Originally Posted by
jayray2
A lateral move is a gamble. What if Eagle keeps all the flying and scope is relaxed and they get even more flying? What if Skywest starts shedding flying? Skywest is just another regional with a ton of 50 seaters that is now losing money (although they have a large bank account). You won't ever know you made the right decisions until it is too late. I wish I would have gone to Skywest 4 years ago or Compass 2 years ago. I think that would have been good for my career and quality of life - but I still won't know until the next 5 years play out. This industry is brutal, I think the best thing would be to just leave this industry - something I give serious consideration to everyday.
To clear things up, SkyWest Inc. is losing money but
SkyWest Airlines is making money. We are the only profitable part if this group. As for relaxing scope, that will work in SkyWest and others favor more than Eagles. Also the LARGE majority of our contracts with UAL and DAL don't expire until 2017 and 2020 respectfully.
Yes we have a lot of 50 seaters but far less than many of our competitors and yes ASA/XJT's a competitor to SkyWest Airlines. Currently all of our aircraft including the 50’s are under long term contracts; if our partners want them gone they will have to trade the ships for others, wait for the contracts to expire or pay HUGE penalties. UAL’s been trading our 50’s for 70’s and every time they do they increase the length of the contract. Another fact is all of our aircraft are ours unlike many of our competitors and we also own the rights to our gates in SLC and many in ATL. This makes replacing us more difficult so as long as our cost remains competitive SkyWest will fly. But if our competitors file BK and decrease their cost then SkyWest will find itself facing a judgment day.