pete2800

Eh... kinda. Alaska Air Group will be getting the airplanes, that much is for sure. Whether or not they're flown by Horizon or Skywest is very much contingent on a few bucks an hour of pilot pay.

Check Complete

Maybe, but I don't think so. SkyWest is set up to get their own airplanes for customers, but who knows?

I'm SkyWest, I hope you get your planes back!

pete2800

I appreciate the sentiment, and I hope so as well... but I'd put the odds of it happening for us at about 5% at the moment.

Phteven

Yup. That has become abundantly clear through these Q&A sessions they've been putting on over the past two weeks. I think the ink is already dry on Horizon operating these airplanes.

They told us we're losing 20 Q400's. They didn't have to do that, they could have strung things out until 2017 when the leases are up. They would have a crew availability disaster through all of 2016 if they told us at the end of this year that we were indeed shrinking by 40% in two years.

Skywest operates 15 and Horizon operates 30 of the same aircraft type. They'll leverage us against each other forever, also allows for some buffer if things go south at either company. In this way, AAG is learning from the Big Three that if you source your regional flying out to multiple carriers that you can create competition for your own contract and let them all race to the bottom on their own.

This is just a perfect opportunity to instill a little fear and choke a few extra bucks out of each department in the company.

Phteven

You really think there is a 5% chance that Horizon will get the flying? If this was truly an honest dollar-for-dollar bid between Horizon and Skywest I would entirely agree. I just think this is all smoke and mirrors. There's plenty for them to gain with the Horizon operating these 30 airplanes even with the current contract, they're just trying to scare us into cutting them a deal because they can.

Check Complete

Good luck Pete!

pete2800

What do they lose by having Skywest operate the airplanes? The ability to tell each carrier to be cheaper than the other?

By sending the airplanes to Skywest they don't have to do any training, maintenance, or stocking of parts. They don't have any of the added complications of having a second fleet type, but they get all of the benefits.

To me, it seems like this was mapped out and planned to have Skywest do this flying from the start. Why else would the RJ's get replaced by E-jets? Then QX started throwing a fit, and our management went to the board and asked to be considered for the new airplanes. The answer was "meet this unobtainable price point, and they're yours." What we're doing now is just the dog-and-pony show so that when the airplanes do go to Skywest, we can't say they never gave us a chance.

This is a company that fired hundreds of rampers at the drop of a hat. The dollar is king, and the pursuit of that is relentless.

dfwflyboy

You guys are safe not voting in concessions. Skywest just announced 18 additional E175s for United on top of the 40 they will be flying for them. They have 35 E175s on property now, which breaks down to 15 for Alaska, and 25 for United. They need to accept 15 more E175 + the new 18....They can't grow much more than they are now, so I believe there is no way they can take anymore planes...they don't have the staffing, nor will they. They won't overextend themselves like PSA and Republic has.

pete2800

Voting stances aside, keep in mind it's 30 airplanes over 5 years, starting at the end of next year. Planning for 30 airplanes over the next 6-7 years isn't something that will be difficult for a company as large as Skywest. They also don't have 15 E-jets for Alaska right now. The replacements for the CRJ's are still a ways off.

amcnd

SkyWest already has the 40 for UA the 18 more for UA dont get there tell Late 2016... So basicly the next 1.5 years is the Alaska E175's. (So maybe 8-12 aircraft) Yet SkyWest is hiring 100 a month.... Somethings brewing...