LYNX aviation interview ?'s

[sitbackrelax]

Lynx has yet to justify its own creation and existence before the pilot group there can reasonably demand industry leading rates.

SWA didn't pay anywhere near Delta, United, AA when they started.

Not to be a devils advocate here but what do you think about skybus and V.A?

 

[T-prop]

Not to be a devils advocate here but what do you think about skybus and V.A?

They're in the same boat as any start-up. No startup has started out paying industry average rates let alone industry leading rates and lived to tell about it. Just ask the Caribbean Sun guys.

1st year FO $34.50, CA $60-68/hr, 5 on 5 off schedule, if I recall correctly.

Not to say that pay was a direct cause of their downfall.

Skybus and VA will have relatively low pay for a very long time. Their business model relies on it. That is the only cost that they can control. When competing in similar equipment in saturated markets that is the only advantage that they can gain. Skybus may be operating in markets with little competition, however, their less populated and low demand markets require razor thin operating margins to stay in the black.

Q400 cost per available seat mile (CASM) is ~$.04 Airbus, $.08. CRJ700 $.09+. CRJ's are Lynx's only competition, if you even want to call them that. You throw in the fact that they will also be serving a few markets that no one else can or does serve out of DEN Lynx should prove quite profitable.

Unlike VA and Skybus, Lynx will actually be able to afford competitive rates, simply due to their low CASM and market.

Bottom line, VA and Skybus will be unable to pay anything that resembles competitive for quite a long time. Lynx WILL have the ability, and has promise for sustainability, and profitability. They have yet to show black numbers in the book before competitive pay appears.

Give them time... gotta get the place up and running full swing first.

 

[Cardinal]

Q400 CASM is ~$.04 Airbus, $.08. CRJ700 $.09+.

$.04 ?!?!? That I find hard to believe...That's like $890 per block hour. You can't even operate a B1900 for that, no way in hell you can feed and water 10000 horses and a crew of 4 for that price.

The Airbus number is accurate, a CRJ, even a 70 seater, is pushing it to be below .10, more likley .11 or .12, but whatever. The Q400 would be respectable at .09, downright heaven-sent at .08. .04 has got to be bull.

 

[T-prop]

$.04 ?!?!? That I find hard to believe...That's like $890 per block hour. You can't even operate a B1900 for that, no way in hell you can feed and water 10000 horses and a crew of 4 for that price.

The Airbus number is accurate, a CRJ, even a 70 seater, is pushing it to be below .10, more likley .11 or .12, but whatever. The Q400 would be respectable at .09, downright heaven-sent at .08. .04 has got to be bull.

Doh! Shoulda double checked. Barely cover the gas with that depending on what their paying.

At 350+ kts at 2,000 lbs an hour with 74 pax in the back. CASM is better than CRJ7 and DHC8-200. Fits well into markets that the bus can't fill up in. Has performance to satisfy terrain inhibited, high demand airports 74 pax at a time.

Point was, let Lynx make it from a plan on paper to full operation before you start slinging mud at the pilot group over their pay.

 

[Cardinal]

CASM is better than CRJ7 and DHC8-200. Fits well into markets that the bus can't fill up in. Has performance to satisfy terrain inhibited, high demand airports 74 pax at a time.

I wholeheartedly concur.

 

[katanabob]

$.04 ?!?!? That I find hard to believe...That's like $890 per block hour. You can't even operate a B1900 for that, no way in hell you can feed and water 10000 horses and a crew of 4 for that price.

The Airbus number is accurate, a CRJ, even a 70 seater, is pushing it to be below .10, more likley .11 or .12, but whatever. The Q400 would be respectable at .09, downright heaven-sent at .08. .04 has got to be bull.

Sorry to throw a wrench into the works, but industry standard is to not add fuel/oil into the calculation of CASM. (Audit as many quarterly reports and prospectuses as you'd like, but nearly all of them in the definitions specifically exclude fuel from CASM calculations.)

I picked two references from the multitude:

http://www.fool.com/investing/general/2007/04/05/foolish-fundamentals-airline-operating-metrics.aspx
http://sec.edgar-online.com/2005/03/18/0000950124-05-001689/Section2.asp

This means that there are actually two separate numbers that contribute to the overall operating cost of the airframe: CASM and Fuel cost per ASM. (Both typically enumerated in the quarterly report or prospectus)

 

[sqwkvfr]

For any of you Lynx insiders:

I and several other people at my place of employment would really like to apply to work there, but this pay issue is holding us back.

When do you anticipate that there will be a review of the pay scale?

I want to stress that this is not flame. Lynx is an operation that would work very well and fit into many of our plans given it's hub location and growth plans.