RJET Q1 Loss 22.4 Million

[boomlrd]

No flaming here, but doesn't this sound like the beginning of the Mesa race to bankruptcy? Biting off more than they can chew, branded flying, many aircraft types, fuel cost rising, etc. Just sounds a bit like the same thing happening again to a different regional.

 

[chqflyer]

No flaming here, but doesn't this sound like the beginning of the Mesa race to bankruptcy? Biting off more than they can chew, branded flying, many aircraft types, fuel cost rising, etc. Just sounds a bit like the same thing happening again to a different regional.

Yup. BB and company have finally realized they've ********************ed up and haven't got a clue what they're doing. SWA spanked RAH in both DEN and MKE. I guess this is just deserts for the new Mesa.

 

[temcgrew]

They can't compete in the branded flying department when a Frontier flight is flown in a Midwest EMB-135 and announced over the p.a. that it's Chautauqua airlines.

 

[StaySeated]

No flaming here, but doesn't this sound like the beginning of the Mesa race to bankruptcy? Biting off more than they can chew, branded flying, many aircraft types, fuel cost rising, etc. Just sounds a bit like the same thing happening again to a different regional.

I can see some parallels between the Mesa bk and rjet.

Mesa had over 200 rj's at their peak. They exited BK with 76 rj's.

Mesa was not able to renegotiate 50 seat rj leases, nor did they have a platform that would allow their continued operation of 50 seaters at a reduced loss.

Bedford has accomplished both. He has an agreement with EMB that replaces 24 145's with 190's (EMB eats the financing on the 145) and he has the brand that adopts all of the orphaned rj's.

Rjet had 220+ rj's at their peak. They have restructured down to less than 180 rj's and the momentum is starting to increase.

Unfortunately, if oil remains above $100, none of the 145 CPA's will likely be renewed and there are more 145's than there are replacement aircraft deliveries. After the AA and CAL CPA's expire, there are still 50 145's on the CHQ certificate. How do you shed 50 airframes outside of BK? You can't sell them because all of the CPA's have a change of ownership provision where the legacy partner has to approve the transaction or they can (and will) walk away.

I don't think rjet is standing on the edge yet, but $110 oil ($140 with the crack) is forcing bedfords hand.

FWIW, the next three quarters are projected to be profitable (consolidated) at $3.60 gallon.

 

[maxblast72]

Once the represenation election is over at Frontier/Republic this summer, will work begin to get all 3,000 pilots working on a joint CBA?

 

[Gear Down]

22.4 million loss for the quarter. Branded side loses 55.2 million.

And the death spiral has begun for another. Watch and see. Incompetence at so many levels.

 

[StaySeated]

Once the represenation election is over at Frontier/Republic this summer, will work begin to get all 3,000 pilots working on a joint CBA?

This may be a question that only the IBT can answer.

The Chautauqua CBA has been amendable since 2007, yet the IBT has not TA's one single section to date.

I am not trying to start an arguement here, I am seriously interested how the IBT intends to handle the additional workload they may inherit.

The Local 357 has very little money in the bank, the current dues structure doesn't provide an adequate revenue stream to fund the operation, and the "national" union doesn't seem very interested in financially supporting what may potentially be their largest airline organization.

I have witnessed several IBT representation drives in my relatively short 13 year airline career. Their playbook is only a few pages long, and very predictable.

Scare Tactic #1 - if you don't vote for the IBT, you will be stuck with your current CBA for a very long time. (Oh the irony)

Scare Tactic #2 - only the IBT is a _____________ pilot's union (fill in blank with whatever type of airline fits the current need. Usually it is a "cargo" pilots union, but this time it will be a "regional/llc/ffd/branded" pilots union?)

Scare Tactic #3 - if you don't vote for the IBT, you will end up without a union!! (This is one of my favorites, totally untrue but they always use it anyway)

Sorry for the thread drift. Who knows when or if their will be a CBA that covers all 3000 pilots. There is no such thing as a "joint CBA" in the RLA. The only reference to such a term is found in the ALPA merger policy which obviously doesn't apply here.

I imagine we will learn more at the end of June.

 

[dlzav8tr]

Bedford came to den last week and said he will do whatever it takes to keep us seperate ( sell 51% or more to somebody ). I doubt this will happen but I am hoping.

 

[StaySeated]

Bedford came to den last week and said he will do whatever it takes to keep us seperate ( sell 51% or more to somebody ). I doubt this will happen but I am hoping.

I have heard this from a couple people now.

I was at the same meeting, and Bedford absolutely did not say he would do whatever it takes to keep us separate. I think this is a very good example of the grapevine (which ironically Bedford used as an example during the meeting) and denial causing people to hear what they want to hear.

 

[F9 A319]

Bedford came to den last week and said he will do whatever it takes to keep us seperate ( sell 51% or more to somebody ). I doubt this will happen but I am hoping.

This was written by someone who came to the meeting with a dream, doesn't comprehend english well, didn't listen and left thinking they heard their dream confirmed somehow.

It didn't happen!

Another thought, he may just be trying to spread misinformation intentionally.