paid4training
Missing my family
- Joined
- Jul 9, 2004
- Posts
- 503
Here's the Cliff's Notes version of what went down from a former XJT'er who was there when it happened:
Nevets is wrong when he said that we had a 10 year CPA in effect when SKYW first tried to buy XJT in 2008. Actually, our CPA with CAL was amendable in 2012.
What happened was a phone call from either St. George to Houston or Houston to St. George occurred. I believe it was the latter. Anyhow, said phone call was made to try to break CAL away from it's current contract with XJT. SKYW "negotiated" a rate at which they "said" they would be able to fly the XJT flying for CAL "if" they bought XJT. Of course this rate was based on many assumptions of what their cost of doing business was. SKYW made their offer on the contingency that XJT ALPA would give up their scope clause in their contract. (This is where it gets fishy) SKYW knew XJT ALPA would not give up scope, and therefore I don't believe the first attempt to purchase XJT was in any way genuine.
But, moving on. After SKYW offered to buy us and fly for CAL cheaper, CAL Management comes to XJT management and offers a three-option ultimatum. Option #1: Agree to be purchased by SKYW; Option #2) Agree to fly for the rates "offered" by SKYW if they had purchased XJT; or #3) Face systematic dismantlement when our CPA came due in 2012.
The scope deal was SKYW's escape clause. They knew XJT ALPA would never agree to giving up our scope. SKYW could have negotiated a rate at which they paid CAL for every flight they flew. It was NEVER a serious attempt to buy us. CAL called JA and said "let's make a deal". And to rub more salt in the wound, SKYW got a 5-plus million dollar parting gift from CAL for playing the game.
Anyhow XJT management, faced with the above ultimatum, agreed to be bent over and signed a "new" CPA with CAL agreeing to fly for the phony rates that SKYW said they would be able to fly for. And ever since then it has been trying to gain "cost savings" to try to get us profitable under the new rates that SKYW "negotiated" for us.
Nevets had it wrong when he said we had a rock solid 10 year CPA when SKYW "tried" to purchase XJT the first time. We had a rock-solid CPA until 2012. What XJT was facing was basically a threat to end the airline when 2012 came if we didn't agree to fly for the rates that SKYW "said" they would do the XJT flying for "if" they had made the purchase.
My belief is that the initial attempt to buy XJT was not serious and CAL used SKYW to break the CPA they had with XJT. Therefore yes, SKYW broke XJT and profited in the process to a tune of over $5 million. Now they bought XJT. You broke it, you fix it. You can't argue with the facts.
And we have a winner based on the facts as management would allow. I would like to add the orginal CPA had a renegotiating date where cal would be able to reduce capacity flying as the contract years proceeded. Skywest was part of XJT demise and was cals pawn in reducing cost. If everyone would recall Republic was the replacement for the first reduction of XJT flying. The existing CPA at the time would just allow CAL to let XJT wither on the vine.
CAL management doesn't care about the regional at all. Gordon Bethone even said in an interview reg airlines were a way for maj to reduce cost. Just an example, most xjt'ers will remember a lil old station in south Houston called Ellington field. It had one of the highest one pass elite passenger boarding rates of the entire system and had one of the highest station boarding totals. A few years back CAL and southwest did a switch and about 20 agents lost their jobs. A deal was made to close EFD if southwest would pull their one flight a day out of IAH so CAL would retain IAH sole base there.
Point being, we can sit around the Internet campfire and debate back and forth how a company did what to the other company and who's really to blame but in the end it doesn't matter. The guys in the suits are gonna make deals to send the other down the river without a life raft. I am a republican who believes business should be lazze fair (spelling police) but I am starting to see the others point of view as well. The folks wearing the suit aren't thinking about anything but the numbers and it hurts positive business practices for the folks turning the bolts, checking in the passengers and flying those passengers from a to b.
Just my opinion. In rethinking my previous post about the pilots retro pay, the pilot negotiated and Jim Reem agreed so it was what it was....