ExpressJet Europe taking off

[TNPILOT]

without XJT pilots. As if that is a surprise. I've been saying all along this would be the case. Run away. Run far far away.

Start-up looks for work for Continental Embraers

By Ian Goold / February 2006

Houston-based ExpressJet Holdings has taken a $700,000, 49-percent share in JetX Aviation, a new regional start-up that plans to operate as ExpressJet Europe and possibly use some of the Embraer ERJ 135/145s scheduled for release by Continental Airlines starting next January. Continental has said it will not require 69 of the 274 regional jets now flown by ExpressJet.

JetX Aviation, many of whose principals were involved with former Irish regional carrier Jetmagic, plans to introduce capacity-purchase agreement (CPA) operations to Europe. CPA operations, which typically involve major carriers buying “lift” from lower-cost suppliers, are not well known on the Continent, where capacity is more often obtained through lease arrangements covering provision of aircraft, crew, maintenance and insurance.

JetX Aviation managing director Jochen Schnadt, former COO at Jetmagic, told AIN, “We are a regional [airline]; that’s what we’re good at and we have lots to offer. Europe has been ready [for CPA] ever since deregulation and [the advent of] pan-European airspace.”

The company believes it can adapt and evolve CPA operations starting next year. Asked how easy it would be to find a customer when he has no aircraft, flight crew or air operator’s license (AOC), Schnadt said JetX Aviation has access to aircraft at short notice because some Embraer jets now flying Continental Express services will become available and “ExpressJet has first call on them.”

Schnadt said that ExpressJet maintains good relations with lessor General Electric Commercial Aviation Services and that initially a high proportion of aircraft could be taken on operating leases. Alternatively, he said he would be happy to follow the Continental arrangement under which the CPA customer subleases the aircraft.

Equally, he sees no problem in obtaining flight crews, though there would not be the same flexibility to use U.S. pilots, since they would need European licenses, work permits and right of abode. Also, Jetmagic pilots could be available.

With regard to obtaining an AOC, Schnadt said there’s the possibility of acquiring an existing European airline to provide an operational platform. “We have identified a number and are talking to them,” he said.

http://www.ainonline.com/Issues/02_06/02_06_startup_6.htm

 

[nimtz]

Talked to some guys from PARC Aviation which is a leasing company based in Ireland. Long story short they told me the guys setting up XJet Europe have already tried starting up an ERJ outfit in Europe. Needless to say they ran it straight into the ground. Let's just say this guy didn't paint the nicest picture for the management team they have assembled.

 

[superrav]

without XJT pilots. As if that is a surprise. I've been saying all along this would be the case. Run away. Run far far away.

Start-up looks for work for Continental Embraers

By Ian Goold / February 2006

Houston-based ExpressJet Holdings has taken a $700,000, 49-percent share in JetX Aviation, a new regional start-up that plans to operate as ExpressJet Europe and possibly use some of the Embraer ERJ 135/145s scheduled for release by Continental Airlines starting next January. Continental has said it will not require 69 of the 274 regional jets now flown by ExpressJet.

JetX Aviation, many of whose principals were involved with former Irish regional carrier Jetmagic, plans to introduce capacity-purchase agreement (CPA) operations to Europe. CPA operations, which typically involve major carriers buying “lift” from lower-cost suppliers, are not well known on the Continent, where capacity is more often obtained through lease arrangements covering provision of aircraft, crew, maintenance and insurance.

JetX Aviation managing director Jochen Schnadt, former COO at Jetmagic, told AIN, “We are a regional [airline]; that’s what we’re good at and we have lots to offer. Europe has been ready [for CPA] ever since deregulation and [the advent of] pan-European airspace.”

The company believes it can adapt and evolve CPA operations starting next year. Asked how easy it would be to find a customer when he has no aircraft, flight crew or air operator’s license (AOC), Schnadt said JetX Aviation has access to aircraft at short notice because some Embraer jets now flying Continental Express services will become available and “ExpressJet has first call on them.”

Schnadt said that ExpressJet maintains good relations with lessor General Electric Commercial Aviation Services and that initially a high proportion of aircraft could be taken on operating leases. Alternatively, he said he would be happy to follow the Continental arrangement under which the CPA customer subleases the aircraft.

Equally, he sees no problem in obtaining flight crews, though there would not be the same flexibility to use U.S. pilots, since they would need European licenses, work permits and right of abode. Also, Jetmagic pilots could be available.

With regard to obtaining an AOC, Schnadt said there’s the possibility of acquiring an existing European airline to provide an operational platform. “We have identified a number and are talking to them,” he said.

http://www.ainonline.com/Issues/02_06/02_06_startup_6.htm

Ian Goold?????????????

 

[Truckdriver]

Equally, he sees no problem in obtaining flight crews, though there would not be the same flexibility to use U.S. pilots, since they would need European licenses, work permits and right of abode. Also, Jetmagic pilots could be available.

Actually, if the airplanes are registered in the USA, you don't need to have a JA license. You may need work permits and right of abode and that could be a small problem but nothing like getting JA licensed. If those aircraft go to Europe for XJT Europe, XJT pilots will go with them.

Here is what is actually going on over in the CAL/XJT camp.

1) XJT will get XJT Europe to say they need the airplanes.
2) XJT will go to CAL and tell them that they are going to keep the airplanes.
3) CAL will not want to go out and lease another 69 airplanes.
4) CAL will agree to leave the airplanes at XJT after more negotiating on the block hour rates and XJT Europe will disappear just as fast as it mysteriously appeared a few days after the CAL announcement.
5) The only thing that will happen to the XJT pilots is management use this opportunity to scare some concessions and force PBS on the pilots.
6) At the end of the year everyone is happy because the pilots once again will save the jobs of management by keeping them in business and propping up their crappy business plan.

 

[TEXAN AVIATOR]

Hope you're right truckdriver, I really do. But only time will tell our fate. We're busting our asses to do a good job day in and day out; showing we're the best feeder in the biz. (We had something like 5 100% completion factor days in Jan). I just hope it pays off...

 

[TNPILOT]

Hope you're right truckdriver, I really do. But only time will tell our fate. We're busting our asses to do a good job day in and day out; showing we're the best feeder in the biz (we had something like 5 100% completion factor days in Jan). I just hope it pays off...

Ditto. All you can do is do your job to the best of your ability, go home enjoy your days off and hope for the best...doing your job not for the company but because you're a professional and that's what we do.

 

[superrav]

Hope you're right truckdriver, I really do. But only time will tell our fate. We're busting our asses to do a good job day in and day out; showing we're the best feeder in the biz. (We had something like 5 100% completion factor days in Jan). I just hope it pays off...

8 days..

 

[TEXAN AVIATOR]

8 days..

Until...?

EDIT

8 days at 100%

 

[Instigator]

3) CAL will not want to go out and lease another 69 airplanes.

CAL has too many in its system already. There are two reasons for their pulling the aircraft:
1) Negotiating tactic to get XJT to lower its cost.
2) Reduce their excess 50-seat capacity.

This ploy may accomplish both.

In the end, if XJT doesn't use the 69 a/c elsewhere, you will see CAL "return" a few of them to XJT to fly for at whatever rate they are able to renegotiate (CAL won't take away all 69). The others will be returned to lessors at whatever penalty that may cost, sublet to anyone who could want them, or parked. I don't see the 145s going to another carrier to fly for CAL.

Bankrupcy changes everything. No contract is safe, including the CPA and CAL's scope. Under any number of scenerios with bankrupcy, the 50-seaters would be reduced and CAL would have 70-100 seaters flown at current low market rates by possibly anyone willing to do it (including XJT).

 

[Superpilot92]

Until...?

i believe he was stating that it was 8 days of 100% completion not 5.

I am going to stay optimistic about everything. I really believe our mgmt team will figure some thing out to keep XJET up and running and even growing. Remember the mgmt team has alot resting on XJET staying strong. We will see in a few months, it should be interesting either way.

 

[davessn763]

i believe he was stating that it was 8 days of 100% completion not 5.

I am going to stay optimistic about everything. I really believe our mgmt team will figure some thing out to keep XJET up and running and even growing. Remember the mgmt team has alot resting on XJET staying strong. We will see in a few months, it should be interesting either way.

Here is what they have resting:
http://biz.yahoo.com/e/060131/xjt8-k.html

On January 31, 2006, the Human Resources Committee of our board of directors approved the ExpressJet Holdings, Inc. Long Term Incentive Plan (the Plan), pursuant to which certain senior and other management employees, including executive officers, of the company and its subsidiaries may receive bonus awards in the form of cash, restricted shares of our common stock or a combination of both. Any shares of restricted stock issued pursuant to these bonus awards will be issued under the ExpressJet Holdings, Inc. 2002 Stock Incentive Plan, which was previously approved by our stockholders.

Are they cashing out?

 

[davessn763]

Ditto. All you can do is do your job to the best of your ability, go home enjoy your days off and hope for the best...doing your job not for the company but because you're a professional and that's what we do.

My sentiments exactly!!! Thats what I love about our pilot group.

As seen at Comair, concessions won't save jobs or keep aircraft on property at XJT(American version), that is completely up to Mother CAL and XJT management.

 

[SLFLYHI]

I think Jim Ream and Larry Kellner would make great editions to the World Series of Poker tour. They've got excellent poker faces. First, CAL shocks the world by going all in with a pair of deuces (we're removing 69 airplanes), then, XJT counters by going all in with a 3, 7 off suit. Now we're all just waiting for the flop. It will really get interesting when we get to the river.

This is nothing but poker on a global stage. In the end, the most likely outcome will be a split pot where the airplanes stay at XJT, some sort of lower number will be negotiated to the CPA (that will be less than what XJT has presently offered), and everyone will save face while being able to turn to all the respective shareholders and declare victory.

Makes for entertaining viewing, that's for sure.

 

[Truckdriver]

CAL has too many in its system already. There are two reasons for their pulling the aircraft:
1) Negotiating tactic to get XJT to lower its cost.
2) Reduce their excess 50-seat capacity.

That is the first time I have heard of CAL having too many 50 seat jets. They have said for years and continue to say that 274 is about the number that they need. When they negotiated scope in the CAL contract last year, they actually included the ability to add more 50 seat jets. I agree with you on the negotiating tactic to get XJT to lower the block hour costs, but I disagree with you on the excess 50 seat capacity. XJT block hours continue to rise significantly indicating the need for additional 50 seat capacity in the CAL system. We just got another 5000 block hours for March for a total of around 75,000 block hours. That number is suppose to rise about another 10,000 hours this year alone. If they had too many 50 seat jets, that number would not be going up.

 

[BritishGuy]

I can't see how ExpressJet are going to operate in Europe by keeping the aircraft on the US Register. That is something the JAA wil NOT allow. Not if it's a schedule airline service. A 121 service usin US aircraft in Europe is a NO-NO. If they do start a scheduled service to passengers then the aircraft will HAVE to be on the JAA register which will in turn mean only JAA certified crew will be acceptable. And for those that don't know, getting a JAA certificate is so complex, lengthy and expnsive that it's not even worth doing. Not that the JAA ceritificate is any better (though the European like to think that it is). Red tape and buracracy.....plenty of it.

 

[Captain Morgan]

Well, didn't Pan Am have a European counterpart at one time? I can't remember if those were registered in the US or not. I believe they were.

 

[dojetdriver]

Well, didn't Pan Am have a European counterpart at one time? I can't remember if those were registered in the US or not. I believe they were.

Pan Am operated in Europe as the U.S. Pan Am. It was American Pan Am planes being flown by American Pan Am pilots. They hubbed out of various cities using same flight numbers, ect. One example, the Lockerbie (#103) flight originated in Germany as flight #103 using a 727, then in England switched to #103 as a 747.

FedEx did the same thing with their SIBA bids. When UAL got some of Pan Am's european network they did the same thing as well. Offering TDY's to flight crews. How cool would that be to TDY in London, Frankfurt, ect.

 

[007]

How cool would that be to TDY in London, Frankfurt, ect.

You've obviously never been TDy'd.

 

[dojetdriver]

You've obviously never been TDy'd.

Actually, I have been TDY'd, twice. Both times in good cities, with good hotels, meanwhile collecting 24/7 per diem ($1000/mo non-taxable). It was a great deal. By contract we were to be positive spaced back to normal domicile at the beginning and end of the TDY period as well.

I'm guessing you work for a crappy company like Mesa or something that involuntarily TDY's you around the system?

 

[Captain X]

That is the first time I have heard of CAL having too many 50 seat jets.

Then you haven't been listening for the last few years.

They have said for years and continue to say that 274 is about the number that they need.

Where exactly have "they" said this.

XJT block hours continue to rise significantly indicating the need for additional 50 seat capacity in the CAL system. We just got another 5000 block hours for March for a total of around 75,000 block hours. That number is suppose to rise about another 10,000 hours this year alone. If they had too many 50 seat jets, that number would not be going up.

Or it could indicate that our current aircraft are underutilized and by adding block hours/removing airframes the utilization goes up and the indirect operating cost goes down.

 

[007]

I'm guessing you work for a crappy company like Mesa or something that involuntarily TDY's you around the system?

I work for Xjet.

I was talking about time away from family.

 

[dojetdriver]

I work for Xjet.

I was talking about time away from family.

If your junior, sorry. If your senior, don't bid on it.

 

[007]

If your junior, sorry. If your senior, don't bid on it.

Senior, but I was talking about my old job in aerial firefighting, where you'd spend 4 months away at a time.

It's fun and cool and all, and the pay is good, but it gets old just like anything. But I can already tell that you still like it,

so whatever tickles your pickle man.

 

[dojetdriver]

Senior, but I was talking about my old job in aerial firefighting, where you'd spend 4 months away at a time.

It's fun and cool and all, and the pay is good, but it gets old just like anything. But I can already tell that you still like it,

so whatever tickles your pickle man.

Ah, now I see where your disdain comes from. The two times I was on TDY it was voluntary. The company was opening bases and needed crewmembers to staff it. If you wanted it, bid it. I commute anyway, so I either commute to my normal domicile and fork out the money for a crashpad/hotel or commute to the TDY city with a free hotel and $1000 a month. And if for some reason I didn't have enough days off to make it home, I was in cool cities and could jump on the train and head downtown to make the most of it.

The point I was originally making was imagine having the ability to bid a TDY in Europe and get the chance to see some pretty cool shyte on all the company's dime.

 

[007]

The point I was originally making was imagine having the ability to bid a TDY in Europe and get the chance to see some pretty cool shyte on all the company's dime.

Yah, thats true, a buddy of mine spent 3 months in Scotland on the company's dime.

So that would be cool, as long as they pay your housing and shyte.