80for80
global synchronizer
- Joined
- Dec 6, 2003
- Posts
- 313
IN OTHER WORDS, GOOD LUCK ON A BETTER CONTRACT !!!! I THINK I SPEAK FOR THE ENTIRE PILOT GROUP. WE DONT WANT A PAY RAISE !!!! WE WANT QOL, AND THAT DOESNT COST ANYTHING !
I thought folks might find this research report on Continental Express interesting. There is certainly a very important lesson to be learned here. With one of the higher cost structures in the industry resulting from an aging fleet, costly new pilot contract, major airline style corporate overhead, among other things, the company lost one third of all it’s flying (69 aircraft) when Continental exercised it’s right to terminate the flying. In addition, Continental has the right to terminate the remaining flying over the next two years. Faced with this dilemma the company is now attempting to find homes for these aircraft. If the company is unable to win additional business with major carriers because it can not compete effectively due to its high cost structure the situation could become very difficult. If COEX attempts to go down the “independent” path like the one chosen by Atlantic Coast Airlines (which ended up liquidated less than two years after the operation began) the situation could negatively impact Mesa - the COEX aircraft may well end up back on the market at lower lease rates (like the Atlantic Coast aircraft) making it more difficult for us to compete with our more expensive aircraft. All in all it appears this is not a very good situation – and only emphasizes how critical it is for us to maintain our ability to compete with low costs and efficient service. Have a nice weekend, Jonathan
I thought folks might find this research report on Continental Express interesting. There is certainly a very important lesson to be learned here. With one of the higher cost structures in the industry resulting from an aging fleet, costly new pilot contract, major airline style corporate overhead, among other things, the company lost one third of all it’s flying (69 aircraft) when Continental exercised it’s right to terminate the flying. In addition, Continental has the right to terminate the remaining flying over the next two years. Faced with this dilemma the company is now attempting to find homes for these aircraft. If the company is unable to win additional business with major carriers because it can not compete effectively due to its high cost structure the situation could become very difficult. If COEX attempts to go down the “independent” path like the one chosen by Atlantic Coast Airlines (which ended up liquidated less than two years after the operation began) the situation could negatively impact Mesa - the COEX aircraft may well end up back on the market at lower lease rates (like the Atlantic Coast aircraft) making it more difficult for us to compete with our more expensive aircraft. All in all it appears this is not a very good situation – and only emphasizes how critical it is for us to maintain our ability to compete with low costs and efficient service. Have a nice weekend, Jonathan