Rumor SkyWest Inc. receives new jet financing?

[WalterSobchak]

Ol' Walter ain't so stupid, eh?

 

[JumpersAway]

That is not brand scope. Brand scope is mainline scoping in ALL flying done under their brand. In other words, if the airplane says united, delta, or American on it, it is flying by pilots on the united, delta, american seniority list, respectively.

You are talking about scope, in general. What you refer to would be the second stage to what I mention. In general, regardless of term, it's an unlikely solution anyway.

 

[Nevets]

You are talking about scope, in general. What you refer to would be the second stage to what I mention. In general, regardless of term, it's an unlikely solution anyway.

Very unlikely. Just pointing out what specifically brand scope really is. It's got the word brand in it for a reason. I wasnt talking about scope in general as that can mean whatever mainline decides to operate. I was specifically responding to your comment that specifically said brand scope. What you wrote is not even close to being brand scope.

 

[JustaNumber]

Arguing about brand scope is like arguing about what the tooth fairy looks like, but that being said...

I believe the original idea for brand scope was for all the unions flying for a particular brand, both mainline and all the regionals, to get together (as in forming a "union"...imagine that!), and decide the minimum contract standards for any entity flying for that brand, and this would be codified in every contract. The idea (whether it's right or not) is to attempt to create a monopoly on labor. Of course the only entity with any real leverage is the mainline union, and as was said earlier, they don't want to waste their negotiating capital on this. What they don't realize is that by enabling the race to the bottom at the newest cheapest regional, the market (and/or bankruptcy judges) will find a way to send mainline jobs to that regional. Guaranteed. So much for the concept of a pilot "union."

 

[XPOO]

Ol' Walter ain't so stupid, eh?

And as stated by the original poster, some online aviation news site has BR quoted as saying SkyWest, Inc. is looking to put in a 300 aircraft order of 70+ seat jets to replace its entire fleet of 50-seaters.

Won't know until an order is placed.

 

[pilotyip]

And as stated by the original poster, some online aviation news site has BR quoted as saying SkyWest, Inc. is looking to put in a 300 aircraft order of 70+ seat jets to replace its entire fleet of 50-seaters.

Won't know until an order is placed.

maybe 90+? 100+?

 

[Jon Rivoli]

maybe 90+? 100+?

I don't expect them to do anything dramatic without Delta and Unical completely on board so long as they can remain profitable. Once they can no longer make a profit under current arrangements I expect that is when they will deploy the $750 million in the bank and whatever "new jet financing" they have to evolve into whatever comes next, using the leverage of 700+ aircraft to gain the acquiescence of mainline partners.

SkyWest Inc. operates about 50% of the flight schedule of Unical and carries 20-25% of their passengers. I'm sure the numbers are similar for Delta. No one has the ability to replace the flying they do; not mainline and not other regional competitors (one of which is bankruptcy and the other is teatering. Mesa will probably cease to exist when the current Airways contract expires.

So Genny Lee, Jerry informs Delta he is buying 300 100-125 seat C-series Canadairs to replace all of the 50 seaters, what do you do? Lose 20% of your traffic or code share? You don't have the capacity to back fill. The Comair strike only took down Cincy, cut ties with SKYW and you lose ATL, MSP, and SLC.

Anderson knows what is coming and has been doing what he can to gain leverage, but especially with Pinnacle in bankruptcy and Republic on the ropes he doesn't have too many cards to play.

The earnings call is later this week. If profitable, the song remains the same, for now. If not?

 

[Homer Jay]

I don't expect them to do anything dramatic without Delta and Unical completely on board so long as they can remain profitable. Once they can no longer make a profit under current arrangements I expect that is when they will deploy the $750 million in the bank and whatever "new jet financing" they have to evolve into whatever comes next, using the leverage of 700+ aircraft to gain the acquiescence of mainline partners.

SkyWest Inc. operates about 50% of the flight schedule of Unical and carries 20-25% of their passengers. I'm sure the numbers are similar for Delta. No one has the ability to replace the flying they do; not mainline and not other regional competitors (one of which is bankruptcy and the other is teatering. Mesa will probably cease to exist when the current Airways contract expires.

So Genny Lee, Jerry informs Delta he is buying 300 100-125 seat C-series Canadairs to replace all of the 50 seaters, what do you do? Lose 20% of your traffic or code share? You don't have the capacity to back fill. The Comair strike only took down Cincy, cut ties with SKYW and you lose ATL, MSP, and SLC.

Anderson knows what is coming and has been doing what he can to gain leverage, but especially with Pinnacle in bankruptcy and Republic on the ropes he doesn't have too many cards to play.

The earnings call is later this week. If profitable, the song remains the same, for now. If not?

UniCal will not be relaxing scope in any form. Keep dreamin'.

 

[General Lee]

I don't expect them to do anything dramatic without Delta and Unical completely on board so long as they can remain profitable. Once they can no longer make a profit under current arrangements I expect that is when they will deploy the $750 million in the bank and whatever "new jet financing" they have to evolve into whatever comes next, using the leverage of 700+ aircraft to gain the acquiescence of mainline partners.

SkyWest Inc. operates about 50% of the flight schedule of Unical and carries 20-25% of their passengers. I'm sure the numbers are similar for Delta. No one has the ability to replace the flying they do; not mainline and not other regional competitors (one of which is bankruptcy and the other is teatering. Mesa will probably cease to exist when the current Airways contract expires.

So Genny Lee, Jerry informs Delta he is buying 300 100-125 seat C-series Canadairs to replace all of the 50 seaters, what do you do? Lose 20% of your traffic or code share? You don't have the capacity to back fill. The Comair strike only took down Cincy, cut ties with SKYW and you lose ATL, MSP, and SLC.

Anderson knows what is coming and has been doing what he can to gain leverage, but especially with Pinnacle in bankruptcy and Republic on the ropes he doesn't have too many cards to play.

The earnings call is later this week. If profitable, the song remains the same, for now. If not?

Scope is being negotiated right now as we speak, the company came to talks early (for some reason?) even though the ammendable date is Dec 31st of this year. So, they must have bigger things on their mind (management), and on our contract survey SCOPE and PAY were the two highest priorities. So, I would guess it only gets tightened. I would have to think the majority wouldn't want one extra 76 seater, and other scope provisions (like things you are suggesting with holding companies, etc), would get tighter too. Republic owns Frontier, and they have planes over 100 seats (320s, 319s, etc), but they don't codeshare with us (F9), or fly any routes for us. If SkyWest were to start something like that, I would imagine that Delta wouldn't like that (like INDY AIR) and proceed to smack it down hard. I just don't see it happening, and if there is language that possibly could allow something like that, it is probably getting fixed too. The rumor about the 717s coming from Southwest (Airtran), would negate any reason why the airline would need C-Series planes from you. There are supposedly 120 717s out there, and if the rumor come to fruition, that may fill out the needs for the 100 seater domestically. The planes are a lot cheaper than those C-series, and the engines could have a "power by the hour" lease. We'll see, but those 717s COULD satisfy the 100 seat needs.


Bye Bye---General Lee

 

[CFIT]

Rumors I've heard from management;

Smisek want s bigger planes at SkyWest, since he just got a 9 Million dollar raise today I'm sure he"ll work hard torwards that.

Code Share Agreements with both Delta and UniCal, supposedly the new angle for larger aircraft. Not sure how possible it would be with their current pilot contracts?

Big agreement for lift at American, with larger aircraft also, if the USAir aquisition is thwarted.

None of the current Mesa contracts with UniCal or USAir will be renewed, and expecting much more flying as a result.

Per the article from Bloomberg, I asked about CRJ1000's for Alaska and was told by the top guy, a smiling, "no comment". A Bloomberg interview with a VP at Bombardier mentioned 6 CRJ1000 deliveries to Alaska.



Don't know how plausible any of it is but it does seem possible?

I personally think whatever happens at American will set the tone for the rest of the industry.