Air Wiskey or Xjet,, serious responses would be great

[Boondock Saint]

Hub exclusivitey ends in '07, contract for feed is up in '10.
Negotiations have commenced with no word about rates or the lowering of them. Hate to spoil the party with facts.

I think what I meant was could you elaborate?

 

[logolight]

AWAC currently has 715 active pilots on the seniority list for 70 aircraft. That falls way short of the proper staffing needed for that many aircraft. They can't keep up with attrition right now so heavy hiring will continue well into next year.

 

[Snaab]

If I were in your shoes, I'd go with Air Wiskey. I'm from the mid-atlantic area and would do it for the domiciles (ORF, PHL, DCA). Aside from that, I guess they're about even as far a airlines go. Travel bennies are a huge perk for USAirways Express guys. Good luck with your decision!

Snaab

 

[Britpilot]

I think what I meant was could you elaborate?

Certainly.
First a little history. Continental Express was formed from three companies, Britt Air, Rocky Mountain Air and Bar Harbour Airlines. The joined companies became Continental Express, Lorenzo's "Super Commuter"
Continental became sole owner of Continental Express.
In the summer of 2001 Continental decided to sell Contineal Express in an IPO and named the new company Express Jet Holdings which owned Express Jet Airlines DBA Continental Express. With me so far? The IPO was cancelled after 9/11 and then re-instated in 2002. Continental needed to raise cash to pay for it's pension obligations because of a cash shortfall after it purchased all the shares owned by North West Airlines for an inflated price thus leaving the company low on cash.
A contract was drawn up for the IPO. It gave XJT the sole provider of JET feed into Continental's three hubs, EWR, IAH, CLE. This contract is a "fee per departure" type contract whereas XJT is paid a fixed sum per departure. The contract also provides for a profit margin of 10% for the term.
After the IPO XJT owed Continental a large sum of money for it's existance. XJT has paid this amount off early thus allowing it to stockpile cash.
The contract runs until 2010 (10 years) and is ammendable.
Continental has been in talks with XJT on the structure of the fees and the reduction of said fees as the deadline for hub exclusitivity approaches. As of today no announcement has been made as to the progress of these talks excepect that XJT has countered the proposal from Continental.
XJT is a paper company. It does not own the airplanes, it sub-leases them from Continental who leased them from a financial institution.
XJT does own or part own a paint shot in Mexico and a charter company in Texas. It also sells maintaniance services to all comers.
Continental continues to own a few shares of XJT and many of Continentals large investors also own XJT shares. The two companies are tied at the waist and are dependant.
What exactly will happen before 2007 and 2010 is any one's guess, but XJT's current future depends on the health of Continental until such time as XJT can obtain feed from another company or aquires another regional carrier which it is in a position to do with the large amount of cash on hand.
Clear as mud now is'nt it?

 

[TNPILOT]

What a lot of outsiders do not understand is how connected the two companies are. CAL has a vested interest to see XJT succeed. I'm not saying that we will definitely keep our exclusivity but I do believe it's likelyhood is pretty good. Time will tell but it's funny to see how many guys around here are just begging for the chance to tell us "I told you so."

 

[avrodriver]

What a lot of outsiders do not understand is how connected the two companies are. CAL has a vested interest to see XJT succeed.

These same outsiders are the ones watching Delta come after their own with the raping of ComAir. As well as Northwest come after XJ even though plenty of NW big wigs are allegedly XJ stockholders.

Managements idea of success is a whole lot different than a line pilots.

Time will tell but it's funny to see how many guys around here are just begging for the chance to tell us "I told you so."

There may be a few guys on here like that, but I think most of the responses that aren't going along with the "it'll be alright" theme are just pointing out the possiblities for others that don't have all thier money riding on CoEx yet. This business sucks in that once you pick your horse your pretty much stuck with it. For better or for worse...or for when you finally have had enough and say "F this" I'm done. I guarantee 6 months ago the pilots at ComAir and XJ would have never seen this coming. Once again...CAL may want CoEx to succeed, but is that a guarantee it will be good for you? I hope it is, good luck.

 

[Boondock Saint]

Certainly....Clear as mud now is'nt it?

Thanks for taking the time. I wish I could forcast the future, as Im sure we all wish. Again this is a company that I am pursuing however you always wonder. Like the rest of you I am trying to play the game with the information and opportunities I have. XJET has always been on my list...but Id be lying if I said the information I have now doesnt make me nervous about heading that direction.