Thanks SkyWest for being a team player! Pay your own fuel next time...

[General Lee]

AP
SkyWest Profits Up on Limited Fuel Cost
Friday February 8, 8:26 am ET
SkyWest Posts Sharp Rise in 4th-Quater Profits With Higher Fuel Reimbursements From Partners

ST. GEORGE, Utah (AP) -- SkyWest Inc. said Friday its profit rose sharply in the fourth quarter as it passed surging fuel costs on to its partners and limited other expenses. (Delta's profits dropped sharply for the same quarter ultimately causing a loss)

The airline posted a 30.7 percent gain in net income, to $40.9 million, or 66 cents per share, from $31.2 million, or 48 cents per share. Revenue rose 8.3 percent to $854.7 million from $789.6 million.

Analysts polled by Thomson Financial expected a profit of 64 cents per share, on average.

SkyWest, which operates regional flights for other carriers like Delta Air Lines Inc. and United Airlines, grew capacity 12.7 percent during the quarter. However, it flew emptier planes with less unit revenue as traffic did not keep up with that growth. SkyWest offset those declines by raising fuel-cost reimbursements, keeping its net unit fuel costs flat. Again, during this same time frame Deltas profits went down causing a loss

.SkyWest posted a 9.2 percent rise in full-year profit, to $159.2 million, or $2.49 per share, from $145.8 million, or $2.30 per share, in 2006. Revenue rose 8.3 percent to $3.37 billion from $3.11 billion.



Someday we will learn. I know we unfortunately have some long term contracts, which maybe would be cheaper to buy out now than keep them and pay for the RJs that love extended downwinds over Ogden. Looks like Mike Boyd was right again....



Bye Bye--General Lee

 

[WSurf]

AP
SkyWest Profits Up on Limited Fuel Cost
Friday February 8, 8:26 am ET
SkyWest Posts Sharp Rise in 4th-Quater Profits With Higher Fuel Reimbursements From Partners

ST. GEORGE, Utah (AP) -- SkyWest Inc. said Friday its profit rose sharply in the fourth quarter as it passed surging fuel costs on to its partners and limited other expenses. (Delta's profits dropped sharply for the same quarter ultimately causing a loss)

The airline posted a 30.7 percent gain in net income, to $40.9 million, or 66 cents per share, from $31.2 million, or 48 cents per share. Revenue rose 8.3 percent to $854.7 million from $789.6 million.

Analysts polled by Thomson Financial expected a profit of 64 cents per share, on average.

SkyWest, which operates regional flights for other carriers like Delta Air Lines Inc. and United Airlines, grew capacity 12.7 percent during the quarter. However, it flew emptier planes with less unit revenue as traffic did not keep up with that growth. SkyWest offset those declines by raising fuel-cost reimbursements, keeping its net unit fuel costs flat. Again, during this same time frame Deltas profits went down causing a loss

.SkyWest posted a 9.2 percent rise in full-year profit, to $159.2 million, or $2.49 per share, from $145.8 million, or $2.30 per share, in 2006. Revenue rose 8.3 percent to $3.37 billion from $3.11 billion.



Someday we will learn. I know we unfortunately have some long term contracts, which maybe would be cheaper to buy out now than keep them and pay for the RJs that love extended downwinds over Ogden. Looks like Mike Boyd was right again....



Bye Bye--General Lee

Come on Lee! Leave the aviation world for a second. Come on down to New Bern and go fishing, cigar smoking and have a drink or two.

 

[WSurf]

And congrats on hitting the 10,000 posts. Wow, 10,205!!!!! How do you do it????

 

[General Lee]

Via Mike Boyd....

Two Words
$100 Oil
It's Re-Engineer-The-Business Time...
On An Emergency Basis
[FONT=Tahoma, verdana, lucida]Sector One: Small Lift Providers[/FONT]
[FONT=Tahoma, verdana, lucida]Say Good-Bye To A Lot of Regional Jets, Real Soon.
Fuel Pass-Throughs Will Pass Them Directly To The Desert[/FONT]
[FONT=Tahoma, verdana, lucida]It should be back-to-the-drawing-board time for small lift providers, what some still call "regional airlines." Maybe time for a period of sheer panic, too. The issue: 50-seat and smaller RJs are being economically marginalized by skyrocketing fuel costs. [/FONT]
[FONT=Tahoma, verdana, lucida]Major carriers will be looking to quickly cull out dozens of RJs in the coming months. And hundreds more in the next five years, with no replacement for this lift - or many of the markets they operate - in sight.[/FONT]
[FONT=Tahoma, verdana, lucida]Most SLP agreements provide for fuel costs to be a pure pass-through to the major carrier, and that means the majors are eating a lot of red ink. A lot of RJ mission applications that once provided adequate revenue generation are now net drains on major airline systems. They cannot but move quickly to restructure (read: reduce) the fleets of RJs they're leasing in.[/FONT]
[FONT=Tahoma, verdana, lucida]Faster Retirements Than Predicted.[/FONT]

[FONT=Tahoma, verdana, lucida][FONT=Tahoma, verdana, lucida]Now, with oil hovering at $100 a barrel, that forecast has been revised. The retirement projections are for over 1,700 RJs to come out of fleets for the same ten year period, with the rate front-loaded in the 2008 - 2013 period, representing approximately 835 RJs taken out of service in the US alone. [/FONT]

[FONT=Tahoma, verdana, lucida]The net-new figure represents larger CRJs (mostly -900s) coming into SLP fleets to replace 50-seat -200s. But even here, there isn't a whole lot of demand going forward. There are no new-generation <70 seaters on the horizon to replace the current fleet of 50-seat and smaller RJs. That means new fleet mixes.[/FONT]
[FONT=Tahoma, verdana, lucida]It also means fundamentally-revised airline route systems.[/FONT]

[FONT=Tahoma, verdana, lucida][FONT=Tahoma, verdana, lucida]Late Night Oil Burning In The Planning Department. As we speak, planning departments at comprehensive network carriers are in full metal jacket status, working to moderate the level of financial drain smaller RJs are inflicting on their systems. [/FONT]
[FONT=Tahoma, verdana, lucida]Legal departments are working, too, reviewing current service agreements with SLPs. Most contracts are relatively long-term - to 2013 or beyond. The problem is that there is no way that the current number of these RJs can be supported until then with jet-A heading to $3 a gallon and up. Culling the herd in is the cards.[/FONT]
[FONT=Tahoma, verdana, lucida]Many agreements contain an early-out provision for the CNC, where a six-month notice can be given. In most cases, however, these notice dates don't become effective until late 2008 or 2009, and majors cannot afford to wait that long to cut RJ lift. So that means doing some deals with current SLPs. A cash payment in exchange for an early-out. Renegotiating the agreement with a financial incentive for the SLP to shift to larger CRJs or even into E-Jets, depending on the status of scope clauses at the CNC.[/FONT]

[FONT=Tahoma, verdana, lucida]Small Lift Providers To Watch. Clearly, 50-seaters are in the economic cross-hairs. And any jet airliner smaller than that is just marking time 'til the grim-reaper comes to take it to the Budweiser plant. So the question arises regarding how the SLP sector will survive.[/FONT]
[FONT=Tahoma, verdana, lucida]The hard reality is that the SLP sector will be shrinking markedly over the next three years. Hard fact: there are more 50-seat jets than can be economically flown. Hard fact: that means cutbacks in the number of operators.[/FONT]
[FONT=Tahoma, verdana, lucida]SLPs must move to hasten their fleet migration into larger CRJs or, better, into the Embraer E-Jet platform. But that means bigger units of capacity, higher sector costs, and, ergo, fewer markets where such aircraft can operate compared to what 50-seaters could do before the price of jet-A headed toward the Moon.[/FONT]
[FONT=Tahoma, verdana, lucida]The first option - larger CRJs - will provide better per-seat economics for the CNC customer, and for CRJ-200 operators, a relatively painless shift. But it's still an RJ, and with more seats and higher sector costs, it won't do much for the communities that are in line to see loss of service as the 50-seat cost bar goes up and CNCs cut flights. [/FONT]
[/FONT][/FONT]
[FONT=Tahoma, verdana, lucida][FONT=Tahoma, verdana, lucida][/FONT][/FONT]

Bye Bye--General Lee

 

[Ben Dover]

Hey General, haven't you beat this one to death?

Oh ya, and if it's such a bad deal for Delta why did that top notch management team of yours agree to it?

 

[General Lee]

And congrats on hitting the 10,000 posts. Wow, 10,205!!!!! How do you do it????

Thanks for the congrats. How do I do it? I respond to 20 or more posts each time I log on. I am not on every day (believe it or not), but when I do I give my opinion on a lot of threads obviously.

As far as going to New Bern and smoking a cigar on your dock, that sounds nice. Probably a lot more relaxing than sitting here in ATL.

So, what is your status with USAir? Are you going to take the plunge? Any news on Q400s for PDT?

Take care.

Bye Bye--General Lee

 

[General Lee]

Hey General, haven't you beat this one to death?

Oh ya, and if it's such a bad deal for Delta why did that top notch management team of yours agree to it?

The guys that agreed to it are GONE now. That's business I guess. I don't think Anderson will fall for that again. And, I am sure he likes SkyWest suing us too for the IROPS deal. Remember that Fred Greed is the one who loved RJs for "frequency" reasons and business travel. Where is he now? He just left Virgin America, where there were NO RJs.

Bye Bye--General Lee

 

[xjlifer]

If we could just find a way to kill all those pesky RJ drivers and destroy their Barbie jets ...then I am sure we would have world peace and the price of oil would be $25 a barrel.

 

[CFI2766]

Did anyone else get the irony of GL whining about SkyW looking after it's own best interests, while simultaneusly advocating that Mother 'D' do the same in the Majors forum?

Reallly now, if you want us to be a 'team' player, pay us like one. Give me a number on your seniority list, allow me to have a realistic belief that my job will be here tomorrow so that I can pay my mortgage (as opposed the never-ending demands that the number of RJs be decreased), treat me like a part of the team, compensate me as such, and I might act the part of a better 'team' player. Don't treat me as a second class citizen and then demand that I pay some sort of homage to the mothership.

 

[Jon Rivoli]

Hey General,

The reason our bottom line is up is because Delta pays for a given quantity of fuel per segment. If we burn less, we keep the difference. We profit more, but it doesn't cost Delta any more.

As for the great sage Mike Boyd, do you know how many CRJ200's are parked in the desert right now? ZERO! We were needing some more (to be put into service next month) and had to get them from Comair's current fleet. Old POS's because that is all that is available. Mike recently touted the wonderful EMB-170. I'll paraphrase our CEO, 'It hauls 70 passengers and weighs almost 10,000lbs more than a CRJ700.' Shall we compare fuel burns. So much for genious there.

RJ's going away? How do you reduce capacity without abandoning a market?

As for $100 oil, crude was begining to trend back down until Hugo Chaves threatened to cut off oil shipments to the U.S. That won't last long as he is only 10% of our supply and we are 70% of his market and no one else has refining capability to process his flavor of heavy crude. He would be cutting his own throat.

 

[John Pennekamp]

Oh waaaaah. General flaming again. Nothing to see here...

 

[JohnDoe]

I don't think Anderson will fall for that again.
Bye Bye--General Lee

You mean the same Anderson that was around at NWA when they guaranteed a certain fuel cost for the avro's at Mesaba regardless of the actual cost???? You're right....no way he would do that at Delta. (note sarcasm)

 

[Jon Rivoli]

I think the General is just pissed because he see's his upgrade slipping ever further away.

 

[Jmoney]

Beat it to Death!

Hey General, haven't you beat this one to death?

Oh ya, and if it's such a bad deal for Delta why did that top notch management team of yours agree to it?

I think the only thing the general has beat to death lately is his little baby trouser worm. Give it a break, general-that little bugger can't take much more!

-BTW-You should know as well as anyone that fuel is a "pass through" cost for any regional. With all your hatred of regional jets, they sure do keep your fat plane full of people to fly to "interesting" destinations.

-Like it or not, RJs are here to stay and will continue to be here long after your sorry, egotistical "former commuter pilot" butt is in the nursing home cussing the fact that not everyone got to fly big shiny plane around the world. Of course, you will probably have to throw in a bit of lamentation about having to be a gear bitch on some DC-9 "RJ" for a little while here soon........

-You truly are a world-class tool. No wonder you have so much time to spend here-no one can stand you!!

 

[Mookie]

You skywest guys are such a bunch of ****************************************....

goddamn you pilots for passing the cost of fuel to Delta!!! the shame...the horror...how do you guys sleep at night.

(god i hope the humor comes across here).

thanks again GL for mentioning me on the 10k post. have gotten a bunch of atta boyz from my homeys for that one...

Mookie

 

[General Lee]

Did anyone else get the irony of GL whining about SkyW looking after it's own best interests, while simultaneusly advocating that Mother 'D' do the same in the Majors forum?

Reallly now, if you want us to be a 'team' player, pay us like one. Give me a number on your seniority list, allow me to have a realistic belief that my job will be here tomorrow so that I can pay my mortgage (as opposed the never-ending demands that the number of RJs be decreased), treat me like a part of the team, compensate me as such, and I might act the part of a better 'team' player. Don't treat me as a second class citizen and then demand that I pay some sort of homage to the mothership.

Looking after our best interests? You bet. Our PAST leadership made a mistake, which was do anything and give anything to FEED. That will have to be changed, since our FEED is costing us a lot of money, for your wonderful service. Look, if you want to interview at Delta, then do it. You have a chance to fly here to if you want to. I am not trying to treat you as a second class citizen, rather I am upset with the lame deal our guys made with your honchos during our BK. Those guys are gone now, leaving us with your unprofitable RJs. I am not mad at you, rather the deal that was made, and hope that someday your company pays for the fuel. If your newhire ex-cfi Undie wants to extend downwind an extra mile to feel comfortable (which is a good thing---you gotta feel comfortable...), then you guys should be paying for that, not us.

Bye Bye--General Lee

 

[KingAirKiddo]

You guys seriously carry on like a bunch of three year olds in the sandbox...seriously.

 

[General Lee]

Hey General,

The reason our bottom line is up is because Delta pays for a given quantity of fuel per segment. If we burn less, we keep the difference. We profit more, but it doesn't cost Delta any more.

As for the great sage Mike Boyd, do you know how many CRJ200's are parked in the desert right now? ZERO! We were needing some more (to be put into service next month) and had to get them from Comair's current fleet. Old POS's because that is all that is available. Mike recently touted the wonderful EMB-170. I'll paraphrase our CEO, 'It hauls 70 passengers and weighs almost 10,000lbs more than a CRJ700.' Shall we compare fuel burns. So much for genious there.

RJ's going away? How do you reduce capacity without abandoning a market?

As for $100 oil, crude was begining to trend back down until Hugo Chaves threatened to cut off oil shipments to the U.S. That won't last long as he is only 10% of our supply and we are 70% of his market and no one else has refining capability to process his flavor of heavy crude. He would be cutting his own throat.

Great Jon, we are obviously losing money with that deal. It should be changed, so WE DON'T LOSE MONEY ON OUR FEED.

How many 50 seaters are in the desert? Zero you say? How many will be going to the desert? How is your Midwest operation going? Didn't you just announce a bunch of cancellations of routes (like CLT, COS, and others)? How many 37 seaters are going for CHQ? How many Comair 50 seaters are going away (just announced 14 more)? Believe me, they are going to be history. How are your block hours doing? Did you get reserve in Jan or Feb? A lot more of you SkyWesters did, and there is a reason for that.

How do we reduce frequency without leaving a market? We put a mainline plane in there twice a day, and take out 5 RJs. We squeeze everyone on two flights, and save on gas. Do we have the planes to do that? I bet we will soon if we merge. Also, some of the hubs will be paired down in FREQ (CVG will NOT close according to Anderson for example), but anything that is excess will go somewhere, and we are not planning on parking anything on the Delta side. Some NWA DC9-30s will be parked, but not all. There are also 100 or so MD90s waiting for us if we want them (ex China Northern, China Southern, Saudia, JAS, etc). We used to fly them to BIL, MSO, FCA, etc, and could do it again if needed. We have the sims, FTDs, and mechanics who can fix more of them.

Yes, $100 a barrel oil is trending down. Did you know ALPA was nervous at $45 a barrel, and said to us "I don't know what we will do when it hits $50 a barrel." So, how far is it going to go down Jon? Come on Mr. Speculator. What do we need it to be to make solid profits ALL YEAR ROUND? We all do fairly well during the Spring and Summer, but what about the rest of the year? Give me some answers.

Bye Bye--General Lee

 

[viper548]

All our fuel bill are belong to you!

 

[General Lee]

All our fuel bill are belong to you!

Did you just graduate from Empty Nipple?

Bye Bye--General Lee