Here's why you don't drink the company coolaid!

[kngarthur]

http://www.reuters.com/article/marketsNews/idUKN2255053420080122?rpc=44

Hayman reporting 6.25 pct stake in ExpressJet-filing



WASHINGTON, Jan 22 (Reuters) - Hayman Advisors LP on Tuesday reported that it owns a 6.25 percent stake in regional carrier ExpressJet Holdings Inc (XJT.N: Quote, Profile, Research) and said the company should ategy.
The fund said in a filing with the U.S. Securities and Exchange Commission that the company should return to its fixed price and pro rate flying agreements, or risk further depressing the company's stock price.
Hayman said ExpressJet may have to issue new equity or additional convertible debt if it does not change its strategy. (Reporting by Karey Wutkowski, editing by Carol Bishopric)


Good luck XJT guys!

 

[Nevets]

We had no choice on this one.

 

[fencitup]

It is only a suggestion. Had I headed for greener pastures back when CAL notified us of the 69 airframes, I would not be in the left seat right now. We will have to wait and see what happens.

 

[DoinTime]

These hedge fund managers who know nothing about the airline business but are still dictating how Airlines run their business is starting to piss me off. If these guys don't like the direction of XJet then they should sell their stake.

 

[Bako Cap]

We had no choice on this one.

Yes there was, But I like Xjets decision best. Good luck guys.

 

[MALSR]

The title of this thread is apropos. There are a lot of coolaid drinkers here that said the branded flying is a great idea. Let me get this straight: An airline, that flies only 50-seat airplanes on their own, is going to make a profit how? Add that fuel is 100/barrel=disaster.

 

[Nevets]

The title of this thread is apropos. There are a lot of coolaid drinkers here that said the branded flying is a great idea. Let me get this straight: An airline, that flies only 50-seat airplanes on their own, is going to make a profit how? Add that fuel is 100/barrel=disaster.

It was either give it a try or furlough 700 pilots. Like I said, we had no choice on this one. Thanks for the vote of confidence though.

 

[Foxcow]

These hedge fund managers who know nothing about the airline business but are still dictating how Airlines run their business is starting to piss me off. If these guys don't like the direction of XJet then they should sell their stake.

Exactly! These are also the people that are pushing for mergers.

 

[climbhappy]

quote:These hedge fund managers who know nothing about the airline business but are still dictating how Airlines run their business is starting to piss me off. If these guys don't like the direction of XJet then they should sell their stake. quote"


i think that is a niave statement. i happen to know for a fact that a hedge fund in new york owns 100 mil of pinnacle. they do know how businesses work. and they know pilots have tunnel vision and can only see the runway. why do think they keep forming alter egos, violate contracts for short term gain and low ball feeder contracts to get the business. why? cause they know how the real world works... they can't fly an ILS , but they've got us up front carrying their bags. makes me think they do know a little.

 

[ATRGuy]

It was either give it a try or furlough 700 pilots. Like I said, we had no choice on this one. Thanks for the vote of confidence though.

Business wise, that is EXACTLY what they should have done. Sorry to say that, but that is the truth.

 

[777forever]

Business wise, that is EXACTLY what they should have done. Sorry to say that, but that is the truth.

100% agreed, whats best for the company won't always be best for the employees. The writer seems to think that management dropped the ball on negotiations with CAL by refusing to drop their rates. They later signed with DAL for rates closer to industry average.

 

[molson247]

100% agreed, whats best for the company won't always be best for the employees. The writer seems to think that management dropped the ball on negotiations with CAL by refusing to drop their rates. They later signed with DAL for rates closer to industry average.

That letter sums up exactly what is going on / needs to be done.

There will be your kool aid drinkers who do not agree, but the truth hurts sometimes. It's just business, nothing personal.

That said, standby....things are going to get interesting with fuel, the economy, and the lack of demand for 50 seaters.

 

[RP170]

The writer seems to think that management dropped the ball on negotiations with CAL by refusing to drop their rates.

Same thing happened at ACA with United. Same situation just a couple years later. The result appears to be similar as well. Luckily, XJet's whole fleet is not branded flying.

 

[JoeMerchant]

We had no choice on this one.

Nevets,
You guys had to do this because you lost the CAL flying..... You lost the CAL flying because your contract got "rich", your costs increased, and you were getting too much "leverage".....

This is the new reality of the "portfolio concept" and competition based "whipsaw", which ALPA has failed to deal with.....

You are a big proponent of ALPA and criticize the Skywest pilots..... maybe they don't want to become the next XJT, ACA, CMR, ALG, CCAir, etc.......

 

[DoinTime]

i think that is a niave statement. i happen to know for a fact that a hedge fund in new york owns 100 mil of pinnacle. they do know how businesses work. and they know pilots have tunnel vision and can only see the runway. why do think they keep forming alter egos, violate contracts for short term gain and low ball feeder contracts to get the business. why? cause they know how the real world works... they can't fly an ILS , but they've got us up front carrying their bags. makes me think they do know a little.

I would respectively disagree with you. I know for a fact that the hedge you speak of doesn't know how to operate an airline because not even the executives that work here have a clue about how to do it.

 

[Nevets]

Business wise, that is EXACTLY what they should have done. Sorry to say that, but that is the truth.

Well, it may still happen. You have to take risks to be successful. Our management made a calculated risks with high potential. Only time will tell whether it works out. I'm just glad they decided to fight rather than giving up and furlough hundreds of their employees.

 

[Nevets]

Nevets,
You guys had to do this because you lost the CAL flying..... You lost the CAL flying because your contract got "rich", your costs increased, and you were getting too much "leverage".....

This is the new reality of the "portfolio concept" and competition based "whipsaw", which ALPA has failed to deal with.....

You are a big proponent of ALPA and criticize the Skywest pilots..... maybe they don't want to become the next XJT, ACA, CMR, ALG, CCAir, etc.......

We lost flying because CAL wanted to diversify and prevent a Comair strike type of event. They also wanted to reduce the profit margin to less than 8%. Of course our management could've given them whatever profit margin they were asking for. The arbitration award showed that our profit margin was more reasonable than CAL's.

I "criticize" Skywest because currently they have no way of setting the bar. They have to vote on pay rates that are just below ASA's. They should be the FDX of the regional industry.

 

[JoeMerchant]

We lost flying because CAL wanted to diversify and prevent a Comair strike type of event.

That is a big part of it. On this we agree. Airline managements are never again going to allow any regional to get that much leverage....Management learned from the CMR strike.... ALPA didn't...

The CMR strike was largely a management victory as they continue to dilute the leverage of the regionals and the unions that represent them....

Skywest will have more leverage with Delta than ALPA does.....

I "criticize" Skywest because currently they have no way of setting the bar. They have to vote on pay rates that are just below ASA's. They should be the FDX of the regional industry.

The payrates the are voting on are some of the highest in the industry....including mainline rates for the same aircraft......

The "FDX of the regional industry" will die a slow death..... I don't want to be the "FDX of the regional industry".....

How about we force ALPA to put an end to this competing for flying instead......

 

[Nevets]

Skywest will have more leverage with Delta than ALPA does.....



The payrates the are voting on are some of the highest in the industry....including mainline rates for the same aircraft......

The "FDX of the regional industry" will die a slow death..... I don't want to be the "FDX of the regional industry".....

How about we force ALPA to put an end to this competing for flying instead......

Skywest management might have the leverage but the pilots have virtually none.

Even if I agree with you that they "are some of the highest in the industry....including mainline rates for the same aircraft......" although they are lower than ASA's rates, they should be industry leading and not just some of the highest. I think they deserve it.

If you dont like my FDX analogy lets go with the NetJets of the regional world.

 

[JoeMerchant]

Skywest management might have the leverage but the pilots have virtually none.

Even if I agree with you that they "are some of the highest in the industry....including mainline rates for the same aircraft......" although they are lower than ASA's rates, they should be industry leading and not just some of the highest. I think they deserve it.

If you dont like my FDX analogy lets go with the NetJets of the regional world.

The primary leverage lies with Delta.... They are putting the flying out for bid.....

Skywest management then has leverage with both pilot groups..... ASA and Skywest...... thru whipsaw....doesn't matter that we are ALPA....the whipsaw still stings.....

Is NetJet competing with other pilot groups for the flying within the brand?

Industry leading in the reality of the portfolio whipsaw results in losing flying to your fellow "brothers".....

Until we fix the competition with "brand scope", the best place to be is the middle of the pack......You are confusing our industry and our union with a "brotherhood"...... We are a very loose association that primarily looks out for ourselves.....

If you want to reform ALPA, then we can talk.... Until then, expect more of the status quo.....