SKYW: SkyWest has finalized an agreement to acquire 100 Mitsubishi Regional Jets

[AntiJedi]

I guess you can try an "Indy Air" type operation, but that didn't turn out so well.

Start small, and you'd be just fine. The experimental code-share with Airtran wasn't for nothing. It was testing the waters.

 

[Nightrain_080]

Maybe the Phx base will be one of OO's biggest after all.

 

[goahead]

I flew an FAA mx inspector to Nagoya to look over initial work on it and he had some "choice" words that I won't repeat. I'm sure it will......turn out.....great. Good luck!


Bye Bye---General Lee

Sure ya did......

 

[Jon Rivoli]

The "100 seater?" For who? The only way to change legacy scope is in BK, and with consolidation, it will be tougher to get there due to less competition and fares remaining higher. I guess you can try an "Indy Air" type operation, but that didn't turn out so well. Also, the jet you ordered, has it flown yet? Do you know anything about it? I flew an FAA mx inspector to Nagoya to look over initial work on it and he had some "choice" words that I won't repeat. I'm sure it will......turn out.....great. Good luck!


Bye Bye---General Lee

Look who you have running your airline. Bankruptcy is part of the NW business model. Get what you can through negotiations, get the rest from the judge. The first thing Anderson did was violate all of his vendor contracts, then said sue me and let's see what you get. I wouldn't be so cocksure if I were you.

The only reason Delta is laying out the cash for those 900's is because a regional with a couple hundred 90 seaters would be a viable "independent" airline and with SkyWest Inc. operating half of you flight schedule, there wouldn't be too much you could do about it. Sign up for domestic code share or go the way of Pan Am.


Bye Bye---Commuter Pilot

 

[Jon Rivoli]

I just hope none of those end up with an Eskimo on their tails. Unless I'm in the left seat. . .

We are hiring.

 

[GogglesPisano]

The only reason Delta is laying out the cash for those 900's is because a regional with a couple hundred 90 seaters would be a viable "independent" airline and with SkyWest Inc. operating half of you flight schedule, there wouldn't be too much you could do about it. Sign up for domestic code share or go the way of Pan Am.


Bye Bye---Commuter Pilot

Apparently you're not familiar with the Delta PWA.

 

[Jon Rivoli]

Apparently you're not familiar with the Delta PWA.

If we operate half of you flight schedule and carry 25% of you passengers and decided that the terms of your latest CPA are unacceptable, you PWA would be bumwad. That is why Anderson is spending billions on RJ's, so he holds the leash on them. If we have 200 MRJ's and a few hundred -700's and -900's, you can keep your 40 -900's and let Gojets fly them. Delta represent's less than half of our flying and that proportion is shrinking.

 

[GogglesPisano]

If we operate half of you flight schedule and carry 25% of you passengers and decided that the terms of your latest CPA are unacceptable, you PWA would be bumwad. That is why Anderson is spending billions on RJ's, so he holds the leash on them. If we have 200 MRJ's and a few hundred -700's and -900's, you can keep your 40 -900's and let Gojets fly them. Delta represent's less than half of our flying and that proportion is shrinking.

Then we're agreed. You won't be flying the Mutsu's for Delta. Good luck with "Indy II."

 

[Jon Rivoli]

Then we're agreed. You won't be flying the Mutsu's for Delta. Good luck with "Indy II."

Agreed, but a lot of Delta passengers will probably get to ATL, MSP, JFK and SLC on SkyWest Airlines. Thanks for the good wishes. You also.

 

[Ops check good]

Start small, and you'd be just fine. The experimental code-share with Airtran wasn't for nothing. It was testing the waters.

If I remember correctly it went well too. Had SWA not purchased AT I believe the code share would have grown.

 

[IBNAV8R]

Then we're agreed. You won't be flying the Mutsu's for Delta. Good luck with "Indy II."

Inc, has the second largest fleet IN THE WORLD and a boatload of cash.

$4.2B to buy some jets?

To put it in perspective:
Delta bought NWA for $2.6B?
Delta bought 49% of Virgin Atlantic for $360M?
UAL bought CAL for $3B?

NO ONE is too big to fail but, I'm thinking this is not exactly the same as Indy.

 

[XPOO]

If code-sharing is the future of this industry, no one is in a better position to succeed than SkyWest, Inc. Let's the chips fall where they may.

 

[asayankee]

If anybody thinks they spent $4.2 BILLION on aircraft and haven't already figured out where they are going or who they will fly for you are out of touch. Just because it hasn't been announced does not mean that it hasn't already been agreed to.

 

[General Lee]

If code-sharing is the future of this industry, no one is in a better position to succeed than SkyWest, Inc. Let's the chips fall where they may.

Did you guys hear about the new version of the widebody Sopwith Camel? I think you guys should order some....

Btw, there are still limits to code sharing in the pilot contracts.


Bye Bye---General Lee

 

[General Lee]

If anybody thinks they spent $4.2 BILLION on aircraft and haven't already figured out where they are going or who they will fly for you are out of touch. Just because it hasn't been announced does not mean that it hasn't already been agreed to.

Here's the thing, scope clauses, due to better financials (you guys prey on airlines that are weak), means fewer RJs eventually. When you make large orders, you have fewer targets as airlines grow stronger and contracts become ammended. You aren't the only game in town (Republic and TSA are positioning themselves too), and if you do go the Indy Air route, you saw how that ended quickly. Legacies and LCCs don't really like new entrants. Virgin America still hasn't made a sustained profit. Hoping that mainline pilots will forget about scope and give it "all away" just won't happen. Most of the junior guys at the legacies now went through some sort of downsizing due to furloughs, BKs, and Regional growth. That just won't be forgotten. So, there may be a scramble now from your airline and the likes of Republic etc to get deals done ASAP, because things are changing, in favor of mainlines again.


Bye Bye---General Lee

 

[AntiJedi]

and if you do go the Indy Air route, you saw how that ended quickly.

I highly, highly doubt that SKYW, Inc. is just going to play the same game that ACA management did with United. It's entirely possible to have an at-risk operation on top of the current contracted work. Expressjet did it until CO pulled the planes back into contracted work. Mesa is STILL doing it in Hawaii. Republic BOUGHT their own at-risk operation, and despite some grumblings from United, Republic STILL goes about its business with both at-risk Frontier, AND their contract regional units.

If you truly believe that no one has learned from Indy's experience, you're crazy. To say that SKYW, Inc. can't use what they learned from both Expressjet's operation, and SkyWest's own at-risk venture, and then continue to assert this notion that "they're just regionals, so they can't survive without sucking off someone else's teat"? That's just plain ignorant.

 

[Jon Rivoli]

Here's the thing, scope clauses, due to better financials (you guys prey on airlines that are weak), means fewer RJs eventually.

It's rather funny how much faith you put in a piece of paper, especially considering who is running your airline.

When you make large orders, you have fewer targets as airlines grow stronger and contracts become ammended.

CPA's are going the way of the dodo. In the future, what makes sense economically will happen. The laws of economics aren't negotiable as the UAW is learning.

You aren't the only game in town (Republic and TSA are positioning themselves too),

True, but we have by far the strongest balance sheet.

and if you do go the Indy Air route, you saw how that ended quickly.

There business plan called for fuel in the neighborhood of $30bbl and they went head to head with UAL. Legacies no longer own the metal to replace the capacity provided buy the regionals, 88 717 notwithstanding. 1980's engines on a 1960's airframe vs. all new technology. Those 717's will be parked right next to the CRJ 50's out in the desert. Along side the MD-80's too for that matter.

How many narrow bodies does Delta have on order compared to your current fleet. History is a big green weenie heading strait toward your ()*().

Legacies and LCCs don't really like new entrants.

Unless they can profit through mutually beneficial arrangements. Airlines make money selling tickets, they lose money operating airplanes.

Virgin America still hasn't made a sustained profit.

I hear their parent company just got a large infusion of cash.

Hoping that mainline pilots will forget about scope and give it "all away" just won't happen.

They already gave up most, history, fate and a judge will do the rest.

Most of the junior guys at the legacies now went through some sort of downsizing due to furloughs, BKs, and Regional growth. That just won't be forgotten.

And they will become more senior at the legacies and will piss on the heads of junior pilots as has always been the case. I was once told by a UAL pilot about how when discussing a new contract with a Captain, he said his favorite part of the new contract was furlough protection. The Captain calmly informed him that if they came after his paycheck, 'You're on the street.' You guys never learn.

So, there may be a scramble now from your airline and the likes of Republic etc to get deals done ASAP, because things are changing, in favor of mainlines again.

They are changing alright, but the future won't look like the past. It never does. Ten years ago, who could have imagined the changes that took place? Ten years from now the changes will likely be just as dramatic. Neither you nor I know what it will look like, but I'm not betting on the past.

Bye Bye---General Lee

See you around.

 

[Erlanger]

Has it occurred to anyone that these planes may not be flown by SkyWest or ASA/XJet? Most of you have no idea how Jerry operates. Do you know that Skywest also has a plane leasing company? Do you know that Jerry has made deals before for planes (though not this many at one time) and then sold the slots to other airlines. Jerry is a speculator with planes and he makes money at it. Do you know who Steven Udvar-Hazy is and his relationship with SkyWest?

I can also say that whenever SkyWest has bought airplanes before, that within 24 hours or so, management have come out and spoken about it and what it means for the company. Well Jerry and the gang are completely mum on this. Not a word, complete silence from all. I'm finding it all strange. The press release mentioning that these are replacement aircraft is BS. Something else is going on and I don't think he's planning on an Indy type operation either. Mitsubishi has to meet certain conditions, like deliver it when they say or Jerry can break this contract. But this deal gives SkyWest, Inc a lot of options depending on how this industry goes the next few years.

 

[Jon Rivoli]

Has it occurred to anyone that these planes may not be flown by SkyWest or ASA/XJet? Most of you have no idea how Jerry operates. Do you know that Skywest also has a plane leasing company? Do you know that Jerry has made deals before for planes (though not this many at one time) and then sold the slots to other airlines. Jerry is a speculator with planes and he makes money at it. Do you know who Steven Udvar-Hazy is and his relationship with SkyWest?

I can also say that whenever SkyWest has bought airplanes before, that within 24 hours or so, management have come out and spoken about it and what it means for the company. Well Jerry and the gang are completely mum on this. Not a word, complete silence from all. I'm finding it all strange. The press release mentioning that these are replacement aircraft is BS. Something else is going on and I don't think he's planning on an Indy type operation either. Mitsubishi has to meet certain conditions, like deliver it when they say or Jerry can break this contract. But this deal gives SkyWest, Inc a lot of options depending on how this industry goes the next few years.

All true. When it's parked on the ramp and they tell you to go fly it, then you can believe it. I know who Steve Hazy is, he has been on the SkyWest BOD for a long time.

Realize that the first delivery of these aircraft won't be until Hillary is President. Anything can happen in the mean time.

 

[AntiJedi]

Do you know that Skywest also has a plane leasing company?

From how I understand the corporate setup, INC. holds the aircraft leases for both SKW and ASQ, and sub-leases to both airlines accordingly. Thus, to call them an aircraft leasing company, it really isn't far off from what they do, and overall isn't much different than how the INCs of AMR and US operate.