COEX losing 69 Aircraft

[treetopflyer]

I wonder if Xjet will bid on other flying? How competitive are they right now? I would hate to see people I know lose their jobs...

Who wants to bet Mesa will bag this codeshare as well?

~wheelsup

bingo!! we have a winner!! tell him what he's won johnny!!

well, you get an all expenses paid trip to the bottom of the industry, where you will have substandard QOL,pay and benifits, quick upgrade times to a "major" and be universally (SP) hated by those who you share your crewrooms with. more you say, well hold on for this. You will learn to love eating the snack mix out of the galley as a meal, you will keep the pizza cold from dinner on the windowsill of your hotel, and warm it up on the lampshade, and enjoy your 6 days off at home in your crashpad with your 10 other roommates. But best of all Johnny, you will be a jet pilot at (enter mainline name here) Express operated by Mesa Airlines.


(applause)

commence bashing

 

[~~~^~~~]

That is why we must have an effective union.

 

[standaman]

Well isn't that something. Good luck XJET

 

[taloft]

It was inevitable. CoEx is the same carrier that furloughed 40% of its pilots within months of 9/11. Followed it up a couple years later by massive growth. Now possible furloughs again? CoEx/XJet must view employees as temp workers. Although I understand this is Continental mgmt, the end result is the same. Good luck!

 

[FlyinPiker]

It seems CAL is going to keep the same airplanes...just give them to a new operator. Mesa...TranStates...CHQ...i guess anyone with a ERJ program is probably about ready to get a big phat carrot that will be bit and placed right in COEX's as.s. Everyone's getting boned these days...unreal.

UPDATE 1-Continental to yank 69 planes from ExpressJet

Wed Dec 28, 2005 11:27 AM ET
NEW YORK, Dec 28 (Reuters) - Continental Airlines Inc. (CAL.N: Quote, Profile, Research) said on Wednesday that it plans to take back 69 regional jets that ExpressJet Holdings Inc. (XJT.N: Quote, Profile, Research) had been operating for it after failing to win a cheaper contract.

Continental, the No. 5 U.S. airline, said it would seek bids from other regional jet operators to operate the aircraft at more competitive rates. The jets are part of a 274-plane fleet that ExpressJet operates for Continental under the capacity purchase agreement.
"We didn't want to take this action, but we were not able to reach an agreement with ExpressJet to lower our cost," said Continental's Senior Vice President of Asia/Pacific & Corporate Development Mark Erwin.
ExpressJet has up to nine months to decide whether it wants to sublease any of the 69 aircraft, on which it would pay higher rates, Continental said. ExpressJet would be barred from operating them in any Continental hub without the Houston-based carrier's permission. ExpressJet shares were down $2.02, or 19 percent, at $8.61 in late morning trading, while Continental's were 68 cents, or 3.2 percent lower.

 

[CapnVegetto]

I knew that contract was too good to be true. Costs are too high compared to companies like Mesa and $httaco.

 

[General Lee]

The Majors UNFORTUNATELY want lower wages EVERYWHERE. Expressjet has a good contract for 50 seaters, and the bar was lowering anyway. This is bad. I have told a few people on here that if I had to go to a regional, Expressjet was my choice. This is nuts.


Bye Bye--General Lee

 

[StaySeated]

The dreaded RFP. Coex was the only airline with any leverage and therefor a very strong contract. I am very sorry to hear about the bid process begining at your airline. Almost six years ago I was on a negotiating committee for a small ALPA carrier and got in a heated discussion with the compan's attorney for F&H. He calmly stated that regional pay was going to come down, and come down hard. I laughed, at the time regional airlines were still pattern bargaining and the pay and work rules were really improving. We went on for a few minutes and he mentioned "competition". I thought, what the f is he talking about? Soon thereafter a few usairways feeds started to disappear and then UAL tried the first big rfp with enormous success. NWA was next, then DAL. To get an idea of what '06 has in store, call a friend at air willy or comair. I would not be surprised if you had a visit from an E190 by summertime (your first round of concessions will be under the guise of competition for new and exciting shiny jets). By this time next year they will be squeezing out another pint of blood and it will establish the "ongoing and future viability of the company". Once again, I am sorry to hear this news.

 

[007]

I am surprised that there haven't been any Skywest guys chiming in yet with

"we're gonna take it all"

 

[On Your Six]

Watch Colgan enter the fray with Saab 2000s or Flyi's former CRJs. The regional airline death spiral continues...