Originally Posted by
FlightDirector
What I see in most predictions is SkyWest slowly shutting XJT down by the end of 2017. I realize this is all speculation and a guessing game but XJT seems to be putting a lot of effort into recruiting, surely they have a more optimistic outlook on the future of the company. From what I see I think the majors are going to be really ramping up their hiring starting in 2017. Anychance some of the senior guys at XJT will be moving on and decreasing the upgrade times? If Skywest really does close down XJT surely they'll put a domicile in ATL. Is there anychance XJT pilots will have any sort of priority hiring for SkyWest? Surely they won't just cut that many trained pilots when they also seem to be looking for staff as well.
Even if L-XJT is going out of business 12/31/17, they still need to recruit in order to complete flights until that day. So of course they won't tell anyone when the doors are closing, assuming they knew the date certain. They'll recruit until they furlough. As for your other questions, the senior pilots may leave via the CPP since that is a seniority based program. But if Skywest does shutter XJT, I wouldn't count on anything other than a preferential interview at Skywest. They may save a little money on taking any CRJ type rated pilot so maybe that helps your chances of being hired over at Skywest. But I'm solely speaking of the ERJ side.
Originally Posted by
N1234
And what is the upside for INC in this "smoke and mirror" game?
Originally Posted by
N1234
Do you think INC enjoys losing money? They have been negotiating the contracts to improve the revenue side and they have been working hard to improve cost incl. what many at XJET considered a concessionary contract.
The end result is still revenue < cost and I don't think it is for lack of trying.
You can argue who's fault it is but I don't think anyone would want to shut it down if they had a choice.
As for giving XJET more profitable 2 cabin class flying .... What do you'd I with your money? Take it to a bank that delivers 5% interest or one that gives you 1% interest?
Originally Posted by
N1234
True, INC is profitable overall but the XJET operation is not. I have heard all these arguments of how INC is burdening you with corporate overhead and cost....
You can certainly manipulate the books to your liking but why would INC want to hurt a fundamentally healthy business - if it was fundamentally healthy? It is all left pocket - right pocket for them. It rolls up to one P&L eventually.
What would be the endgame? Shut down XJET an rehire an retrain people on the SKYW side - and spend Even more money?
Put the conspiracy theory aside.
XJET is in a tough spot and I don't think INC would be out to kill them if it was salvageable. The real tragedy here is that people are still mislead thinking it is a viable option.
Originally Posted by
N1234
They for sure don't like unions. But they do like to make money. You don't run a business into the ground for some irrational reason. They are a lot of things but certainly not stupid.
Skywest made a mistake when they bought XJT. The mistake wasn't the actual purchase. The mistake was in having negotiated a previous CPA with a 16% pilot concession cost savings built into it. That's the same CPA Skywest got stuck with when they finally pulled the trigger in buying XJT. So there were stuck with a money losing CPA they negotiated. Luckily for them, they were able to shorten that money losing CPA that they negotiated by 3 years. That's three less years of being stuck with their money losing CPA. I'm sure that if they can convince UAL or anyone else to pay them a rate that would be profitable to operate the 145s, they'd go for it. But until then, they are stuck with losing money on their CPA so they are slowly and methodically decreasing those loses by letting the aircraft expire. It is true that they can easily make XJT profitable if they gave them some of the profitable 175 CPA flying. But you are right that it would also cost more simply by pilot compensation costs. So it makes sense not to do that from an upper management (non-front line employee) point of view. And by the way, the TA that was voted down was a MAJOR concessionary TA, more so on the ERJ side but also on the CRJ side.
As for the rehiring and retaining of XJT people by Skywest, they would need people anyway. The cost of hiring people will still be there regardless of XJT being shuttered. So there is no additional incurred costs associated with that.
Anyway, it may be in Inc's interest to show a loss on the XJT side as a convenient reason to continue the draw down of the money losing CPA. That's if you are the cynical type But I'm not saying that is happening because I don't know. The CPA is probably unprofitable enough to not need to do that anyway, if that's what Inc wanted to do.
One last thing, it's a little disingenuous to say they have been trying to say that are trying to cut costs when it costs millions to run to sets of middle and lower management, two sets of staff, two maintenance departments, two dispatch departments, two scheduling departments, two payroll departments, etc. If they can save money (and charging XJT) by having one IT and one benefits department, they can save money on all the other duplicated departments. It is all smoke and mirrors designed to make you think that they treat all their employees fairly and equally.