XJT vs NetJets

[ILStoMinimums]

The airline schedule sure sounds better, imo. Can't you manage 7 days off in a row at XJT with some 2-3 years with the company?

 

[BigShotXJTdrvr]

Don't let the fact that our CPA comes up for renewal scare you away from XJET with the thought of massive furloughs. Could it happen? Sure, but the within the CPA, CAL pays XJET a fee per hour to do their flying for them. This number is basically kept a secret between CAL mgmt and XJET mgmt. (best guess is somewhere around $1800-$2500/block hour). Even though we have the highest PILOT costs in the 50 seat sector right now, we also have the some of the LOWEST overall operating costs such as training, maintenance, etc... because we spread our fixed costs over a very large fleet. Sort of a mini-Southwest model. And these efficiencies coupled with our incredible flight completion numbers make us very attractive as an operator to CAL, and therefore our jobs might be more secure than you might think at first glance. Basically, pilot costs are only part of the equation. A company that pays it's pilots less might actually cost more due to non-crew costs.

 

[Secret Squirrel]

I have heard different. The numbers I see are that we have some of the highest cost in the industry. The problem is that we fly too many jets and do not utilize them efficiently. Comair uses its jets around 12 hours a day. We use ours around 7 ( on average). This does not allow us to spread our costs as efficiently and brings up our AVERAGE costs(You know, costs per seat mile). So on paper. We do not look like a very efficient airline. Now I do not know how much this is our fault. Does XJT set the delivery schedule for the jets or does CAL? This also means we could double our flying and not have to take on another jet. This would bring down our costs.

Remeber ther is always an accountant out there that can look at a different set of numbers (or the same)and make you look like a fat inefficient airline.

SS

 

[nimtz]

I have heard different. The numbers I see are that we have some of the highest cost in the industry. The problem is that we fly too many jets and do not utilize them efficiently. Comair uses its jets around 12 hours a day. We use ours around 7 ( on average). This does not allow us to spread our costs as efficiently and brings up our AVERAGE costs(You know, costs per seat mile). So on paper. We do not look like a very efficient airline. Now I do not know how much this is our fault. Does XJT set the delivery schedule for the jets or does CAL? This also means we could double our flying and not have to take on another jet. This would bring down our costs.

Remeber ther is always an accountant out there that can look at a different set of numbers (or the same)and make you look like a fat inefficient airline.

SS

Low aircraft utlilzation is entirely the fault of Continental. They determine every bit of our scheduled revenue flying. Look at Delta's hub structure sometime. They have banks going to the hub at 5 am and leaving the hub past 10 pm. That translates to alot more aircraft effiency. In CAL's system, outside of redeyes and a few exceptions, everyone is done flying by 11 pm. All you commuters know that pain far to well. Please don't get me started on CLE, home of the mandatory three hour sit.

As far as operational costs on the 145, being the launch and best customer has allowed us preferential treatment that has lead to very attractive operating costs on the jet. Although it mine as well be considered a given that CAL will bring in a new small jet provider in 2007.

 

[ILStoMinimums]

Any chance XJT will start flying the planes more like CMR does?

 

[Heavy Set]

Any progress on E170s for COEX? Anyone hear anything? Thought COEX was talking about taking some bound for MDA....

 

[BluDevAv8r]

I have heard different. The numbers I see are that we have some of the highest cost in the industry. The problem is that we fly too many jets and do not utilize them efficiently. Comair uses its jets around 12 hours a day. We use ours around 7 ( on average). This does not allow us to spread our costs as efficiently and brings up our AVERAGE costs(You know, costs per seat mile). So on paper. We do not look like a very efficient airline. Now I do not know how much this is our fault. Does XJT set the delivery schedule for the jets or does CAL? This also means we could double our flying and not have to take on another jet. This would bring down our costs.

Remeber ther is always an accountant out there that can look at a different set of numbers (or the same)and make you look like a fat inefficient airline.

SS

This is slightly incorrect. XJT's aircraft utilization is a little over 8.5 hours per day and will most likely not increase much in the next year or so. Although I have not seen the numbers (CMR doesn't report utilization numbers because it is a subsidiary of Delta), I highly doubt that Comair's aircraft utilization is 12 hours per day. CHQ utilizes its airplanes around 10:45 per day. My guess is that Comair is in the 10 hour to 11 hour range. But a previous poster was correct...Delta has more banks per day (aircraft sit less than at CAL/XJT). Also as someone previously said, under these cost-plus agreements, utilization levels are all determined by the mainline partner.

-Neal

 

[BluDevAv8r]

Any progress on E170s for COEX? Anyone hear anything? Thought COEX was talking about taking some bound for MDA....

Unless something significant changes or occurs (such as CAL's scope clause changing, etc), you won't see any new fleet types at XJT anytime soon.

-Neal

 

[Hawkered]

Love Netjets. Best job I've ever had!

 

[Wasted]

So say Continental schedules another bank or two to bring up the utilization averages. What good does that do? What good is another bank or two if they're at O'dark 30 and half past midnight? How many seat will they fill? What good is a bank of empty planes?

Had Delta considered that maybe they have too many banks? Maybe the smart thing to do here is to cut out a bank or two and then make a commensurate reduction in the fleet size to maintain the healthy utlization average.