that is still a skw inc problem. They management work for skw inc.

 

It's not SKW management it's ExpressJet management. Yes they are employed by Inc but it's two separate entities. They know it's not working now they need to fix it. Regardless of who is to blame. Facts remain that the ExpressJet side loses money. Now they must stop that. Are they going to give in to the demands of a pilot group that's in denial or are they going to find a way to just wind the whole thing down?? Nobody has those answers but whatever it's gonna be is going to have to happen sooner rather than later.

 

Yes, I know. I am blaming the top dogs on this all the way. OO also colluded with Continental by using a buy offer of XJT, financed by Continental in order to get a look at the books and use it to underbid XJT. This forced the XJT to bid even lower to retain the Continetal contract and THIS is what caused XJT's rapid decline...courtesy Kellner and Atkin.

Yet, OO knowing all this, still bought XJT in the end. Hmm.

 

Look, no matter what you think, it's all Inc management. And what demands from the pilot group are you talking about? No concessions? That's hardly a demand when the executives give themselves thousands of shares of stock and the corporation is paying the expense of two management salaries, two sets of staff, two sets of processes and systems, two sets of EVERYTHING! Our CEO wants us to subsidize that. Why should we pay out of our pockets in order to perpetuate his immoral whipsaw business model? So he can do it all over again next round? Are those the demands you are talking about? That's hardly a demand to not want pay cuts when they are incurring all these expenses. Stop being absurd! The only denial is here is from a group of pilots who refuse to engage thinking their best interests are number one in decisions made on their behalf!

I welcome the wind down. I rather not be part of his immoral whipsaw business practice.

 

22.9 million loss

SkyWest Slips To Loss In Q1 - Quick Facts

 

As expected, now let's see what they plan to do about it.

 

Nothing new...reshuffling the leadership deck chairs and parking all the 145s.

 

That sounds about all I got out of is as well.

They are continuing to have 'conversation' with United about resetting the rates. United isn't going to do that. Also, a reduction of 50 seat flying by 61 aircraft by the end of 2014, mostly from the ExpressJet side of the operation. Beyond that in totality in the next 13-14 months 108 ERJ come of contract and they will work to "correct the rates" or they will just be parked. One of the analysts made the comment that United is a 'bad' partner. Yes, they are. The United side of the operation is a total mess and is attributed to nobody other than United. Hopefully they can get some rate corrections for the airframes otherwise that does not bode well for you guys. Like I have been saying all along, you the employees of ExpressJet are not to blame but its the reality of the game...hopefully they have a few tricks up their sleeve but I am starting to think they are running out of ideas.

 

I can't help but wonder when I hear that 108 airplanes are going to leave the fleet over the next 13 to 14 months - how do you replace that much capacity in that short a time? If United or Delta just lets those planes go to the desert without any replacement how are they going to cover that flying and fill their main line aircraft at the hubs? While skywest can pull some airplanes out of the desert (through the loophole in our contract) they can only staff a very limited number. It seems to me like they are still trying to scare us into accepting something less than what we are worth as pilots. While that might work on John B, I would rather walk away than fly for anything less than what we have now.

 

Well its quite easy. First they never said leave the fleet, just that the contracts expire and they would try to 'correct the rates' under new contracts. There are 70 (40 SKW, 30 Mesa) 175's that are coming online, and they can add more. You could also see a a few of these 145's have new contracts with the reset rates but probably not many. The reduction of 50 seat flying is something United has been very vocal about. They are also under pressure to 'right size' their network as many analysts and investors believe that it is too large and unmanageable.

Not sure how it is a scare tactic, the contracts expire. If they were to say "we need to bring costs more inline or we will be forced to park planes," that would be a scare tactic. They certainly aren't going to extend the contracts at the current rates/terms so it's better to park the aircraft if they cant 'correct the rates.'