XJT replacement?

[SBD]

http://www.wave3.com/Global/story.as...75803&nav=0RZF

Am I reading this right.

 

[SBD]

I'm sorry I couldn't pull up the link. But this is what it said>


NEW YORK (Reuters) - No. 4 U.S. carrier Continental Airlines Inc. (CAL.N) on Thursday said second-quarter earnings nearly doubled as fuller flights and higher fares offset increased fuel costs.
The jump in earnings came a day after rivals Southwest Airlines Co. (LUV.N) and American Airlines parent AMR Corp. (AMR.N) both posted stronger-than-expected quarters, offering another sign that the long-suffering industry is on the mend.
Continental's net income rose to $198 million, or $1.84 a share, from $100 million, or $1.26 a share, a year earlier. The second-quarter profit follows a loss of $66 million in the first quarter.
But Continental failed to match the outperformance of its rivals and remains exposed to rising jet fuel prices, putting its shares under pressure. Continental stock, which has led the sector with a gain of 43 percent so far this year, was down 2 percent at $30 on Thursday on the New York Stock Exchange.
After years of losses, worsened by the after-effects of the September 11, 2001 attacks, carriers have moved to lower costs and reduce the size of their fleets. The changes have helped them gain pricing power and raise fares.
"Most of the fare increases have been holding. That's key," said Helane Becker, an analyst with Benchmark Co. She expects revenue for the industry to be solid through the rest of the year, but says it is unclear whether profitability will hold up as well.
Excluding special items, the Houston-based airline posted earnings of $1.93 a share. Wall Street analysts expected $1.94, according to Reuters Estimates.
Operating revenue rose 23 percent to $3.51 billion from $2.86 billion as revenue per seat rose 11 percent. The company had a record load factor of 82.7 percent in the quarter, 3.1 points better than a year ago.
The lower costs coupled with recent fare increases more than offset a rise in the company's fuel costs, which increased 38 percent to $791 million.
The company had hedged 25 percent of its jet fuel purchase in the second quarter and increased that to about 33 percent in the third quarter.
For the third quarter, the company said it was hedged at an average crude oil swap price of $73.18 a barrel. Crude oil currently trades at about $74 a barrel.
In a further sign of willingness to reduce fleet sizes, Continental said it will only replace 40 to 50 of the 69 planes that regional airline partner ExpressJet Holdings Inc. (XJT.N) recently decided to purchase.

 

[SkyBoy1981]

Don't hold your breath. I would be very surprised to see more 50 seat RJ's flying around in Continental colors. I'm willing to bet that CAL wanted to decrease their 50 seat capacity, and having XJT go out and find other work for 69 of the RJ's was a quick and easy way for them to do just that. Just my 2 cents.

 

[sniper]

Shuttle America is coming with EMB170's

50 of those will make up the 69 50 seaters




my 2 cents

 

[Apache 5]

Shuttle America is coming with EMB170's

50 of those will make up the 69 50 seaters




my 2 cents

Dont think that jives with CAL scope.

My 3 cents.

Larry is waiting for Mesa to go out and find some RJs to whore out.

 

[ex208driver]

what about the continental scope, last I checked they haven't released the scope issue. The union may be in negs, but nothing is final. so much for this rumor. the report said they are looking for 40 to 50 ac for the 50 seat lift. They may use 70 seat turboprops but not 70 seat jets, and even then I am not sure that will happen.

 

[Espalda Mojado]

Shuttle America is coming with EMB170's

50 of those will make up the 69 50 seaters




my 2 cents

Yes, this is coming, probably before the end of the year! It will be good for everybody, since CAL will be able to compete in the 70-seat market. The scope issue will be finalized soon, as the CAL pilot group supports this.

 

[SkyBoy1981]

Yes, this is coming, probably before the end of the year! It will be good for everybody, since CAL will be able to compete in the 70-seat market. The scope issue will be finalized soon, as the CAL pilot group supports this.

How is more 70 seat mini 737's flying around for a regional airline with pilots making regional wages good for everyone?

 

[FLAPS 9]

How is more 70 seat mini 737's flying around for a regional airline with pilots making regional wages good for everyone?

Finally somebody else gets it!

 

[veneratio]

I dont think any 170's will be flown in CAL colors since the CAL pilots won't allow it. But hey, u never know.

 

[TNPILOT]

Finally somebody else gets it!

No joke sometimes I wonder. Hopefully CAL pilots won't take the bait.

 

[hbrow15]

Hopefully CAL pilots won't take the bait.

it's unlikely that they will that pilot group is getting younger by the day with continental retireing around 300 per year if I would think the younger guys would not trade scope for a pension the probably wont see anyway. But Big Larry has been paying into that pension fund when many have dropped them so at some point he will want something for it. If it is scope it would be better to do it sooner than later before the guy's that can still get a pension are on property. Also a few month's ago during a Q/A session with the media during one of thier quaterly announcements big Larry was asked about that gap between Rj's and 737's he said if they were looking to fill that void it would be with 90 seaters, I think they feel in a few years E-170's will be just like E-135's pretty much same operating cost as the E-145 but fewer seats.

 

[catIIIc]

What leverage does the company have change our Scope? Nothing, we just made a 200 million dollar profit. The pension is already gone, we can't fly anymore hours, Scope was the only thing they left alone with the last contract. They may come up with something but I hope the majority votes no. If the 170's come online you can kiss about 500 jobs good-bye. Why would we be on board with that?

 

[dojetdriver]

I dont think any 170's will be flown in CAL colors since the CAL pilots won't allow it. But hey, u never know.

Yep, there was a time when UAL,DAL,NW,USAir pilots wouldn't allow it either.

If (when) CAL managment comes back for round 2 of concessions and says "look guys, it's pension or scope". Which way do you think that 50% that is retiring soon will vote?

 

[catIIIc]

The pension is already gone, it was frozen with the last contract, there will be no reason for the company to ask for concessions we are no where near bankruptcy. Not to say some huge event can't happen but we are not there yet. The company is currently in negotiations for medium jet flying but no one knows what the company asked for or what the union said. A lot has to happen to make this change.

 

[Hutchman]

Yes, this is coming, probably before the end of the year! It will be good for everybody, since CAL will be able to compete in the 70-seat market. The scope issue will be finalized soon, as the CAL pilot group supports this.

I don't know any CAL pilots that support this. Yes, they are talking with the company. That is all for now.