question about XJT and CHQ?

[BluDevAv8r]

I would like to point this out, and pay careful attention: WE WERE NOT THE LOWEST BIDDER.

Good day and good luck...

Since it was a sealed bid RFP, how do you know for sure that CHQ was not the lowest bidder? Nobody knows who was truly the lowest bidder except for the business development folks at CAL. Even CHQ doesn't know this (nor do they care I suspect).

-Neal

 

[BluDevAv8r]

I wasn't thinking for CAL, I was thinking for another codeshare for the 69 aircraft. Also what does the pilot group think about these aircraft going overseas (or to Mexico)? I don't think it will be possible for ExpressJet to score a US codeshare for these.

On your first point, I still don't see XJT management asking for concessions going forward. I'm pretty comfortable with the numbers here...both with respect to what other regionals are paying and with the total pilot payroll numbers at XJT. The energy wasted and emotional effects of asking for concessions at this point in time simply isn't worth a few million bucks because that is all it really is (at most). XJT is a pretty junior pilot group right now...the average captain pay rate is about $66/hour whereas at Eagle, the average hourly pay rate is about $88/hour. Demographics make a huge difference in payroll costs...it isn't simply about hourly pay rates.

-Neal

 

[JetMonkey]

As a old Jetlinkiner I hope XJT keeps the planes even if it does drive up thier cost somewhat. I'd like to know what aircraft CHQ plans on using for those long XR routes, the 145's they have can't do it and using any larger equipment violates Cal's scope clause....... Neil maybe you can share some light from the old CPA on that issue, and congrates on CAL.

From a former 145 driver, emp.#E1638. Long live XJT!!!

 

[justenjoyflyin]

I saw an article the other day,, I am still trying to find it. Where a upper management guy at republic was asked how they could offer such a low price to continental. The guy said they could offer a lower cost because they would be able to spread the cost of this deal to their other customers. I would be pissed if I was united, delta, usair, or american if this guy is saying that the money we are giving them or they would charge us would cover their cost of giving continental a low cost contract.

 

[BluDevAv8r]

I saw an article the other day,, I am still trying to find it. Where a upper management guy at republic was asked how they could offer such a low price to continental. The guy said they could offer a lower cost because they would be able to spread the cost of this deal to their other customers. I would be pissed if I was united, delta, usair, or american if this guy is saying that the money we are giving them or they would charge us would cover their cost of giving continental a low cost contract.

Well they aren't going to charge the other customers more because they can't...they are locked into contracts with them. This is, however, incremental business to RJET so all they have to do is cover the direct operating costs of this increased flying...and not cover their fixed expenses that are already allocated across other agreements. Additionally, CAL is not going to be paying the margin on the fuel that CAL is paying for nor are they doing to pay a margin on the aircraft rent and as such, the overall revenue (and profit) from this flying will be much lower to RJET than its other deals are with other carriers.

-Neal