FLIGHT OPERATIONS LEADERSHIP MEETING Q&A
SEPT. 20-21, 2005
SEPT. 20-21, 2005
JERRY ATKIN, SKYWEST, INC. CEO Q&A
Q: What do you see as the vision for ASA’s future?
A: We will operate SkyWest and ASA as separate carriers. One reason is because they
are two big companies and if we keep them separate its keeps the leaders close to where
the rubber meets the road. We don’t want to get out of touch with our people.
We do intend to set high objectives for ASA. I don’t mean to say that to make you feel
bad about your company because you’ve accomplished much and you should be proud of
your many accomplishments. But we intend to move the bar higher.
are two big companies and if we keep them separate its keeps the leaders close to where
the rubber meets the road. We don’t want to get out of touch with our people.
We do intend to set high objectives for ASA. I don’t mean to say that to make you feel
bad about your company because you’ve accomplished much and you should be proud of
your many accomplishments. But we intend to move the bar higher.
Q: Do you see ASA flying for other carriers other than Delta?
A: Our objective is to add a third codeshare to the SkyWest, Inc. portfolio. We want
ASA to be able to competitively bid on other work outside Delta and create growth. We
want to grow to help with the cost competitive side of things and not for growth’s sake.
ASA to be able to competitively bid on other work outside Delta and create growth. We
want to grow to help with the cost competitive side of things and not for growth’s sake.
Q: What is the future of SLC?
A: As much as I know yo u want me to, I cannot give you a definite answer to the future
of ASA’s SLC operation. We have to start where Delta needs SkyWest and ASA to be.
We need to make sure both carriers are equally cost competitive and we plan for new
aircraft to go to both carriers.
of ASA’s SLC operation. We have to start where Delta needs SkyWest and ASA to be.
We need to make sure both carriers are equally cost competitive and we plan for new
aircraft to go to both carriers.
Q: Will we see additional hubs in the future?
A: Based on today’s existing system, I don’t anticipate that since Delta’s hubs are not
changing.
changing.
Q: What about pass privileges?
A: We don’t have a firm answer on that, yet, but honestly, I expect it will be less than
what you have now. It only makes sense since Delta will be adjusting the pass benefits
for their own people.
what you have now. It only makes sense since Delta will be adjusting the pass benefits
for their own people.
Q: What about the fleet plan for ASA?
A: I have no final answer but we will get six CRJ200 in the first half of 2006 and I
expect they will come to ASA. SkyWest, Inc., has 22 CRJ700/900s on firm order for
delivery in 2006-2007 and we still are finalizing the numbers of how many 700s and how
many 900s or 705s we will receive. We anticipate all of these aircraft will be delivered
by July 2007.
expect they will come to ASA. SkyWest, Inc., has 22 CRJ700/900s on firm order for
delivery in 2006-2007 and we still are finalizing the numbers of how many 700s and how
many 900s or 705s we will receive. We anticipate all of these aircraft will be delivered
by July 2007.
Q: What is the plan for our IT needs? Will we move from Delta Technology and
the equipment we currently use?
the equipment we currently use?
A: We want to get full use of the equipment we have and look at the capital expenditures
for equipment we need to replace and or add. We’re still working on that plan.
for equipment we need to replace and or add. We’re still working on that plan.
Q: What is the future of the ATR?
A: Current plans are to retire the ATR from ASA’s fleet by July 2007.
Q: What about adding first class in CRJ700s?
A: We are looking at having all new CRJ700 to include dual class. We are unsure about
retrofitting our current fleet. Financing is the big question there.
BRAD RICH, SKYWEST, INC CHIEF FINANCIAL OFFICER Q&A
retrofitting our current fleet. Financing is the big question there.
BRAD RICH, SKYWEST, INC CHIEF FINANCIAL OFFICER Q&A
Q: Are you concerned about Delta giving growth to other regional carriers?
A: Moderately. We’re confident that we will have the best product, financial resources,
quality of people and good equipment. Combine that and we’re going to get our fair
share of growth. We don’t want to give them a reason to look anywhere else.
quality of people and good equipment. Combine that and we’re going to get our fair
share of growth. We don’t want to give them a reason to look anywhere else.
Q: Will you rectify difference between pilot labor costs?
A: I doubt if we will ever fully reconcile the difference between labor costs but I’m
confident we can work it out. At SkyWest our base wage is low but we make it up in
performance compensation. I think we can make progress by tying it to performance
compensation.
confident we can work it out. At SkyWest our base wage is low but we make it up in
performance compensation. I think we can make progress by tying it to performance
compensation.
Q: Do we still have all our gates at Atlanta?
A: ASA will have all its current gates at Atlanta. We do have our gate subleases from
Delta and US Airways on Concourse D and all gate leases remain as they were before
SkyWest, Inc. purchased ASA.
SAM WATTS, ASA VICE PRESIDENT – PLANNING AND LOGISTICS Q&A
Delta and US Airways on Concourse D and all gate leases remain as they were before
SkyWest, Inc. purchased ASA.
SAM WATTS, ASA VICE PRESIDENT – PLANNING AND LOGISTICS Q&A
Q: What does the contract provision “fly aircraft on own account” mean?
A: It means that we cannot operate flights for revenue generation purposes exclusively
for ASA, with the aircraft covered by the agreement. The contract does include specific
parameters and limitations on the operation of flights under the “EV” code in selected
Delta hub cities.
for ASA, with the aircraft covered by the agreement. The contract does include specific
parameters and limitations on the operation of flights under the “EV” code in selected
Delta hub cities.
Q: How will average guys know how ASA is performing against the metrics we are
given in the Delta contract?
given in the Delta contract?
A: It is every leader’s responsibility to keep the information out there for all team
members so that we all know where we stand. We’ll use myASA, division publications,
face to face briefings and other means to ensure all ASA team members are kept up to
date on our goals and how we are performing against each of the goals.
members so that we all know where we stand. We’ll use myASA, division publications,
face to face briefings and other means to ensure all ASA team members are kept up to
date on our goals and how we are performing against each of the goals.
