Skywest, ASA DOH integration?

[John Pennekamp]

since you asked so politely.

We are 2800 some odd pilots to their 1700 whatever. We were the profitable company that bought them. They are the proverbial red-headed step child, we are the foster-parents who were bullied by a bankrupt company that we sell services to into taking them into our fold. This is not the pilot's fault or a character assessment of them (even though Jmoney shortsightedly and incorrectly sees it that way).

IF the vote goes NO and IF they decide to merge us, then I'd expect the outcome to be reflective of those items above, using the ALG/Mohawk deal to structure it, using fences, 2 to 1 or any number of things to offer some sort of 'protection.'

SkyWest Airlines is Jerry's baby that he brought back from the dead and built into what it is today. There's no way he regards us the same as the company he was cornered into buying to keep his relationship with DAL.

what I tend to believe more is what I thought at the outset, which is that ASA will continue to shrink and/or be sold off.

there, that's the best I can do in a hurry. I already know you'll disagree, Jmoney will wet his pants replying, and all the usual SkyWest haters will pile on. so...

enjoy it!

SkyNation, the ASA pilots have proven over the last two months that we can bring SkyWest Inc to its knees financially, and ruin its relationship with Delta by "flying safe". That's why we have a contract. If SkyWest Inc screws us with seniority, SkyWest Inc is bankrupt, because we'll kill it. That's a promise, and Jerry knows it.

We have the power. Y'all are a bunch of lap dogs. Jerry knows this too.

"All of your left seats are ours"!

 

[Speedtape]

since you asked so politely.

We are 2800 some odd pilots to their 1700 whatever. We were the profitable company that bought them. They are the proverbial red-headed step child, we are the foster-parents who were bullied by a bankrupt company that we sell services to into taking them into our fold. This is not the pilot's fault or a character assessment of them (even though Jmoney shortsightedly and incorrectly sees it that way).

IF the vote goes NO and IF they decide to merge us, then I'd expect the outcome to be reflective of those items above, using the ALG/Mohawk deal to structure it, using fences, 2 to 1 or any number of things to offer some sort of 'protection.'

SkyWest Airlines is Jerry's baby that he brought back from the dead and built into what it is today. There's no way he regards us the same as the company he was cornered into buying to keep his relationship with DAL.

what I tend to believe more is what I thought at the outset, which is that ASA will continue to shrink and/or be sold off.

there, that's the best I can do in a hurry. I already know you'll disagree, Jmoney will wet his pants replying, and all the usual SkyWest haters will pile on. so...

enjoy it!

Skywest bought ASA at a bargain basement price.
The sale infused needed money into "D" so that they could make it to bankruptcy. Skywest was not cornered into anything, except to revert to survival mode. Skywest really had NO choice because, at the time, 40% of their revenues came from "D." If "D" had not received the money, they would have ended up in the other type of Bankruptcy Court--asset liquidation to satisfy creditors. Had that happened, Skywest would have probably been right behind them with the loss of revenues.

Skywest received a 15 year marketing agreement with "D" for both Skywest Airlines and ASA that had to subsequently be affirmed by the Bankruptcy court, and was! ASA will not shrink and go away as a result. Your future was neary guaranteed because of the purchase of ASA. Get off your soap box of "I'm OK, You are Not OK!"

By the way, we are used to being the "Redheaded Step Child!" AS long as your airline is dependent on "U" and "D" for nearly 100% of your revenues, You and your group are also the "Redheaded Step Child," at least for the last 14 of the 15 year marketing agreement! You may be in Denial, but it doesn't change the reality!

How much money can you make as an independent flying customers from SGU and Elk City to SLC in a Navaho?

 

[strega7]

How much money can you make as an independent flying customers from SGU and Elk City to SLC in a Navaho?

Probably not much. But the 1/2 billion dollars in cash the company has might help it transform SkyWest Inc. into something else.

How is the branded flying doing at Xjet?

 

[PBRstreetgang]

Strega
1/2 bil isn't alot when there are hundreds of multi million dollar A/C on the property. The reason that SKYW hasn't gone solo is simple, money! In an industry where 1-2% is the norm, why would they strike out on their own when they can continue to reap 6-9% from UAL and DAL. SKYW can afford Tony F. grade fukkups when the profit levels are at 6-9%. 1-2% is a whole new ball game and if thats what they have on the table watch your wallet, because JA is gonna look for profits and your wallet is unlocked.
PBR

 

[Gr82Aviate]

Probably not much. But the 1/2 billion dollars in cash the company has might help it transform SkyWest Inc. into something else.

How is the branded flying doing at Xjet?

I believe it's over 2/3 billion now?...

 

[strega7]

Strega
1/2 bil isn't alot when there are hundreds of multi million dollar A/C on the property. The reason that SKYW hasn't gone solo is simple, money! In an industry where 1-2% is the norm, why would they strike out on their own when they can continue to reap 6-9% from UAL and DAL. SKYW can afford Tony F. grade fukkups when the profit levels are at 6-9%. 1-2% is a whole new ball game and if thats what they have on the table watch your wallet, because JA is gonna look for profits and your wallet is unlocked.
PBR

Dude I completely agree. My point was that if ASA went nuclear, Inc. would have the cash to extract itself from that purchase and return to the way it was pre-ASA. As long as there is money to be made as a provider, SkyWest will do that. Express jet was forced to find work for it's aircraft after the CAL reduction and for the pilots sake, I sure hope it works!

 

[John Pennekamp]

Dude I completely agree. My point was that if ASA went nuclear, Inc. would have the cash to extract itself from that purchase and return to the way it was pre-ASA. As long as there is money to be made as a provider, SkyWest will do that. Express jet was forced to find work for it's aircraft after the CAL reduction and for the pilots sake, I sure hope it works!

I'm sure the shareholders would be willing to fork that cash over and eat the decline in stock price too... NOT!

 

[strega7]

I'm sure the shareholders would be willing to fork that cash over and eat the decline in stock price too. NOT!

As opposed to the stock begin worth zero if ASA tries to burn the house down?

"If SkyWest Inc screws us with seniority, SkyWest Inc is bankrupt, because we'll kill it. That's a promise, and Jerry knows it."

You don't think the shareholders would spend some cash to save their investment?

 

[John Pennekamp]

As opposed to the stock begin worth zero if ASA tries to burn the house down? You don't think the shareholders would spend some cash to save their investment?

No, they'll pressure Jerry to make nice and solve the labor problems. Just like Delta did, resulting in our TA. You know Jerry showed up at negotiations personally this time, right?

 

[~~~^~~~]

You know Jerry showed up at negotiations personally this time, right?

I did not know that, but it points out a legitimacy problem for the National Mediation Board that they should have solved by dragging him in much earlier.

It is difficult to read the tea leaves on SKYW going forward. The ASA deal (was/is) good for the Company, if ratified. It allows SKYW to get back in the game at a time Delta will probably be making some fleet decisions as additional mainline aircraft in 2008 allow outsourcing on a 3 to 1 ratio. (This window of opportunity may close with DAL 2009 negotiations)

Further, some inside speculation is that having ASA be ALPA might finally pay off for SKYW as ALPA may take a more active role in aircraft placement and allocation of work going forward.

I think SKYW is still overpriced, but much of the market is overpriced. I made 20% last month on some international investments thanks to Bernake scaring the crap out of folks that the bottom is going to fall out of the dollar. Obviously, that is too much and if the US economy sinks China's exports will rapidly decline. Crud, anyone know of a safe place these days? Anyway....

The factors I see would point to a benefit for SkyWest pilots if they merged with ASA. The pendulum appears to be swinging in ASA's favor.

 

[SSDD]

You guys give yourselves too much credit. Skywest did not settle out of any pressure from you guys. They believe that Mesa is about to self destruct, and they want to be in a position to take advantage.

BTW as I have stated on other threads, much of what's you're getting, Skywest already has. An internal memo from the Skywest DO pretty much confirms that. Some of you think that is an improvement over what you have now, and if it is, I really feel bad for you.

 

[FishandFly]

SkyNation,

Had the ASA pilot group told Atkins that we would take pbs and other pay cuts if he made us one list, he would have said "where do I sign".

Quit complaining about ASA and start recognizing that you should have respect and owe them a debt of gratitude for not selling out.

 

[John Pennekamp]

You guys give yourselves too much credit. Skywest did not settle out of any pressure from you guys. They believe that Mesa is about to self destruct, and they want to be in a position to take advantage.

BTW as I have stated on other threads, much of what's you're getting, Skywest already has. An internal memo from the Skywest DO pretty much confirms that. Some of you think that is an improvement over what you have now, and if it is, I really feel bad for you.

Y'all keep saying "much of what's you're getting, Skywest already has".

You "have" NOTHING.

All you really HAVE is a company manual that outlines what that company MAY do and what you MUST do. It can be changed or ignored anytime, on the company's whim.

What we HAVE is a solid contract that GUARANTEES the same things you currently enjoy and more.

Ours cannot be taken away. Yours can and WILL.

 

[strega7]

Ours cannot be taken away. Yours can and WILL.

Ask any Westair pilot about that.

 

[PBRstreetgang]

Ask any Westair pilot about that.

Didn't most of them interview at SKYW and get hired onto the bottom of the list?
PBR

 

[SSDD]

Y'all keep saying "much of what's you're getting, Skywest already has".

You "have" NOTHING.

All you really HAVE is a company manual that outlines what that company MAY do and what you MUST do. It can be changed or ignored anytime, on the company's whim.

What we HAVE is a solid contract that GUARANTEES the same things you currently enjoy and more.

Ours cannot be taken away. Yours can and WILL.

For some reason you need to feel superior. I guess you need to believe that the last 5 years have not been in bain. While its possible that I could be wrong, I'm trying to point out that not everything that shines is gold.

I don't drink the Kool-Aid, not from the company, and not from the union. Everything needs to be put in context. A bad contract can be worse than no contract at all.

I won't defend, or predict, what Skywest management will do, but given what I know, your gloom and doom scenario for Skywest is not very likely.

 

[strega7]

Didn't most of them interview at SKYW and get hired onto the bottom of the list?

I don't think most came over, but those that did (70-80?) are now in the top 10-15% of the Skywest senority list. They have about 2400 pilots below them. I wish that we could have helped all the Westair guys like that.

I'm not saying what happened to the Mesa owned Westair guys is what is going to happen to the SkyWest owned ASA guys. Just making the point that they (Mesa and Westair) had ALPA, had agreed to a new CBA, and then because of terrible service lost their UAL contract. I would bet that contained in the SkyWest/ASA/Delta contract there is a clause that allows Delta to end ASA's DCI service for lack of performance, service failure, Etc. I'm sure Delta's lawyers were as smart as UAL's lawyers when they were dealing with Mesa.

John Pennekamp
"If SkyWest Inc screws us with seniority, SkyWest Inc is bankrupt, because we'll kill it. That's a promise, and Jerry knows it."

You would probably kill the ASA division of SkyWest Inc. but SkyWest Airlines would continue?

 

[SkyNation]

For some reason you need to feel superior. I guess you need to believe that the last 5 years have not been in bain. While its possible that I could be wrong, I'm trying to point out that not everything that shines is gold.

I don't drink the Kool-Aid, not from the company, and not from the union. Everything needs to be put in context. A bad contract can be worse than no contract at all.

I won't defend, or predict, what Skywest management will do, but given what I know, your gloom and doom scenario for Skywest is not very likely.

took the words right out of my mouth!

 

[John Pennekamp]

For some reason you need to feel superior. I guess you need to believe that the last 5 years have not been in bain. While its possible that I could be wrong, I'm trying to point out that not everything that shines is gold.

I don't drink the Kool-Aid, not from the company, and not from the union. Everything needs to be put in context. A bad contract can be worse than no contract at all.

I won't defend, or predict, what Skywest management will do, but given what I know, your gloom and doom scenario for Skywest is not very likely.

I don't feel superior and have no need to. Perhaps you have an inferiority complex if that's the way you feel.

This isn't about you or me. It's about a contract.

It is INDISPUTABLE that you do not have ANY benefits or work rules that are locked in. Everything, including your pay, can be changed unilaterally, at any time by your management. We have a contract that can only be changed by negotiating.

Stop throwing emotional red herrings into the debate. Try sticking to the issues, and if you can't win on the issues, then concede.

 

[John Pennekamp]

took the words right out of my mouth!

Well eat them and read the above, SkyNation.