Chautauqua Quetion?

[ATRCA]

Reading recently that CHT is replacing CMR at MCO and providing a "lower cost alternative" to CMR.

What is going on at CHT that they are a lower cost alternative to a side of the industry that already has some of the lowest operating costs in the industry.

What is their contract like? When does it expire? What do the CHT guys think about this?

Just seems like a bad deal. They may grow somewhat because of this but it seems as though their contract may leave a bit to be desired. I have no first hand knowledge so Im wondering what you guys out there think.

See yah.

 

[aceshigh]

ATRCA,

1. As for CHQ being a lower cost alternative, the only way I can think of is by doing a fee per departure type deal, and I think that's what it is but am not sure.

2. The contract is not fit to wipe with. It expired in 2000 and the company and union are just now getting around to negotiating. I would assume that the CHQ people are happy to have the growth and 22 firm with 30 options is some decent growth.

3. Whether it's a good or bad deal will depend on who you ask. There will be some hiring as there are about 50 +/- pilots to recall and I think CHQ staffs 10 pilots per plane. You can do the math on that. As for the current pilot contract see above. As for what I think the pilots will be able to negotiate, I'll keep that to myself and cling to my hopeful optimism that we'll get something decent.

Aceshigh