Dear Mr. Skywest CEO Jerry:

[Tyler Durden]

Kgarthur....I think you need to SHUT IT! Talk about someone with NO experience! What, you have about 1700hrs of PROP time? You are weighing in on something you know NOTHING about! Shut the H3LL UP and go back to SLEEP!!
Jack @ss!

Tru-Dat!!

 

[Caveman]

Man, talk about Karma. SkyWest's one rate policy is coming back to bite them in the a$$. If it wasn't for them paying one rate for 50-99 seats everybody else's 70 seat rates wouldn't be under fire right now.

BTW, it's gonna get worse. First you are being whipsawed by DAL to compete for DCI flying against CHQ, Mesa, Freedom and CMR. Then you'll have to compete in house with ASA for what DCI flying SkyWest Inc does get.

Welcome to the club boys. You reap what you sow.

 

[viper548]

I think he even made reference that even he had to make sacrifices by saying that he couldn't buy the new snowmobiles he was going to get.

GP

I thought Bombardier hooked them up with free snowmobiles and ATVs every now and then.

 

[EMBpilot]

Brad.....isn't he the same guy who greeted the newhire class in Feb/'03 by telling them that SkyWest was cancelling their class and future classes? Then, after everyone's gut dropped, he said that instead they wouldn't be paid a dime during initial groundschool..."makes you feel good just to have a job, doesn't it?", BH - early Feb. '03.
GP

No, he just said: "there is no pay in training from now on and if you wish to go home I'll write you a check for $500 to cover your expenses getting here." No one took him up on that.

He also made a comment about turning off lights at his home more often - nothing about the snowmobiles.

 

[hmmurdock]

To: All SkyWest Airlines Pilots
From: Brad Holt
Subject: Update
Date: 11/14/05


In light of the “no” vote on the proposed pay package I believe it is important that we review the process we’ve gone through and the reality of the situation our airline and industry are in.

SkyWest Airlines is one of the few profitable airlines in our industry today. SkyWest Airlines pilots are some of the most highly compensated pilots in our industry and one of the few pilot groups in our industry that are not facing pay concessions. SkyWest management is doing everything possible to ensure that both of these statements remain true for years to come, protecting both the company and our employee’s future. We will only be able to make these statements five or ten years from now if we remain accident free, improve efficiencies quicker than our competitors, and remain financially solid which will allow us to continue our growth.

Here is our challenge: We are loosing our competitive edge. As others take pay concessions, constrict their work rules, tighten their belts, and optimize their operations (furloughs), we are able to offer fewer advantages to our major partners. We are bidding and competing for work against airlines with lower pay scales, less stringent guarantees and lower average seniority. In the past we have been able to level the playing field with our competitors by having a more productive pilot group. As Delta restructures in bankruptcy, much of the efficiency advantage we have today will disappear because our aircraft utilization is being reduced by as much as 19%. Delta is in the process of “re-peaking” their hubs which will also reduce our efficiency by increasing the ground times for our aircraft and Crewmembers. In order to stay competitive and profitable we must look at all of these variables each time we discuss pay increases or work rule changes.

I want you to understand that it is not that SkyWest does not want to give big hourly scale increases to our pilots, it is not feasible at this time. The state of our industry is volatile and unstable more now than it has ever been and we cannot stick our heads in the sand and ignore the issues hoping they will go away or that they do not affect us. Our airline seems to be isolated from the disasters going on around us but I assure you that we are not insulated. If we do not keep our costs under control and stay competitive it is a matter of time before we will be facing the financial challenges many of our peers are experiencing..

In spite of the state of our industry and knowing that we have many challenges ahead, our company elected to install a new performance rewards program and include SkyWest pilots. Our company didn’t need to include pilots in Performance Rewards and I can tell you that most companies out there wouldn’t have. Our company did this as a gesture of good faith. SkyWest has been one of the most generous companies in the industry regarding pilot pay and work rules. Our pay rates, work rules, benefits, working conditions, opportunity for advancement etc. have and continue to exceed the majority of our competitors. Add to our traditional compensation package, a Financial Rewards program that also shares a significant amount of the profit with employees. If you honestly compare your pay package to others, you have to agree that our company has treated our pilots very well. At the same time I think you will have to agree that SkyWest’s cautious approach to increasing expenses has played a major role in maintaining a financially strong balance sheet, growth, and leverage within the industry. In an industry that seems to be inverted more than not, I am glad that I work for a company that is consistently planning ahead, is prepared financially to take advantage of opportunity, and at the same time values its employees. We are a very balanced company. That approach has served our company very well over the years. Worldwide, more than 200 airlines have failed in the last 5 years (reference the chart on page 13 of this letter) and many more will fail in the next five years. Many of the failures can be attributed to mismanagement, poor planning, excessive spending, poor quality and an inability to work through challenges and tribulations. SkyWest does not plan to be one of them. SkyWest has always been committed to making this a great place to work and I’m convinced that determination and attitude will continue.

I want you to know that I understand that our crewmembers are a significant part of our airline’s success. Your willingness to go to work every day with a good attitude, treat our customer right, fly safely and at the same time get efficiencies where you can, makes SkyWest a successful company. Without this advantage we will start down the road to failure and before long we will be just like the other failures in our industry.

We have a great company and working together we will come out on top in an industry that is falling apart. I know things aren’t perfect here but if we can stick together, work as a team and eliminate the negativity that seems to be so prevalent recently, we will work for a great airline for many years to come. It really is up to us.

Comments on the recent feed back received from our pilot group:


1. Rate increase was not sufficient:

FACT: SkyWest Airlines pilot pay rates are above most comparable regional airlines. Following is a list of Regional Airlines and their current status:

• Comair Pay cuts in progress, below our rates, furloughing pilots
• AirWisky Pay cuts, loss of flying, furloughs
• Express Jet 2006 raise brings them to SkyWest pay rates
• Mesaba Furloughing, possibly will be out of business
• Mesa Pay rates significantly below SkyWest pay rates
• Chautauqua Comparable rates, no Performance Rewards
• Eagle Lower rates, no Performance Rewards
• Pinnacle Much lower rates, loosing work
• ACA/FlyI loosing aircraft, filed bankruptcy

Other considerations:

• United in bankruptcy - Substantial pay cuts, furloughs
• Delta in bankruptcy - Substantial pay cuts, furloughs, 100 seat rate lower than SkyWest’s CL-65 rate.
• Northwest in bankruptcy - Substantial pay cuts, furloughs
• US Air in bankruptcy - Substantial pay cuts, furloughs
• Oil is at an all time high - No end in sight

Please consider the following:

• How does SkyWest Airline’s base pay rates compare to the airlines we compete with?
• Do other airlines have rewards programs that share a substantial amount of the profit with their pilots?
• How does SkyWest Airlines QOL compare to other airlines?
• Are other airlines offering pay raises?
• What does the future look like at SkyWest Airlines in comparison to other airlines?
• Is it important to keep SkyWest Airlines efficient and cost competitive?
• How long does SkyWest Airlines need to stay in business for you to meet your retirement goals?
•
2. Pay Scales should include only aircraft in our fleet. 700/900 should pay more than 200.

FACT: Our current agreed upon pay scale includes aircraft we do not have in our fleet today. We have a 50 to 99 seat scale and a 100 to 159 seat scale. Many airlines have the same pay scale for “all” aircraft. Most airlines have the same pay scale for the same “type” aircraft. Most airlines that plan to stay in business will be required to simplify pay scales and will go to one pay rate in the future. A list of airlines that have this type of a pay system today is as follows:

Southwest All variants of the 737/seat ranges 122-159
Delta 757/767 pays the same
United 757/767 pays the same
Frontier All captains paid the same
Continental 757-300, 767, 777 pays the same
757-200, MD80, 737-8/900 pays the same
737-300, 737-500 pays the same
America West All captains paid the same

• SkyWest Airlines base pay rates are currently among the highest when compared to the airlines we compete with for work. In addition to base pay rates, our company is sharing the bottom line by way of Performance Rewards.
• SkyWest Airlines work rules are among the best in our industry.
• SkyWest Airlines QOL is among the best if not the best in the industry.


Finally, I am committed to work with SAPA to come up with improvements in our agreement but please consider that our company is going out on a limb to do anything in the way of pay and work rules in the current environment. We really do not know how bad this is going to get before it gets better but we must plan for the worst and hope for the best.

Thanks,

Brad Holt

Greetings..

What is really sad is that the "professionals" who wrote this letter can't even use the words "lose" and "loose" properly!!

Take Care.

 

["GO AROUND"]

Thanks Mr. redundant.

 

[Mkay?]

No, he just said: "there is no pay in training from now on and if you wish to go home I'll write you a check for $500 to cover your expenses getting here." No one took him up on that.

He also made a comment about turning off lights at his home more often - nothing about the snowmobiles.

Actually I was in that newhire class and the first description is accurate. If you were not there don't comment. If you were there, you know how unethical and truly viscious his comments were.

 

[Cadillac]

Honestly, why do you have to requote an entire page of text just to add your quick remark which has been made 3 times on the same page already.

 

[EMBpilot]

Actually I was in that newhire class and the first description is accurate. If you were not there don't comment. If you were there, you know how unethical and truly viscious his comments were.

I guess it was very hard to figure from my post that I was in that class too, so let me clarify this - indeed I was. I simply don't remember BH saying that our class was cancelled, my gut didn't drop anywhere and I heard before, behind the scenes, conversations of no pay in training. Same with snowmobiles - I just don't remember him saying that - that's all.

No, I don't like to upset people for fun.

I see things are really sad at SkyWest right now and for that I am very sorry but however depressed you are don't tell people where and what they can or cannot comment on - you'll have more and better friends .

 

[Bluto]

Um, yeah, well maybe you were in a different class then?

 

[EMBpilot]

Um, yeah, well maybe you were in a different class then?

Could be the case..
OK, one of the classes in "early Feb. 2003" was indeed early, the other - more towards the middle. The question now is which one had a privilege to hear such unethical comments?

If the class in question was towards the mid Feb (which it seems like), CRJ newhires, I sincerely apologize. :blush:

Sorry to take your time and divert the tread - we all can now go back to our productive discussion.

 

[BluDevAv8r]

How the hell do you know that? Did you include our 5-6% (past performance does not guarantee future results) bonus and subtract your union dues? From airlinepilotpay.com - Express jet 5 yr $66.40 Skywest $65.25 add about $3.25 an hour to that for a 5% bonus. You know I don't give a crap what you make - i just know I don't make enough.

Current Skywest 6th year Captain = $65.25/hour

Holt makes the assertion that our 2006 rates get us to Skywest rates. That is patently false. Our December 1, 2004 rates hurdled us ahead of Skywest to $66.40. However, in 11 days we will get another 2.5% increase to $68.06 for 6th year captains. So in 11 days we will be roughly 4.3% ahead of Skywest pilots for that longevity step in the left seat on hard pay rates alone. And in 12 months and 11 days, a 6th year captain will be at $69.76/hour, which would be roughly 6.9% ahead of a Skywest pilot. Of course, this doesn't factor in the 1.2% bump Skywest wants to give its pilots.

You mentioned Skywest's performance bonus. However, Skywest isn't the only company to have profit sharing. ExpressJet pays out 10% of its pre-tax net income (profit) to its employees, which includes the pilots. Historically that has average around 8% of one's W-2. However, this past summer XJT modified the CPA with CAL to reduce our operating margin and as a result, one can expect out profit sharing to pay out less than in years past...but it is designed to give a minimum of 5% each year to each employee on top of his W-2.

Let's talk about 401k matching...which is really just an extension of one's hourly rates (deferred compensation), right? That 6th year Skywest Captain would receive 4% from the company if he puts in 4% and subsequently will also receive a little more since the company puts in 5% of its profit into the 401k plan. Obviously how much that 6th year captain would receive is dependent upon how many employees are eligible as well as what the company's pre-tax net income is.

The same 6th year XJT Captain would receive 4% for free and another 5% if he puts in 5% for a total of 9% (on top of hourly pay rates that are already 4.3% higher than a Skywest pilot's).

Holt also asserts that Skywest's work rules are the best in our segment of the industry...

Vacation...I'll be honest - all I know about Skywest's vacation is that it is going to hinge on how PBS works...which means no trip conflicts with a vacation period. A pilot at XJT, however, can touch 2 4-day trips up against his 7 day vacation period and receive up to 24 days off in a row (and still be protected to his min pay guarantee of 75 hours). Can a Skywest pilot do that?

Days off? At XJT, 12 days off minimum for lineholders and reserves get 12 days off 5 months of the year and 11 in the other 7 months.

Scope? Nevermind.

1.95% for union dues? I call it cheap insurance for a variety of possible issues. No need to get into that discussion right now however.

I could go on but hopefully this paints a more accurate picture of where XJT stands in relation to Skywest...re: BH's comments as well as yours above. I do agree with your last statement however. It is always that way, isn't it?

-Neal

 

[Bluto]

Ah, but Neal, you forget that we are allowed to fly 70-seaters as well for our rates, while you guys only get to fly the little 50-seaters. Care to change your tone a little now??? Eh? Mr. Superior!! (sarcasm)

p.s. Thanks for the comparison, most of us knew the rhetoric was patently false, but's it's nice to get an itemized list. Hopefully this letter will be a wake-up call to our pilots as to how we continue to be misled.

 

[BluDevAv8r]

Ah, but Neal, you forget that we are allowed to fly 70-seaters as well for our rates, while you guys only get to fly the little 50-seaters. Care to change your tone a little now??? Eh? Mr. Superior!! (sarcasm)

p.s. Thanks for the comparison, most of us knew the rhetoric was patently false, but's it's nice to get an itemized list. Hopefully this letter will be a wake-up call to our pilots as to how continue to be misled.

Thanks Bluto.

The fact is....most pilot groups that fly several versions of one aircraft do it either at the higher rate or at a blend and NOT at the lower rate. We do it at the higher rate at XJT (once you hold 145 CA) and CAL does it with a blend for soft time/reserves and the higher rate when actually flying, say, the 737-800 over the 737-700. The widebodies over there all have generally the same amount of seats, give or take. Flying a 70 seater for 50 seat wages is flying an aircraft with 40% more revenue capacity for the same wage. Flying a 270 seat aircraft for a 240 seat wage (for example) is flying 12% more revenue for a blended wage. Go figure. Holt goes out of his way to cherry pick different examples that make his argument while at the same time, inaccurately referencing various situations and examples in the industry AND failing to spell check his own document.

-Neal

 

[hotwing]

!@#$ duh....

 

[LJDRVR]

To my Skywest Brethren,

Sorry you folks have to endure such trickery. To offer you a pay rise that doesn't even keep pace with inflation, then tacitly suggest that wanting more would somehow be greedy is arrogant beyond belief.

Here's some advice though: Don't take it personally. The folks that run your airline are going to do and say just about anything in order to keep their costs low. They'll resort to hyperbole such as "High fuel prices...with no end in sight." (The horror!) They'll use fractured logic such as "Southwest has a single payscale but just look at the difference in seats!" (Nevermind the fact their pilots are well compensated, and that management understands taking care of it's employees comes before the customer and shareholders.)

Continue to hold management's feet to the fire until you're presented with a more reasonable TA. Don't let these tactics drive up your blood pressure, spoil your working environment and cause you to taxi around with the logo light off. Skywest is still your company. Be proud of that and realize that the imbecilles doing the negotiating are for the most part, not in it for the long haul. You may not be either, but your conduct and actions while still there should be something you're able to look back proudly upon, knowing that you were a professional and took the high road.

I wish you guys and gals the best of luck. Don't believe the lies.

 

[BluDevAv8r]

Hotwing,

Didn't mean for it to come off that way. I just wanted to illustrate Holt's inaccurate claims. Good luck with your fight.

-Neal

 

[hotwing]

Hotwing,

Didn't mean for it to come off that way. I just wanted to illustrate Holt's inaccurate claims. Good luck with your fight.

-Neal

Neal -- I re-read your post and decided that is educational in nature and agree. I no longer work for Skywest... I juumped ship on the airlines stuff over a year ago... Let's all hope that the airline career turns around and improves. Every time that we open the paper or watch the news, we here another airline storm on the horizon... It bows!

 

[dojetdriver]

I wonder if any of my homies from ACA/I-Air that went to SkyWest are getting a serious case of Deja Vu over this whole thing.

 

[CFIT]

Ok ASA folks imagine this, rumor has is that the proposal from management will be one rate, all AC types, and it will be skywest minus $1.

I'm not sure how true it is as I was also told that Comair is going to be offered one rate and it will be Mesa's.