Airline Pilot Central Forums

Airline Pilot Central Forums (https://www.airlinepilotforums.com/)
-   ExpressJet (https://www.airlinepilotforums.com/expressjet/)
-   -   Will ExpressJet survive this? (https://www.airlinepilotforums.com/expressjet/128757-will-expressjet-survive.html)

DirkDiggler 07-22-2020 03:48 PM

Update from MEC Chair: All,


I need to make you aware of developments that have transpired during the past couple weeks that could have a dramatic impact on our future and the future of ExpressJet Airlines. Late last week, management requested all of the labor leaders on property join them on a call to discuss new information from United Airlines as well as management’s strategy for ExpressJet’s survival into 2021.


On this call, we were informed that United Airlines stated it would only require one E145 carrier moving forward. United Airlines will base their final selection on many factors and will make its decision in the coming weeks. While ExpressJet offers many attributes that make us an attractive long-term partner, cost has reared its ugly head once again and we have been asked by our management team to close the gap between our costs and those at CommutAir. This gap can only be sufficiently closed with labor cost reductions from all labor groups on property, both represented and not. We were briefed by management July 21 about their proposed plan that included reductions in overall pilot compensation and other benefits. I will note that the benefits management proposed reducing did not include health care. While I cannot discuss specifics at this time, your MEC is fully engaged as we move forward assessing the situation and making the initial decisions that are best for the overall health of our airline. We hope to have more concrete answers about our future soon; however, there is no doubt we will be a much smaller airline this fall with meager growth forecast over the next few years.


This has been more than challenging for all of us, and ExpressJet pilots are poised to continue our tradition of examining all the options on the table prior to making the tough decisions necessary to keep us afloat. At this point no decision has been made on how we will proceed, and the next few days will be very challenging and arduous for your elected leadership. I will continue to update you with information as the situation develops.

DirkDiggler 07-22-2020 03:52 PM

Something tells me the carrier (us) with an average longevity of 17 years is not going to be the one who survives. Sucks for all around.

itsmytime 07-22-2020 04:05 PM


Originally Posted by DirkDiggler (Post 3097292)
Something tells me the carrier (us) with an average longevity of 17 years is not going to be the one who survives. Sucks for all around.

we’re talking $3-4 per hour between the two contracts. Is that really the deciding factor?

DarkSideMoon 07-22-2020 04:08 PM


Originally Posted by itsmytime (Post 3097295)
we’re talking $3-4 per hour between the two contracts. Is that really the deciding factor?

the hourly isn’t the problem necessarily.

if the average longevity of a C5 pilot is 3 years, and the average longevity of an expressjet pilot is 7, there is no way to competitively match the C5 staffing costs without significant hourly pay cuts even relative to the same year at C5.

GA2Jets 07-22-2020 04:10 PM


Originally Posted by itsmytime (Post 3097295)
we’re talking $3-4 per hour between the two contracts. Is that really the deciding factor?

All over United's Town Hall and their earnings call was the mantra that they need to save every penny of their liquidity. So ya, I bet they would make a move over a small margin in the end. :/

terks43 07-22-2020 04:21 PM

I’m sorry guys, fingers crossed something miraculous happens and they can keep both. Doesn’t sound like it though, but all I can do is hope for y’all and C5 don’t want to see any pilot jobs lost but it does seam to be inevitable at the moment.

DirkDiggler 07-22-2020 04:26 PM


Originally Posted by DarkSideMoon (Post 3097296)
the hourly isn’t the problem necessarily.

if the average longevity of a C5 pilot is 3 years, and the average longevity of an expressjet pilot is 7, there is no way to competitively match the C5 staffing costs without significant hourly pay cuts even relative to the same year at C5.

Plus all of the added perks, defined contribution plan which I don't think they have... about a 1/3 of our list is at 4 weeks vacation. About 25% of the list is maxed out at 18 year pay scale, that's pretty significant. And all CA's that are left will be at the highest pay scale. I wonder how many 18 year + guys C5 has.

Redheadtexas 07-22-2020 04:45 PM


Originally Posted by DirkDiggler (Post 3097289)
Update from MEC Chair: All,


I need to make you aware of developments that have transpired during the past couple weeks that could have a dramatic impact on our future and the future of ExpressJet Airlines. Late last week, management requested all of the labor leaders on property join them on a call to discuss new information from United Airlines as well as management’s strategy for ExpressJet’s survival into 2021.


On this call, we were informed that United Airlines stated it would only require one E145 carrier moving forward. United Airlines will base their final selection on many factors and will make its decision in the coming weeks. While ExpressJet offers many attributes that make us an attractive long-term partner, cost has reared its ugly head once again and we have been asked by our management team to close the gap between our costs and those at CommutAir. This gap can only be sufficiently closed with labor cost reductions from all labor groups on property, both represented and not. We were briefed by management July 21 about their proposed plan that included reductions in overall pilot compensation and other benefits. I will note that the benefits management proposed reducing did not include health care. While I cannot discuss specifics at this time, your MEC is fully engaged as we move forward assessing the situation and making the initial decisions that are best for the overall health of our airline. We hope to have more concrete answers about our future soon; however, there is no doubt we will be a much smaller airline this fall with meager growth forecast over the next few years.


This has been more than challenging for all of us, and ExpressJet pilots are poised to continue our tradition of examining all the options on the table prior to making the tough decisions necessary to keep us afloat. At this point no decision has been made on how we will proceed, and the next few days will be very challenging and arduous for your elected leadership. I will continue to update you with information as the situation develops.


I bet this was the plan before covid. Covid just helps management get pay cuts.

PeakEGT 07-22-2020 04:46 PM

What about our ten year CBA?

ReadOnly7 07-22-2020 04:47 PM

I would hope that a merger of the two would be proposed before the whole thing just gets shut down. It’s gonna suck, regardless......but it doesn’t suck as much as closing the doors with no options.


All times are GMT -8. The time now is 02:44 PM.


Website Copyright © 2026 MH Sub I, LLC dba Internet Brands