XJT and Skywest in talks again?

[Stifler's Mom]

Is ASA not the most improved airline over the past 6 months? Are they not enjoying bonus checks and such? Did they not complete their contract?

ASA needed a complete overhaul of their management and operations. Now that they have begun to do that, I feel they are in an excellent position to be a player in the market for any future growth there may be.

I believe that Stifler's Mom and USCTrojan would agree.

I agree. ASA was in bad shaped before SKW came in and cleaned things up.

I am not familiar with the XJET operation and the shape it is in, but ASA needed help bad, and SKW gave us that help.

 

[Speedtape]

Not arguing that. Did ASA not lose two bases? Did they not lose the CRJ900s they were supposed to get? Are they not smaller than they were?

Yes, operationally they have improved. But all growth has gone, continues to, and will continue to go to SKW (assuming there is any growth to be had anywhere).

[Delta Newsroom:
In response to rising fuel costs, the company is adding to previously announced plans to reduce domestic capacity by 10 percent year over year in the second half this year and now plans for total domestic capacity reductions of 13 percent in the second half of 2008. As previously announced, Delta plans to remove the equivalent of 15-20 mainline and 60-70 regional jet aircraft from its operation by the end of 2008.
http://news.delta.com/article_display.cfm?article_id=11094 ]

Our problem is not our operations (expect for terminal A in Newark, but that isn't up to us). And I'm tired of being told that I have to give up my hard won meager salary if I'm to keep my job, because at some point, it just isn't worth it anymore.

You make good points! However, ASA did not shrink. Resources were reallocated. As an employee, we did not deserve growth, due to incompetent leadership and dismal performance. Contract negotiations seemed to be another major issue--and from a business perspective, it was rational to not grow a potential risk, should there have been a disruption in service. The Comair strike created alot of unhealed wounds at the Big House on Virginia Avenue.

That is now all water under the bridge. The contract is settled. Skywest pilots benefitted to some degree from our efforts--and I'm cool with that! A new and proven Skywest Leader was installed. New processes and procedures were implemented and he rallied the employees. Without a doubt, ASA is a much better place to work and the morale has never been higher as a result of the MGMT change and the changes he has brought about! As a result, Performance Miracles have occurred--almost overnight!

Our improvements should poise us for growth. There will be plenty available soon. Mainline cutbacks will create those opportunities as a more rational restructure occurrs down the road as a result of the cost of fuel. Yes, there will be regional reductions also, but there will be a shift from 50 seat to larger regional aircraft for domestic backfill.

There will be plenty of opportunity for Skywest Airlines and ASA at both Delta and UAL in the future! These major airlines cannot shrink themselves into profitability, but will have to restructure all available resources into a more rational model for the times. Larger regional jets will be part of the solution. Market share and feed are critical in this industry--those will not be thown away or largely reduced by ABSENCE, but continued PRESENCE will be accomplished and preserved by simply retooling with right-sized aircraft for the economic conditions. Traffic will thin, but there will still be some demand.

ASA and Skywest will grow--together!

 

[XPOO]

Future Furlough,

I'm probably seeing this through the rose-colored glasses. Maybe, just maybe, the downsizing was needed in order to straighten things out. Maybe it was done to hang the carrot in front of the ASA Pilot group. Whatever it was, it looks to have turned out for the better in the long run. The ASA pilots stood their ground, and yes, they probably did not get everything they deserved. But I feel that ASA as a whole is starting to prove they deserve more, and I believe it will be there for them when it comes around.

Hopefully, the same will be said about ExpressJet in the long run. We can all hope for that. It should be the competition that should help raise the bar in terms of standards and service, and not lowering the bar in terms of wages and compensation. Something we can all agree on.

 

[Nevets]

Contract negotiations seemed to be another major issue--and from a business perspective, it was rational to not grow a potential risk, should there have been a disruption in service. The Comair strike created alot of unhealed wounds at the Big House on Virginia Avenue.

SKW management not dragging their feet for over two years before coming to an agreement might have alleviated any concern of self help on the part of the pilots.

 

[Nevets]

Maybe, just maybe, the downsizing was needed in order to straighten things out. Maybe it was done to hang the carrot in front of the ASA Pilot group.

That was not a carrot. That was the stick.

...and not lowering the bar in terms of wages and compensation. Something we can all agree on.

I'll agree that wages and compensation should be raised as well rather than just "not lowering" them.

 

[amcnd]

Keep in mind that it took SKW management years before coming to an agreement with ASA pilots. It was only because the NMB required JA to be there at the final bargaining session and come to an agreement or deal with the ASA pilots being released to a cooling off period. If only they would have come to an agreement earlier they could have been benefiting from SKW's excellent operational performance.

Sorry for the thread drift but I just want to keep pointing out that considering the ASA contract negotiations and what SKW management wanted to do with XJT, they are simply anti-labor proven by their actions. Granted that there are many better examples of anti-labor management groups out there.

I don't think that is how it happened. The problem was they gave ASA managment a chance to make thinks work. They did'nt, and now they put a bunch fo SkyWest people in and it's finaly turning around.

 

[sweptback]

I don't think that is how it happened. The problem was they gave ASA managment a chance to make thinks work. They did'nt, and now they put a bunch fo SkyWest people in and it's finaly turning around.

I'm not the most cynical person, but I'm pretty sure SkyWest kept our crummy leadership in place only to make this place look like it was failing to scare the pilots into getting a contract. It didn't really work, and that was a tactical error on their part.

It's pretty common for management and the union to have a "honeymoon" period after a contract is signed. That's what ASA is in now with the new leadership... but come mid-2010 when our contract is up for negotiation we'll see how the new ASA leadership treats us.

 

[Nevets]

I don't think that is how it happened. The problem was they gave ASA managment a chance to make thinks work. They did'nt, and now they put a bunch fo SkyWest people in and it's finaly turning around.

Maybe so but they could have come to an agreement way before the 2+ years it took. Like I said, SKW was essentially forced to play ball. That was my only point there.

 

[Erlanger]

I'm not the most cynical person, but I'm pretty sure SkyWest kept our crummy leadership in place only to make this place look like it was failing to scare the pilots into getting a contract. It didn't really work, and that was a tactical error on their part.

It's pretty common for management and the union to have a "honeymoon" period after a contract is signed. That's what ASA is in now with the new leadership... but come mid-2010 when our contract is up for negotiation we'll see how the new ASA leadership treats us.

Well apparently you are a cynical person as well as negative and a conspiracists. Skywest left the former management in place for a while to give them a chance to work things out and as not to appear to burn the house down. If they had fired them right away, how may that appeared to the other employees at ASA. The pilots group may of thought that was best but remember, the company isn't just about the pilots. Hindsights 20/20, right? Other employees and management would all be on edge worrying about whether they were next to get axed. Would that of been good for morale? Would that of been good to turn everything upside down at ASA with no real plan or understanding of the ASA culture?

Jerry and company have shown they can run a company from scratch and have cultivated the culture here at Skywest the way they want since the beginnings but buying ASA and running an already viable company with it's own culture is something new. They're learning and making up stuff as they go along with ASA and applying some stuff learned from Skywest. Jerry and company is good but I think you're giving them too much credit, especially for the underhanded tactics you may think they're up too.

 

[Nevets]

Would that of been good for morale?

Not dragging the negotiations for 2+years might have helped.

Jerry and company is good but I think you're giving them too much credit, especially for the underhanded tactics you may think they're up too.

Think?

 

[JoeMerchant]

I'm not the most cynical person, but I'm pretty sure SkyWest kept our crummy leadership in place only to make this place look like it was failing to scare the pilots into getting a contract. It didn't really work, and that was a tactical error on their part.

Did we not give up on 4 major issues the last 6 months of negotiations?

1. Large pay raises on the 700
2. B fund retirement
3. Instructor section status quo
4. 100% retro pay

All 4 of those issues were still on the table up until the last 6 months or so....

The ASA coalition forced our side to give on those and then an agreement was negotiated....

We gave a lot in the end to get a deal done....for the good I might add....

 

[JoeMerchant]

Not dragging the negotiations for 2+years might have helped.

See my other post Nevets....We gave up a lot in the last 6 months of negotiations...

 

[Erlanger]

Here's all the info on the CPA with CAL.

http://www.sec.gov/Archives/edgar/data/1144331/000119312508132376/ddef14a.htm

The fixed block hour rates, which will be subject to an annual adjustment tied to a consumer price index (capped at 3.5% per annum), are considerably lower than the rates under the Prior CPA (although they are comprised of much different services) and will result in lower overall revenues. At this time, it is difficult to quantify the overall financial impact of the changes because the two contracts are substantially different and will depend, in part, on the timing of our fleet changes and how successful we are in reducing the costs discussed below. Although revenue will decline sharply, corresponding costs will also decline. Under the Prior CPA we derived significant amounts of revenue from the reimbursement, plus a 10% margin, for aircraft rent, fuel and other expenses. As noted above, those expenses, and the corresponding revenue, will no longer be reflected on our financial statements as they will be incurred directly by Continental. Moreover, the rates we earn will be fixed and not tied to our expenses; consequently, we could be unprofitable if we do not manage our costs appropriately.

We will need to aggressively reduce managed expenses under the New CPA as aircraft are removed from service and returned to Continental. In addition to reducing volume-related costs as a result of the decrease in our flying, we will also need to reduce overhead expenses consistent with the operation of a smaller fleet. With 205 aircraft operating under the New CPA, and 245 aircraft in our total fleet, we need to reduce our annual operating costs by approximately $100 million to be profitable. A significant portion of that amount will be volume-driven, but we anticipate that overhead reductions will comprise at least 35% of that amount, which we intend to address through a reduction in force, wage concessions and other expense reductions. There can be no assurance that we will be successful in reducing our expenses or that we will be profitable in the future.

 

[sweptback]

Did we not give up on 4 major issues the last 6 months of negotiations?

1. Large pay raises on the 700

Still industry leading, especially with the new work rules.

2. B fund retirement

This was used as a bargaining chip to increase the 401k benefits. Also, once Comair lost theirs we were kinda hosed on this one.

3. Instructor section status quo

Well, it kinda is for the sim guys. They actually got a pay raise. The standards guys don't have as good as a deal as the old contract, but they're still at the top of the heap in terms of override pay (industry leading for regionals). ALPA did the best they could given that the company pretty much wanted to gut our instructors and turn us into a Flight Safety-taught airline.

4. 100% retro pay

The CNC got a hell of a lot more than you guys would have gotten us.

All 4 of those issues were still on the table up until the last 6 months or so....

The ASA coalition forced our side to give on those and then an agreement was negotiated....

We gave a lot in the end to get a deal done....for the good I might add....

You give yourself a lot of credit. The "ASA coalition" lost by a landslide... you guys didn't force the MEC to do anything.

I agree with you though that it was best that we got the deal done when we did. I think the MEC raised expectations too high, but I don't think any ASA pilot thinks that we should have held out for anything better.

 

[amcnd]

So what do you tinnk will happen with the Delta, branded and charter flying? What will XJT look like in 1-2 years? Whats you guess.

 

[princeton]

So what do you tinnk will happen with the Delta, branded and charter flying? What will XJT look like in 1-2 years? Whats you guess.

Still flying for CAL, DAL (not pro-rate), more for charter but maybe not branded. i.e 90% of the flying intact.

Also newly released from all the CPA limiting language (no CAL hub flying etc.) implies available for any new flying that might be out there unlike before.

Still with the industry leading pilot contract unsullied by Skywest attempts to turn XJT into another whipsawed workforce

 

[ATRCA]

Thank God. The Holding Letter and Scope clause did its job!

Exactly!!. Non union types will never understand this. They would have found out their company was sold when they read it in the newspaper. Instead, a group of 3000 pilots were actually in the drivers seat of a massive business transaction that could have severely hurt their lives and careers.

 

[ATR Pirate]

Perhaps urinating in your cheerios is better than the market defecating in your cornflakes...

I tell you what, let's re-open this thread in a year and see who is saying "whoops."

that might have been the funniest comeback i've ever seen...i was going to respond, until i read this..says enough