ExpressJet cancels Upgrade classes....

[flyboy06]

2008 FEB/MAR upgrade classes have been cancelled "Due to a change in the level of operations for 2008, and the resulting changes to staffing requirements"

Discuss...

 

[ApocketA's_145]

2008 FEB/MAR upgrade classes have been cancelled "Due to a change in the level of operations for 2008, and the resulting changes to staffing requirements"

Discuss...

look at it this way... atleast ur stuck as a senior FO at expressjet with 18-19 days off rather than 10 at mesa... i guess....

 

[Superpilot92]

2008 FEB/MAR upgrade classes have been cancelled "Due to a change in the level of operations for 2008, and the resulting changes to staffing requirements"

Discuss...

Though not good, it was 1 class of 32 people. This has everything to do with CAL cutting back hiring and expansion plans, some to do with age 65 not a problem with XJT. Cal has been hiring alot of XJT guys well they are reducing their class size which equates into less people going to CAL from XJT. XJT plans their attrition mainly on people leaving for CAL.

 

[flyboy06]

Though not good, it was 1 class of 32 people. This has everything to do with CAL cutting back hiring and expansion plans, some to do with age 65 not a problem with XJT. Cal has been hiring alot of XJT guys well they are reducing their class size which equates into less people going to CAL from XJT. XJT plans their attrition mainly on people leaving for CAL.

Chris, It was 2 classes of 16 I think

Are you saying that we couldn't use 32 more CA in the COEX side? They reassign and JM more than they have in the past. Sucks to see your pairing cycle through 5 CA before someone gets there because they either time out or are reassigned again...just seems to be happening more than usual.

And they should factor in guys like you going to NWA

Congrats

 

[Superpilot92]

Chris, It was 2 classes of 16 I think

Are you saying that we couldn't use 32 more CA in the COEX side? They reassign and JM more than they have in the past. Sucks to see your pairing cycle through 5 CA before someone gets there because they either time out or are reassigned again...just seems to be happening more than usual.

And they should factor in guys like you going to NWA

Congrats

I agree. however from what i understand the company plans attrition primarily on CALs hiring of our guys. Well they have a rude awaking coming if they dont start factoring in the people leaving for other companies. Lots of XJT people getting called my NWA, UAL, and DAL right now not to mention the people in the SWA pool already or other carriers hiring. Shoudl be fun to watch. Wait till next summer and mark my words they will be short staffed. Thanks for the congrats. Count me in as a bump for you

 

[RiddleEagle18]

how long is your contract with Delta? Comair's president stated that delta is removing 4000 regional block hours from the system?

Canceling of vacancy bids is something the comair guys know all too much about.

 

[SkyBoy1981]

Oh my god!!!! Quick, everyone leave before this place goes under!!! I hear the biggest threat is to those hired before the end of 04.

 

[MALSR]

maybe this coincides with the fact that the branded flying is loosing 10s of millions of dollars/quarter

 

[Superpilot92]

maybe this coincides with the fact that the branded flying is loosing 10s of millions of dollars/quarter

I would be willing to bet you cant come up with any documentation on this, can you? branded did take money to start but its not doing bad at all.

 

[SkyBoy1981]

maybe this coincides with the fact that the branded flying is loosing 10s of millions of dollars/quarter

Statistics show that 72% of statistics were pulled out of someone's ass.

 

[MALSR]

maybe this coincides with the fact that the branded flying is loosing 10s of millions of dollars/quarter

The numbers will be out in a matter of days. Then you will see for yourself and you will not have to take my word for it.

 

[molson247]

I would be willing to bet you cant come up with any documentation on this, can you? branded did take money to start but its not doing bad at all.

uhhh....WHAT? Just go look at the second and third quarter earnings. XJT is guaranteed money from DAL and CAL....where else do you think the loss came from? Branded took money to start in Q2, they were done painting aircraft and all were in service for Q3

 

[Speedtape]

4000 hours divided by 80 hour line equals 50 lines.

Spread over 9 carriers, that would not be much. Even if only one DCI carrier suffered, unlikely, it's only 50 captain and 50 f/o lines.

There is always a seasonal reduction at the first of New Year. By April, there will be more flying. By next summer, all hell will break loose!

In past downturns, at DCI, flying increased at ASA and Comair because there were mainline cut backs with less demand.

Comair Pilots, the Sky is not falling! Think long term! Delta is simply turning back in some high rent airplanes. Don't be surprised if the lessors don't cut a deal for lower lease payments and the airplanes remain. This could be a poker game!

With all the bad news, look for Delta to seek scope relief! General, it's coming!

Bah, Bye!!!!

 

[justenjoyflyin]

Business Genius on this forum.

The numbers will be out in a matter of days. Then you will see for yourself and you will not have to take my word for it.

Wow does anybody know what it takes to start a new division at all, didn't think so. Of course its going to loose money the first year there is no way it could make money in the airline industry with the fuel cost at where they are. The company could have shown a profit from branded if they wanted to, its called taking out short or long term debt. Instead the company decided to eat the cost up front and pay for all the start up cost with cash. Even after all the start up cost I think the company has a little over 200 million on hand which I know is nothing in the airline industry. The company is hoping that branded will break even in 2008 and show a profit in 2009. Most companies that are start-ups or start a new division set profits over a three year span, meaning hoping to make a profit during the third year of operation. But I am sure you know all this because everyone is a genius on this board. Maybe I learned something with that M.B.A. Not saying its going to work with branded, of course I hope it does. The company has reported a sixty-some percent load factor for the past month and that was after they raised ticket prices to offset the cost of fuel. Branded started in April so for anyone to think they would turn a profit in the first year or even two needs to head back or read about some business fundamentals.

 

[ApocketA's_145]

Wow does anybody know what it takes to start a new division at all, didn't think so. Of course its going to loose money the first year there is no way it could make money in the airline industry with the fuel cost at where they are. The company could have shown a profit from branded if they wanted to, its called taking out short or long term debt. Instead the company decided to eat the cost up front and pay for all the start up cost with cash. Even after all the start up cost I think the company has a little over 200 million on hand which I know is nothing in the airline industry. The company is hoping that branded will break even in 2008 and show a profit in 2009. Most companies that are start-ups or start a new division set profits over a three year span, meaning hoping to make a profit during the third year of operation. But I am sure you know all this because everyone is a genius on this board. Maybe I learned something with that M.B.A. Not saying its going to work with branded, of course I hope it does. The company has reported a sixty-some percent load factor for the past month and that was after they raised ticket prices to offset the cost of fuel. Branded started in April so for anyone to think they would turn a profit in the first year or even two needs to head back or read about some business fundamentals.

WELL SAID!! they planned on seeing a loss for the first 2 years and it is getting better. they might see a small profit before they planned.

 

[Superpilot92]

uhhh....WHAT? Just go look at the second and third quarter earnings. XJT is guaranteed money from DAL and CAL....where else do you think the loss came from? Branded took money to start in Q2, they were done painting aircraft and all were in service for Q3

Yeah "UUHHH WHATT" Start up costs were only in the Second Quarter?? Not so much, we are still incurring start up costs! DAL is not a guaranteed profit on the Pro-Rate agreement which incorporates, what almost half of our DAL flying? But i am sure you already new???:erm:

I would like to extend this offer for you to PLEASE go to www.xjet.com and apply immediately for our CEO position. Thank you for your time....:laugh:

 

[molson247]

Start up costs were only in the Second Quarter?? Not so much, we are still incurring start up costs! DAL is not a guaranteed profit on the Pro-Rate agreement which incorporates, what almost half of our DAL flying? But i am sure you already new???:erm:

I would like to extend this offer for you to PLEASE go to www.xjet.com and apply immediately for our CEO position. Thank you for your time....:laugh:

How do you figure XJT is still incurring start up costs? The operation was up and running in Q2. Yes routes are changing and there are a few new airports being added....but thats no longer start up costs....thats doing business to try and stay in business. But I guess that can be debated what you think is a "startup cost"

So the Delta Op can lose money and isn't guarenteed money? That's no good at all seeing how XJT has no control over how many people are on board....it's all Delta's customers.

Oh and the CEO position is open? GREAT! I don't think it could get any worse with the stock going from 15 bucks IPO to $2.50....I'll prepare the resume :beer:

 

[Superpilot92]

How do you figure XJT is still incurring start up costs? The operation was up and running in Q2. Yes routes are changing and there are a few new airports being added....but thats no longer start up costs....thats doing business to try and stay in business. But I guess that can be debated what you think is a "startup cost"

So the Delta Op can lose money and isn't guarenteed money? That's no good at all seeing how XJT has no control over how many people are on board....it's all Delta's customers.

Oh and the CEO position is open? GREAT! I don't think it could get any worse with the stock going from 15 bucks IPO to $2.50....I'll prepare the resume :beer:

First I will ask, Do you work at XJT? If you do then you should know about all the IT stuff the company is still working on and Paying for which is not cheap. The branded IT system needs to be completely redone. Payroll problems need fixed.. etc. All of these things outside of Flying and painting airplanes cost LOTS of money and are start up costs since we cant use the CAL IT programing for scheduling, payroll,etc. That also doesnt include XJT having to get booking systems and outside business agreements started. The Start Up costs are still incurring I promise.

 

[flyboy06]

First I will ask, Do you work at XJT? If you do then you should know about all the IT stuff the company is still working on and Paying for which is not cheap. The branded IT system needs to be completely redone. Payroll problems need fixed.. etc. All of these things outside of Flying and painting airplanes cost LOTS of money and are start up costs since we cant use the CAL IT programing for scheduling, payroll,etc. That also doesnt include XJT having to get booking systems and outside business agreements started. The Start Up costs are still incurring I promise.

he does work here...and knows we still were pulling planes out of CAL into AUG 07...Q3 right? yeah.....

 

[molson247]

...and knows we still were pulling planes out of CAL into AUG 07...Q3 right? yeah.....

Press ReleaseSource: ExpressJet Holdings, Inc.

ExpressJet Reports Second Quarter 2007 Results
Wednesday August 8, 6:34 am ET
HOUSTON, Aug. 8 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT - News) today reported a second quarter loss of $26.4 million, or $0.49 diluted earnings per share.

SECOND QUARTER REVIEW
Operational Review
Second quarter net revenue totaled $395.2 million, consisting of: $360.1 million from the company's capacity purchase agreements with Continental Airlines and Delta Air Lines (which began June 1) and charter flying; $28.2 million from the ExpressJet branded operation that commenced on April 2; and $9.3 million from the provision of third-party ground handling and maintenance services.
During the quarter, ExpressJet continued to transition aircraft from its capacity purchase agreement with Continental: 14 aircraft were painted, modified and placed into the ExpressJet branded network; ten aircraft were painted, modified and placed under the Delta capacity purchase agreement; and six, were marketed for ad-hoc charter opportunities pending the start of Delta pro-rate flying on July 1. As of June 30, 66 aircraft had been transitioned from the company's capacity purchase agreement with Continental. The final three planes are expected to transition in August and will be placed in branded service. After the final transition from Continental, the expected aircraft allocation will be 224 aircraft dedicated to contract flying and 50 aircraft dedicated to branded flying, including the eight allocated to the Delta pro-rate agreement.
Available seat miles under the contract flying ExpressJet performed for Delta and Continental totaled 2.8 billion and represented 196,799 block hours across both systems. During the first month of operations under the Delta capacity purchase agreement, ExpressJet operated at a perfect 100% completion factor. ExpressJet also flew 756 charter segments during the second quarter.
ExpressJet began its ExpressJet Airlines branded operation on April 2 and completed the roll-out on June 12. The ExpressJet network consists of 42 dedicated aircraft serving 24 cities in the West, Central and Southeast regions of the United States. Traffic continued to build during the quarter to a load factor of 50% in June, and the company ended the quarter with 200.3 million revenue passenger miles and had a load factor of 39%.
During July, the first full month of branded flying, including the ExpressJet network and Delta pro-rate operations, ExpressJet flew 193.7 million revenue passenger miles on capacity of 297.1 million available seat miles for a load factor of 65%.
Subsequent to quarter end, ExpressJet and Continental received the final decision for their arbitration regarding 2007 block hour revenue rates under the companies' capacity purchase agreement. The panel determined that the 2007 budgeted rates originally presented by ExpressJet should be reduced by a total of approximately $14.2 million (which includes the margin of 10% the company earns on its expenses under the agreement). This revenue reduction resulted in a $6.5 million decrease in operating income recorded in the second quarter. This adjustment reflects the variance between the 2006 rates used to book revenue prior to the arbitration decision plus arbitration fees and expenses.
Financial Review
ExpressJet's second quarter 2007 operating income reflected a (10.8%) operating margin, compared with an operating margin of 8.5% for the second quarter 2006. The principal factors contributing to the company's negative operating margin were its continued transition of 30 aircraft from the Continental capacity purchase agreement; start-up expenses associated with branded flying (including Delta pro-rate flying which began on July 1) and the Delta capacity purchase agreement and the Continental arbitration ruling.
ExpressJet ended the second quarter of 2007 with $294 million in cash and cash equivalents, including $14.5 million in restricted cash, down $8.9 million from the $302.9 million reported at year-end.
Capital expenditures totaled $20.6 million for the second quarter 2007 compared to $3.5 million during the same period in 2006. ExpressJet anticipates capital expenditures totaling approximately $12 million for the remainder of 2007.
During the second quarter, Holdings did not make any purchases under its previously announced securities repurchase program. "


You're right, my mistake, three planes were still with CAL. However, they were also making revenue with CAL. So i'd again venture to say most of the expenses were incurred during Q2. Q3 wasn't any better, hopefully Q4 wont be as much in the red. It's a great company and deserves to do well....hopefully XJT can pull into the black sometime in the future....