ASA In Five Years? Or Even 2.5 Years?

[Flyguy1226]

I'm so glad Brad's kid at GoJet will get to upgrade while I'll get displaced and go back on reserve.

 

[Clutch]

Step 1) Learn the serenity prayer.
Step 2) Start looking for better alternatives to this job. Always have an out.

 

[sweptback]

ASA lost 8 700s, SKW 4 700s, and ASA highly likely to lose 6 200s as well. Its a big deal. We will never be able to compete with Gojet or Compass even if we took a significant paycut. They are just too junior with newer, less maintenance hog planes.

The writing is on the wall. SKW bid below cost for us airways flying. ASA got the IAD flying only because SKW loaned money to UAL and TSA couldn't. ASA got 900s only because we agreed to get rid of 20 200s.

Not to mention that the more airplanes we lose, the more our costs increase. The best way to lower our costs would be to substantially grow our operation; bring more cheaper pilots to the bottom of the list. As there are no growth opportunities at this time, our costs will only increase as our pilots gain in longevity.

Our DCI agreement expires in 2020, but it's really 3 separate 5-year agreements that renew under certain conditions. The first 5-year agreement expired in 2010, and was renewed only if we became the second-lowest-cost operator. Of course, ASA wasn't, but we are getting paid as if we are. This has upended our cost structure because our management wasn't prepared for it to happen.

Who knows what will happen in 2015, and what hoops will be necessary to jump through to keep our Delta contract. By 2020, a good chunk of our 700s will be close to 20 years old, and our 200s will be in even worse shape. I just don't see how ASA can expect to keep our Delta contract at that point.

 

[russtgol]

You are correct that once the 8 CRJ700s leave we will be back to our orig number of CRJ7s. The only shimmer of hope is that we can find work for our CRJ2s even if they are doing at risk flying. I don't see Brad just letting them sit at the A Tech doing nothing.

Skywest will take your 200's for the US flying....

 

[COOPERVANE]

Serenity now!!!!!

 

[777forever]

Just reread BH's update, bunch of XJT planes contract up April 2012 and we will have to 'work hard' to hold on to them. Unless we loan UAL $90 million again I.doubt we will keep those planes. Hold on people!

 

[Plainsman]

Why did FL send out an email the same day asking anyone if they had any pilots to recommend for hire? Mixed signals.

 

[Flyguy1226]

Why did FL send out an email the same day asking anyone if they had any pilots to recommend for hire? Mixed signals.

Because nobody is showing up for class... It's all for XJT anyway...

 

[CaribPilot]

Joe do you REALLY believe this had to do with cost structure?

 

[JettBoii]

http://www.airfinancejournal.com/Article/2888629/SkyWest-plans-large-regional-jet-order.html

Read away......