xjt furlough I saw it coming

[katanabob]

so now UPS and Fedex are airlines?? i thought they fall under the cargo field where they make money on billions of people around the world sending packages through them. Southwest is the only airline probabaly not furloughing because they hedged and u better believe REALITY will come knocking on their door real soon.

I thought any company operating transport-category aircraft and providing scheduled service under part 121 qualified as an airline. Didn't realize their operating certificate differentiated what they hauled.

 

[Goose Egg]

Every so often a thread comes around that makes me question why I bother with flightinfo at all. This is one of those.

-Goose

 

[donvag]

Its sad that XJT went from one of the best regionals to one of the most unstable.

 

[planejockey]

No wonder this industry is depressed! we have the "I told you so" f***tards working in it. Hey why dont you go work for some scab airline for min wage? You know that they will never let you go!

 

[on autopilot]

I predict that if you eat beans, you will have explosive farts..........

 

[coolyokeluke]

Its sad that XJT went from one of the best regionals to one of the most unstable.

At least you think it's sad, rather than all those reveling in the significant problems and company that's been good to its employees is having.

The fact is XJT met its operational metrics; if it hadn't been for the meteoric rise in the price of fuel XJT branded would be making money. What can you do. If all these "I told you so" people are so smart and have such good crystal balls they'd have mortgaged their houses and invested in the oil futures markets.

 

[drinksonme]

I love how everyone thinks it is fuel that put XJT branded and Delta Connection on the shelf. XJT forgot that they were the red headed step child of CAL. CAL wanted those XR's back, and they figured out a way to do it. They used Skywest as a buyout pawn and then sent a letter stating that if XJT did not accept the terms of the buyout, they will slowly cancel the CPA. The shareholders rejected the Skywest offer and then went to CAL begging them not to kill the CPA. Not our executive, shareholders appointed by the board went to negotiate with CAL. What we got was $hitty CPA, basically CAL saying sign this or lose all of XJT in a slow death over the next 5 years. That caused the lose of branded because under the new CPA with CAL it stated we had to have X number of XR's or we were in violation of the CPA. Also, they wanted 205 planes and are parking all of our 135's and some EP's. In order for us to supply 205 we had to take from branded and Delta to give back the better airplanes in the fleet. Also, Delta was set to finish in June 09 anyway. They had actually moved that up to Jan of 09. We had 10 under a CPA, and 13 losing money under at risk. We advised them that we need to take the planes from the at risk operation and give them back to CAL. Delta wanted us to take the planes on the CPA. There is your mutual agreement to terminate the contract between DAL and XJT. At risk I will say was a fuel issue, but not branded or the CPA with DAL. Our exec's are on record saying they were willing to allow XJT branded to bleed for 2 years...we made it less than 1.5. Also, look at the press releases from CAL and SKYW. Why did CAL pay SKYW 6 million dollars for the failed buyout of XJT. Seems like a lot of money for sending over some paperwork and making some phone calls. Yes fuel sucked, but with our load factors and the hedging we had in place, we had time to ride out the speculation storm that is dying fast as we enter the fall. Look even a hurricane can not make that big of a dent in the falling price of oil and the rising dollar. I bet everything will seem like utopia after the election...mark my words on that. As for XJT....to bad CAL has them by the balls, otherwise who knows. Stop saying it was fuel. Our execs can not go on record saying "yeah we got our a$$es handed to us by our largest customer, CAL, that is why branded operation will be ending."

 

[drinksonme]

really? even Southwest, Fedex, UPS, EVERY airline? My point was I wouldn't be surprised to see ExpressJet completely tank in the next year if things don't turn around soon.

My friend at FEDEX said that things are getting bad there too. They are building and flying min line values, and the F word has been used a lot. They also did two reduction bids, meaning they reduced staffing at some of the hubs, like LAX. Many displaced to MEM. He told me the only thing keeping them from furloughing is China, and the fact that a lot of junior guys are there. As far as I know, you can not be displaced to China, therefore you can not furlough the guys there because you do not have the ability to force others to go to China. No one is safe. Just ask Western, Eastern, TWA, Braniff, Pan Am......etc. To the author of this thread, if you think you are at stable airline, look up oxymoron. He who cast the first stone in a glass house.

 

[ejpogo]

Hey Air Cowboy,

Come write to us again after you have spent several years at the regional airlines. You will realize two things. First of all, there is always uncertainty at the regional level, and you always have to watch out to protect your jobs. Secondly, you never kick someone when they are down and having pilots getting furloughed. Don't give us this "I told you so" crap. Not classy at all.

Eric Pogo

 

[Nevets]

I love how everyone thinks it is fuel that put XJT branded and Delta Connection on the shelf. XJT forgot that they were the red headed step child of CAL. CAL wanted those XR's back, and they figured out a way to do it. They used Skywest as a buyout pawn and then sent a letter stating that if XJT did not accept the terms of the buyout, they will slowly cancel the CPA. The shareholders rejected the Skywest offer and then went to CAL begging them not to kill the CPA. Not our executive, shareholders appointed by the board went to negotiate with CAL. What we got was $hitty CPA, basically CAL saying sign this or lose all of XJT in a slow death over the next 5 years. That caused the lose of branded because under the new CPA with CAL it stated we had to have X number of XR's or we were in violation of the CPA. Also, they wanted 205 planes and are parking all of our 135's and some EP's. In order for us to supply 205 we had to take from branded and Delta to give back the better airplanes in the fleet. Also, Delta was set to finish in June 09 anyway. They had actually moved that up to Jan of 09. We had 10 under a CPA, and 13 losing money under at risk. We advised them that we need to take the planes from the at risk operation and give them back to CAL. Delta wanted us to take the planes on the CPA. There is your mutual agreement to terminate the contract between DAL and XJT. At risk I will say was a fuel issue, but not branded or the CPA with DAL. Our exec's are on record saying they were willing to allow XJT branded to bleed for 2 years...we made it less than 1.5. Also, look at the press releases from CAL and SKYW. Why did CAL pay SKYW 6 million dollars for the failed buyout of XJT. Seems like a lot of money for sending over some paperwork and making some phone calls. Yes fuel sucked, but with our load factors and the hedging we had in place, we had time to ride out the speculation storm that is dying fast as we enter the fall. Look even a hurricane can not make that big of a dent in the falling price of oil and the rising dollar. I bet everything will seem like utopia after the election...mark my words on that. As for XJT....to bad CAL has them by the balls, otherwise who knows. Stop saying it was fuel. Our execs can not go on record saying "yeah we got our a$$es handed to us by our largest customer, CAL, that is why branded operation will be ending."

I think some of your statements are skewed a bit. In any case, fuel was part of the issue. Of course CAL's whipsawing tactics with SKW was a big part of it as well.