Not good for the new hires at QX. Looks like we're losing 5 airframes. We only had a 5%
ROIC, no growth until we reach 10% ROIC. Since anything over 48 Q400's is considered
growth furloughs will be likely.
What Skywest has to say….
Why Alaska?
Alaska is a solid airline with an exceptional reputation for customer service and satisfaction. The deal fulfills a number of SkyWest’s growth objectives: organic growth, strong partners and additional upgrade and growth opportunities for our people. Given our operational credibility and experience, as well as our efficient economics, SkyWest is able to fill some of Alaska’s demand, and we are pleased to join forces with a strong airline with a similar culture and commitment to service.
What Horizon has to say….
The acquisition, announced today, of Horizon's last five CRJ-700s by SkyWest Airlines will help complete, after nearly three years, its transition to a single-type fleet by this summer. That means we’re going to be reducing our number of aircraft from 53 to 48. Shrinking never feels good, but it’s essential to achieving our financial goal. The $9 million we’ll save annually after shifting to an all-Q400 fleet remains crucial to Horizon’s future financial success.
Unfortunately, the shift to an all-Q400 fleet also means that there are some longer routes that Horizon cannot optimally serve for Alaska under its capacity purchase agreement (CPA). It’s for this reason that Alaska has contracted out CRJ-700 flying to SkyWest Airlines under a separate CPA.
What their chief pilot has to say.....
As we look six months down the road, the other wild card we are watching is what will happen to the remaining five CRJs. As of now they are in the schedule for the remainder of the year. However, if they are sold and the company does not exercise its options for five more Q400s, we could find ourselves in a place of over-staffing yet again.
"For the time being, we are planning no more new hire classes or upgrades, and are simply in a wait-and-see posture. Each week adds new information."
Plays like this......
take all jets and give them to skywest....pay them to fly them....give all pilots at Horizon a pay cut.....downgrade and furlough 5 airplanes worth of pilots.....make huge executive bonuses....have record profit.....Why would anyone go to Horizon, and if they could find any other job why would anyone stay at Horizon
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