SkyWest Had Made Hostile $3.50/Share Bid For ExpressJet

[TEXAN AVIATOR]

The scope language that was incorporated into Contract 2004 by the XJT ALPA group effectively handcuffs ExpressJet holdings and or their successor to using pilots on the ExpressJet seniority list to accomplish that flying. If a company was to purchase XJT and then (as it appears SKYW has done) re-negotiates the CPA with CAL they still have to use the XJT pilots as they "own" the flying that is done by XJT holdings. SKYW most likely can not give CAL a price low enough to secure the flying by using XJT pilots. SKYW is asking for XJT to re-negotiate the Collective Bargaining Agreement with XJT ALPA to remove this part of the scope language to facilitate their purchase of XJT holdings.

I can only speak for myself on this, but I will probably never support weakening the scope language in contract 2004. There is a good reason why that language is there (read Freedom Air), and there is no reason why it should be changed to let SKYW eliminate our pilot group and our superior contract. If Jerry wants XJT he can have us as we are, not how he thinks we should be.

Exactly my thoughts. XJT pilots are one of the most unified group around these days. I won't support it either, I doubt you'll get this pilot group to budge.

 

[Ben Dover]

I can only speak for myself on this, but I will probably never support weakening the scope language in contract 2004. There is a good reason why that language is there (read Freedom Air), and there is no reason why it should be changed to let SKYW eliminate our pilot group and our superior contract. If Jerry wants XJT he can have us as we are, not how he thinks we should be.

If it's any consolation the ASA vs Skywest whipsaw doomsday talk has for the most part remained just that; talk. It's always possible, but so far really hasn't materialized. I expect Expressjet under the Skywest umbrella would fair as well.

I respect your contract and all the work it took to secure it. But if you're out of work, what good is an industry leading contract?

 

[Future Furlough]

I respect your contract and all the work it took to secure it. But if you're out of work, what good is an industry leading contract?

Why fight for a contract if you're not willing to stand up for it? There is no incentive for me to settle less pay. I can make what I do now doing something else, and be home every night

 

[Erlanger]

Yes, indeed I have been reading all the posts.

Your posts indicate that you think XJT pilots are between the proverbial rock and a hard place, with no options other than acquiescing to Jerry Atkins' demands.

What incentive do you think XJT ALPA would have to willingly negotiate away their contractual language that would bind SKW, Inc. to their Section 1?

It's one thing to play tough guy on these forums and then there's the reality of things to come. Reality is you will be furloughed or worst (most likely) the whole place is shut down like an ACA/Independence. Remember them? How's that for an incentive? And who's hiring these day? And if the President and BODs of XJT decide they finally want this deal, they'll get you guys to acquiesce.

 

[BankAccount=0$]

Continental apparently doesn't really want to do business with XJT anymore. You guys are burning through money quickly and you have $130 million bond due this summer. The branded flying is a failure. What choices do you have?

In this instance we (the pilot group of XJT) have a couple of choices. We can accept the demand of SKYW and give up the very protection that keeps us at the top of the compensation heap in the regional segment. We can think this through and see exactly where allowing SKYW to have the ability to eliminate our jobs through moving aircraft/flying to the OO side of the house. We can also wait and see what happens in the future without caving in and giving a would be suitor the right to force us to change our hard fought contractual rights.

My own company has NEVER come to my pilot group with their hand out seeking concessions. Why in the h*ll would I want to hand Jerry the keys to the kingdom and ultimately see my job be replaced by his lower paid (errr I mean more productive) workforce.

I haven't touched an airplane in a month because of my contracts vacation rules, can a SKYW 3rd year guy say the same?? We fought hard to get this contract, and I doubt you're gonna see us throw any part of it away to suit ANY airline looking to purchase us in the future.

Are any of these good choices? probably not, is there going to be an XJT 2,3,4 years from now? who knows, but I don't think giving up contractual rights for a mythical future security is a good idea.....

 

[BoilerUP]

It's one thing to play tough guy on these forums and then there's the reality of things to come. Reality is you will be furloughed or worst (most likely) the whole place is shut down like an ACA/Independence. Remember them? How's that for an incentive? And who's hiring these day? And if the President and BODs of XJT decide they finally want this deal, they'll get you guys to acquiesce.

Ah yes...nothing quite motivates like fear.

And I don't work for Expressjet.

 

[Ben Dover]

Why fight for a contract if you're not willing to stand up for it?

Because you may be out of a job if you're not willing to give a little...

There is no incentive for me to settle less pay. I can make what I do now doing something else, and be home every night

Then maybe that's a good option for you. However I suspect there are others who would be willing to compromise in order to keep working. Mind you, I'm not talking about compromising pay. ASA pilots haven't taken a pay cut since Skywest took over. I'm just suggesting some compromise on scope might be worth keeping a job.

 

[Erlanger]

It's one thing to play tough guy on these forums and then there's the reality of things to come. Reality is you will be furloughed or worst (most likely) the whole place is shut down like an ACA/Independence. Remember them? How's that for an incentive? And who's hiring these day? And if the President and BODs of XJT decide they finally want this deal, they'll get you guys to acquiesce.

Acquiesce - ac·qui·esce [ak-wee-es] –verb;
to assent tacitly; submit or comply silently or without protest.

My bad. Wrong word to use.

 

[BankAccount=0$]

Also I forgot to add in my above post. I have no ill will towards SKYW management or the pilot group. We all needed a job at one time and if SKYW was the place a pilot thought was a good fit for them then so be it. I happened to come to XJT by way of another airline. This is just purely a discussion on giving away contractual rights to placate a would be suitor.

I think just about everybody can see the writing on the wall if XJT ALPA was to give up scope in this instance. If SKYW wanted to run us as a seperate entitiy like ASA they would not be making this request for us to allow the CBA to be changed

 

[USCtrojan]

Here's a scenario. What if SkyW Inc. announces they are retracting the offer. What happens to the stock? My guess is it will tank. It will go back to where it was or likely lower. When that bond becomes due, XJT will have no more cash. SkyW Inc. may acquire XJT for less than the 188 million offered. Or, CAL will announce they are taking more flying away from XJT therebye causing the stock to tank even more. Either way, I feel the mgmt of XJT are between a rock and a hard place. This isn't even chess for them. It's survival. For once, the employees stand to gain from this. XJT contract will stay in tact, other than merging with any other SKY INc. airlines. Everything will remain status quo, except your mgmt. team--who seem to be destroying your airline. This isn't a bad thing, I can tell you because I've been through it.

Trojan

 

[whosurdaddy?]

In this instance we (the pilot group of XJT) have a couple of choices. We can accept the demand of SKYW and give up the very protection that keeps us at the top of the compensation heap in the regional segment. We can think this through and see exactly where allowing SKYW to have the ability to eliminate our jobs through moving aircraft/flying to the OO side of the house. We can also wait and see what happens in the future without caving in and giving a would be suitor the right to force us to change our hard fought contractual rights.

My own company has NEVER come to my pilot group with their hand out seeking concessions. Why in the h*ll would I want to hand Jerry the keys to the kingdom and ultimately see my job be replaced by his lower paid (errr I mean more productive) workforce.

I haven't touched an airplane in a month because of my contracts vacation rules, can a SKYW 3rd year guy say the same?? We fought hard to get this contract, and I doubt you're gonna see us throw any part of it away to suit ANY airline looking to purchase us in the future.

Are any of these good choices? probably not, is there going to be an XJT 2,3,4 years from now? who knows, but I don't think giving up contractual rights for a mythical future security is a good idea.....

unfortunately you don't have a choice in the matter. if skywest buys xjet they can pretty much do what they want. if you guys don't want to fly it, asa and skywest will get more crjs and do the flying. your other choice is to stand strong and watch your job go right out the window. i'm not saying skywest is the greatest thing since sliced bread, but ask around the pilot group and we're a pretty happy bunch, i suppose it's from all the kool-aid. and for uncle jerry, the man is one smart SOB, he'll get what he wants and has no problem showing anyone the door to get it. he actually is a pretty cool dude. in the long run your probably right, it would be in the best interest to eliminate xjet and put all the flying at skywest or asa, but in the near future you probably won't see much of a change at all, in fact you'll probably like it better, ask the asa guys. these people run a good airline and the people that work here are some of the happiest people in the industry. i guess it all has to do with the kool-aid, but give it a chance, hopefully it'll work out for all of us.

 

[WalterSobchak]

Here's a scenario. What if SkyW Inc. announces they are retracting the offer. What happens to the stock? My guess is it will tank. It will go back to where it was or likely lower. When that bond becomes due, XJT will have no more cash. SkyW Inc. may acquire XJT for less than the 188 million offered. Or, CAL will announce they are taking more flying away from XJT therebye causing the stock to tank even more. Either way, I feel the mgmt of XJT are between a rock and a hard place. This isn't even chess for them. It's survival. For once, the employees stand to gain from this. XJT contract will stay in tact, other than merging with any other SKY INc. airlines. Everything will remain status quo, except your mgmt. team--who seem to be destroying your airline. This isn't a bad thing, I can tell you because I've been through it.

Trojan

One way or another, SKW and CAL kinda have XJT by the balls...and it could be the best thing to happen to XJT in the end. Inept XJT management is KILLING a pretty good airline...

 

[ToiletDuck]

Ah yes...nothing quite motivates like fear.

And I don't work for Expressjet.

Learn to read a financial sheet.

 

[USCtrojan]

One way or another, SKW and CAL kinda have XJT by the balls...and it could be the best thing to happen to XJT in the end. Inept XJT management is KILLING a pretty good airline...

I agree, the employees stand to win here. It's mgmt. that is being greedy. $180 million for a great airline is a phenomenal price. XJT mgmt can hem and haw all they want, it's their leadership that has devalued it. XJT pilots will keep their contract, they just won't merge pilot groups with anybody. I don't think that's a bad thing for the XJT labor groups.

Trojan

 

[ToiletDuck]

That's $180mil for a pilot group. XJT owns no aircraft and most of their value is in their stock.

 

[BoilerUP]

Learn to read a financial sheet.

I can read a 8-K and 10-Q with the best of them, hoss.

XJT's balance sheet and the outright giveaway of scope by the XJT ALPA pilot group are not directly linked.

 

[11thHour]

Why fight for a contract if you're not willing to stand up for it? There is no incentive for me to settle less pay. I can make what I do now doing something else, and be home every night

Exactly. I'll walk away from this industry before settling for less pay. Concessions are not an option for me!

 

[ERJFO]

I agree, the employees stand to win here. It's mgmt. that is being greedy. $180 million for a great airline is a phenomenal price. XJT mgmt can hem and haw all they want, it's their leadership that has devalued it. XJT pilots will keep their contract, they just won't merge pilot groups with anybody. I don't think that's a bad thing for the XJT labor groups.

Trojan

I'm all for SKYW buying us, but they must do it within the lines of CBA Section 1, D.3. I think b. is the kicker, it basically says we have to merge the CBA's and lists within 9 months.

3. Unless otherwise agreed, the following provisions shall apply in the event of a
successorship transaction in which the successor is an air carrier or an affiliate of
an air carrier, or a transaction in which the Company acquires control of another
air carrier; and​

a. The integration of the seniority lists of the respective pilot groups shall
be governed by Association Merger Policy if both pre-transaction pilot
groups are represented by the Association. If the other pre-transaction
group is not represented by the Association, Sections 3 and 13 of the
Allegheny-Mohawk Labor Protective Provisions ("LPP") shall apply. The
successor or Company, as appropriate, shall accept the integrated
seniority list, including any conditions and restrictions, established
through Association merger policy or LPP proceedings, as applicable;
and,​

b. The respective pilot collective bargaining agreements shall be merged
into one agreement as the result of negotiations among the pilot groups
and the successor or the Company. If a fully merged agreement is not
executed within 9 months from the date a final and binding integrated
pilot seniority list is issued, the parties shall jointly submit outstanding
issues to binding interest arbitration; and,​

c. The aircraft (including orders and options to purchase aircraft) and the
operations of each pre-transaction airline shall remain separated until
such time as both pilots’ seniority lists are integrated and the pilot
collective bargaining agreements are combined in accordance with
paragraphs D.3.a. and D.3.b., above; and,​

d. Pending the merger of the pre-transaction carrier and the pilot collective
bargaining agreements and seniority lists, no pilot on the Pilots’ Seniority
List shall be reduced in status or pay category as an effect of the merger, purchase or acquisition.​

 

[WalterSobchak]

3. Unless otherwise agreed, the following provisions shall apply in the event of a
successorship transaction in which the successor is an air carrier or an affiliate of
an air carrier, or a transaction in which the Company acquires control of another
air carrier; and

I'm no lawyer but, the way this is written reads to me that it matters little to this transaction.

SkyWest, Inc., not SkyWest Airlines, is the company looking to acquire ExpressJet. SkyWest, Inc. is a holding company, not an air carrier. ASA and SkyWest are affiliates of Inc., not the other way around. Therefore, SkyWest, Inc. isn't an affiliate of another air carrier.

SkyWest, Inc. is not looking to acquire another airline on top of ExpressJet and merge them, nor are they looking to merge ExpressJet into SkyWest or ASA...therefore, I don't see where paragraph 3 of the CBA means anything...and if the main components of paragraph 3 aren't an issue, A-D are essentially null.

I need a beer...

 

[BankAccount=0$]

There may be arguements for and against being owned by SKYW that are valid, but from a XJT pilots standpoint there is only one outcome from relaxing scope language, and it isn't good. Yes CAL is trying to force the XJT management into agreeing to SKYW's proposal by sending a letter saying in short "you better play ball with SkyWest or we are going to kill you off piece by piece". But the fact remains that SKYW still needs to have the XJT ALPA pilots agree to scope language changes for them to be interested in a purchase. Hmmm why would SKYW want to eliminate the very thing that protects XJT pilots futures?? Is it perhaps because the reduced rates they promised CAL for a new CPA are predicated on them having a lower cost labor group to service the flying. I don't have a crystal ball, but if I did it would probably show the XJT pilots agreeing to scope relief and then shortly after a wave of CRJ's operated by SKYW and ASA doing the CAL flying that we just gave up our protection for.

The ONLY thing that XJT has that any potential purchaser would want is the CAL flying. SKYW doesn't want our ERJ's, and they certainly don't want the pilots with our "non-productive" work rules and expensive pay scales.

Simply put I didn't become an airline pilot to do charity work, and if SKYW wants me to give in on something as big as my security blanket then they better be coming to the table with something equally as big to offer.....