XJT agrees to new 7 year CPA with CAL

[WalterSobchak]

SKW has every right to still buy XJT but our scope hasn't changed, they would still have to create 1 list with one contract (most likely represented by ALPA). The whole reason the deal didn't go thru before was because we would not give up on our scope language. Your Uncle J does not want that, how hard is it to understand this?

I may be totally missing some or all of the in's and out's of "Union CBA's 101", but wouldn't the easy fix for that be a straight up merger with ASA and let ALPA figure it out? I mean, I know the CBA says the buyer has to integrate...but does it have to be all 3 carriers? Or can it be with the one group that is unionized?

I'm not saying that's what should happen...I don't want to see our bro's at ASA get the shaft...but curious if it coiuld be handled that way...

 

[Ben Dover]

A brilliant move by Jerry

This as a win for everybody the way I see it. And a brilliant move by Jerry.

First of all it's great that Expressjet gets to keep their flying. Secondly, Jerry is a genious. He went fishing for Expressjet on the cheap and didn't catch a fish. BUT, he DID force them to lower their price for CAL which will weaken Expressjet, and likely cause them to stop fly ERJs at a loss where they don't belong (like in and out of SLC for Delta, in SkyWests backyard).

 

[KingAirKiddo]

Great news for ExpressJet. I'll have to admit that I was nervous for you guys for awhile!

 

[Butters]

well played, boys. congrats.

 

[Future Furlough]

.... which will weaken Expressjet, and likely cause them to stop fly ERJs at a loss where they don't belong (like in and out of SLC for Delta, in SkyWests backyard).

I was under the impression that was Delta's flying, not SkyWest's. If Delta had wanted SkyWest to do that flying, one would think that would have happened without Jerry's "engineering." The lower rates threaten branded flying, not Delta (CPA) flying.

 

[CFIT]

This as a win for everybody the way I see it. And a brilliant move by Jerry.

First of all it's great that Expressjet gets to keep their flying. Secondly, Jerry is a genious. He went fishing for Expressjet on the cheap and didn't catch a fish. BUT, he DID force them to lower their price for CAL which will weaken Expressjet, and likely cause them to stop fly ERJs at a loss where they don't belong (like in and out of SLC for Delta, in SkyWests backyard).

Plus SkyWest recieved a 10 million dollar excersize fee from Continental for setting up a competitive CPA bid.

SkyWest didn't go through these efforts, at Continentals request, for free.

 

[Hypoxik]

Probably not many furloughs.. but if ONT closes I would expect LAX to go super senior. As a west coaster I would rather bid back to the right seat than commute across the country to a COEX base. I guess we'll have to hang on and see what happens.

Hopefully there aren't too many of you.

 

[BigShotXJTdrvr]

The airplane shifting is a bit complex. We would be left with 205 CAL and 10 DAL under CPAs (215) 30 will be kept for OTC "other than CAL" flying (245).

Yes, much of branded will be cut, but I am not convinced ONT will close completely. A whole bunch of the West Coast stuff, high yield, high load factor, low fuel burn flights are still doing very well. Most likely those 30 at-risk frames will be split between branded and charter in a seasonally shifting allotment to each. Charter revenue is very good.

DAL will need to make a decision on if they want more than 10 airplanes under their CPA because with the new CAL deal we can offer whatever CPA deal we can get on more than 10 airplanes without giving CAL the same price. I bet we see an expanded DAL CPA anouncement very soon. DAL pro-rate will die before branded (it's just branded in DAL paint) and we may want to ship those planes back to CAL instead of the XJT brand planes. DAL may want/need to keep them. We also may exercise the options when the EMB-135s are parked if there is a reason to do so. No I am not on drugs.

Also we're just a CAL vendor and we need CAL to not go into BK. If so, so much for any "secure" 7 year deal.

 

[BoilerUP]

Plus SkyWest recieved a 10 million dollar excersize fee from Continental for setting up a competitive CPA bid.

I assume that'll be shown in the next quarter's 10-Q then?

 

[CFI2766]

I may be totally missing some or all of the in's and out's of "Union CBA's 101", but wouldn't the easy fix for that be a straight up merger with ASA and let ALPA figure it out? I mean, I know the CBA says the buyer has to integrate...but does it have to be all 3 carriers? Or can it be with the one group that is unionized?

I'm not saying that's what should happen...I don't want to see our bro's at ASA get the shaft...but curious if it coiuld be handled that way...

Interesting thought that Uncle J might want to see if ALPA would be happy merging just XJT and ASA. As there is really no benefit, that I can see, anyway, to letting that happen for SKYW Inc., I doubt it would happen.

However, in that scenario, I don't see the ASA guys getting screwed. I think that ASA has a pretty senior group of people; I think we would do okay with a merger.

 

[Texx]

"Continental plans to add the returned aircraft to the new agreement and withdraw from the agreement up to 30 of its Embraer 37-seat regional jets currently flown by ExpressJet for Continental. Continental will then sublease or ground all of the withdrawn Embraer 37-seat regional jets to better align regional capacity with current market conditions."


So, does that mean CAL will take 30 of the 37 seat ER3s and park them? They can't be making that much money if a 50 seater can't. Eagle has the same problem. I think Delta got rid of the CHQ ER3s, or will soon. They really DRAIN revenue during high oil.


Bye Bye--General Lee

Mr. general,

What just took place was JA cut a deal with CAL for flying. Once that was secured he put the bid out for ExpressJet which forced them to get it togther and rethink their postion with CAL

Now that ExpressJet is back in play with CAL I would venture to say that here shortly DAL with end their deal with them in LAX and Skywest will take the flying.

In the long run it was a power play either way. If ExpressJet were to accept the buyout, it was a good deal. If not, then you have what you have. CAL got what they wanted and in the end DAL will have one less DCI airline, remember DAL wants to trim it down,
and Skywest gets the LAX flying.

 

[10nCLR]

Also, I took some interesting tidbits from an AP article published this morning.


ExpressJet said the new agreement makes significant changes to Continental's rights as compared with the original deal, including the easing of certain limitations and restrictions.
The deal also allows ExpressJet to fly for other carriers and to continue the consideration of strategic alternatives, including the company's possible sale. ExpressJet said earlier this week it is continuing to explore strategic and operational alternatives in response to SkyWest Inc.'s unsolicited takeover offer in April.
So my guess is is that there is much more juicey drama to come. So,
Like sands through the hourglass, so are the days of our lives. -Oh, No!!!!!!!!!!! Did I just say that epigram. Shame on me.

 

[gr8dane]

yeah, but how many planes does this new agreement include? Do we know ALL the details?

 

[BoilerUP]

yeah, but how many planes does this new agreement include? Do we know ALL the details?

The press release says it all: at least 205 for the first year, then at least 190 after that through the end of the CPA.

 

[No.W.]

Congrats XJT. It's been a hard battle for you guys.

 

[Lazy8]

I figured there'd be some positive direction in the XJT stock today... not-a-bit!

hmmm

 

[Nevets]

I may be totally missing some or all of the in's and out's of "Union CBA's 101", but wouldn't the easy fix for that be a straight up merger with ASA and let ALPA figure it out? I mean, I know the CBA says the buyer has to integrate...but does it have to be all 3 carriers? Or can it be with the one group that is unionized?

I'm not saying that's what should happen...I don't want to see our bro's at ASA get the shaft...but curious if it coiuld be handled that way...

Its because the XJT pilot's CBA says that all list must be merged. This is to prevent the very thing JA was trying to set up. By only merging XJT/ASA, it would still allow the possibility of transferring aircraft without pilots, as the deal with CAL was written.

Also, neither ASA, XJT, or SKW would get shafted in a merger. Mergers don't necessarily mean DOH. Merging all pilot list would only benefit the pilots as it would increase QOL and quash any possibility of whipsawing.

 

[Nevets]

This as a win for everybody the way I see it. And a brilliant move by Jerry.

First of all it's great that Expressjet gets to keep their flying. Secondly, Jerry is a genious. He went fishing for Expressjet on the cheap and didn't catch a fish. BUT, he DID force them to lower their price for CAL which will weaken Expressjet, and likely cause them to stop fly ERJs at a loss where they don't belong (like in and out of SLC for Delta, in SkyWests backyard).

Thats some pretty good spin.

The fact that XJT is more competitive only means that they will be able to compete more favorably against SKW and everyone else. This is not to say that the DAL pro-rate flying wont go away anyways with fuel the way it is.

Also, one other thing to point out, the flying done in and out of SLC is mostly the CPA flying, not the pro-rate flying. I don't think XJT is operating the CPA aircraft for DAL at a loss.

 

[Nevets]

Interesting thought that Uncle J might want to see if ALPA would be happy merging just XJT and ASA. As there is really no benefit, that I can see, anyway, to letting that happen for SKYW Inc., I doubt it would happen.

However, in that scenario, I don't see the ASA guys getting screwed. I think that ASA has a pretty senior group of people; I think we would do okay with a merger.

I couldn't happen unless XJT pilots agreed to that. Otherwise it would be a merge of all lists.

I also don't see any pilot group getting screwed in a merger. I'm sure there would be fences anyways.

 

[Nevets]

Also, I took some interesting tidbits from an AP article published this morning.


ExpressJet said the new agreement makes significant changes to Continental's rights as compared with the original deal, including the easing of certain limitations and restrictions.
The deal also allows ExpressJet to fly for other carriers and to continue the consideration of strategic alternatives, including the company's possible sale. ExpressJet said earlier this week it is continuing to explore strategic and operational alternatives in response to SkyWest Inc.'s unsolicited takeover offer in April.
So my guess is is that there is much more juicey drama to come. So,
Like sands through the hourglass, so are the days of our lives. -Oh, No!!!!!!!!!!! Did I just say that epigram. Shame on me.

The new CPA eliminates the change of ownership restriction CAL had on XJT. XJT is now free to buy an airline and be bought by any airline without CAL's consent.