It's official

[Meiguy]

The fact that XJT did not do branded flying prior to losing the jets from CAL and the fact that they have been trying very hard to get other RFP's tells you that this branded flying deal is probably not as lucrative as a CPA with another carrier. If it were such a great idea why did XJT wait to do it until they were forced to by CAL and why has MESA, CHQ, or SKYW not jumped in on the game?? I think it will be fun to watch, but in the end it won't make as much money for XJT as CPA business would have done. I wish them the best of luck and hope it all works out. West coast flying will be great for the XJT guys.

I disagree. I think the reason they wanted CPA's first is because it's easy money. It's a quick solution to find a home for the planes. I don't necassarily think they thought it would make more money. But they knew they could always exercise their options for more planes for the branded stuff thus increasing profit more. They waited because they didn't want to mess up a good thing with CAL. While it was the master plan if you will to do branded flying they didn't want to stir the pot with big CAL just yet especially when fuel was at an alltime high. Personally I'm looking forward to the branded flying. I think its the first step to getting decent wages at a regional level. Not having to feed the bottom of the barrel to get flying. Grant it there is more risk but the potential reward is there. Plus down the road if things start working out with the branded stuff I'm sure they will look at bigger airplanes which we probaby wouldn't consider otherwise.

 

[Whydoitry]

Another thing about various RFPs, XJT mgt has a percentage number that they feel they can get doing the branded flying, let's say 8%. Then when bidding on a RFP they would be looking to match that same or similar percentage. It wouldn't make any sense for them to bid an amount lower than that percentage since they believe they can make it on branded flying. Other airlines may not be looking to make the same profit margins that XJT mgt is, or are just concerned with gaining market share or a foot in the door. For those that think what XJT is doing is similar to Indy I say you're right in that XJT is telling the industry "we're not gonna sit here and take your ********************!" But the business plan is nothing at all like Indy's. As has been previously written, XJT has only 25% (69 airframes)of their equipment not in the CAL CPA. And of that 25%, 21% (or 5% of the total fleet) is committed to 121 charter flying, which is very profitable and in great demand. Add to that the fact that CAL continues to INCREASE the block hours for XJT, despite the fact that CHQ will be flying as COEX, I'd say that this might be a good time to buy some XJT stock.