Thread: What's the Latest at ASA/Expressjet?
View Single Post
Old 08-26-2014 | 09:44 AM
  #7100  
Waitingformins
Gets Weekends Off
 
Joined: Dec 2012
Posts: 610
Likes: 0
Default
Originally Posted by NVUS
There will be less ERJ 50s, that was inevitable, but there will still be demand for most of them coming off contract. Someone will fly them, it just wont be XE pilots.
From United’s Q2 earning call
The company introduced seven highly efficient Embraer 175 aircraft to the United Express fleet. The modern and spacious 76-seat aircraft is the newest addition to the United Express fleet, enabling the airline to offer an improved regional jet experience. These aircraft will largely replace less-efficient 50-seat regional jets, and the company expects to reduce its 50-seat regional jet fleet by 38 aircraft by the end of the year.
Costs associated with permanently grounding Embraer ERJ 135 aircraft $66 (in Millions)
United announced 70 E-175 since SKY bought Express jet. They are clearly not advertised as new capacity for the company.

SkyWest could have guaranteed ExpressJet some of the 40 orders for their concessions, nope. If your make less, well make more.

The Compass deal with American has proven ExpressJet is out of line on the revenue side much more disproportional than the overhead side.
United will not be able to rebid the 50 seaters for anything close to the SkyWest deal.
You are right though SkyWest would love to rebid their expiring contracts for more money while using the threat of parking them to lower their pilot cost. It’s a win on both sides of the balance sheet, once again the pilot will be flying the same plane he was yesterday making less while the company makes more.