Skywest/ExpressJet plan

[Mickey Mouse]

Far from negotiated. They were arbitrated rates. We of course, had no say or input. They're pretty easy to remember.....

Terms and Conditions
1. Compensation
a. Current EMB-145 pay tables will be applied to any 41-50 seat aircraft.
b. New pay tables for 51-90 seat aircraft with rates $2 higher than EMB-145 pay tables.

Thanks

 

[JustaNumber]

New flying should go to XJT. We are less expensive to operate. Granted, SKYW did inherit all the crappy contracts from LXJT and also some from LASA when it bought both of them, but they would be wise to award new flying to XJT because we cost less to operate. It's all in the financial report. Toward the bottom, it breaks down costs per airline.

http://yahoo.brand.edgar-online.com...7379-72825&type=sect&dcn=0001104659-13-082092

The ALPA guys are specifically claiming that the pilot group costs at SkyW are lower than XJT, both in current contracts and comparing the two TAs. I don't have access to all the financial analysis experts they do, but either someone is lying, or our higher labor costs are offset by some other lower costs in another department in order to make our total costs lower than SkyWest's.

 

[Freebrd]

Relax, guys and gals. Let's remember something very important. This TA vote was not about the XJT pilot group holding out for more. It was about the XJT pilot group merely holding-on to what it has. .

Bingo! Exactly correct. Granted that would make it difficult to combine us due to XJT having higher costs & different benefits, but then the Co didn't do that. The TA had different items in the TA for each pilot group.

 

[XPOO]

SkyWest has a higher operating expense due to the amount of at-risk flying it does. When you are buying your own fuel, costs go up.

 

[Jon Rivoli]

The same section of the 10Q shows that SkyWest has operating revenues of 1,479,708 compared to SkyEasts 1,235,877, yet the majority of the flying is done by SkyEast.

The at risk flying is the key difference. It also represents the future of the regional industry. The capacity purchase agreement model is dying. Profits are getting squeezed to nothing and the legacy carriers will continue to play one regional against another to continue to lower costs. Soon it will hit bottom, if it hasn't already, and a transition will have to be made to at risk flying. Delta and United buying the airframes is an attempt to keep it going a little longer, but the end is near. The company with an established at risk flying base, a large number of larger planes and a billion in the bank will survive. Those who are totally dependent on CPAs will fade away.

LExpressjet will likely see shrinkage as the ERJ's leases expire and contracts aren't renewed.

I don't know what leverage you think you have, but if this time 83% voted no, next time there will be fewer of you and the process will repeat until all of the ERJ's are gone.

If you only plan a short stay before moving on then I guess it doesn't really matter. I wouldn't expect any additional flying until you have a joint contract and the merger is complete.

Perhaps someday East and West will be merged, that won't happen until Your merger is complete and costs are brought into line.

That's just my opinion, I could be wrong.

Peace.

 

[BoilerUP]

The leverage is manpower management...

 

[Jon Rivoli]

The leverage is manpower management...

Could you please explain what you mean by this. I don't see how the pilot group has any practical control over this.

 

[BoilerUP]

Could you please explain what you mean by this. I don't see how the pilot group has any practical control over this.

Manpower management has two primary parts: employee recruitment, and employee retention.

If the company cannot properly staff through recruitment (agreed, not really influenced by the pilot group), retention of existing employees becomes critical. While you can't hope to retain everybody, you need to retain enough to maintain existing operations, to say nothing of growth. And you have to give those employees an incentive to stay in order to retain them, principally financial incentives but also possibly intangible (quality of life/lack of BS).

A combination of recruiting falling short and retention breaking down can put the company into a position where it has no choice but to reduce operations due to a lack of staff.

So to the point:

Lifers and company men won't "save" XJT. Without a contract that is "good enough" to keep FOs for bailing for the prospect of a fast upgrade elsewhere and keep those 10-12 year guys that don't want to take a 5 year earnings hit but are concerned about the company as a going concern and further degradation to their W2s and QOL...the inevitable will catch up.

I have never been a "great pilot shortage" proponent, but the most basic of Econ 101 is starting to take effect and you can see it in hiring at SKW or Horizon vs, say, Endeavor.

 

[Jon Rivoli]

Manpower management has two primary parts: employee recruitment, and employee retention.

If the company cannot properly staff through recruitment (agreed, not really influenced by the pilot group), retention of existing employees becomes critical. While you can't hope to retain everybody, you need to retain enough to maintain existing operations, to say nothing of growth. And you have to give those employees an incentive to stay in order to retain them, principally financial incentives but also possibly intangible (quality of life/lack of BS).

A combination of recruiting falling short and retention breaking down can put the company into a position where it has no choice but to reduce operations due to a lack of staff.

So to the point:

Lifers and company men won't "save" XJT. Without a contract that is "good enough" to keep FOs for bailing for the prospect of a fast upgrade elsewhere and keep those 10-12 year guys that don't want to take a 5 year earnings hit but are concerned about the company as a going concern and further degradation to their W2s and QOL...the inevitable will catch up.

I have never been a "great pilot shortage" proponent, but the most basic of Econ 101 is starting to take effect and you can see it in hiring at SKW or Horizon vs, say, Endeavor.

Thank you. That is a very concise answer.

 

[Thebadcat1313]

The same section of the 10Q shows that SkyWest has operating revenues of 1,479,708 compared to SkyEasts 1,235,877, yet the majority of the flying is done by SkyEast.

The at risk flying is the key difference. It also represents the future of the regional industry. The capacity purchase agreement model is dying. Profits are getting squeezed to nothing and the legacy carriers will continue to play one regional against another to continue to lower costs. Soon it will hit bottom, if it hasn't already, and a transition will have to be made to at risk flying. Delta and United buying the airframes is an attempt to keep it going a little longer, but the end is near. The company with an established at risk flying base, a large number of larger planes and a billion in the bank will survive. Those who are totally dependent on CPAs will fade away.

LExpressjet will likely see shrinkage as the ERJ's leases expire and contracts aren't renewed.

I don't know what leverage you think you have, but if this time 83% voted no, next time there will be fewer of you and the process will repeat until all of the ERJ's are gone.

If you only plan a short stay before moving on then I guess it doesn't really matter. I wouldn't expect any additional flying until you have a joint contract and the merger is complete.

Perhaps someday East and West will be merged, that won't happen until Your merger is complete and costs are brought into line.

That's just my opinion, I could be wrong.

Peace.

Agreed, Jon, it's morphing into an "at risk" environment. The new"er" buzz word is "code share"... Don't know how that will be entered into this brave new world of regional ops.... I see both SkyWest and ExpressJet cancelling a lot of flights in the near future due to no cockpit crews... When this happens, I would bet Inc will combine to save costs and make more efficient use of crews.. Timeline unknown.