What is the Skywest Inc. Plan?

[Medeco]

One correction is Jerry and Skywest stopped moving ASA 700's due to cost and amount if down time.

The ASA reps have been convinced by company lawyers and executives that we are lucky to be where we are today.

One of the dumbest things Jerry did was agree with Delta to be the 2nd cheapest DCI carrier. Skywest Inc has left so much money on the table due to this and other provisions.

Do not lock into this contract for 5 plus years when attrition is about to ramp up big.

 

[AntiJedi]

One of the dumbest things Jerry did was agree with Delta to be the 2nd cheapest DCI carrier. Skywest Inc has left so much money on the table due to this and other provisions.

The only problem, though, is that as a priviso of the contract, they are contractually obligated to do so. The lowest bidder may win a contract, but it's DL who's forcing everyone's hand by making them as close to that rate to retain current flying.

 

[Medeco]

No joke dude, but Jerry was the first one to agree to that with Delta.

 

[JustaNumber]

The only problem, though, is that as a priviso of the contract, they are contractually obligated to do so. The lowest bidder may win a contract, but it's DL who's forcing everyone's hand by making them as close to that rate to retain current flying.

We have not always had to be the second lowest cost provider. At some point Jerry agreed to a contract with this provision. Jerry is only contractually obligated to the contract because he signed the contract.

 

[gojo]

We have not always had to be the second lowest cost provider. At some point Jerry agreed to a contract with this provision. Jerry is only contractually obligated to the contract because he signed the contract.

Very true, and the time frame fits for what's happening now around the industry, especially with the proposed Express Jets TA. It appears that Express Jet and skywest will be whipsawed against each other to accommodate the up coming rate re-set. It is my opinion that it was the rate re-set agreement that sparked Delta's aggressive pressure on it's regional partners. Kind of cleaver for Skywest Inc. to agree to it. It essentially bought them more time.

 

[amcnd]

Rate reset wasn't a big deal when Comair was around. "Higher" cost.. Delta keeps pulling all the high cost operators down. Don't think it will just be SkyWest Inc. that will hurt. Compass will fell the pressure also.. Im sure CHQ will also..

 

[JustaNumber]

Very true, and the time frame fits for what's happening now around the industry, especially with the proposed Express Jets TA. It appears that Express Jet and skywest will be whipsawed against each other to accommodate the up coming rate re-set. It is my opinion that it was the rate re-set agreement that sparked Delta's aggressive pressure on it's regional partners. Kind of cleaver for Skywest Inc. to agree to it. It essentially bought them more time.

I could be wrong, but wasn't the "2nd lowest cost at some future point" clause agreed to when SkyWest and Delta signed the major 15-year CPA, when SkyWest bailed out the bankrupt DL with several hundred million cash for ASA? I agree that was the start of DL b$tchslapping its subcontractors, but it appears to me that Jerry was not clever, in fact it looks like he got taken to the cleaners.

Or you could be cynical and say that Jerry is doing just fine, he just threw his pilots under the bus in order to make the deal.

 

[Freebrd]

Or you could be cynical and say that Jerry is doing just fine, he just threw his pilots under the bus in order to make the deal.

He'll yeah he's doing fine! Him and all the rest with their salaries they all voted in for each other! BH got what, a 60-70% raise to over a million a year. Wonder CT & SH make?

NO!

 

[gojo]

I could be wrong, but wasn't the "2nd lowest cost at some future point" clause agreed to when SkyWest and Delta signed the major 15-year CPA, when SkyWest bailed out the bankrupt DL with several hundred million cash for ASA? I agree that was the start of DL b$tchslapping its subcontractors, but it appears to me that Jerry was not clever, in fact it looks like he got taken to the cleaners.

Or you could be cynical and say that Jerry is doing just fine, he just threw his pilots under the bus in order to make the deal.

I don't know the specifics of how or why the rate re-set was inked. I'm just trying to connect the dots, which is easier to do after more pieces of the puzzle come together. I think the rate re-set takes place December 2015 I could be wrong as I think it was renegotiated recently. The reason I say Jerry was clever is because Skywest Inc. because of the rate re-set deal, will be one of the last ones to receive Delta's b$tchslapping as you call it.

 

[XPOO]

I could be wrong, but wasn't the "2nd lowest cost at some future point" clause agreed to when SkyWest and Delta signed the major 15-year CPA, when SkyWest bailed out the bankrupt DL with several hundred million cash for ASA?

That and Jerry was smart enough to have Delta throw some ATL Gates in the mix and no extra charge. I guess if Jerry wanted to fight back, he'd just charge Delta more to use his gates in ATL.

 

[wms]

That and Jerry was smart enough to have Delta throw some ATL Gates in the mix and no extra charge. I guess if Jerry wanted to fight back, he'd just charge Delta more to use his gates in ATL.

Don't know of you've been to ATL lately. Skyw owns the gates but DAL has all but taken them over. Jerry knows better than to play hardball with RA.

 

[gojo]

Don't know of you've been to ATL lately. Skyw owns the gates but DAL has all but taken them over. Jerry knows better than to play hardball with RA.

Yup, and it appears they've worked out a long range plan

 

[Freebrd]

Yup, and it appears they've worked out a long range plan

Wow! Didn't think airline managements did something like that!

NO!

 

[General Lee]

Seriously, I would vote no. The game is about to be changed - big time. We don't really know how, or to what extent, yet. But, I'm betting it will be severely in pilots' favor.

Either way, my guess is the ERJs are soon gone. To be replaced? By what? E175/190s? I don't know, but the "narrow-body" jungle jets are outta here. The 50-seat CRJs will only be around to satisfy scope provisions.

Regionals, however, aren't going away anytime soon. I doesn't make economic sense. That pilot pay is a huge factor in operating costs is utter BS. Not satisfied that there partners might be profitable, main line partners are squeezing regionals to boost their own profits. But taking any more out of labor costs is unsustainable. No reason to bid on contracts with no profit. And, you can't fulfill contracts with no pilots. Small jets cannot be run as efficiently by main line carriers.

The only reason majors will absorb regional feed into their ranks is to shore up their own pilot availability. But, will main line ALPA groups stoop to allow smaller jets at a "C-scale" - this time? Or, will history repeat itself while the regional model (and pilots) get blamed for all the woes of the profession?

There will be 15,000 new legacy jobs over the next decade due to age 65 retirements. Throw in 215 50 seaters being parked due to high fuel costs, replaced by 70 76 seaters. Mainlines like DL and AA are getting smaller mainline planes (88 717s for DL and new A319s for AA) and are starting to recapture previous mainline routes, while larger RJs will be filling in for outgoing 50 seaters. This isn't an ALPA conspiracy, this is basic economics. The 50 seaters can't make enough money with higher fuel costs, and due to Consolidation and higher profits, it's unlikely mainline scope will be changed to allow larger RJs. I forsee less frequency RJs used to provide, and more mainline planes like 319s and 717s taking over fewer daily roundtrips. Huge changes in scope usually happens in a BK situation, and fortunately that looks less likely now. Hopefully the majority of Regional pilots out there that want a legacy job will land one in the next decade.


Bye Bye---General Lee

 

[General Lee]

Yup, and it appears they've worked out a long range plan

Really? I don't think scope and size of RJs will be changed by the mainline pilots. Nah...


Bye Bye---General Lee