Republic Airways Holdings Inc. (RJET), SkyWest, Inc. (SKYW): A New Business Strategy

[Nevets]

What is the actual savings goal? I am not being facetious, I really don't know.. Just wondering because 50% of an unknown number might not be significant at all...

- Have we combined 401k programs yet?
- Medical plans/programs?
- Is part of this projected savings also projected concessions from labor?
- Will flight attendants fly both ERJs and CRJs?
- More savings to be had from Maintenance being integrated?

I would think they already went after much of the low hanging fruit.. I too am unsure how they could get another 50% savings. It sounded like this remaining 50% in synergies was directly tied to resolving labor contracts.

They said they would save $70M/yr once SOC was achieved. That happened November 2011. They said they would be profitable in 2013. They keep moving the gaol posts.

- They haven't combined the 401ks. LXJT's pilot contract 401k has higher matching percentages and a B fund company contribution.
- Health benefits hasn't been combined. LXJT's pilot contract caps the pilots' share of the premiums at 25%.
- The only common base is IAD starting this September bid month.
- Maintenance has already been integrated.

You guys can connect the dots.

You do realize that ExpressJet is currently a breakeven operation right? Excluding merger costs the company is profitable, but not by much. Q4 2012 XJT reported a profit, but not enough margin to get us profit sharing. Q1 was an anomaly due to weather.

Jerry didn't buy XJT and merge then with ASA for his health. The company will be profitable in 2014. Maybe even by the end of this year

Sent from my HTC One using Tapatalk 2

It's not break even. That's just what they say. Look at the 4Q 2012 10K, it was NOT profitable. They reported a loss of $5.671M for XJT. They have never reported a profit for XJT in any quarter. Assuming there is no weather (bad business assumption in the airline industry), they may be close to break even but their simply not profitable. We'll see if mother nature cooperates and they can eek one out this quarter.

http://www.sec.gov/Archives/edgar/data/793733/000104746913001174/a2212817z10-k.htm

http://www.sec.gov/Archives/edgar/data/793733/000110465912075829/a12-19936_110q.htm

Of course they meant to be profitable. It's just not working out that way. You are falling for it and being too optimistic.

 

[AntiJedi]

unless you count your part ownership in a Trip, a Braisilian carrier with E175s and E190s---but they aint commin North---NOPE

What part ownership?

 

[PBRstreetgang]

I never said I wanted 3300 pilots to be unemployed. In fact, the 3 legacies will need to hire near 15,000 pilots within the next decade due to age 65 retirements. That means all but 3 pilots, including you, Russ, and Jon Rivoli, will be hired away. What will you three be doing? Flying 3 duchesses from SLC to Cody, Twin Falls, and St George. That will be awesome for you three winners.

You have repeatedly compared Skywest to Indy Air, anybody in the business knows Indy went out of business and the pilots were laid off. You are right, the legacies will hire the equilavent of most of the regionals, in fact DAL has been pushing Skywest for a flow through, for the pilots, Skywest has resisted because they know that they make money, only by flying airplanes, no pilots, no flying, no money. 3 Dutchesses, that's the kind of juvenile mean I and talking about, anybody who challenges you, becomes only worthy of something you think as beneath a real airline pilot(which you aren't). I do think if DAL gets their flow through, and they open a West coast 767 domicile I will bid it, just to burst your Aspbergers fueled bubble.

Anyway, scope clauses do rule your business. You can't have certain sized planes and still codeshare with DL. DL has one exception, the Republic/Frontier exception, since Republic owns Frontier and they have planes over 76 seats. Can any other DCI do the same? NOPE. Now, you can fly planes for UAL, US, AA, etc, but they still can't have over 76 seats. (unless you count your part ownership in a Trip, a Braisilian carrier with E175s and E190s---but they aint commin North---NOPE).

Once again, scope clauses are in the CBA that the DAL pilots have with DAL, Skywest will fly whatever DAL tells them, for the right price. The scope in the DAL CBA was written by, lessee, ALPA(pilots) and DAL(Ford and Harrison) and given the past history of scope as it relates to legacy airlines, well even you can see the results, 900s with DAL paint at SKYW.

So, you can have grandiose plans, but they won't come to fruition until you decide to dump the contracts. Why? Because scope erosion usually only happens when FORCED, or in a BK situation. Good ole Tom Horton at AA went that way, and he LOST his $20 million exit bonus (turned down by BK judge and now DOJ said NO). Upper management people want big cash, and the easiest way to get it now is through PROFIT SHARING, not BK. Make big profits, get big bonuses...... Make big profits, no scope changes... Get the picture yet?

My grandiose plans are to sit on the porch with a frosty beer, an iPad and get drunk while proving, that even drunk, I can make more sense than you ever will, and that chaps your hide.

So, as 99% of your airline is hired away in the next 10 years, and a place like Riddle only puts out 14 students a year who can afford to fly there, it will be tougher to get anyone who fits the 1500 rule, and every Regional will shrink, while the 3 legacies hire all of the pilots, with their better pay, benefits, and the ability to fly away from Utah. You three though, get to fly the mighty Duchess all over that area, and kick some serious arse! Your cohorts will be happy making more and flying bigger, and you guys, well, you guys will.....ummm.... get vectors? Say hi to "Uncle" Steve for me!

Once again your juvenile mean shows up. I do hope that the flow through happens and SKYW pilots flow into DAL planes, especially the 767, because that will chap your Aspbergers hide, knowing lowly regional pilots are flying the mighty 767 to Paris and other points of the world, without he psych eval you could never pass anyway, all the while wearing the Panamanian double breasted doorman dinner jacket. I hope that DAL decides to allow the leather bomber jacket for chilly climes.

Bye Bye---General Lee

 

[enuffalready]

PBR. When will you learn? The only places to work are LXJT at regional category and Delta at major category. Then once at either of those places, the only way to work is to have the exact schedule and make the exact same choices at Genital HerpLee or Nevets. If you haven't realized that by now, then you are as ignorant as the assume you are.

 

[Ops check good]

I never said I wanted 3300 pilots to be unemployed. In fact, the 3 legacies will need to hire near 15,000 pilots within the next decade due to age 65 retirements. That means all but 3 pilots, including you, Russ, and Jon Rivoli, will be hired away. What will you three be doing? Flying 3 duchesses from SLC to Cody, Twin Falls, and St George. That will be awesome for you three winners.

Anyway, scope clauses do rule your business. You can't have certain sized planes and still codeshare with DL. DL has one exception, the Republic/Frontier exception, since Republic owns Frontier and they have planes over 76 seats. Can any other DCI do the same? NOPE. Now, you can fly planes for UAL, US, AA, etc, but they still can't have over 76 seats. (unless you count your part ownership in a Trip, a Braisilian carrier with E175s and E190s---but they aint commin North---NOPE).

So, you can have grandiose plans, but they won't come to fruition until you decide to dump the contracts. Why? Because scope erosion usually only happens when FORCED, or in a BK situation. Good ole Tom Horton at AA went that way, and he LOST his $20 million exit bonus (turned down by BK judge and now DOJ said NO). Upper management people want big cash, and the easiest way to get it now is through PROFIT SHARING, not BK. Make big profits, get big bonuses...... Make big profits, no scope changes... Get the picture yet?

So, as 99% of your airline is hired away in the next 10 years, and a place like Riddle only puts out 14 students a year who can afford to fly there, it will be tougher to get anyone who fits the 1500 rule, and every Regional will shrink, while the 3 legacies hire all of the pilots, with their better pay, benefits, and the ability to fly away from Utah. You three though, get to fly the mighty Duchess all over that area, and kick some serious arse! Your cohorts will be happy making more and flying bigger, and you guys, well, you guys will.....ummm.... get vectors? Say hi to "Uncle" Steve for me!


Bye Bye---General Lee

Trip is gone. Wouldnt your boss at chick fillet in ATL be mad that you are on the internet so much? And stop your rally on scope. Your and every other airline will do what they want when it comes to feed no matter what the pilots want. Pilots DO NOT have a say in how an airline is run, sorry to burst your bubble.

 

[General Lee]

Trip is gone. Wouldnt your boss at chick fillet in ATL be mad that you are on the internet so much? And stop your rally on scope. Your and every other airline will do what they want when it comes to feed no matter what the pilots want. Pilots DO NOT have a say in how an airline is run, sorry to burst your bubble.

Uhhhhh, yes, scope sticks. Arbitrators would love to rule in those types of cases, very clear cut. If a company has a scope clause and wants it changed, it can try to negotiate. If not, wouldn't regional guys be flying mainline 747s for cheap now? Nope, contracts state who can fly each plane, many with weight limitations. How about SKW flying a 76 seat 757 for DL? Can't do it, due to the airplane weight. So, you are wrong.


Bye Bye---General Lee

 

[PBRstreetgang]

Uhhhhh, yes, scope sticks. Arbitrators would love to rule in those types of cases, very clear cut. If a company has a scope clause and wants it changed, it can try to negotiate. If not, wouldn't regional guys be flying mainline 747s for cheap now? Nope, contracts state who can fly each plane, many with weight limitations. How about SKW flying a 76 seat 757 for DL? Can't do it, due to the airplane weight. So, you are wrong.


Bye Bye---General Lee

 

[XPOO]

The General Lee just has it out for SkyWest, period. It kills him everytime SkyWest grows larger, makes more money, buys more airplanes, flies new routes. He has had to sit back and watch SkyWest, Inc. grow to become the world's largest operator of aircraft, and fly to more destinations that any other airline in the world as well. He is just dying for some bad news for SkyWest and the only thing he has are these MRJs. General, that's four years from now. How about we shelve the MRJ speculation until at least the year 2016. Sound good?

 

[enuffalready]

The General Lee just has it out for SkyWest, period. It kills him everytime SkyWest grows larger, makes more money, buys more airplanes, flies new routes. He has had to sit back and watch SkyWest, Inc. grow to become the world's largest operator of aircraft, and fly to more destinations that any other airline in the world as well. He is just dying for some bad news for SkyWest and the only thing he has are these MRJs. General, that's four years from now. How about we shelve the MRJ speculation until at least the year 2016. Sound good?

Has nothing to do with Skywest. If the only 2 airlines in the world were Delta and American he would be saying the same thing about AA. Guy is just a ******************************. Just leave him alone and he goes away. I cant for the life of me figure out why you guys engage with him

 

[General Lee]

The General Lee just has it out for SkyWest, period. It kills him everytime SkyWest grows larger, makes more money, buys more airplanes, flies new routes. He has had to sit back and watch SkyWest, Inc. grow to become the world's largest operator of aircraft, and fly to more destinations that any other airline in the world as well. He is just dying for some bad news for SkyWest and the only thing he has are these MRJs. General, that's four years from now. How about we shelve the MRJ speculation until at least the year 2016. Sound good?

Ummm, that isn't the case with DL. It's not growing larger, the profits aren't what it used to be, and new routes for the 76 seaters will be the current ones 50 seaters are flying, before they leave. ASA has already moved a lot of 50 seaters from DL to AA in DFW, and UA in ORD and IAD. 717s will come in and recapture many current 70 and 76 seat routes. As far as being the largest operator of aircraft, your company will be replacing 50 seaters with larger 70 and 76 seaters(mainly with UA and US) so I don't know what the final number will be. It may mean little overall aircraft growth.

Regardless, all 3 legacies will be hiring 15,000 pilots in the next decade, with better pay, benefits, and variety in bases and planes/flying. That will be the next huge challenge for your airline. Along with new hiring minimums, trying to keep that huge fleet flying with 50-100 Capts per month going to the legacies probably. Now that will be interesting. And, I don't hate your airline. Not at all. Times are a changing though, and scope clauses will get tighter as the legacies get more profitable due to consolidation. Good luck to you.



Bye Bye---General Lee