Intelligent comments from Chautauqua CEO

[ASH]

Given the inflated lease back rates, my feeling, without seeing the specific numbers, are that these A/C would need to get deployed into a profitable fractional/corporate/possible non-US market, for those lease rates to be marketable and profitable. Their would be little chance of a succesful bid to place them with another airline unless they are able to absorb the increased cost in another area, still rendering the 69 A/C a cost liability. I sincerely wish the folks at XJET a prosperous road, and do feel that you have a management that has its head screwed on straight. I hope you are able to deploy your A/C in a manner that is low-risk and profitable.

 

[sleddriver77]

We're flying proving runs now.

Uh, for what?

What are you proving? Proving runs are only required for new types or new certificates.

 

[LJDRVR]

Hey ASH, the convenient thing is that even with the increased interst rate of 2 percentage points, with our launch customer pricing and economy of scale, our hourly rates are profitable and still competitive in the marketplace.

I wish my peers at Chatuaqua nothing but success, but your CEO is full of it.

 

[ASH]

His market views are not always popular, no.

 

[LJDRVR]

Uh, for what?

What are you proving? Proving runs are only required for new types or new certificates.

Also required to generate specific performance numbers for several airports right at the very edge of the XR's range, not to mention the certification of special departure procedures where needed. Be patient, you'll see.

 

[mckpickle]

Uh, for what?

What are you proving? Proving runs are only required for new types or new certificates.

Our union saftey committee and company fly every route before a line pilot touches it.

 

[gator_hater]

Huh?
CHQ already operates the E-145 series.

Yes they do, that was one advantage they had. Now that they apparently do not have 69 ERJ's sitting around seems to reason that the CRJ is the way to go. Now they are at a disadvantage to the others.

 

[ASH]

Yes they do, that was one advantage they had. Now that they apparently do not have 69 ERJ's sitting around seems to reason that the CRJ is the way to go. Now they are at a disadvantage to the others.

Ah, I see what you are saying. Not a huge issue at the moment for CHQ. Word is quite strong that we will be reducing our 135/145 flying dramatically for US, UAL, and especially DAL to do 1 for 1 trades for 170/175's. We will simply redeploy those A/C to CAL. Embraer rep in CMH the other day said we have 50 170's painted in DAL colors waiting for delivery. I would imagine those would come at the expense of our 135/145 flying which is being given to Freedom by the truck load. Those A/C will most likely be where our CAL planes will come from.

Opinion.

 

[Bringupthebird]

Translation:
" I'm sure glad they didn't beat the pilot's over the head like we did. That sure makes low-balling easier for us. But crap, did they have to keep the airplanes too? This principal thing has to stop.

Hey, I wonder. Could we have a fund raiser at Embry-Riddle to buy us 69 ERJ's?"

 

[bvt1151]

Nobody seems to be picking up on the true message: "XJT is in trouble because their employee costs are too high. They will fail because their employee costs are too high. See what happens when an airline has employee costs too high? We cannot let our employee costs get too high."

Sounds like CHQ pilots will be approached for cuts. He's already starting to apply the Vaseline.