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Originally Posted by amcnd
(Post 2594267)
OO does plenty of short routes... sea-yvr/psc/pdx. And tons of short inter California... the real reason is support. Look at OO MX basses. If a QX plane breakes in MKE... They are screweed. OO has a mx base there. Same for all the DAL east coast flying... I agree with the statement that more then 30 Ejets at QX is iffy right now.. AS is in buyers remorse over VX and to much capacity....
The MX point you made is legit and part of the equation. Those longer routs were never meant to go to QX. If OO found it profitable to pick up the Q400 routs, AG would give it to them too. The only reason QX Jets came on property is because OO wouldn’t commit to the Q400 routs. |
Originally Posted by fivebyfive
(Post 2594141)
Only if you are interviewing at AS. QX is hiring street captains.
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Originally Posted by fivebyfive
(Post 2593926)
Unfortunately there is no transparency. However, it is easy to read between the lines once you understand AG mgmt behavior. We know that AG is expecting tuff times in the foreseeable future. Hence the AS hiring freeze and deferred aircraft orders. Deferring orders is important because it lowers capital commitment which directly helps profit margins. That is a big one for the shareholders. QX is going to take on just enough E175s to do the short Q400 routs. These short routs are bread and butter for AS profits. They are what fill the AS 737s. However, Sky West will not do these short routs because they are not profitable for them. Cost of seat mile is too high and maintenance costs soar. Hence the value of QX to AG. QX has no choice. They do what AG tells them to do. AG finds it more cost effective to farm out all of the longer routs to Sky West. And Sky West will gladly take all of them. And that’s where the remainder of QX E175 orders will be deferred. Farming to Sky West both decreases cost and keeps capital commitment down. A win/win for AG.
I think smart money says just a couple more E175s will come onto QX property. As far as cost goes there is no indication Horizon is more expensive than Skywest. What is different, Skywest very likely has an industry standard CPA that protects their investment in those jets in the form of daily utilization and stage length. In the end it is very expensive for AS to NOT use Skywest on the long routes. I really don't think Skywest cares one way or another if they do short or long legs. Long legs pay well and the financial downside of short legs is mitigated in the CPA. |
Originally Posted by fivebyfive
(Post 2593926)
Unfortunately there is no transparency. However, it is easy to read between the lines once you understand AG mgmt behavior. We know that AG is expecting tuff times in the foreseeable future. Hence the AS hiring freeze and deferred aircraft orders. Deferring orders is important because it lowers capital commitment which directly helps profit margins. That is a big one for the shareholders. QX is going to take on just enough E175s to do the short Q400 routs. These short routs are bread and butter for AS profits. They are what fill the AS 737s. However, Sky West will not do these short routs because they are not profitable for them. Cost of seat mile is too high and maintenance costs soar. Hence the value of QX to AG. QX has no choice. They do what AG tells them to do. AG finds it more cost effective to farm out all of the longer routs to Sky West. And Sky West will gladly take all of them. And that’s where the remainder of QX E175 orders will be deferred. Farming to Sky West both decreases cost and keeps capital commitment down. A win/win for AG.
OO does not get to tell its customer what it will and won't do or what flying contracts will be awarded to it. Short routes are the "bread and butter", yet they are more expensive to operate so they assign the less expensive routes to a different company???? |
Glad u asked. OO gets to indirectly decide what it will and won’t do by the wording in the contract of the CPA. The wording in the AG - OO CPA mitigates how many cycles per 100 flight hours. Cycles cost money. Too many of them and you are not profitable. So OO is forcing AG’s hand to give them longer routs with the wording of the CPA. AG can mix a few short routs in but not too many.
I did not say the Q400 routs flown by the Jet are profitable to QX. I did say that AS depends on them to fill their 737s. It is safe to say that the Q400 has been the bread and butter 737 filler upper for quite some time. The QX aspect of air group is all about creative accounting. |
Where does Q400 sim take place? How about classroom?
Thanks |
Originally Posted by Flightsoffusion
(Post 2594773)
Where does Q400 sim take place? How about classroom?
Thanks |
Originally Posted by fivebyfive
(Post 2594710)
Glad u asked. OO gets to indirectly decide what it will and won’t do by the wording in the contract of the CPA. The wording in the AG - OO CPA mitigates how many cycles per 100 flight hours. Cycles cost money. Too many of them and you are not profitable. So OO is forcing AG’s hand to give them longer routs with the wording of the CPA. AG can mix a few short routs in but not too many.
I did not say the Q400 routs flown by the Jet are profitable to QX. I did say that AS depends on them to fill their 737s. It is safe to say that the Q400 has been the bread and butter 737 filler upper for quite some time. The QX aspect of air group is all about creative accounting. |
Originally Posted by WesternSkies
(Post 2594797)
How did you get access to the CPA?
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Originally Posted by ASpilot2be
(Post 2594781)
Sim is in Seattle, and classroom in Portland.
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