the flying we do. Our CPA has not changed. You think we can make more than 10% profit flying RJ's on our own? I hope you are smarter than that, dude. RJ's were never designed to be profitable on their own, they were designed to support a larger, more efficient operation.

Don't get me wrong--Xjet flying our own RJ's instead of handing them over to CHQ is better than nothing, but you are crazy to think it is better than flying them under our current CPA for CAL. Oh, and sorry about the "dude" thing, Brah.
 
Who said they were designed for that? I flew an XR IAH-LCH the other day, that isn't what the plane was designed for. The planes are supposedly more expensive to operate they are being utilized wrong. XJT is going to use them like they were designed. Long thin routes. Yes we have some short flights but not many. We will see.
 
Flown domestic US for years. Then flown international Europe and Asia for years.

Never noticed any more hassle international than in the US. Filling out the customs form ain't that tough....
Well good for you pal. Enjoy the wait at customs and immirgration then the terminal transfer and re-screening at security, no, you're right, no hassle at all.
Now let me see, when was the last time I had to wait in line with my passport flying domestic? Err, that's right, never.:beer:
 
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What about the timing of the hiring boom at SWA? They have been hiring for years. CAL's hiring, since 9/11, only started in March of 2005. SWA is a great career choice, no question. But he'll be taking a number at the back of the line with the only hope being that SW keeps growing.

US Domestic growth for SWA won't be what it was for the previous 10 years. Their hedges are expriring, labor costs are amoung the highest, majors are no longer easy to compete with, there are only so many cities in America you can fly a 73 to. SW will grow, but not at the gangbuster rate of the 90s.
 
Who said they were designed for that? I flew an XR IAH-LCH the other day, that isn't what the plane was designed for. The planes are supposedly more expensive to operate they are being utilized wrong. XJT is going to use them like they were designed. Long thin routes. Yes we have some short flights but not many. We will see.

It is not the length of the flight, or the range of the A/C used--it is the cost per available seat-mile (casms). For example, to operate a 50 seat RJ on a flt. versus a 150 seat 737, chances are the RJ is much more than 1/3 the operating cost as the 737 for a given flight. Hopefully, XJT can make up the difference by charging more for the convenience of direct flights-that is the multi million dollar question. If we can, great--but there is a chance we won't. Either way, SOME of us need to remember who our biggest customer is, and spouting off about us getting rid of our "crappy CPA" is foolish. It is the best thing going for XJT, and will be until it is cancelled or renegotiated-which hopefully is never.
 
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It is not the length of the flight, or the range of the A/C used--it is the cost per available seat-mile (casms). For example, to operate a 50 seat RJ on a flt. versus a 150 seat 737, chances are the RJ is much more than 1/3 the operating cost as the 737 for a given flight. Hopefully, XJT can make up the difference by charging more for the convenience of direct flights-that is the multi million dollar question. If we can, great--but there is a chance we won't. Either way, SOME of us need to remember who our biggest customer is, and spouting off about us getting rid of our "crappy CPA" is foolish. It is the best thing going for XJT, and will be until it is cancelled or renegotiated-which hopefully is never.

ahhhhh...how refreshing. someone who sees the big picture.

the CAL CPA with XJT is a known. the other ventures that XJT is trying are all unknowns. hope it works out, but don't forget who you work for. professionalism should prevail and keep the customers happy.

fact is...CAL is better to XJT than most feeder/mainline arrangements. people who think otherwise need to look around. Horizon/Alaska is likely the only better deal going.
 
It is not the length of the flight, or the range of the A/C used--it is the cost per available seat-mile (casms). For example, to operate a 50 seat RJ on a flt. versus a 150 seat 737, chances are the RJ is much more than 1/3 the operating cost as the 737 for a given flight. Hopefully, XJT can make up the difference by charging more for the convenience of direct flights-that is the multi million dollar question. If we can, great--but there is a chance we won't. Either way, SOME of us need to remember who our biggest customer is, and spouting off about us getting rid of our "crappy CPA" is foolish. It is the best thing going for XJT, and will be until it is cancelled or renegotiated-which hopefully is never.

Dude, like, you're like totally missing the point, dude. You need to extract your brain from the confines of the RJ ghetto. Any higher-profit business we do, will #1) Not be in the United States of America, and #2)Not be done with 50 seat RJs. You really need to wake up and read a bit about this thing called the global economy.
 

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