The RJ returns to Airtran...

[propsarebest]

http://finance.yahoo.com/news/SkyWest-Airlines-and-AirTran-prnews-1073468401.html?x=0&.v=1

 

[NWaviator]

Welp, there is that.

 

[Minimaniac]

Not sure what is so groundbreaking about this partnership (see article title)... Airtran contracted with AWAC using CRJ's before. I'm not sure what is exactly revolutionary here. I do think this highlights Airtran's commitment to MKE, as in Airtran does not want to fully devote it's resources to MKE, but rather it wants to throw some airplanes at the market just long enough to chase RAH out. And in this case, the market in MKE is really so small that Airtran can't justify putting a large aircraft on some of these MKE routes. Putting CRJ's up against 135's and an occasional 170 just doesn't seem like a battle worth fighting, especially when CRJ's are not a part of your current fleet. Heck, even the 135's are flying with plenty of empty seats. Increasing capacity on an already thin route by more than 100% just doesn't seem like a sound idea. But then again, I was not hired for my business background. Bottoms up... let's toast the return of over-capacity and profitable business models being abandoned in the quest for that increase in market share. Hooray! It's the year 2000 all over again!

 

[Secret Squirrel]

I am sure that is what the Midwest pilots said initially also. Now there are no more midwest pilots.

 

[145BOSS]

The difference here is that the commuter flying will be done "at risk" by Skywest. The former AWAC contract was a "fee per departure" contract. This is a sweet deal for AirTran, if the flying makes a lot a revenue, they get a piece, although a smaller piece than a "fee per departure" agreement. If the flying loses money Skywest has to take the loss and supplement the flying with revenue from other carrier contracts.

 

[CX880]

Not sure what is so groundbreaking about this partnership (see article title)... !

....................................................................................... replace CRJ200 with a 110 seat Skywest jet. It is ground breaking and the next era of regional feed has began. With Skywest and RAH, our regional leaders, at the forefront. Let's all hope us little guys have enough money to buy 100 seaters of our own to compete.

 

[Lynxman]

Heck, even the 135's are flying with plenty of empty seats. Increasing capacity on an already thin route by more than 100% just doesn't seem like a sound idea. QUOTE]

When I flew Airtran back in September from STL to MKE both ways the flight was fully booked.

 

[Erlanger]

I fly for Skywest and I'm not impressed. This shows how desperate we are for flying. This flying is here today gone tomorow if Skywest doesn't make money.

 

[SkyNation]

I'm betting gone tomorrow (or by summer/fall)

 

[CoolSidePillow]

Since the deal is not fee for departure is there a contract term involved? If it does not pan out or Airtran decides to put their planes on routes because of pax loads how easy will it be to toss skywest away?

 

[Anonymous2]

So wait, is this the beginning of SkyWest starting to take AirTran jobs?

 

[145BOSS]

I guess you could say that. MKE-PIT/STL/IND are all routes that were flown with jets that are now going the flown by Skywest RJs. All in all though, I think you are going to see the RJs going head to head to cities served by Republic RJ's on the former Midwest routes to put an end to Republic's power grab.

 

[CoolSidePillow]

Those Airtran routes from MKE, are they going to all be done by RJs or are they going to put them on flights in between that arent as full and keep the bigger loadouts on Airtran planes?

 

[bvt1151]

The difference here is that the commuter flying will be done "at risk" by Skywest. The former AWAC contract was a "fee per departure" contract. This is a sweet deal for AirTran, if the flying makes a lot a revenue, they get a piece, although a smaller piece than a "fee per departure" agreement. If the flying loses money Skywest has to take the loss and supplement the flying with revenue from other carrier contracts.

you hit the nail on the head here. Airtran is drooling at the opportunity to stick it to Republic any way they can. If they can do that with zero risk, then why not?

These airplanes are also much cheaper than the AWAC planes circa 2002, also. As far as I'm concerned, this is a brilliant move by Skywest. If it works, expect more doors to open.

 

[flyboyzz1]

I fly for Skywest and I'm not impressed. This shows how desperate we are for flying. This flying is here today gone tomorow if Skywest doesn't make money.

Thus the reason they aren't re-opening a crew base in MKE. These flights will be flown by ORD based crews.

 

[ultrarunner]

And you're not even having to paint planes.

 

[Baronman]

These airplanes are also much cheaper than the AWAC planes circa 2002, also. As far as I'm concerned, this is a brilliant move by Skywest. If it works, expect more doors to open.

Brilliant by Skywest? Mmm...too early to tell.

I think Airtran is the winner, Republic the loser with this news.

 

[flyboyzz1]

Well they are painting planes but it will just be a spruced up spare paint job...here is the tail.


http://www.skywestonline.com/Admin/news_images/Skywest-AirTran.jpg

 

[crj567]

Go AirTran!!!!!!!

I sure hope they can nail Republic and drive them under! They seem to be going stright for the throat!

-Go big, or go home!

 

[fastback]

you hit the nail on the head here. Airtran is drooling at the opportunity to stick it to Republic any way they can. If they can do that with zero risk, then why not?

These airplanes are also much cheaper than the AWAC planes circa 2002, also. As far as I'm concerned, this is a brilliant move by Skywest. If it works, expect more doors to open.

I think the only brilliant move you can make with a 50 seat jet these days is to back 2 of them into each other, and take the insurance money. Better than flying or parking them.

 

[WalterSobchak]

And you're not even having to paint planes.

Which, in turn, gives SKW the capability to move them throughout the system. A well placed generic spare is a dispatch hub coordinator's "Holy Grail".

 

[PCL_128]

I'm betting gone tomorrow (or by summer/fall)

I certainly hope so.

 

[PCL_128]

The ATN MEC's response to this announcement:

Fellow Pilots,
AirTran has just announced an agreement with SkyWest for CRJ feeder service into Milwaukee. Under the terms of the deal, SkyWest will initially operate five CRJ-200 aircraft–in SkyWest livery–between Pittsburgh (PIT), St. Louis (STL), Canton/Akron (CAK), Indianapolis (IND), Des Moines (DSM), Omaha (OMA) and Milwaukee (MKE). Any additional service resulting from this agreement is not yet known.
We are concerned by our management’s move to shift flying to another carrier, even as growth at mainline AirTran has stagnated for nearly two years. This affects all of us, as pilot career progression could be slowed by such outsourcing.

Furthermore, it’s unclear how the utilization of RJs in 2010 would be any more successful or profitable than it was to use them in 2003, when the company ended AirTran Jet-Connect. What is abundantly clear, unfortunately, is that our contract allows management great latitude to give your job to other airlines, including non-union SkyWest.

We believe today’s announcement is an affront to AirTran pilots, as well as all AirTran employees, who have worked so hard to build this airline, only to potentially have their jobs outsourced. The name AirTran reflects the quality service to which pilots and other employee groups have largely contributed. For this reason, we find it ironic that management has been critical of Republic Holdings for destroying the Midwest Airlines brand while they risk weakening our own product.

To be clear, we are encouraged that management is looking for ways to grow profitability. We believe, however, that over the long-term, AirTran pilots are better suited to performing flying for AirTran, and we are hopeful that the Company will realize the benefits of having AirTran pilots do that work. Southwest and JetBlue don’t let others fly their passengers, and neither should we.

Be assured that the MEC is exploring its legal options to determine if this agreement violates our scope language. In the meantime, we will be closely monitoring this arrangement and working with the Association’s Economic & Financial Analysis Department to quantify the impact to our pilots. Of course, restrictions on the Company’s right to outsource will be a subject of negotiations during our upcoming discussions on scope. While recent events no doubt highlight the importance of Section 1 of our collective bargaining agreement, you can be confident that the MEC’s guidance to the Negotiating Committee on scope did not require any such reminder.

We need you to participate now. We need every line pilot to attend SPSC events to ensure that management knows how seriously we take this potential threat to our profession and to our job security. You will soon receive information on the next SPSC event. Please make every effort to attend and demonstrate to management not only that you are concerned by their actions to harm our brand and outsource our flying, but also that you are determined to achieve a new contract with better scope, better pay, and better work rules. Remember: we ARE major airline pilots, and we DESERVE a major airline contract.

In unity,

Your Master Executive Council

 

[IslandDriver]

Sounds like they found a replacement for the 717 a 100 seat RJ! Never outsource keep your own brand.

 

[IslandDriver]

...yes I know the CRJ 200 is 50 seats...but give it time!

 

[OurMoney1]

I dont see how a 50 seat jet can make sense in this economy. Someone said their more efficient than AWAC...how? Oil is going north again, some analyst think we may see $100/barrel by spring. At those prices the aircraft has lost money before the crew even shows up.

 

[10nCLR]

The code sharing agreement has a three year term; however, after May 15, 2010, either party may terminate the agreement upon 120 days written notice. So we shall see what happens after May, 15th.

 

[Raskal]

Wow, I really hope the pilot group at Air Tran can get a handle on this, outsourcing is the last thing they need right now.

 

[Max Q]

I can't even begin to describe how excited I am to see the day when Skywest is flying EV's 50 seaters for Airtran.

 

[Stifler's Mom]

14 - United
5 - Air Tran

I guess that leaves 1 of ASA's soon-to-be-retired 50-seaters needing a home.