Skyway Meeting with Jim

[DCMartin]

Anyone attend the meeting tonight and hear anything meaningful?

 

[Propsfullfwd]

Well this is second hand...

Run while you can. Not getting anymore jets unless Delta files, oil goes below 20 bucks, or if they get a deal with another major. Beeches going to start going away in 08. Thanks for your service at Skyway.

Props

 

[flytheblue]

All that being said, Ive heard they are putting together a June 20th class now. What's going on??

 

[HowlinMadMurdoc]

Second-hand info alert...

Heard that Jim said we won't get any additional 328's until either, 1) Delta files BK, or 2) Banks "sense" an immenient BK filing by Delta. The banks won't give us a "deal" since they are getting full lease payments from Delta. That makes sense - why should the banks take a hit on their investment just so we can get more planes? Additionally, Delta won't release the planes. Supposedly, Mesa was willing to work a deal with us but the banks said no. There are other non-Delta leased 328's on the market but their lease prices are high too. I guess the word is Delta is paying double the amount we are for their 328's. Our lease payments were renegotiated during Midwest's financial problems a few years ago.

I guess the E145's came up and, basically, it appears we can walk away from our deal with Embraer which is what Midwest/Skyway will probably do. Maybe when the 50 seat market plummets, we can pick up a few for a song.

The other issue was Midwest's desire to be cash-neutral this year. According to the numbers, we (Midwest and Skyway) are on track to be cash-neutral by December 2005. However, if oil prices drop, we'll make a profit. If oil prices increase, we'll take a loss but not much. MAG (Midwest Air Group) is partially hedged on fuel this year.

So, we'll see what happens next. Skyway is/will be short-staffed for Beech F/O's and the last furloughed class has been recalled. Don't know the actual numbers returning.

At this point, I guess TH and Company believe being cash-neutral is a little more important than getting overpriced 328's from Delta.

HMM

 

[Captainjerky]

Hiring?

This didn't come from the meeting, but answers questions just the same.
The company is hiring to the Beech because so many people have left. All those people who were hired for the failed Delta deal were in jeopardy of furloughs anyway, so many chose to leave and start over at other airlines. So many have left, we have called back a cancelled ground school to make up the deficit. Since I doubt people will stop leaving once we hit our magic staffing numbers, we might just run the occasional ground school to make up for attrition on the bottom end of the seniority list.