SkyWest ends 2007 with 9.2% profit increase

[medfly]

See link
http://www.myaviationpage.com/news_view.php?ID=17

 

[MALSR]

too bad you guys don't have a union

 

[John Pennekamp]

I wonder how much of that was due to the cash cow known as ASA?

 

[relief tube]

SkyWest ends 2007 with 9.2% profit increase

.........and a %1 pilot wage increase.

 

[Flyerdan]

Not sure you understand about the raise. I think the 1% was just a future guarantee of a cost of living allowance over and above the raise in the pay scale. My raise was more like 12%. Also, a cost of living allowance isn't very relative when we can renegotiate every year for an additional pay raise (now that's a COLA).

 

[Andy Neill]

.........and a %1 pilot wage increase.

At the end of 2005, SkyWest Inc employed 13647 at SKyWest and ASA and had a total wage, salry, benefits expense of $31,818 per employee.

At the end of 2006, the average exmployee expense was $46,639.

That is a year over year increase of 46.6%. I doubt the average pilot saw that kind of increase. I further believe the average pilot will see a much larger than 1% increase in his W-2 due to advancement and longevity.

 

[Nevets]

At the end of 2005, SkyWest Inc employed 13647 at SKyWest and ASA and had a total wage, salry, benefits expense of $31,818 per employee.

At the end of 2006, the average exmployee expense was $46,639.

That is a year over year increase of 46.6%. I doubt the average pilot saw that kind of increase. I further believe the average pilot will see a much larger than 1% increase in his W-2 due to advancement and longevity.

A couple of notes here.

What was the percentage of longevity pay rate increase and COLA increase for 2006? Was it a combined average of 46.6%? Did the company pay a higher percentage of medical benefits and or increase matching funds to come up with the 46.6% increase? If "the average pilot" didn't see this increase, then who did? Because if so, the employees that did must have had a bigger percentage increase in salaries, wages, and benefits to make up for the part that "the average pilot" didn't see.

According to Skywest's own SEC

"The cost per ASM of salaries, wages and employee benefits decreased to 3.3¢ for the year ended December 31, 2006, compared to 3.4¢ for the year ended December 31, 2005. The average number of full-time equivalent employees increased 8.6% to 14,450 for the year ended December 31, 2006 from 13,304 for the year ended December 31, 2005. The increase in number of employees was primarily due to the addition of personnel required for the new regional jet flying and due to the addition of personnel required for new cities added to our ground handling service contracts."
http://www.sec.gov/Archives/edgar/da...-5838_110k.htm

Also from the same SEC filing:

"Our total ASMs generated during the year ended December 31, 2006 increased 58.9% from the year ended December 31, 2005"
http://www.sec.gov/Archives/edgar/da...-5838_110k.htm

ASM increased 58.9%, and salaries, wages and employee benefits increased 55.2%.

 

[Nevets]

Not sure you understand about the raise. I think the 1% was just a future guarantee of a cost of living allowance over and above the raise in the pay scale. My raise was more like 12%. Also, a cost of living allowance isn't very relative when we can renegotiate every year for an additional pay raise (now that's a COLA).

Negotiate?

Anyways, yeah, most everybody gets a raise at their anniversary date. But for that rate to have the same buying power year over year, you need to have a COLA that is at least more than 1%!

 

[Quack]

At the end of 2005, SkyWest Inc employed 13647 at SKyWest and ASA and had a total wage, salry, benefits expense of $31,818 per employee.

At the end of 2006, the average exmployee expense was $46,639.

That is a year over year increase of 46.6%. I doubt the average pilot saw that kind of increase. I further believe the average pilot will see a much larger than 1% increase in his W-2 due to advancement and longevity.

Do you like grape or strawberry KoolAid?

 

[Andy Neill]

Do you like grape or strawberry KoolAid?

No need for either, thanks. I am no longer there.

Did you find an error in anything I posted (derived from the 2005 and 2006 annual reports) or were you just making interesting conversation?

 

[Andy Neill]

A couple of notes here.

What was the percentage of longevity pay rate increase and COLA increase for 2006? Was it a combined average of 46.6%? Did the company pay a higher percentage of medical benefits and or increase matching funds to come up with the 46.6% increase? If "the average pilot" didn't see this increase, then who did? Because if so, the employees that did must have had a bigger percentage increase in salaries, wages, and benefits to make up for the part that "the average pilot" didn't see.

I don't know. I don't have sufficient data. That's why I used terms like "I doubt" and "I believe".

 

[Mookie]

No need for either, thanks. I am no longer there.

Did you find an error in anything I posted (derived from the 2005 and 2006 annual reports) or were you just making interesting conversation?

I can assure you that mine didn't go up 46.6% or whatever you claim it was during that period. In fact, despite going from EMB CA to RJ Ca i took a W2 paycut. riddle me that.....

but like you said, you are not there anymore, and neither am as a matter of fact.

 

[Flyerdan]

Negotiate?

Anyways, yeah, most everybody gets a raise at their anniversary date. But for that rate to have the same buying power year over year, you need to have a COLA that is at least more than 1%!

Seems like what you are saying is that if I negotiate and receive a 10% raise every year but don't have a guaranteed cost of living increase in a long term agreement that I'm not actually getting a raise. Seems like you have a fuzzy math problem.

 

[Gr82Aviate]

Not sure you understand about the raise. I think the 1% was just a future guarantee of a cost of living allowance over and above the raise in the pay scale. My raise was more like 12%. Also, a cost of living allowance isn't very relative when we can renegotiate every year for an additional pay raise (now that's a COLA).

The only way you saw 12%(without an equipment change), was if you're still in your first year...

 

[Gr82Aviate]

At the end of 2005, SkyWest Inc employed 13647 at SKyWest and ASA and had a total wage, salry, benefits expense of $31,818 per employee.

At the end of 2006, the average exmployee expense was $46,639.

That is a year over year increase of 46.6%. I doubt the average pilot saw that kind of increase. I further believe the average pilot will see a much larger than 1% increase in his W-2 due to advancement and longevity.

Andy, while I'd love to see an increase of 46.6%, I can assure you the increase I saw was not even in that ballpark!!


I would like to know what employees(other than upper management) came close to seeing that kind of an increase?

 

[Nevets]

Seems like what you are saying is that if I negotiate and receive a 10% raise every year but don't have a guaranteed cost of living increase in a long term agreement that I'm not actually getting a raise. Seems like you have a fuzzy math problem.

What negotiation? Who's to say you get to "negotiate" every year? And where do you get the "10% raise every year" bit from? How many years did it take the Brasilia pilots to see ANY COLA? What happened to their 10% raise every year?

Anyways, there is a difference between longevity increase and cost of living increase.

 

[Ben Dover]

At the end of 2005, SkyWest Inc employed 13647 at SKyWest and ASA and had a total wage, salry, benefits expense of $31,818 per employee.

At the end of 2006, the average exmployee expense was $46,639.

That is a year over year increase of 46.6%. I doubt the average pilot saw that kind of increase. I further believe the average pilot will see a much larger than 1% increase in his W-2 due to advancement and longevity.

Andy,
While your information is interesting, I'm not sure it reveals anything other than the ratio of expenses to employees went up.

As you recall expenses include things like fuel reimbursement, and the cost of opening new stations. It would also include employee compensation & benefits. Without a little more data, it may be premature to assume how much of that money went to employees.

 

[hoover]

Their profits rose, but so did their costs. In the end they got a return on investment of about 4.7%...for both years.