SKYW 2012 Q2 Earnings

[ASA_Aviator]

Actually, it didn't matter because CAL held the strings from the very beginning. They wrote the CPA and they pulled every trigger in it at precisely the timeline they wrote into the CPA. In hindsight, this was their plan all along. The only thing that was happenstance was Skywest being the best entity to be in a position to buy XJT. The only thing I take personal is them telling us one thing (contract) and then doing something else. The actual whipsaw is not in that category, that was just business on the part of upper Skywest management. But at least we are making progress and not all denying that it happened or continues to happen. We are all pawns in the whipsaw game and I feel that we should all try to mitigate that among professional airline pilots.

I don't know why people would deny that capitalism happens.

 

[FightingIrish]

Fair enough, but you asserted that if one believes SKYW was at fault for XJT's problems, they MUST also believe SKYW is at fault for other airlines' problems. That is simply nonsense. The situation with XJT is not directly comparable and your assertion is illogical.

The point I'm trying to make is it wasn't Skywest that broke XJT. They did that on their own by not being able to compete for new flying with CAL. They got too used being the only player in the CAL game with lucrative cost plus CPAs. When that party ended, they began to fade. Skywest took advantage of a situation that presented itself because Skywest management is good at what they do.

 

[FightingIrish]

The only reason XJT's CPA with CAL started losing money is because CAL used Skywest to whipsaw XJT. No, blame, just stating fact. If people don't want to live in the past, then they should stop bringing it up to begin with.

It started losing money because CAL decided to join the other majors and utilize the whipsaw to lower the cost of regional feed. That was CALs doing, not Skywest doing. Skywest simply took advantage of a situation.

No one is talking about eagle or pinnacle in this thread. It is completely irrelevant and your correlation lacks any thought. It's baseless. Why don't we just stop with the straw man arguments because that's exactly what your correlation is.

It's relevant because you fail to acknowledge that regional lift doesn't pay what it used to. We are watching these once profitable business drop like flies as majors reduce the amount they are willing to pay for the lift. This isn't Skywests fault, rather it is caused by the majors. Skywest would love to go back to the good old days when this flying commanded much higher cost plus arrangements. You are living in the past.

Because Skywest got paid $9 million by CAL to come in and look at XJT's books and make a buyout offer that included not only synergy cost and economies of scale savings but also 16% concessions, 700 furloughs, and Skywest operating 25 ERJs with Skywest pilots (they were going to offer preferential interviews to the furloughed). Then CAL told XJT, give us a deal as good or better than Skywest or we cancel ALL your flying. XJT literally signed the CPA Skywest had negotiated with CAL. That is textbook classic whipsaw.

I agree with this, except it was CAL that employed the whipsaw, not Skywest. Skywest rescued XJT who couldn't compete in the new whipsaw environment.

Exactly! Obviously they have very shrewd people working for Inc.

Is that a bad thing? I want shrewd people in management.

 

[ASA_Aviator]

The point I'm trying to make is it wasn't Skywest that broke XJT. They did that on their own by not being able to compete for new flying with CAL. They got too used being the only player in the CAL game with lucrative cost plus CPAs. When that party ended, they began to fade. Skywest took advantage of a situation that presented itself because Skywest management is good at what they do.

That's essentially my point too. I don't see why it matters to the XJT guy if ASA or SkyWest Inc bought them, or whether they were whipsawed, etc.

 

[FightingIrish]

Face it guys, XJT was whipsawed by Skywest. That is ALL I'm saying. You ASA guys shouldnt be taking it personal. It's NOTHING against you guys.

Face it, XJT was whipsawed by Continental. Not by Skywest. ASA and Skywest people for the most part understand this concept. I don't know why it so hard for XJT people to understand.

I think the reason you are getting push back from so many ASA people is our sister carrier Comair wasn't as lucky as we were. Skywest saved us and now as we watch Comair wind down, we realize how close we came to suffering the same fate. I don't know why you can't see that.

 

[Azul]

Don't even bother trying to argue with these skypest guys. As long as the flying keeps coming their way , they don't care what happens to anyone else. Just ask any Air Wiskey or Blue Ridge type. They came in and undercut them and they will undercut you now. They wear the union busting badge with a sort of disgusting honor that would make most people sick.

Don't expect any compassion or caring from these f--cks.

END OF STORY

 

[Jon Rivoli]

Don't even bother trying to argue with these skypest guys. As long as the flying keeps coming their way , they don't care what happens to anyone else. Just ask any Air Wiskey or Blue Ridge type. They came in and undercut them and they will undercut you now. They wear the union busting badge with a sort of disgusting honor that would make most people sick.

Don't expect any compassion or caring from these f--cks.

END OF STORY

Interview didn't go well? The system works I guess. Hope you're happy where you ended up.

By the way, I got a nice bonus check today. Much bigger than I expected.

 

[ASADriver]

Don't even bother trying to argue with these skypest guys. As long as the flying keeps coming their way , they don't care what happens to anyone else. Just ask any Air Wiskey or Blue Ridge type. They came in and undercut them and they will undercut you now. They wear the union busting badge with a sort of disgusting honor that would make most people sick.

Don't expect any compassion or caring from these f--cks.

END OF STORY

Actually, most of the guys arguing with Nevets here are ASA guys - Just sayin.

 

[Nevets]

It started losing money because CAL decided to join the other majors and utilize the whipsaw to lower the cost of regional feed. That was CALs doing, not Skywest doing. Skywest simply took advantage of a situation.




It's relevant because you fail to acknowledge that regional lift doesn't pay what it used to. We are watching these once profitable business drop like flies as majors reduce the amount they are willing to pay for the lift. This isn't Skywests fault, rather it is caused by the majors. Skywest would love to go back to the good old days when this flying commanded much higher cost plus arrangements. You are living in the past.




I agree with this, except it was CAL that employed the whipsaw, not Skywest. Skywest rescued XJT who couldn't compete in the new whipsaw environment.




Is that a bad thing? I want shrewd people in management.

Shrewd is not necessarily a bad thing, never said that. People bash Gojet because they are a lower cost entity and can bid for flying at a lower price. No different than what Skywest did to XJT with the help of $9 million from CAL and their assumption of a 16% concession to bring us down to the average skywest pilot compensation. Like I said, in handsight, CAL had this all planned out. Skywest just happen to be the entity to take advantage. Great timing be very shrewd people.

Face it, XJT was whipsawed by Continental. Not by Skywest. ASA and Skywest people for the most part understand this concept. I don't know why it so hard for XJT people to understand.

I think the reason you are getting push back from so many ASA people is our sister carrier Comair wasn't as lucky as we were. Skywest saved us and now as we watch Comair wind down, we realize how close we came to suffering the same fate. I don't know why you can't see that.

I wasn't even the one who brought up comair. My only point is that XJT was whipsawed by, yes CAL and their $9 million dollars and Skywest cheaper cost. It has nothing to do with ASA, comair, rescues or anything else. I don't know why you don't get that. I'm not talking about any of those other things.

Actually, most of the guys arguing with Nevets here are ASA guys - Just sayin.

That's what I don't get. I would understand if it was ravioli or rustynail having this discussion but it's the ASA guys that take it personal. I actually think it says more about them that they are the quite ones.

 

[JumpersAway]

Nevets- yes, ExpressJet was whipsawed into submission and a concessionary contract for the ExpressJet pilots was the result. It sucks, but it's the reality of the regional business model. Unfortunately, this isn't unique to ExpressJet, but the standard by which we (in the regional industry) operate. Every regional out there operates under the premise of being leveraged out of the game by a lower cost competitor. ExpressJet had the unfortunate fate of being toward the top of that list, third only to AWAC and ACA. The solution is simple- if regional pilots don't want to be whipsawed, then we need not compete in the game. Move on to the puppet master, rather than continueing to be the puppet.................or pawn. Lucky for us, the future of the industry is about to change due to a pilot deficet. Attrition will far outpace hiring, at the regional level, and a company's ability to participate in a whipsaw affair will be greatly limited by their ability to hire and train qualified applicants. Wait a year or two, and you'll see, first hand, what I mean.

 

[Nevets]

By the way, I got a nice bonus check today. Much bigger than I expected.

And how much was your performance plus+ check for this quarter? Ours was pretty mediocre this time around but I can't complain when the company decides to give us free money despite the negative profit margin. But curious about yours nonetheless.

 

[XPOO]

And how much was your performance plus+ check for this quarter? Ours was pretty mediocre this time around but I can't complain when the company decides to give us free money despite the negative profit margin. But curious about yours nonetheless.

I'm guessing the XJT/ASA side calls the bonuses something different from what the SKW side calls them. We have a Performance Rewards and a Financial Rewards. I can't go into specifics but for the Performance Rewards everything was "target" for the quarter while baggage was "exceptional" twice. As for the Financial Rewards, it was the best profit margin for SKW since Q3 2010.

 

[Jon Rivoli]

And how much was your performance plus+ check for this quarter? Ours was pretty mediocre this time around but I can't complain when the company decides to give us free money despite the negative profit margin. But curious about yours nonetheless.

Like he said, performance is based on meeting target metrics and is only a couple hundred bucks. Financial side is you earnings for the quarter times the profit margin. Total was almost a grand.

 

[wms]

Even if we meet all our goals, our payout is not as lucrative as skyw. That's part of being the step-child. When they presented these bonuses to us they used skyw as an example, but from what I hear from skyw guys our payouts aren't even close to theirs. Even before the merger when we were tremendously profitable it wasn't even close.

 

[russtgol]

SkyWest Airlines makes more money for INC.

 

[Freebrd]

SkyWest Airlines makes more money for INC.

rightttttttttttttttttt!

 

[Jon Rivoli]

rightttttttttttttttttt!

At least right now and the past few quarters with merger and integration costs, Yes, we do.

 

[JumpersAway]

SkyWest Airlines makes more money for INC.

Sort of like being the fastest horse in the glue factory, isn't it?

 

[wms]

SkyWest Airlines makes more money for INC.

Even When profits were more closely matched the payouts weren't even close. I've heard skyw pilots say bonuses would add up to almost ten percent of their pay. Even when we were doing great it was just a few hundred bucks.

 

[EngineOut]

Even When profits were more closely matched the payouts weren't even close. I've heard skyw pilots say bonuses would add up to almost ten percent of their pay. Even when we were doing great it was just a few hundred bucks.

Our financial rewards are based on individual quarterly earnings. I flew with a "minimum hours" per month CA with higher seniority than Jon who said his was $700 before tax. I'm a fly what they give me FO and my bonus was $506 gross. I imagine Jon flew a lot in Q2 = earns more = more bonus. Those "10%" people probably lived at work. This was one of the larger total bonuses we've seen in several years.