Intelligent comments from Chautauqua CEO

[beechcowboy]

Just for fun I am going to throw out my predictions:
- CAL will replace some of the lost feed. Things are working out perfect for them... they are getting more money from XJET and able to reduce their fifty seat feed.
- CHQ will get come up with some fifty seaters that UAL/DAL/USair would like to shed (in exchange, order some 170's)
- XJET will not have much success with their new venture

Sorry guys. I predicted that CAL would dump fifty seaters last year and took some heat for saying it. I don't care what kind of kool-aid XJET mgmt is feeding you guys - it is going to be difficult to make money on 50 seat flying without the fee for departure (read: guaranteed profit) system.

It is like everyone has forgotten about Independence. I understand XJET still has plenty of money coming in... but it is hard to fund a failing business model with a successful one. Remember how much money ACA had when they broke away?

It will be interesting to see if XJET scores a legacy codeshare. After all the talk of CHQ "stealing" their flying. I can't think of any legacy that would be interested in adding more fifty seaters.

You guys are insane. I keep forgetting that all us pilots also have PhD's and Master's in big business. What gives the average pilot the feeling that they know everything about the industry? I'll tell you... one pilot hears another say 50 seats are too expensive, the next pilot passes that one to the next, and so on. I remember where I have seen this before... high school.

Rest assured that XJTs plans are being meticulously scrutinized. Our mgmt would not recklessly embark on a profitless venture just for the fun of it. They have, it appears, been successful in securing a new codeshare in addition to other profitable business opportunities. This is a clinic in diversification of the business. No longer does XJT want all its eggs in one basket, and this plethora of plans is one way of achieving this. For those of you who make comparisons to FLY I, you have just proven how little you know about our industry. XJT has no intention of launching a large "own brand" at this time; but this may be a good time to begin to dabble. But in all seriousness, keep telling yourself that you are God's gift to this industry, and make your rediculous statements if it helps you sleep better. From what I have seen and discussed, XJT is planning for a strong, growth oriented future.

 

[kc1]

"To once again artificially remove 69, 50 seat RJs which Continental will surely replace in some form or fashion, is harmful to XJT, its employees and shareholders and the rest of us working in this industry."-BB

To hear this coming from Republic Airlines Holdings is extremely hypocritical. I guess it's great for the industry when RAH tries to try to underbid others based on price and turn regional feed into a commodity, and to fly 70 seat planes for subpar rates. RAH has never been harmful to the industry?

While this statement may have some valid points, it's ridiculous for Brian Bedford to criticize another airline for dragging down the industry.

 

[kngarthur]

"To once again artificially remove 69, 50 seat RJs which Continental will surely replace in some form or fashion, is harmful to XJT, its employees and shareholders and the rest of us working in this industry."-BB

To hear this coming from Republic Airlines Holdings is extremely hypocritical. I guess it's great for the industry when RAH tries to try to underbid others based on price and turn regional feed into a commodity, and to fly 70 seat planes for subpar rates. RAH has never been harmful to the industry?

While this statement may have some valid points, it's ridiculous for Brian Bedford to criticize another airline for dragging down the industry.

CHQ did not underbid!! You guys are a bunch of babies

 

[hbrow15]

Why does he care if we go down the same road as Independence?
Just means more business for him!!

He should be giddy as a schoolgirl.

I was thinking the same thing, if we go out of business how is that bad for the industry if there are to many 50 seaters. That would put 274 airplanes in the desert and look at how much work would be available to him, if he truely feels XJT is on the path to destruction he should be celebrating, unless in reality he may be thinking that God may answer the prayers of others as well.

 

[surplus1]

To answer your question, you assume wrong. I am no longer on the Fee For Departure Task Force.

I'm surprised, you seemed so enthusiastic. Personal problem ... or did you discover it was just another committee to not do the work of the other committe than didn't do the work of the original committe that didn't do the work?

 

[Elusive Napkin]

I'm surprised, you seemed so enthusiastic. Personal problem ... or did you discover it was just another committee to not do the work of the other committe than didn't do the work of the original committe that didn't do the work?

Kinda hard to work for a Fee-for-Departure committee when you don't work for an airline that is Fee-for-departure.

 

[upndsky]

Plus he's in training right now as a new-hire at CAL. I think he's worried more about getting through that than some committee.

Also, and I don't know how this works, but wouldn't he be a probationary ALPA member until his one year at CAL is up? That may preclude him from being on an ALPA committee.

 

[Elusive Napkin]

Also, and I don't know how this works, but wouldn't he be a probationary ALPA member until his one year at CAL is up?

That's a good question.

 

[BluDevAv8r]

I'm surprised, you seemed so enthusiastic. Personal problem ... or did you discover it was just another committee to not do the work of the other committe than didn't do the work of the original committe that didn't do the work?

None of the above...unless you count being on probation at another airline a "personal problem."

-Neal

 

[Travis Jr]

Wouldn't it be best if Continental replaced these 69 rj's with some 737's? Hopefully, maybe they will and then we can all bitch about our ugly FA's (plural FA's...as in more than one) or something else mainlinish.

 

[BlueCanoe]

Here's the simple truth about the "50 seat glut"

Historically, airlines decide that they need some sort of seat catagory A/C then they all race to buy as many as they can, as quick as they can. Then they own too many. Let's say there is a need for 500 50 seat aircraft nation wide. Now each and every airline wants to own the highest percent of the 50 seat market. They all order these aircraft, paying progessively more for each copy as the market demand for capacity is declining. Next thing you know, a 50-seater is a commodity, instead of a valuable asset. The exact same thing is happening with the 70-100 seat niche. In six years those that are new in the industry right now, will see the next cycle, because too many 50 seaters are parked. Then Colgan, commutair or whoever will get the 50 seaters will get them cheap. A new batch of 19-34 seat prop operators will crop up and compete with Mesa.

Captialism is a bitch.....

Good luck to all, I hope we all have enough work....

 

[Indy319FA]

The quotes from BB came from his weekly update to employees that is posted on the employee website and was intended for us, so that's why it sounds kind of preachy. While I don't agree with everything he said (particularly some of the stuff regarding the demise of ACA/Independence) he does have a point that this will create aritificial demand for RJs.

For the folks at Expressjet, I'm glad you're getting to keep the planes. But the comments of some that I have read sound just like the comments I heard around the crewroom at ACA when they announced we were going on our own. Everybody thought Tom and Kerry were geniuses until the time came to pull the CRJs out of the UAL network and the red ink started to pile up and the furloughs began. So unless XJT gets an agreement with somebody else for these aircraft, treat everything your management says with a healthy amount of skepticism, particularly if all they come up with is charters and flying point to point on your own. Remember they have to keep you flying the aircraft so they can continue to fulfill their contracts, so they will keep any bad news close to the vest until they have to make an announcement when furloughs are imminent. Good luck to you guys, and I'd love to see you prosper just to shove it down the throats of the critics.

 

[SkyBoy1981]

Can someone show me where XJT management has announced that they are going "on their own" or that they plan to operate a new airline using only 50 seat regional jets? I must have missed that memo.

I thought the title of this thread said that it had "intelligent comments"? Sounds like a bunch of nonsense to me, especially since most of it assumes things that have yet to be determined.

 

[Indy319FA]

Can someone show me where XJT management has announced that they are going "on their own" or that they plan to operate a new airline using only 50 seat regional jets? I must have missed that memo.

I thought the title of this thread said that it had "intelligent comments"? Sounds like a bunch of nonsense to me, especially since most of it assumes things that have yet to be determined

From a previous post in this thread:

FWIW, last week's XJET conference call cited the 4 new homes for the 69 jets;

1. Overseas opportunities
2. Charter Flying
3. Point-to-point flying under xjet colors
4. New opportunities with existing legacy carriers

 

[Capi_Cafre']

Can someone show me where XJT management has announced that they are going "on their own" or that they plan to operate a new airline using only 50 seat regional jets? I must have missed that memo.

I thought the title of this thread said that it had "intelligent comments"? Sounds like a bunch of nonsense to me, especially since most of it assumes things that have yet to be determined.

Blah blah blah must make concessions blah blah blah other pilots will steal your jobs blah blah blah...........

I'm not sure that rises to the level of "intelligent." Sounds more like someone trying to milk the last bit of equity out of the industry's downturn to me. Somehow I think that the main topic at the RAA convention next week is going to be "Fear and Loathing: Keeping Pilots at Each Other's Throats"

 

[Superpilot92]

There are alot of reasons why we are different than Indy. Our mgmt watched what happened with Indy and i am sure they have learned from it in many ways. Now i am pretty sure that our mgmt has no intentions on starting our own brand in the 121 environment using only the 145s. Now i believe they have mentioned starting a frax i believe with them but not 121. I am pretty optimistic what the future holds.

 

[SkyBoy1981]

From a previous post in this thread:

Correct me if I'm wrong, but doesn't Mesa operate flights under its own colors as well? There is no comparison to Indy Air here folks. Any independent flying that XJT were to do on its own at this point would be on a much smaller scale than Indy, and it would certainly not be the only or even the primary source of revenue for the company. Please stop comparing apples to donkeys. Thank you.

 

[Superpilot92]

Correct me if I'm wrong, but doesn't Mesa operate flights under its own colors as well? There is no comparison to Indy Air here folks. Any independent flying that XJT were to do on its own at this point would be on a much smaller scale than Indy, and it would certainly not be the only or even the primary source of revenue for the company. Please stop comparing apples to donkeys. Thank you.

Thats great I love it!!

 

[doh]

Correct me if I'm wrong, but doesn't Mesa operate flights under its own colors as well? There is no comparison to Indy Air here folks. Any independent flying that XJT were to do on its own at this point would be on a much smaller scale than Indy, and it would certainly not be the only or even the primary source of revenue for the company. Please stop comparing apples to donkeys. Thank you.

Mesa operates under their own colors with some 1900's I believe. Those routes are covered under the essential air services act, gauranteeing them a profit to serve some small markets. They don't want to code share those because then they would have to split the proceeds.

 

[Indy319FA]

Mesa operates under their own colors with some 1900's I believe. Those routes are covered under the essential air services act, gauranteeing them a profit to serve some small markets. They don't want to code share those because then they would have to split the proceeds.

Exactly. Because most of those airports are in BFE, the big guys could care less about competing with them. If you decide to compete with legacy carriers in larger markets, they will come after you with a vengeance, just to kill you off before you get successful enough to pose a serious threat. Like I said, good luck to you guys, but if you're swallowing all these happy pills your management is feeding you, be careful one doesn't get stuck in your throat.......