What's the Latest at ASA/Expressjet?
#6831
Gets Weekends Off
Joined APC: Dec 2007
Posts: 314
I like that post a lot.... You guys are starting to come around a bit.......
#6832
Banned
Joined APC: Dec 2007
Position: EMB 145 CPT
Posts: 2,934
It's never the pilot labor costs that make or break an operation, you're 100% correct, it is an easy scape goat though. Ref: Comair. Delta could have kept them around with pocket change, but you know how Delta works.
In regards to the furlough speculation I wrote, looking back on it I probably shouldn't have written it even though I was speculating, I apologize if I made anyone mad. I really don't want anyone to get furloughed as that is a living Hell starting over, especially at a regional. I'm just afraid that could occur with the number of 145s coming offline with the addition of E175s on the SKYW side, assuming a JCBA does not come to fruition anytime soon.
Some positives to take away from the call though...
In regards to the furlough speculation I wrote, looking back on it I probably shouldn't have written it even though I was speculating, I apologize if I made anyone mad. I really don't want anyone to get furloughed as that is a living Hell starting over, especially at a regional. I'm just afraid that could occur with the number of 145s coming offline with the addition of E175s on the SKYW side, assuming a JCBA does not come to fruition anytime soon.
Some positives to take away from the call though...
Some positives? I only heard one positive: no bankruptcy in the works.
#6835
Banned
Joined APC: Dec 2007
Position: EMB 145 CPT
Posts: 2,934
What's the Latest at ASA/Expressjet?
Listen to the call. It was alluded that it may harm the holding company. Also, the benefit of bankruptcy protection would be the renegotiation of labor costs. But they admitted that the financial problems with xjt are with the CPAs, not really labor costs. In other words, it's a revenue problem more than anything else. Which is why, other than parking unprofitable aircraft, they are concentrating on operational incentives. They actually lose leverage of trying to renegotiate CPAs in bankruptcy because of the boiler plate bankruptcy clauses in the CPAs.
Last edited by Nevets; 08-06-2014 at 07:36 PM. Reason: additional comments
#6836
Gets Weekends Off
Joined APC: Jul 2008
Posts: 4,205
^ agree. They have a plan.... Shrink XJT untill its down to just the Profitable airplanes the xr's.. And run a smaller more ontime operation. They make money off the cpa (novel concept),And get the ontime/completion bonuses
From UA... Look how much better Mesa is now that they ate leaner and meaner. They are growing again...
From UA... Look how much better Mesa is now that they ate leaner and meaner. They are growing again...
#6838
Capacity Purchase Agreement. Essentially it is the "deal" that Skywest or ExpressJet makes with mainline partners (AA, DAL, UAL etc) to provide regional lift (service) for said partner.
#6839
That, and the fact that our performance (both sides) is vastly improved. XJT (both sides) will eventually shrink as you said in a post just recently, yet as several people mentioned there is a chance, and I think a pretty good one, that some non XR aircraft will be extended as UAL realizes "oh yeah, I guess we can't replace that flying..." for a least a few more months and then we'll shrink down to all XR's and eventually E 175s where the Delta side (depending on the implosion of 9E) sheds more, but not all CR2s and adds CR7 and CR9s (I hope).
I got from the call, and as you pointed out, that SKYW is finally growing a pair and will soon knock on Jeff and Richard's door saying, "Time to pay us what is fair, if not, find somebody else to do it for less...oh wait, there isn't anyone...your choice, lose the flying or break out the checkbook." Like I've always said, our size is our leverage. Mesa, G7 etc can only take but so much. The days of our mainline partners are making billions (pre tax) off OUR BACKS and not giving anything back for our troubles will hopefully be over soon.
#6840
Line Holder
Joined APC: Sep 2012
Posts: 56
This is what was said on the call, so my opinion is even if we voted yes, the planes would have been parked.
"I think we've been very clear that the primary challenge at ExpressJet is not necessarily the cost side. Although there are those issues, but the contract side with some of our major partners, and that's what we're focused on today."
"I think we've been very clear that the primary challenge at ExpressJet is not necessarily the cost side. Although there are those issues, but the contract side with some of our major partners, and that's what we're focused on today."
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