Jon Rivoli
I am the Devil.
- Joined
- Aug 3, 2003
- Posts
- 2,338
I was talking with a certain gentleman last week in the hanger in SLC who is about to become your COO, he had some interesting things to say about ASA. First, the only reason you are profitable is because the contract SkyWest inherited when it aquired ASA is not tied to performance, were you paid under a contract similar to SkyWest's you would NOT be making any money. This contract has about three more years then it reverts to perfomance based compensation. Your new contract is amendable in THREE years. Your new contract ALLOWS for the transfrer of basically one plane every three months (how many 700's do you have?) that would be about 36 planes before your contract was up and you would not even be able to cry foul. It was expensive to transfer planes en mass, but the normal MX cycle will put an airplane in for a routine C check about every three months. Don't be suprised if they come out in SkyWest paint. Worst case scenario I can see is that by the time you enter negotiations again you have no more 700's and the ATR's have been retired. No furlows because of normal attrition. How many pilots would that leave you with? Don't shoot the messenger, just painting a picture. You have been out maneuvered by SGU.
P.S. I voted yes.
P.S. I voted yes.
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