Skywest Prospectus--says it all here.....

[USCtrojan]

Just got the annual report for Skywest. You decide for yourself....Page 18....

We may not achieve the potential benefits of the ASA acquisition

Our achievement of the potential benefits of the ASA acquisition will depend, in substantial part, on our ability to successfully implement our business strategy, including improving the utilization of equipment and facilities, increasing employee productivity and allocating overhead and administrative expenses over a larger platform. We will be unable to achieve the potential benefits of the ASA acquisition unless we are able to efficiently integrate the SkyWest Airlines and ASA operating platforms in a timely manner. The integration of SkyWest Airlines and ASA may be costly, complex and time-consuming, and the managements of SkyWest Airlines and ASA will have to devote substantial effort to such integration. If we are not able to successfully achieve these objectives, the potential benefits of the ASA acquisition may not be realized fully or at all, or they may take longer to realize than expected. In addition, assumptions underlying estimates of expected cost savings and expected revenues may be inaccurate, or general industry and business conditions may deteriorate. Our combined operations with ASA may experience increased competition that limits our ability to expand our business. We cannot assure you that the ASA acquisition will result in combined results of operations and financial condition consistent with our expectations or superior to what we and ASA could have achieved independently.

They've been wanting to integrate us all along. However, I feel it's clear, Jerry will not move forward with this unless we have a reasonable cost effective contract. Let's get this thing done. Scope is by far the most important.....

Trojan

 

[Gobi Gred]

There was something similar to this in the last annual report. There won't be a merger of the pilot groups as long as they can whipsaw us. And don't hold your breath for the SkyWest pilots to join ALPA anytime soon. We have too many "I'm just happy to be here", "ALPA? What's ALPA?", " We don't need ALPA here, they didn't do crap for me at my previous airline","Why do we need ALPA? Jerry will always take care of us" pilots here.

 

[USCtrojan]

There was something similar to this in the last annual report. There won't be a merger of the pilot groups as long as they can whipsaw us. And don't hold your breath for the SkyWest pilots to join ALPA anytime soon. We have too many "I'm just happy to be here", "ALPA? What's ALPA?", " We don't need ALPA here, they didn't do crap for me at my previous airline","Why do we need ALPA? Jerry will always take care of us" pilots here.

Funny, I didn't read that in the prospectus. It basically said they bought ASA to combine it into ONE so SkyWest can receive the benefits of the purchase. Now, they did mention it may not happen due to (my guess) our labor group contract negotiations. Namely the pilots. Whether your Union or not will not matter.

Trojan

 

[rickair7777]

Those kinds of weasel words are absolutely standard fare in a prospectus...they are basically required to say that kind of stuff, to cover all possible bases.

I'm one of those "alpa didn't do crap for me at my last airline" guys...rembember that old saw "Fool me once, shame on you. Fool me twice, shame one me"

Most reasonable people don't buy the same snake oil from the same con-artists more than once...why would you expect me to? With that being said if alpa can PROVE by actually DOING IT (vice blowing sunshine up my @ss) that they:

a) Care about regionals
b) Are able to improve a few of the ones which are ALREADY paying dues (in the post 9/11 world). Fixing Mesa should do the trick...

I will cheerfully vote them in. A functional union is certainly better than no union, but no union is better than alpa at SKW for now.

 

[~~~^~~~]

Those kinds of weasel words are absolutely standard fare in a prospectus...they are basically required to say that kind of stuff, to cover all possible bases.

True, but those are also the kind of words that get consideration during the hearing of a Single Carrier Petition.

 

[SSDD]

Fins,

This theme keeps going around in circles! Is ASA filing for single carrier, as you should have months ago, or is ALPA opposing it because they are afraid that with an integrated seniority list they will be voted out?

BTW as far as the prospectus, I think people are reading too much into it. As far as the company goes "integration" means just about everything but the pilot's seniority list.

 

[Sherpa]

I think it's about the bottom line for the holding company, what's gonna make them more money over time. Obviously two certificates are beneficial but two pilot groups may not be, especially when ASA gets a labor agreement that may be cheaper than Skywest Airlines. It's hard to predict anything but from a performance perspective I'd bet they'd be better off with one pilot group even if it involves an organized union. Maybe I'm just being optimistic but it seems that integrating departments, having more spares and resources like labor would cut costs. The benefit of the whipsaw is short lived when you start pissing people off every time a contract comes up and performance goes to poop.

 

[Texx]

yawn.... The problem is management. They control the costs and the operation. Look at ASA and you'll see the problems. Do the pilots and FAs have any control or input to the running of the operation? No.

Which group made the decision to close SLC? Which group made the decision to transfer 4 700s from ASA to Skywest Airlines? They didn't call me on either but they did comment that it cost too much to transfer the aircraft, after the fact, and that closing SLC as a base was a mistake.

 

[duck_killer]

don't integrate we dont want ASA's fugly FA's

 

[Speedtape]

don't integrate we dont want ASA's fugly FA's

I heard dat! I know dat's right!

 

[COOPERVANE]

don't integrate we dont want ASA's fugly FA's

No argument here!! We just hire the four G's at ASA

 

[Exskydiverdrivr]

don't integrate we dont want ASA's fugly FA's

I know who you are duck killer, Now let's not p@ss of our new sisters this early in the game.

 

[asayankee]

"Integrating the operating platforms" to achieve cost savings and merging the two airlines are two COMPLETELY different things. Don't be naive enough to confuse them.

 

[USCtrojan]

"Integrating the operating platforms" to achieve cost savings and merging the two airlines are two COMPLETELY different things. Don't be naive enough to confuse them.

Whatever. If Skywest Inc. was to simply integrate and operate them separately, it would not be COSTLY. They'd keep on keepin' on in the words of Joe Dirt. Just because you throw a couple of your own people to Atlanta, and change the sign to SkyWest in front of ASA's GO would NOT be costly. A costly integration implies a merging, plain and simple. ASA may single handedly bring about the "passenger bill of rights." I'd say it's worth getting rid of the brand for that reason alone.

Trojan

 

[USCtrojan]

To add more fuel to the fire.....

Summary Compensation table...

Jerry C. Atkin.......$1,532,408
Bradford R. Rich....$926,382
Ronald B. Reber.....$962,438
and the one that personally kills me:

Brian Retard LaBrecque......$450,629 This guy ain't worth our FO first year pay. He's making almost a half mill in a year. Dam.

Trojan

 

[Gr82Aviate]

To add more fuel to the fire.....

Summary Compensation table...

Jerry C. Atkin.......$1,532,408
Bradford R. Rich....$926,382
Ronald B. Reber.....$962,438
and the one that personally kills me:

Brian Retard LaBrecque......$450,629 This guy ain't worth our FO first year pay. He's making almost a half mill in a year. Dam.

Trojan

You're not taking into account the extremely high cost of living in St. George, and don't forget...we managed to squeak out either a 0 or 1% raise too!

 

[Morning Wood]

yawn.... The problem is management. They control the costs and the operation. Look at ASA and you'll see the problems. Do the pilots and FAs have any control or input to the running of the operation? No.

Which group made the decision to close SLC? Which group made the decision to transfer 4 700s from ASA to Skywest Airlines? They didn't call me on either but they did comment that it cost too much to transfer the aircraft, after the fact, and that closing SLC as a base was a mistake.

Which group is usually the one to close any domicile at any airline? Ask a United pilot if they were the ones who chose to close CLE. Ask a USAir guy if they chose to close SAN, LAX, or SFO.

P.S. SkyWest has had 6 domiciles close in its history.

 

[Richard Gozinya]

SkyWest has had 6 domiciles close in its history.

Skywest now has a FA base in Atl!

Dick

 

[Texx]

Which group is usually the one to close any domicile at any airline? Ask a United pilot if they were the ones who chose to close CLE. Ask a USAir guy if they chose to close SAN, LAX, or SFO.

P.S. SkyWest has had 6 domiciles close in its history.

And your point is?

 

[Brazilgun]

"Integrating the operating platforms" to achieve cost savings and merging the two airlines are two COMPLETELY different things. Don't be naive enough to confuse them.

I agree. One of the things they are currently integrating together is the maint. department. That way any ASA plane can be fixed at a SKYW base and vice-versa. It's a lot more cost-effective to operate that way. As of a month or so ago, a ASA plane could not be fixed by a SKYW mechanic and the other way around. FAA wouldn't allow it. Now they are integrating the two for that reason. It will save them a lot of money.
Skywest managment knows if they screw up pretty bad we will get a union next day. They don't want a union around because they feel they need to change things more than once every four years to adapt to the industry. That wouldn't be possible with a UNION CONTRACT.
If anybody here can tell me one thing that would currently improve at Skywest with ALPA, I will vote tomorrow.
It's only my opnion, but ALPA is only a good union when you have a good management. Talk to a FEDEX guy and with a USAir or Mesa and you will get two different views of ALPA.

 

[sweptback]

They don't want a union around because they feel they need to change things more than once every four years to adapt to the industry. That wouldn't be possible with a UNION CONTRACT.

But it is possible with a union contract! It's called a side letter, or Letter of Agreement. ASA has 29 of them. You can peruse at http://www.asacontract.com/pa/loa_index.asp. LOA 27 in particular has been very beneficial to ASA pilots.

For example, when ASA got the CRJ 700, LOA 29 was negotiated. It outlays the CRJ 700 payrates. Also, all pilots got a 0.5% raise in exchange for a change of our duty in times by 15 minutes. This is the power of a union contract -- management can negotiate a change to it, but it's not a one-way street.

 

[ASARJMan]

and the one that personally kills me:
Brian Retard LaBrecque......$450,629 This guy ain't worth our FO first year pay. He's making almost a half mill in a year. Dam.
Trojan

Anything in there on what King Tutt and Scotty boy make? Heard ScottyBoy got extended flying the line recently. Cool.

ASA Overpaid Management
More for them, Less for you!

 

[Morning Wood]

Skywest now has a FA base in Atl!

Dick

True. And when it closes you can add that to the list of ones that have.

 

[Morning Wood]

And your point is?

My point is that domilces close, it's a fact of life. No one has any say, especially crews in spite of what one poster thinks should not be mgt's decision.

 

[scarlet]

How much money will they save if they close the GO in ATL??? Move the MX hangar in MACON to ATL???

 

[USCtrojan]

Anything in there on what King Tutt and Scotty boy make? Heard ScottyBoy got extended flying the line recently. Cool.

ASA Overpaid Management
More for them, Less for you!

No, unfortunately not. Those were the only names posted.

Trojan

 

[Sinca3]

"Integrating the operating platforms" to achieve cost savings and merging the two airlines are two COMPLETELY different things. Don't be naive enough to confuse them.

My thoughts exactely!!! They can merge operations and business practices but they don't ever have to merge list!
That right there would be the cheapest thing to merge if you asked me. Sure there would be some arguments from both sides but the cost to the holding company would be minor.
Jerry and Co. are trying to see cost savings in reducing redundant operating positions in the GO's and operations side of things. Pilot FA and even ramp positions aren't redundant as they would still need the same number of people in those positions to operate the merged airline.
Just my thoughts........

 

[USCtrojan]

My thoughts exactely!!! They can merge operations and business practices but they don't ever have to merge list!
That right there would be the cheapest thing to merge if you asked me. Sure there would be some arguments from both sides but the cost to the holding company would be minor.
Jerry and Co. are trying to see cost savings in reducing redundant operating positions in the GO's and operations side of things. Pilot FA and even ramp positions aren't redundant as they would still need the same number of people in those positions to operate the merged airline.
Just my thoughts........

With that scenario, you would still be D'HDing crews all over the States between Georgia Utah and Cincy. It's still costly. Not to mention the new hires ASA is losing to SkyWest. What's that costing? Perhaps about $20G's a pilot? I know Jerry can afford it. He had an additional $13,800 for his car lease. $5800 for his country club membership. And that's just the stuff that's published.

Trojan

 

[BoilerUP]

This is also in the Skywest 10-K

Growth Opportunities
During the five years ended December 31, 2006, our total operating revenues expanded at a compounded annual rate of 41.6% and the number of daily flights we operated increased from approximately 1,000 at the end of 2002 to approximately 2,400 as of December 31, 2006. With the exception of our acquisition of ASA, our growth during that five-year period was internally generated. We believe there are additional opportunities for expansion of our operations, consisting primarily of:
· Delivery of Aircraft Under Firm Order. We have firm orders to acquire eight additional new CRJ900s. In addition, we intend to operate 11 additional CRJ200s through third-party lease arrangements and sublease 12 additional CRJ700s from Delta during the year ending December 31, 2007. Additionally, we expect to place four owned CRJ200 spare aircraft into service in 2007. We have agreements with Delta or Midwest to place all 35 of these aircraft into revenue service, under long-term, fixed-fee contracts.
· Potential Opportunities from Delta’s Restructuring. We believe that as Delta restructures its fleet under bankruptcy protection, there may be new regional flying contracts that become available for qualified regional carriers. ASA holds certain rights to maintain its proportion of overall Delta regional flights, as well as its proportion of Delta’s regional flights to and from Atlanta. This may help ASA compete for new flying mandates, if any, that come into existence at Delta.
· Scope Clause Relief. “Scope clauses” are elements of major airlines’ labor contracts with their own pilots that place restrictions on the number and size of aircraft, or the amount of flight activity, that can be operated by major airlines’ regional airline contractors such as ASA and SkyWest Airlines. Greater liberalization of scope clauses generally creates more business opportunities for regional airlines. Since 2001, five major national airlines (American Airlines, Inc. (“American”), Delta, Northwest Airlines, Inc. (“Northwest”), United and US Airways, Inc. “US Airways”) have achieved some scope clause liberalization. If further efforts by major airlines to relax scope clause restrictions are successful, it may create incremental opportunities for regional airlines.

· Narrowbody Replacement Flying. A meaningful portion of the recent growth of the regional airline industry resulted from the replacement of major airline-operated narrowbody jet aircraft (such as 737s, DC9s, MD80s and A319s) with regional airline-operated jets on the same routes. The major airline affects this change in equipment to achieve an advantage in trip costs, unit costs, frequency or a combination of these benefits. At present, the fleets of the six major national airlines include a significant number of narrowbody aircraft that are more than 15 years old. Such older aircraft are frequently less fuel- and maintenance-efficient than new aircraft. If major airlines decide to substitute newer regional airline-operated equipment for any portion of these older narrowbody aircraft under their retirement, it may create incremental opportunities for regional airlines.
Good for SKYW shareholders...bad for pilots industry-wide.

 

[CFIT]

Skywest managment knows if they screw up pretty bad we will get a union next day. They don't want a union around because they feel they need to change things more than once every four years to adapt to the industry. That wouldn't be possible with a UNION CONTRACT.
If anybody here can tell me one thing that would currently improve at Skywest with ALPA, I will vote tomorrow.
It's only my opnion, but ALPA is only a good union when you have a good management. Talk to a FEDEX guy and with a USAir or Mesa and you will get two different views of ALPA.

I agree pretty much with this statement with the difference about ALPA only being good with good management. I think they are only good for the majors and then only with good ALPA management.

Now if ALPA were to come up with a unified position about airport security I would sign up in a second. Imagine how fast the pointless bs with the TSA would change if every ALPA carrier stopped flying because airline pilots are sick of getting finger ficked by some retard that couldn't make at Taco Bell?