Notices

"Contract Employees"

Old 04-08-2020, 05:59 PM
  #1  
In the dumpster fire
Thread Starter
 
SIUav8er's Avatar
 
Joined APC: Jan 2010
Posts: 257
Default "Contract Employees"

Why are the contract employees being let go EXCEPT the QX and OO people? I can see an argument for keeping QX around, but why not park all the OO jets first? Were supposed to "Do the right thing" and all that other stuff, right? (Old news, but was surrounded by 00 jets at the gate this morning)
SIUav8er is offline  
Old 04-08-2020, 06:06 PM
  #2  
Prime Minister/Moderator
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,097
Default

Originally Posted by SIUav8er View Post
Why are the contract employees being let go EXCEPT the QX and OO people? I can see an argument for keeping QX around, but why not park all the OO jets first? Were supposed to "Do the right thing" and all that other stuff, right? (Old news, but was surrounded by 00 jets at the gate this morning)
depends on the terms of the contract. Most individual contract workers are on month-to-month deals (why would an employer give them any more than that if they didn't have to?).

OO does not do short-term contracts (they typically buy the planes so need a long ROI period), so the cost to cancel would be high, and would probably have to be paid up front, in cash. Mid-term, it would cost less to let them keep flying the contract min.

QX probably has contract too... they are kind of "arms length" from AAG, which actually works to their advantage right now. A wholly owned with no contract could get their jets all parked for the duration.
rickair7777 is offline  
Old 04-08-2020, 06:15 PM
  #3  
In the dumpster fire
Thread Starter
 
SIUav8er's Avatar
 
Joined APC: Jan 2010
Posts: 257
Default

Interesting. Didnt know it was such a long term for the CPA's. Long time ago, flew for a UPS feeder and they put their cargo feeder contracts out for bids monthly.
SIUav8er is offline  
Old 04-08-2020, 06:41 PM
  #4  
Prime Minister/Moderator
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,097
Default

Originally Posted by SIUav8er View Post
Interesting. Didnt know it was such a long term for the CPA's. Long time ago, flew for a UPS feeder and they put their cargo feeder contracts out for bids monthly.
OO doesn't like less than 15 years if they provide the plane, even that still leaves them with some "tail risk" on the back end, maybe 5 years with a 20-year mortgage/lease. They've done a few short contracts with the planes owned by the major.

That's what they bring to table, they can show up with dozens of brand-new $30M jets. The price for that is long-term contracts.
rickair7777 is offline  
Old 04-08-2020, 09:54 PM
  #5  
Line Holder
 
Joined APC: Feb 2015
Position: Back of the Bus
Posts: 87
Default

No doubt. Shiny toys with at will labor, what’s not to like????
THE SHAFT is offline  
Old 04-10-2020, 10:21 PM
  #6  
Gets Weekends Off
 
Joined APC: Nov 2016
Posts: 880
Default

Originally Posted by rickair7777 View Post
OO doesn't like less than 15 years if they provide the plane, even that still leaves them with some "tail risk" on the back end, maybe 5 years with a 20-year mortgage/lease. They've done a few short contracts with the planes owned by the major.

That's what they bring to table, they can show up with dozens of brand-new $30M jets. The price for that is long-term contracts.
skywest will shrink with DL, AA and UA shrinking. Alaska will dump them as they shrink and fail.
domino is offline  
Old 04-10-2020, 10:41 PM
  #7  
Gets Weekends Off
 
Joined APC: Jul 2017
Posts: 455
Default

Originally Posted by domino View Post
skywest will shrink with DL, AA and UA shrinking. Alaska will dump them as they shrink and fail.
LOL, good one
flysnoopy76 is offline  
Old 04-11-2020, 07:29 AM
  #8  
Prime Minister/Moderator
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,097
Default

Originally Posted by domino View Post
skywest will shrink with DL, AA and UA shrinking.
Probably, some of their flying is "at risk", ie sponsored by OO using the major partner's brand and reservation system. They are going to lose most of that for a while plus whatever their major contracts allow to be drawn down.

Originally Posted by domino View Post
Alaska will dump them as they shrink and fail.
Entirely possible after AS files BK. Except OO won't fail, they have the smartest management in the regionals, and probably in the top three smartest of all US airlines. Every time I've ever thought that they did something stupid... turned out it wasn't stupid. Except one thing, but they fixed it pretty quick. They probably had a plan for this, I know they had plans for another 9/11 like event.

Or AS could ditch the buses, move the 73's to QX and let OO keep doing the CPA. QX would fly 73's for a big discount, no scope that says they can't. OO can't fly big jets due to big-three scope.
rickair7777 is offline  
Old 04-11-2020, 10:55 AM
  #9  
Gets Weekends Off
 
Joined APC: Apr 2016
Posts: 384
Default

Originally Posted by rickair7777 View Post
Probably, some of their flying is "at risk", ie sponsored by OO using the major partner's brand and reservation system. They are going to lose most of that for a while plus whatever their major contracts allow to be drawn down.



Entirely possible after AS files BK. Except OO won't fail, they have the smartest management in the regionals, and probably in the top three smartest of all US airlines. Every time I've ever thought that they did something stupid... turned out it wasn't stupid. Except one thing, but they fixed it pretty quick. They probably had a plan for this, I know they had plans for another 9/11 like event.

Or AS could ditch the buses, move the 73's to QX and let OO keep doing the CPA. QX would fly 73's for a big discount, no scope that says they can't. OO can't fly big jets due to big-three scope.

This is all such rubbish! Embarrassing
Mea25000 is offline  
Old 04-11-2020, 12:50 PM
  #10  
Prime Minister/Moderator
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,097
Default

Originally Posted by Mea25000 View Post
This is all such rubbish! Embarrassing
You missed the sarcasm.
rickair7777 is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Papa Bear
JetBlue
31
05-14-2017 04:31 AM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices