ExpressJet gets delisting warning from NYSE

[Erlanger]

Would Skywest come back to the table?

Most certainly not at $3.50. The pilots are at a weaker spot now and Jerry may make even greater demands then before or it's goodbye, if he thinks XJT is going under eventually. I've heard Jerry say before that he wants assets not people, so when ASA was bought it surprised me and even with XJT, I was surprised. He got a CPA with CAL, he can do it again. But if XJT goes under, he may be in a better position to deal with CAL but if XJT is bought now, CAL may expect Skywest to honor the XJT CPA and I don't think that would be acceptable to Jerry.

 

[Nevets]

Help a non-XJT guy understand, what exactly is going on at XJT?

In terms of fleet numbers, further cuts/growth, and pilot hiring/furloughing?

Minimum of 205 aircraft for CAL until July 2009. Then it could go down to a minimum of 190 aircraft until July of 2015. Plus 30 aircraft in the charter division. The 39 remaining aircraft are being parked at CAL's expense with XJT having first rights to them in the future.

XJT needs 437 less pilots come October. That will be mitigated by COLAs (110), early retirements (33), overseas flying opportunity (12 so far), and 40 hour lines (TBD).

 

[Nevets]

Exactly... Investors know that this company does not have much of a future if they can't change the financial ground they stand on.

Hey Nevets besides furloughs did Jerry ever mention you guys having to take concessions?

Yes, they were asking for 12% pay concessions to become "cost competitive" with SKW with an additional 4% after they had more time to review the contract.

 

[Nevets]

Would Skywest come back to the table?

Nothing would surprise me although they said themselves in a press release that this CPA with CAL removes their fundamental reason to purchase XJT.

 

[Nevets]

Most certainly not at $3.50. The pilots are at a weaker spot now and Jerry may make even greater demands then before or it's goodbye, if he thinks XJT is going under eventually. I've heard Jerry say before that he wants assets not people, so when ASA was bought it surprised me and even with XJT, I was surprised. He got a CBA with CAL, he can do it again. But if XJT goes under, he may be in a better position to deal with CAL but if XJT is bought now, CAL may expect Skywest to honor the XJT CBA and I don't think that would be acceptable to Jerry.

The pilots are not any weaker than what SKW was offering. Just to remind everyone, they were going to shut down the branded, and the DAL pro-rate, and charter. They were going to transfer 29 of those aircraft to SKW for SKW pilots to fly. And they had a deal with CAL that would have allowed CAL to put the 205 aircraft flying for CAL up to bid. Then he was asking for LARGER concessions than an independent XJT is facing just to become "cost comopetative." All this while throwing out our scope and Holding Letter protetions. I would hardly call that a weaker position.

Yes, it was clear to me that he was more interested in assests and not people. I don't take it personal, its just business I guess. And SKW is ran by good business men.

But again, I take SKW at their word when they said that this deal removes the fundamental reason for the buyout. Now that XJT has a deal in place they are not under as much pressure they were before to take the SKW buyout. Also, the CAL CPA does not have the ability to whipsaw XJT like the SKW CPA did with its one year rebidding language. And lastly, it doesn't set up the second seperate CPA in which SKW would operate 29 aircraft. This would have made the transition, one year later, if XJT pilots decided not to become "cost competative." Not to mention the 700 pilots they were going to furlough and offer preferential interviews.

All their whipsaw ability is gone and the XJT pilots are less likely to rescind their scope and Holding letter now.

Yes, I think SKW would rather wait for XJT to liquidate and just rehire the pilots at first year pay rather than buy them and deal with unions at SKW.

 

[Flyer1015]

As sad as it is, and I am going to get a lot of angry responses for this......

the regional industry is not the place to fight for a ' good contract'......it is simply contract work for larger carriers, plain and simple.

If you cost too much....see ya, its just buisness. ( I dont agree---its just how it is for regionals ) It is contract work and that is it.

The place to fight for a stellar contract is a mainline carrier....get the flight time needed at a regional and move on...I know everyone cant move on, but that is another reality of this industry. Sorry to see people lose their jobs---but your company is only doing a job for someone else.

Wow... I'm glad not everyone has the same attitude as you!

If that was all true, then Pinnacle would have signed for a crappy contract 3 years ago. But we haven't. AND, neither did we buy management's threat that we will lose all NWA flying if we didn't sign the management 'best and final offer.'

Bullsheet!

FIGHT for a good contract at the regional level!

 

[Erlanger]

XJT is a $.29 right now. I know a few guys who just bought a lot of their stock in the last few days. I'm thinking of buying some myself. Anyone?

If they file for bankruptcy, your stock will be worthless. Remember, they don't have to go out of business, just file for bankruptcy and it's worth nothing. Nothing against XJT but right now you would be better going to Vegas and gambling it there.

 

[Jon Rivoli]

Jerry accomplished what he wanted, he has no incentive to persue XJT. He has cash in the bank and solid contracts with two legacies. Now all he needs to do is wait. Mesa is history and XJT will be facing quite a struggle over the next year. There will be plenty of pieces to pick up to fuel future growth without the complications of an acquisition.

 

[Nevets]

Jerry accomplished what he wanted, he has no incentive to persue XJT. He has cash in the bank and solid contracts with two legacies. Now all he needs to do is wait. Mesa is history and XJT will be facing quite a struggle over the next year. There will be plenty of pieces to pick up to fuel future growth without the complications of an acquisition.

That's not what he told us or insinuated during their pitch to the pilots.

 

[Wesb737fo]

As sad as it is, and I am going to get a lot of angry responses for this......

the regional industry is not the place to fight for a ' good contract'......it is simply contract work for larger carriers, plain and simple.

If you cost too much....see ya, its just buisness. ( I dont agree---its just how it is for regionals ) It is contract work and that is it.

The place to fight for a stellar contract is a mainline carrier....get the flight time needed at a regional and move on...I know everyone cant move on, but that is another reality of this industry. Sorry to see people lose their jobs---but your company is only doing a job for someone else.

Not angry responses, just "eye brow" raisers". Seriously, if you don't get it you need help.

I know it's not totally the RJ driver's fault. I once flew a 1900 for $30 and hour as Captain, I didn't blink about the chance to move into the left seat of a 50 seat jet for $56 an hour. But what is going on now is that Peanuckle fo's are flying fricken 90 SEAT JETS for $23 an hour ....2nd year! Not to single out Peanuckle because regional pay is sh!t and has always been Sh!t. The only difference now is that regionals are not only flying jets, but now 70 and 90 seaters that should be on mainline certificates.
Scope relaxation has been one culprit here.... I don't know why I'm wasting my time, if you don't get it, you probably won't ever get it.

 

[Flyer1015]

flying fricken 90 SEAT JETS for $23 an hour ....2nd year

Actually, this is not true. 50 seat jet pay is 24.39/hr for second year (and that BLOWS). But the 76 seater pay is much higher for second year.

Nonetheless, you're right about the rest.