XJT and Skywest in talks again?

[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