SkyWest, Inc. announces E175 orders

[701EV]

ExpressJet?s parent company, SkyWest, Inc., today announced it has entered into an agreement with Embraer to purchase 100 E175 aircraft with options for an additional 100. In a memo via MyMessages to ExpressJet team members, Brad shared where the first of these aircraft will go to be operated, and what ExpressJet is doing to gain new business.

 

[XPOO]

Of these 200 aircraft, 40 go to OO for UA starting April 2014 and commencing August 2015. No firm CPA at this moment for EV. I'm sure Nevets will explain the first rights of refusal to us all again.

 

[olympus593]

Every lifer at Skywest just creamed themselves.

 

[777forever]

Of these 200 aircraft, 40 go to OO for UA starting April 2014 and commencing August 2015. No firm CPA at this moment for EV. I'm sure Nevets will explain the first rights of refusal to us all again.

Brad's memo basically said lack of labor contracts is holding us back. Expressjet does not know their future costs.

However, the last update from the union regarding the agreement on PBS and the acceleration on negotiations seemed positive

 

[wms]

I'm sure they know where these planes will go. They'll use them as a carrot in negotiations along the way, as they always have. The problem is the lxjt guys don't know how our mgmt works and they will get suckered in.

Also, I've been telling young pilots ready for the regionals to skip xjet and wait for Skywest. This may be their shot.

 

[XPOO]

Brad's memo basically said lack of labor contracts is holding us back. Expressjet does not know their future costs.

However, the last update from the union regarding the agreement on PBS and the acceleration on negotiations seemed positive

I mean no ill-will and this is strictly an opinion, but the facts are starting to finally show themselves. ExpressJet may have been able to stop Inc from reallocating the aircraft that are already operating, but they can't do a thing to stop Inc from allocating new aircraft wherever they want. The future is more than likely going to be a whittled down ExpressJet and a larger, more diverse SkyWest.

 

[wms]

Unless those planes replace e145s, and the tpa didn't gut the lxjt CPA like it did the lasa CPA.

 

[777forever]

There is nothing to doom & gloom about for us at Expressjet. Attrition is through the roof, at least on the lxjt side, and classes are not remotely close to full.

UAL cannot add all 70 RJs on order until a small narrow body aircraft is placed at mainline. They are hiring like crazy now, it will be nuts when that SNB aircraft is established

 

[CLARKGRSWOLD]

http://finance.yahoo.com/news/united-add-40-more-embraer-104840742.html

 

[twott driver]

What does this do to the MRJ order?

 

[AntiJedi]

What does this do to the MRJ order?

For the order itself? Nothing. For the addition of the aircraft to the operating certificate? To the back burner.

 

[Freebrd]

I'm sure they know where these planes will go. They'll use them as a carrot in negotiations along the way, as they always have. The problem is the lxjt guys don't know how our mgmt works and they will get suckered in.
.

BINGO! See 777, ya gotta know how management negotiates. Bet they'll even give another .25 cents perdiem for coughing up VAC LOW.

 

[Freebrd]

Brad's memo basically said lack of labor contracts is holding us back.

Again 777 that's negotiations 101....it's those damn pilots fault we're not competitive!

 

[Freebrd]

What does this do to the MRJ order?

They'll go to LXJT :nuts:

 

[XPOO]

What does this do to the MRJ order?

The MRJs are still coming, but I guess everyone will refuse to believe it until the year 2017 rolls around. This makes 200 firm orders and 200 options for future deliveries.

 

[wrightbros]

So where is Sky West Airlines going to find 300-400 pilots to fly these 40 planes? I heard there are only 100 or so in the hiring pool. This is yet another tatic by the Co to try and get everyone to give up anything meaningful. It will work, the ERJ side will give up the retirement and PBS and the CRJ will give up vacation low and their rigs.

 

[johnsonrod]

The race to the bottom continues! I agree - unless the regionals fund or partially-fund ERAU, UND and competiting college flight programs they will find it difficult to find people willing to spend $60-150K for ratings and experience to end up with $25-30K/year jobs.

Embraer is certainly taking advantage of the gap in the market and they are cleaning up! The CR9 cannot compare from a pax-experice perspective.

 

[AntiJedi]

So where is Sky West Airlines going to find 300-400 pilots to fly these 40 planes?

My guess is 2:1 swaps for 200s.

 

[wms]

With no pilots to fly them we r not giving up a thing. It's time for Skyw and xjet pilots to work together and go for the brass ring. But the mecs and sapa can't see beyond the integration fight. The pilot groups need to show the company that one union, one list, or not, we r going to work together to raise the bar.

 

[Scapegoat]

Finding pilots will not be a problem. Waivers will be issued on an as needed basis. If one company is short, the other one will pick up the slack. If the company is using this as a carrot, who would be surprised? No one! And there is no way the 2 companies will ever be merged. Inc. has found more flexibility with 2 seperate units even if one side still operates with low margins.
It doesn't really matter what UAL does. They will order NB aircraft but eill take years to arrive. UAX companies can swap out aircraft as needed to meet ratios. And please don't talk about any serious hiring at UAL being a factor in UAX operations. Those UAL positions they are hiring for now are very risky. Company integration overlap, retirement replacement ratios, basic economics. Just ask the 2007 UAL new hires.
My prediction, look for slow continued regional growth in North American operations, eventually reaching 100 seats. Legacy will continue to operate domestically but will focus on efficient international ops with NB aircraft, (which they are already doing). And legacy retirement replacement will not be 1for 1. The old model no longer works. Position yourself accordingly and make sure your career expectations are realistic and based on what has happened in the last 10 years.