Originally Posted by
STR8NLVL
I see no similarities b/t RAH/Midwest and the CAL/XJT deals. You leave out one important part of the history between CAL and XJT. XJT lost a RFP for CAL flying and defiantly kept the planes without a clue as to what they would do with them, to the surprise of everyone watching. At the time, the president stated that he would rather park the planes out on the ramp and burn them than watch someone else fly "his" planes (that were owned by and leased from CAL). So, then XJT announces the branded flying that was predicted by everyone except the mgmt of XJT and its kool aid satiated pilots to end in miserable failure. Two years later, XJT went from an exceptional company with a fat balance sheet full of cash to another broke airline, crippled by fuel costs, and in such dire straits that it was able to whipsawed by SKW/CAL into accepting a contract that it now admits is not economically feasible without significant concessions from labor.
So I see RAH/Midwest as a slimy deal between two managements that screws both pilot groups. Whereas I see XJT in a bed of its own management's making, through no fault of its pilots' mind you, but still very different.
And you leave almost all the history out.
This is the deal that CAL wanted before the release of the 69 aircraft. The XJT BOD couldn't agree to a non-profit deal so XJT called CAL on their bluff. CAL released the 69 aircraft and gave some of that flying to RAH. Eventually CAL told XJT to make a deal or lose ALL of the CAL flying. In the meantime XJT BOD did with the 69 aircraft what they thought was best for the shareholders. Obviously XJT wasn't going to park those aircraft while paying the leases if they had opportunities for those aircraft. Frankly, XJT may have been in a different situation now and probably laughing at the naysayers if oil would have remained at the $60-70 a barrel it was when Branded was announced.
By the way, it wasn't a miserable failure as you stated. XJT met and exceeded many performance matrx including revenue and customer satisfaction. It was a great product and everyone was proud of it. The miserable failure was in not being able to charge enough to cover the cost of the increased fuel prices despite the hedges.
The whipsaw by CAL/SKW was possible because CAL made good on their first bluff of releasing the 69 aircraft, finding replacement flying (RAH), and further telling XJT if they didn't make a deal they would release ALL of the aircraft. This would have happened regardless of the balance sheet. They would have done it even if Branded was successful because the CAL flying was still 75% of XJT's flying and XJT couldn't afford to take any further risk.
My whole point of my reply to you other than setting the history straight is to point out that the similarity I'm talking about is one pilot group being used to whipsaw a different one. In XJT's case it was SKW being used to whipsaw XJT and in your case its RAH being used to whipsaw Midwest.
Originally Posted by
ToiletDuck
I'll deny the similarities because this isn't a whipsaw on us. Secondly RAH isn't going for concession and sure as heck isn't losing money on it. You appear to be doing your best now to solidify my point which was the irony in the post. I bolded the part that points to it. Thank you for the support.
Let me spell it out for you since you either are ignoring it or don't understand. The similarity is that one pilot group, RAH and SKW, is being used to whipsaw another pilot group, Midwest and XJT.
Originally Posted by
ToiletDuck
I didn't say it wasn't a whipsaw. I said it's not a whipsaw on us.
That's the whole POINT!!! Its a whipsaw regardless. Its just that your pilot group seems to be the beneficiary of it at the peril of the other. Is that why you want to deny the similarities? Keep in mind, I'm not blaming the RAH pilot group. It just is what it is.