ASA did not bid XJet Flying - Conf. call

[~~~^~~~]

The SkyWest 2Cnd Qtr conference call was interesting. The XJet flying was considered too risky to SkyWest's employees. Intereting choice of words. Wonder if it was contract uncertainty, or something else.

Also in the call was a kudos to ASA's pilots and admission that the operational issues in ATL was not part of an unofficial job action.

 

[Plainsman]

You can hear the recording at 800-642-1687 listen to prompt and enter 3237565

 

[Turkey Shoot]

Thank God!!! The boys at CoEx will still like ASA and Skywest. I bet you guys were worried about that, huh?

 

[SkyNation]

the way I heard it is that CAL wanted SkyWest to do the flying at almost break-even pricing, somewhere around 1% margin. you have to remember that Jerry once enjoyed margins in the high teens and twenty percent range, so even though we're still posting around 5% each quarter, he feels like we're already way down. however, I have heard that the Q400 is still a possibility, so who knows.

 

[ASApuppy]

The other thing I heard from weaselboy (aka SH) was that CAL wanted short term contracts, 2-5 yrs tops. The risk was simply too great for long term. CAL management wants something in the 70 seat range but has to negotiate with pilots. They feel something can be accomplished in 2-5 yrs. Once they do, all this flying that was just awarded will be toast. Large TP flying will most likely be a longer term thing.

 

[~~~^~~~]

ASA Puppy - I think you are correct.

 

[Stifler's Mom]

Wasn't SKW doing CAL flying after 9/11? What were those terms? Why was it so short in terms of time?

 

[BuzzSaw]

Thanks plainsman. I encourage all to take a listen.

You can hear the recording at 800-642-1687 listen to prompt and enter 3237565.

Buzz Saw

 

[John Pennekamp]

Just for the sake of accuracy, they said Skywest Inc pulled its bid in the 11th hour due to risk, not that they didn't bid. This allowed Sha-Ka-Ka to get the bid even though they were not the low bidder.

 

[Tarzan]

The other thing I heard from weaselboy (aka SH) was that CAL wanted short term contracts, 2-5 yrs tops. The risk was simply too great for long term. CAL management wants something in the 70 seat range but has to negotiate with pilots. They feel something can be accomplished in 2-5 yrs. Once they do, all this flying that was just awarded will be toast. Large TP flying will most likely be a longer term thing.

Incredible that managment is actually thinking long term instead of "Gotta have growth now!" I'll take intelligent (loose terminology) thought over reaction. If CHQ gets bitten by this in few years there will be guys walking the street for no real reason other than jumping on the bandwagon a bit to quickly.