SkyWest Looking at Boeings

[General Lee]

Hey, I am not saying that we would replace Skywest just like that in SLC----that is why there is a six month termination window. I also think the Skywest product is a good one. I'm just saying that if Skywest became "predatory" and started flying 717's etc that COMPETED with some of Delta's routes-----Delta wouldn't be happy about it. Doesn't that make sense?

Also, I don't really know if Skywest owns their gates at the SLC airport , or if the airport does. Regardless, if Skywest lost the feed contract with Delta, I bet they would sell the gates eventually.

There are a lot of things that could happen in the next six months to a year. Someone posted on another board that AA Eagle might not be happy with their CRJ70's, and maybe they would dump them for $$. Maybe they would go for the new EMB 70 seater now that Swiss Airlines has decided to postpone deliveries of the 20 or so that they were supposed to get this year----and EMB wants to sell them quick at a discount. (Almost same cockpit as the E145) There are a lot of things going on out there that we all have to look at when we are not flying---and I always do. You know why? To KEEP ALL OF YOU INFORMED. Thank you. Be sure to tip your waitresses---have a good night.

Bye Bye--General Lee

 

[sleepy]

The CR7 uses the same engine (CF34-8C1) that is used on the EMB-70 and EMB-90. If AMR is unhappy with the CR7 because of the engine problems, then it won't be any better with the EMB product. If they are unhappy with the Fuel AD (and I can't blame them) then I could see them getting rid of it. It is pretty clear to me that the CR7 should have never left the factory until all of it's problems were worked out. Sometimes I feel like a test pilot.

I have heard the same thing about AMR being unhappy with the CR7. I know that ASA has told BA to get it fixed, or we will find another aircraft.

 

[foofighter]

United and Delta are no longer guarantees for Skywest for many reasons. That being said, yes I think our management is considering EVERY option for future prosperity. However, keep in mind that Skywest management typically errors on the conservative side. If United were to go under, I don't think any moves would be made that would put a code share with Delta in jeopardy. So.......Do I think that Skywest is looking at operating bigger airplanes? You bet! Do I think we'll get em'? Only if it became CRYSTAL CLEAR that flying larger airplanes "at risk" is necessary for survival. Of course these are MY opinions only!

Later y'all

 

[~~~^~~~]

Skywest and their routes could easily be taken within a six month termination notice. Six months is plenty of time to redirect ASA or Comair RJ's through SLC. Bye Bye---General Lee

Six months is also plenty enough time to close an unprofitable hub. ASA could nt even backfill the loss of service at DFW if Skywest's flying got terminated.

Anyway, C2K is history. You guys are in negotiations. Not that I'm happy about it. We are also in negotiations and the house is coming off the jacks on our heads too.

Delta's announcement of anticipated losses this quarter and even weaker demand, on top of American's search for bankruptcy financing drove the stock price down almost 23% today. Delta has to act quickly, yet conservatively, to maintain cash. A rapid expansion to cover a mutually destructive threat from ALPA can't be a serious consideration.

I imagine if ALPA forced Skywest out over the operation of aircraft that violated your scope Delta would close SLC and Dallas might even make the endangered list. It would be impossible to justify a money losing hubs and hubs make more money with more feed. Hubs lose money with less feed, like boats in a sinking tide.

Just a guess....

 

[Gobi Gred]

I think Foofighter is %100 right in saying that while SkyWest may be entertaining the thought of bigger airplanes, they most likely will try and go the more conservative route of staying aligned with a major partner. The biggest problem with striking out on our own would be the enormous expense of setting up a reservation system as well as other costs such as advertising,etc. While I too like to entertain the thought of being on our own, in reality if we were to suddenly drop United and Delta, it would be a very scary few months at SkyWest. However, as other people have pointed out, anything is possible in this day and age!

 

[skyboat]

Sleepy-

My vote is managements desire to get a contract is not because of something big. Comair pilots were blamed for us not getting the job in LAX several years ago when Eagle was brought on because we wouldn't agree to a contract. If somrthing big is going to happen, Delta will do it and if there is uncertainty with ASA they will do it with Comair, Skywest, or some other carrier. I don't think Comair was ever in the LAX bid as we didn't even fly out West at the time. You don't just start an operation like that up overnight.

 

[General Lee]

Fins,

You know that stocks prices are functions of a market cap, and your company's worth can fluctuate big time day to day. IF there was a short war with Iraq, the stock price would climb straight up and Delta would be worth more instantly. Delta's cash position is better than most, and their operating expenses are fairly flat. We actually had an operating profit last quarter, but a loss resulted from the 1 time charges again. If the pilots give back some money (which I believe will happen to some extent)--it will help even more. Our planes have been jammed full lately--and even with a war the Spring Breakers going to Florida will halp us somewhat. I am not blind---I think the war will hurt ADVANCED bookings, but a SHORT WAR will help and low fares on the other end will result in full airplanes. You probably will see it going down to Panama City, Ft. Walton, and Daytona. The key is a relatively SHORT war----I'd say two weeks max. I do think our European flying this summer might be hurt by the France debacle, and maybe Germany too---but domestic travel may increase to Montana and Alaska for example. It will be interesting to say the least---especially if we do retire 400-600 pilots on May 1st alone.

Bye Bye--General Lee

 

[cocknbull]

I think that General Lee is right.

If Skywest's contract was terminated; Delta has alot of options. There are a couple of regionals with plenty of aircraft and money, and I'm sure they would love to expand or begin Delta service. I know that loosing Skywest will not result in the death of Delta.

Many regionals are getting sick of the majors determining their future and so am I. However those same majors had alot to do with all the money in the regionals banks. It's a big gamble going out on their own and accepting that risk, but I would like to see Skywest do it and succeed.

 

[CaptainBrazilia]

Boeings...

A bit of airline-industry wisdom...

Don't believe a single thing you hear until you see it sitting on the ramp in your company's colors! And THEN don't believe it until you're awarded a ground school class!

Rumors...bah.

 

[Jetlink]

The CR7 uses the same engine (CF34-8C1) that is used on the EMB-70 and EMB-90.

Where do you get this information??

Rolls Royce is making all the E135/145 engines, for us anyway