SkyWest acquisition

[Rogue5]

re: the world according to lowcur

bloviate \BLOH-vee-ayt\, intransitive verb:
To speak or write at length in a pompous or boastful manner.

 

[Harlequin]

The DL situation will dictate what Skywest will do, but a bankruptcy or cutback of Skywest routes will more than likely trigger a return to DL of the CL65's and an LCC startup.

Some generally good points, but I don't agree with the last supposition. I can't see SKW going the LCC route. SKW's senior management has openly scoffed in the past at ACA's attempt to go that route and has repeatedly said that you can't operate the CL65 on an 'at risk' basis.

The SKW RJ pilots wanted more money to fly the CRJ700...they'll demand it (and rightly so) for anything in the 100-120 seater class. Add in the fact the need to add a third Flight Attendant once you add the 101st seat, plus demands for more money from the Mechanics and you can quickly see the overheads going through the roof.

I suspect that SKW is hoping that it's presence in IAH will provide it with a foot in the door to make a bid for Expressjet when the opportunity arises.

This is, above all, a contract flying company and suggestions of it becoming a LCC are, I believe, without foundation.

 

[Tooslow]

I heard Skywest is going to buy Mesa, and force the pilots to take pay cuts, fly CRJ's for the price of Brazilias...and dumps the union thing because the president makes almost $500,000 a year...

 

[Harlequin]

$500,000?.....$500,000?!.......A couple of million $'s a year perhaps......but $500,000??!!

 

[ILStoMinimums]

Yeah - more like a couple of million!

 

[OtterFO]

ILS,


You neglected to mention the other half of ERA. There are three large rotor bases operating everything from B-206B's to B-214ST's. SkyWest is pretty conseritive with their business. The rotor world is far different from fixed wing scheduled 121.

 

[ILStoMinimums]

Fully agree - I'm sure Rowan probably would split the two if the need arises, but then again who knows? Pretty hard to tell what they are doing or plan to do.

 

[lowecur]

Harlequin

Some generally good points, but I don't agree with the last supposition. I can't see SKW going the LCC route. SKW's senior management has openly scoffed in the past at ACA's attempt to go that route and has repeatedly said that you can't operate the CL65 on an 'at risk' basis.

The SKW RJ pilots wanted more money to fly the CRJ700...they'll demand it (and rightly so) for anything in the 100-120 seater class. Add in the fact the need to add a third Flight Attendant once you add the 101st seat, plus demands for more money from the Mechanics and you can quickly see the overheads going through the roof.

I suspect that SKW is hoping that it's presence in IAH will provide it with a foot in the door to make a bid for Expressjet when the opportunity arises.

This is, above all, a contract flying company and suggestions of it becoming a LCC are, I believe, without foundation.

I believe there was a thread a month or so ago where the CEO was in the Denver pilot's lounge discussing the purchase of Embraer 190's for a possible LCC startup. If this rumor is fact, then they certainly are thinking about it.


If the CL 65's are returned to DL, then the existing contract with scope limitations would determine what mgt would do. If rates have been established for a 190 with 100 seats, then that's the way they would go. Not every LCC has to have mainline a/c with long haul capability to survive. If they need to hammer out a new contract, then they would try that before seeking a different OC.


I don't see any regional purchasing EXJ. CAL's future is not sealed in cement, and trying to find a home for 200++ RJ's would be difficult. I see CAL eventually being merged with NWA along with EXJ.

 

[belchfire]

Please add Corporate Airlines to
the list of those to be purchased...
they'd have money to spare!

 

[Ponchus pilot]

The SKW RJ pilots wanted more money to fly the CRJ700...they'll demand it (and rightly so) for anything in the 100-120 seater class. Add in the fact the need to add a third Flight Attendant once you add the 101st seat, plus demands for more money from the Mechanics and you can quickly see the overheads going through the roof.

And exactly how is it that any group at skywest is going to DEMAND things?

 

[ClearRight]

Stomp our feet and scream "I want it, I want it, I want it!!!"

 

[Harlequin]

And exactly how is it that any group at skywest is going to DEMAND things?

So you imagine that the Pilots are going to say "Sure! We'll fly a 100 seater for nothing extra"..?

 

[lowecur]

So you imagine that the Pilots are going to say "Sure! We'll fly a 100 seater for nothing extra"..?

According to a previous thread, Skywest's contract is good till the 1st or 2nd Quarter of 2005, and the contract has a provision in it to fly up to 99 seats. Don't know what the rates are, but I can only assume it's may be same as the 70 seaters.

 

[Skyboss]

"there will be at least 500 turboprops parked in the desert"

That's about right. Boyd is forecasting a decline, but he forgets one thing. These planes are young and have a load of life and BBD and EMB are looking for more efficient versions to enter the market in 2015 or so. Then you might see some parking. Face it. Dickinson, ND or Gillette, WY can't support a 70 seater and no one is buying turboprops to stick there for 20 years.

 

[Russ]

"Face it. Dickinson, ND or Gillette, WY can't support a 70 seater and no one is buying turboprops to stick there for 20 years"

They stand a chance of simply losing air service. It happened to a number of towns out West. When SkyWest with its 30 seat Brasilias replaced Mesa's 19 seaters a number of towns that had service lost it overnght.