Originally Posted by
Trip7
Skywest must have a very lucrative CPA with United. Expressjet is much bigger than Skywest, yet Skywest brings in much more revenue. The rates paid to Skywest and Expressjet for Delta flying are the same, as both carriers negotiated the 2nd lowest cost rate with Delta.
The E145 CPA is probably hampering revenue as well, which ironically, Skywest Inc did to themselves
Profitablity of the contracts seem to lean heavily on performance incentives, hence the reason management is going crazy with all these nexlev mind meld meetings after horrific performance this past quarter.
What I understand is the SKYW CPA is very lucrative, however much of it is being put up for bid this and next year as the CPA's expire. These were entered BEFORE the 2008 SKYW attempt to buy XJT and they set the price at a 0% margin. What I understand is the XJT fleet/crew utilization is at an all time high and where we are most profitable.
I think the ASA crj is losing money, hence the merger. Rates were lowered just before/after the acquisition and continue to be. Being attached to ASA is like arranging deck chairs on the Titanic with Uncle Rico steering us into an iceberg. Love their talk about "economies of scale" and "power pricing because of our size" yet they then say we cost to much blah blah blah FUPM