Below is BB's lastest propaganda.
Company Update for July 10, 2003
Good Afternoon. It’s been another week of big announcements in the regional sector. As you will read below, Mesa continues to chalk up impressive new deals with UAL and US Airways and now Trans States is getting in with a new agreement with UAL. Now that the news is out, I can share with you that we were within days of signing an MOU with UAL for this very aircraft order when the news of the strike vote was announced. That was enough to kill UAL’s enthusiasm for completing the agreement with Chautauqua. After having spent nearly a year on this deal, to lose it to Trans States over something as “ill-considered” as the strike vote is a bitter pill to swallow. The addition of 25 RJ’s in ORD and IAD would have been a very positive development for our airline as it was a perfect fit within our geographic operating area. The addition of 25 more RJ’s would have created 200 new pilot positions [100 captain upgrades], 100 new FA’s, 50 new Technician positions and 25 support staff positions, for a total of 375 new jobs. Of course adding another major partner would have given us the type of diversity we like; replacing the loss of AWA in our system, not to mention the other benefits of doing business with the largest carrier flying the Pacific. Clearly this was a huge loss to Chautauqua and a huge win for Trans States. These types of opportunities simply don’t come around every day or every year for that matter. This means a permanent loss of new jobs and upgrades for our people; besides the fact that handing TSA a gift of this nature will only make them a more difficult competitor down the road. It’s a bad outcome for Chautauqua both in the short and long term.
The airline also finds itself in an unanticipated staff overage due to the unexpected loss of financing on the next 3 US Airways RJ’s. Unfortunately we will be furloughing about 60 pilots over the next 2 months. Of course 3 aircraft does not equal 60 pilots, but we had been building our staff in anticipation of getting more flying. We now know that no longer looks like a realistic possibility. If we can find replacement financing or find used aircraft as an alternative, we hope to position the airline to bring many of these furloughed employees back in October or November. However, it is highly unlikely we will be able to accomplish this as long as our labor situation remains unresolved. The loss of aircraft financing and the loss of new business were predictable repercussions of the strike vote; these are clearly “self-inflicted” wounds.