Skywest Contract Study Committee

[Nevets]

Contents
• Suggested Priorities for Our First Contract
• SkyWest Airlines—Highlights of Ability to Pay Analysis
• An Analysis of SkyWest Airlines’ Financial and
Competitive Positions and Ability to Improve Pilot Pay
and Working Conditions
http://www.skywestalpa.org/documents/ContractStudyCommitteeReportOct07.pdf

 

[Nevets]

Dear Fellow SkyWest Pilot:

SkyWest is a good place to be a pilot. We have reasonably good work policies and, in most
cases, have a good relationship with management. Like any place, however, there’s always
room for improvement.

One of the most important improvements we seek is to change those work policies into
enforceable work rules, bound by a contract between the pilots and management. While we’re
at it, of course, we’ll take the opportunity to try to improve our existing work policies and pay
scales in the areas that are deficient.

Over six months ago, your SkyWest Pilots ALPA Organizing Committee formed a Contract
Study Committee, with the purpose of identifying areas in our existing policies and pay scales
that our pilots feel need improvement. The Organizing Committee wants to “hit the ground
running” to get our first contract as soon as possible.

To learn what is important to our pilots, the Contract Study Committee conducted two
telephone surveys through the Wilson Center for Public Research. The first focused on
identifying the top concerns of the pilot group, and the second specifically focused on pilot
fatigue. There were more than 1,000 pilot responses to the two surveys. We then distilled these
down to the general areas you feel need improvement. These are included in the report in the
Section titled “Suggested First Contract Priorities.”

Next, we asked ALPA’s Economic and Financial Analysis Department (E&FA) to prepare a
report on whether SkyWest has the operational and financial ability to address the abovementioned
concerns and remain competitive in the current environment. We have included
highlights of E&FA’s analysis as well as the full report in Sections 2 and 3.

This report is the result of our committee’s work over the past six months. This is not intended
to be an exhaustive list of the items we’ll be working on for the first contract, but rather a list
of the most important topics of concern to the pilot group. In the coming weeks we’ll begin
preparing a proposed first contract. This will be built largely on our existing Crew Policy
Manual with the most substantive changes in the areas listed in the attached report and areas
you suggest in the coming months.

It’s our hope that this report will begin a vigorous discussion of what needs to be accomplished
to make SkyWest an even better place to work. Please take a moment to review this report to
see if it addresses most of what is important to you personally. We invite your comments.

In unity,

Frank Bowlin Paul Millsap
[email protected] [email protected]
C: 831-247-0326 C: 435-225-3463

Contract Study Committee
SkyWest Pilots ALPA Organizing Committee

 

[USCtrojan]

Good Post Nevets. Thank you for the info.

Trojan

 

[Nevets]

Suggested First Contract Priorities

SkyWest Pilots ALPA Organizing Committee
Contract Study Committee

1. A contract that spells out a SkyWest pilot’s rights and responsibilities in a clear and
unambiguous manner.
2. A compensation system that ensures all SkyWest pilots will be fairly rewarded for their
contributions to SkyWest’s substantial financial success (see attached SkyWest financial
and operational analysis). All SkyWest pilots should have their “real” income protected year
over year through annual adjustments reflecting increases in the cost of living.
3. A contract that promotes adequate staffing and efficient crew utilization through a range of
financial incentives, penalties, and positive policies and practices.
4. A contract that provides for scheduling processes, practices, and parameters that minimize
pilot fatigue due to long duty days, time-zone crossing, back-of-the clock flying, etc.
5. A contractual dispute resolution process that addresses individual pilot problems in a
timely manner and that provides individual pilots with effective “due process” protections.
6. A dispute resolution process that promotes conversation and problem solving between the
Association and SkyWest management.
7. A contract that contains Association rights that will allow our new organization to fulfill its
responsibilities in a professional and effective manner.
8. A contract that both protects and enhances SkyWest pilot flying and career opportunities,
and provides job and career security in the future.
9. A contract that provides for a fair relationship between the rate structure and equipment
type or seat range and accounts for multiple certification responsibilities and productivity
enhancements.
10. Vacation:
a. Contract language that requires adequate provision of biddable vacation slots so that all
pilots can use earned and accrued vacation.
b. The contract will calculate vacation compensation in a manner that will maintain
normal monthly income without requiring excess flying.
11. Improve the quality of life for reserve line holders through:
a. Longer call out
b. Limits on ready reserve
c. Reserve day trading with off duty time
d. Increase minimum days off
12. A contract that maintains and improves pilots’ economic security benefits, e.g., retirement,
health, life and disability insurance.
13. Modify the retirement program in a manner that will eliminate the penalties associated
with the IRS application of the HCE discrimination test.

 

[Bako Cap]

Well put together.

 

[Hawkeyeguy]

Please all of you out there, take a minute and call the Skywest pilots you know and encourage them to vote.

Thank you for your support!

 

[jea]

Please all of you out there, take a minute and call the Skywest pilots you know and encourage them to vote.

Thank you for your support!

please dont... we are not retarded. we have the information. some want alpa others dont. i cant wait for this to be over with!

 

[Nevets]

please dont... we are not retarded. we have the information. some want alpa others dont. i cant wait for this to be over with!

Yes but it never hurts to get someone else's perspective. Nothing wrong with disseminating more information to as many people as possible.

 

[Nevets]

SkyWest Airlines—
Highlights of the Ability to Pay Analysis

Operational/Performance
1. SkyWest has demonstrated the ability to attract and maintain profitable long-term air
service agreements with mainline operators in order to reduce their earnings exposure.
2. SkyWest has grown from being the 6th largest regional carrier in terms of scheduled
capacity, back in 2001, to the largest in 2007.
3. The significant growth in scheduled capacity was accomplished without a sacrifice to
profitability.
4. SkyWest has one of the youngest fleets in the industry which significantly contributes to
keeping maintenance cost down.

Financial
1. SkyWest has generated over $100 million in operating income in each of the past five years;
$168 million in 2006 alone.
2. This strong operating income performance has resulted in very competitive industry
operating margins of 9-15%1 .
3. SKYW (SkyWest, Inc. including both SkyWest Airlines and ASA) has a very strong balance
sheet.
a. SKYW’s strong liquidity provides the ability to meet short term/on-going obligations
which provides continuing financial stability.
b. SKYW has the largest cash balance in the regional airline industry.
c. It had a cash balance of $677 million as of the second quarter of 2007.
d. The cash on hand represents nearly three months of operating expenses. This is well
above the minimum of 1.5-2 months that E&FA feels is necessary for financial health.
e. SKYW’s ratio of current assets to current liabilities (current ratio) is among the best in
the industry at 2.7.
f. SKYW’s ratio of total liabilities to total assets (the total debt ratio) is .69 and highly
competitive. This relationship between long-term liabilities and assets provides a strong
indicator of the carrier’s ability to meet its long-term liabilities.

 

[Hawkeyeguy]

Everyone knows someone at SkyWest, call them and encourage them to vote. If they have questions encourage them to contact someone at the SkyWest ALPA OC.

Thanks for your help and support.

Hawkeyeguy