SkyWest Inc. Annual Report - Future growth

[SkyW120]

Page 18 & 23 annual report

"As of Dec 31, 2005, we had commitments of approximately $838 million to purchase 15 CRJ700's and 17 CRJ900's and to lease six CRJ200's, together with related flight equipment. Additionally, we had optained options to acquire another 70 regional jets that can be delivered in either 70 or 90-seat configurations. Delivery dates for these aircraft remain subject to
final determination as agreed upon by us and our major partners."

http://www.skywest.com/invest/Annual%20Reports/10k2005.pdf

 

[It'll Fly]

And, What are you trolling for?

 

[viper548]

Those 90 seaters on order have nowhere to go, unless things change. They'll either be outfitted with 70 seats or be converted to -700 orders

 

[~~~^~~~]

Archie Bunker - darned if those uppidty minorities ever get the vote, they might start thinking they are equal to you - then what?

 

[General Lee]

Ummmmmm riiiiiight

Well, right now those CRJ-705s will have to have 70 seats, nothing more. Lee Moak stated at a Peachtree City, GA Family Awareness meeting a week ago that DL Mainline will fly everything over 70 seats, period. I don't think he will accept a TA from the negotiators otherwise. We will see I guess, but those larger RJs can always have lie-flat sleeper seats, and frequent flyers will love that all the way to Valdosta. A nice 30 minute nap to Valdosta, fully reclined. That would be awesome. I won't vote YES on any TA with RJs larger than 70 seats attached for DCI. Nope. Atleast JA acknowledged that in that SLC newspaper article---"IF the Delta pilots allow us...." (and there are NO pension issues floating over our heads like NW)


Bye Bye--General Lee

 

[~~~^~~~]

DL Mainline will fly everything over 70 seats, period. I don't think he will accept a TA from the negotiators otherwise.

I won't vote YES on any TA with RJs larger than 70 seats attached for DCI. Nope. Atleast JA acknowledged that in that SLC newspaper article---"IF the Delta pilots allow us...."

Bye Bye--General Lee

OK, if you say so.

 

[Erlanger]

What the future holds for Delta and United is that they will get out of flying any aircraft smaller then a 757. The regionals will be flying the A320s, MD80s and 737s of tomorrow. It will happen! (And I didn't drink any Kool-Aid today.)

 

[mckpickle]

The question is will Skywest still fly them for 50 seat wages?

 

[atlcrashpad]

What the future holds for Delta and United is that they will get out of flying any aircraft smaller then a 757. The regionals will be flying the A320s, MD80s and 737s of tomorrow. It will happen! (And I didn't drink any Kool-Aid today.)

May not be drinkin' da koolaid, but I thinks dat sum crack was being smoked...

 

[General Lee]

What the future holds for Delta and United is that they will get out of flying any aircraft smaller then a 757. The regionals will be flying the A320s, MD80s and 737s of tomorrow. It will happen! (And I didn't drink any Kool-Aid today.)

Wrong. You better hope we keep scope, or you and I will be out of a job. Count on it. No pensions to sway the vote this time. And wow, you sound so excited....dumba$$.


Bye Bye--General Lee

 

[General Lee]

OK, if you say so.

We do, and we will.


Bye Bye--General Lee

 

[Morning Wood]

Well, right now those CRJ-705s will have to have 70 seats, nothing more. Lee Moak stated at a Peachtree City, GA Family Awareness meeting a week ago that DL Mainline will fly everything over 70 seats, period. I don't think he will accept a TA from the negotiators otherwise. We will see I guess, but those larger RJs can always have lie-flat sleeper seats, and frequent flyers will love that all the way to Valdosta. A nice 30 minute nap to Valdosta, fully reclined. That would be awesome. I won't vote YES on any TA with RJs larger than 70 seats attached for DCI. Nope. Atleast JA acknowledged that in that SLC newspaper article---"IF the Delta pilots allow us...." (and there are NO pension issues floating over our heads like NW)


Bye Bye--General Lee

This is assuming you guys don't walk the plank and Delta goes
the way of the Edsel. I'm curious about one thing though. If you
were still flying where you came from, would you still feel the
same way about only the majors flying stuff over 70 seats?

 

[Morning Wood]

The question is will Skywest still fly them for 50 seat wages?

Don't know. But if Delta goes belly-up, Delta pilots will be flying them
for 0 seat wages.

 

[Beechnut]

What does the report say about a pay raise for the pilots? Ya know, paying more for the larger airplane or maybe a blended rate based on the larger aircraft.

Growth isn't everything.

S.

 

[dojetdriver]

Well, right now those CRJ-705s will have to have 70 seats, nothing more. Lee Moak stated at a Peachtree City, GA Family Awareness meeting a week ago that DL Mainline will fly everything over 70 seats, period. I don't think he will accept a TA from the negotiators otherwise. We will see I guess, but those larger RJs can always have lie-flat sleeper seats, and frequent flyers will love that all the way to Valdosta. A nice 30 minute nap to Valdosta, fully reclined. That would be awesome. I won't vote YES on any TA with RJs larger than 70 seats attached for DCI. Nope. Atleast JA acknowledged that in that SLC newspaper article---"IF the Delta pilots allow us...." (and there are NO pension issues floating over our heads like NW)


Bye Bye--General Lee

Good point General Lee. I have a question; was any of your previous scope based on seating capacity or aircraft gross weight?

If it was based on seating, how did the 70 seat crj ever make it on property? Was it because DAL's MEC would never allow 70 seater's at DCI?

 

[General Lee]

This is assuming you guys don't walk the plank and Delta goes
the way of the Edsel. I'm curious about one thing though. If you
were still flying where you came from, would you still feel the
same way about only the majors flying stuff over 70 seats?

Absolutely. I always had a goal of flying mainline sized planes (737s and up) and hopefully flying widebodies too. Not everyone has that goal, but I did. To get to that goal, you need to have a chance, and by taking away mainline planes and outsourcing the flying to regionals, your chances of flying bigger and farther go down. I always thought I would get better treatment and benfits at a Major, and overall I was right. Even with these pay cuts etc, I am still treated better at DL than I was at my previous job. But, it has gotten worse than it was a few years ago, and most of us are ready to say "STOP."

So, to answer your question, YES, I would have felt the same way because I would have wanted a chance to achieve my goal. I don't think many regional guys today started there jobs at the regionals thinking "I can't wait to fly a 737 for ASA...." They may feel that way now, but not originally. The more planes we lose, the fewer opportunities we will allow here some day. Some people may say "I don't want to leave now, I like Weekends off and time with the kids." Well, then accept your reality. You will likely stay on an RJ and watch your pay rates go down just like we did. It is the new reality.

Bye Bye---General Lee

 

[General Lee]

Good point General Lee. I have a question; was any of your previous scope based on seating capacity or aircraft gross weight?

If it was based on seating, how did the 70 seat crj ever make it on property? Was it because DAL's MEC would never allow 70 seater's at DCI?

I think it is based on seating and weight. We do not allow any RJs to fly more than 70 seats, even though the E170 can carry more I believe (in one class configuration). There is a weight too, but I can't remember it.


Bye Bye--General Lee

 

[dojetdriver]

I think it is based on seating and weight. We do not allow any RJs to fly more than 70 seats, even though the E170 can carry more I believe (in one class configuration). There is a weight too, but I can't remember it.


Bye Bye--General Lee

I ddn't ask what it is, I asked what it WAS. If it WAS based on seating, the DAL MEC already caved on that issue, as well as UAL,USAir,and soon tp be NW. I hope they don't cave AGAIN on 20 more seats. History is not in your favor if DAL's MEC is not going to allow 90 seats at DCI.

Also, you talked about RJ wages going down, and that's a new reality. DAL's max (12 year) 737NG rate doesn't even come close to what a second year 737NG FO made on your 2001 contract. What does a second year 737NG FO make now? I forgot, there are NO second year 737NG FO's at DAL. The regionals are not the only place that wages are plummeting, and work rules QOL is following suit.

 

[General Lee]

Don't know. But if Delta goes belly-up, Delta pilots will be flying them
for 0 seat wages.

So will half of the SkyWest pilots, all of the ASA and Comair pilots, and many CHQ and Mesa pilots. Do you think the Creditors (GE and AMEX--who has 25 million SkyMiles members) will sink this boat for good over a couple hundred million $$$$ difference? They stand to make a killing on new issue stock--like UAL did. Their stock was supposed to come out at around $20 a share, and now it is over $40. I would say they would be really dumb to continue their stance. You never know, though.

Bye Bye--General Lee

 

[General Lee]

I ddn't ask what it is, I asked what it WAS. If it WAS based on seating, the DAL MEC already caved on that issue, as well as UAL,USAir,and soon tp be NW. I hope they don't cave AGAIN on 20 more seats. History is not in your favor if DAL's MEC is not going to allow 90 seats at DCI.

Also, you talked about RJ wages going down, and that's a new reality. DAL's max (12 year) 737NG rate doesn't even come close to what a second year 737NG FO made on your 2001 contract. What does a second year 737NG FO make now? I forgot, there are NO second year 737NG FO's at DAL. The regionals are not the only place that wages are plummeting, and work rules QOL is following suit.

Well, most of us have a chance at moving up at a Major. I can hold MD88 Captain now, or a larger plane FO seat. Regional guys are stuck with fewer plane types and dwindling pay due to competition for feed opportunities. Also, the mainline guys that are left are paid less now, but they are still making more than they did when they were 2nd year pilots, before our C2K raise.

We gave up on 70 seaters during our C2K contract I believe, but we limited the number allowed. We allowed some more during our LOA 46 talks at the end of 04, and our new stance is to allow some more, but nothing over 70 seats. They are self limiting---70 seats, even with great revenue, can only get you so far. IF loads are great and yeilds are up, it would make sense to put an MD88 or larger on the same route if a 70 is doing very well. That is why a 100 seater flown by us will fit some markets very well.


Bye Bye--General Lee

 

[Comin-In-Hot]

Seriously man, what is with that Avatar. It's giving me a headache.

 

[TEXAN AVIATOR]

The question is will Skywest still fly them for 50 seat wages?

I was thinking the same thing.. It's great that SKYW stock is high, and they are raking in the money. But it's about time you guys got paid for the job you're doing.

 

[Tomct]

Yeah, if they would do the right thing and vote in the union so that we can all stand together for a better contract and lifestyle. If they don't, we will continue to be whipsawed and played against each other and be mgmnts "wet dream!" Come on skywst folks, GET THAT VOTE DONE!!! Good Luck!

 

[Morning Wood]

So will half of the SkyWest pilots, all of the ASA and Comair pilots, and many CHQ and Mesa pilots. Do you think the Creditors (GE and AMEX--who has 25 million SkyMiles members) will sink this boat for good over a couple hundred million $$$$ difference? They stand to make a killing on new issue stock--like UAL did. Their stock was supposed to come out at around $20 a share, and now it is over $40. I would say they would be really dumb to continue their stance. You never know, though.

Bye Bye--General Lee

I agree and I should have phrased my response a different way. Everyone
stands to lose if Delta ceases to exist. Although Comair stands to lose
the most I think simply because all their eggs are in one basket.
I don't think the creditors are willing to let the boat sink, but I'm not
so sure about the pilots or management. I hope (and truely believe)
cooler heads will prevail. I just wonder when this madness will stop.

 

[Morning Wood]

Absolutely. I always had a goal of flying mainline sized planes (737s and up) and hopefully flying widebodies too. Not everyone has that goal, but I did. To get to that goal, you need to have a chance, and by taking away mainline planes and outsourcing the flying to regionals, your chances of flying bigger and farther go down. I always thought I would get better treatment and benfits at a Major, and overall I was right. Even with these pay cuts etc, I am still treated better at DL than I was at my previous job. But, it has gotten worse than it was a few years ago, and most of us are ready to say "STOP."

So, to answer your question, YES, I would have felt the same way because I would have wanted a chance to achieve my goal. I don't think many regional guys today started there jobs at the regionals thinking "I can't wait to fly a 737 for ASA...." They may feel that way now, but not originally. The more planes we lose, the fewer opportunities we will allow here some day. Some people may say "I don't want to leave now, I like Weekends off and time with the kids." Well, then accept your reality. You will likely stay on an RJ and watch your pay rates go down just like we did. It is the new reality.

Bye Bye---General Lee

When the landscape was different and the majors were hiring in droves
just 6-7 years ago, that was probably true. The reality now is that
for a variety of reasons (including contracts that could only
be sustained in the best of times) the only big iron people are
getting hired to fly is at Southwest and JetBlue.

 

[BID]

10 year captain at SkyWest Airlines $74.00 per hour. That includes the 90 seat aircraft.

airlinepilotcentral.com

 

[hotwing]

I think that SKYW pay is right inline with the others...

 

[MoroniMetro]

Skywest pay in line with everyone else? Are you high? ASA 70 seat pay is more, and the contract is 5 yrs. old. The only thing Skywest is lined up on is cutting throats for growth. Just ask any bleeding Air Wisconsin pilot, and soon to be ASA pilot. Skywest would fly 737s for 50 seat pay if it got them on their property. Why don't they stand up for themselves and try getting an industry LEADING contract, instead of a contract for growth?

 

[hotwing]

I can only respond with the idea that it is a complete industry with a really jacked up plan and mode of operation... Fuel prices are going to cause even more of a challenge... I do not know what to think of it all really... I am positive that it will get better... Half full concept...

 

[Bluto]

Skywest would fly 737s for 50 seat pay if it got them on their property. Why don't they stand up for themselves and try getting an industry LEADING contract, instead of a contract for growth?

Who has an industry leading contract right now? Who has a better contract than SkyWest that isn't shrinking or in danger of liquidation? I agree with you that SkyWest needs a better agreement, not to mention legal representation, but to paint SkyWest with same brush many use on Mesa is not only unfair, it makes you look ridiculous. Sadly, even at our 50-seat rates, SkyWest CRJ-700 pilots are still among the best compensated in the industry. Don't blame SkyWest pilots for that, blame the likes of Mesa and CHQ who allow our management to suggest that our current rates are fair in comparison to theirs. Aside from a decidedly poor TA that allowed the 70-seaters for 50-seat pay, SkyWest pilots have not taken a concession, or suffered a furlough since 9/11. Can your pilot group, whoever that is, say the same? Our situation is far from ideal, and we are working to improve it. Save your "why don't they stand up and fight" schoolyard insults for the regionals that deserve it.

ps your 737 comment is assinine. SkyWest already has rates in our agreement for aircraft larger than 99 seats. They are far from acceptable, but are also nowhere near our 50-seat rates. Why not do some research before you bash an entire pilot group?