ASA growth or Lack of?

[Sinca3]

Since the begining of the year ASA has taken delivery of 14 a/c with the most recent delivered on 7/25/05. Sounds great until you look at the deliveries to Comair....10 a/c. So of the 10 new 50's ASA took delivery of, 10 GECAS ASA a/c went to Comair.
On the bright side there were 4 additions to the 70 fleet with the last delivery (N761ND) taken on 6/2/05.
That leave ASA sorry Skywest Inc. on schedule to receive somewhere between 11-18 more a/c. This is from the original 3/2/04 announcement of 25 growth aircraft for ASA. The extra 7 are the supposed Indy air a/c we are to receive from the memo from Skip dated 5/24/05.
Let the beatings begin.........

 

[sweptback]

I wouldn't be surprised to see that 50-seat growth at ASA (and at most other regionals) is done.

 

[73belair]

I think what Skywest said is that all future aircraft deliveries will be for Skywest Inc. and Skyest Inc. will then put airplanes where they see fit. i.e. all the aircraft were were going to get we may not get since the sale to Skywest.

 

[General Lee]

No doubt a whipsaw coming up. Delta will give more 70 seaters out to everyone, but the St George management will say "Hmmm, who costs more for 70 seaters? ASA or SkyWest? HHmmmm. I think we should offer them to each to see who wants the growth, at a good price..." The lower cost portion will win out with growth.


Bye Bye--General Lee

 

[ASADriver]

No doubt a whipsaw coming up. Delta will give more 70 seaters out to everyone, but the St George management will say "Hmmm, who costs more for 70 seaters? ASA or SkyWest? HHmmmm. I think we should offer them to each to see who wants the growth, at a good price..." The lower cost portion will win out with growth.


Bye Bye--General Lee

I agree - I just wish everyone here could see this. My vote is to go after the growth and worry about contract improvements down the road when (and if) things get better. Shrinking or stagnating does us no good.

 

[FL990]

I think another point to remember is that there are more factors that go into costs and advantages of one airline over another that just pilot salaries. There will no doubt be some whipsaw but logistics play a big part in the decision making as well. A company can only efficiently grow so fast...too much at once become inefficient...also, the locational placement of aircraft will likely play a part in who gets what.

Overall though, my guess is both companies will likely see growth as long as there cost structures are relatively close, which right now according to SKW, they are. This is simply the most efficient way to do things.