What's happening at Horizon and Jets?
#33
"President and COO Dave Campbell said Alaska sees an opportunity to increase the number of 76-seat jets in its fleet by 30 aircraft over a five-year period, starting in 2017. At the same time, Alaska will decrease the number of Q400s by at least 20."
#34
Gets Weekends Off
Joined APC: Mar 2014
Position: A321 - 39E
Posts: 312
Has AAG announced how they plan on filling the gap between the Q400 and the 738? I don't recall them saying anything about it. I'd be worried more about that. 28% savings is a huge chunk of change for QX, even with how cheap we are. I'm going to go tin hat here, but here's what I think the board at AAG is hoping for(obviously just a thought):
Get QX to cut 28%
Order an array of aircraft to cover the gap (Embraer 175s and 190s)
Place them at a regional to fly (notice how I didn't say just QX?)
Take a portion of the 28% savings and give the Alaska pilots some as a bribe to go along with this.
Every few years revisit the whipsaw to order more large regional jets to replace Alaska mainline flying.
All this is obviously hypothetical based on both pilot groups going along with this which is more far fetched than my above theory.
Fire away.
Get QX to cut 28%
Order an array of aircraft to cover the gap (Embraer 175s and 190s)
Place them at a regional to fly (notice how I didn't say just QX?)
Take a portion of the 28% savings and give the Alaska pilots some as a bribe to go along with this.
Every few years revisit the whipsaw to order more large regional jets to replace Alaska mainline flying.
All this is obviously hypothetical based on both pilot groups going along with this which is more far fetched than my above theory.
Fire away.
Don't see how E190's could be on Alaska property if they aren't flown by mainline. I know they contractually could do it, but they would be stepping on some big toes doing that. I sure hope I am not being overly optimistic about that. My bet is they'll fly the hell out of the E175.
I think whipsawing will be the new normal for Alaska small lift flying. Who can fly an E175 cheaper for Alaska - Skywest or Horizon? Trick question, the answer is BOTH. The long-term cost savings lie with Horizon being wholly-owned so it wouldn't surprise me to see the majority of the flying done by QX, but having Skywest around keeps Horizon in fear of being outsourced. It's a win either way for the company.
Alaska pilots are already being bribed to go along with this and have been for years. Every new contract they get that doesn't have scope means money was put on the table to keep that language out of it. Question is - why aren't Alaska pilots the best paid in the industry for not having scope? They're paying insurance money without having insurance.
#35
Gets Weekends Off
Joined APC: Mar 2014
Position: A321 - 39E
Posts: 312
Horizon, an Alaska company, is competing with Skywest to fly Skywest's airplanes for Alaska...
#36
Gets Weekends Off
Joined APC: Feb 2011
Posts: 197
My opinion is mgmt doesn't think a 28% cut will happen (they would love to have it, but don't actually believe it will pass). But they have cleverly avoided the conversation about contractual improvements by talking about cuts. I think they want to secure a long-term contract now before the hiring gets really ugly so they don't lose the leverage they likely would when our contract is up in a few years. Still a win for them even if it isn't a "concession."
Don't see how E190's could be on Alaska property if they aren't flown by mainline. I know they contractually could do it, but they would be stepping on some big toes doing that. I sure hope I am not being overly optimistic about that. My bet is they'll fly the hell out of the E175.
I think whipsawing will be the new normal for Alaska small lift flying. Who can fly an E175 cheaper for Alaska - Skywest or Horizon? Trick question, the answer is BOTH. The long-term cost savings lie with Horizon being wholly-owned so it wouldn't surprise me to see the majority of the flying done by QX, but having Skywest around keeps Horizon in fear of being outsourced. It's a win either way for the company.
Alaska pilots are already being bribed to go along with this and have been for years. Every new contract they get that doesn't have scope means money was put on the table to keep that language out of it. Question is - why aren't Alaska pilots the best paid in the industry for not having scope? They're paying insurance money without having insurance.
Don't see how E190's could be on Alaska property if they aren't flown by mainline. I know they contractually could do it, but they would be stepping on some big toes doing that. I sure hope I am not being overly optimistic about that. My bet is they'll fly the hell out of the E175.
I think whipsawing will be the new normal for Alaska small lift flying. Who can fly an E175 cheaper for Alaska - Skywest or Horizon? Trick question, the answer is BOTH. The long-term cost savings lie with Horizon being wholly-owned so it wouldn't surprise me to see the majority of the flying done by QX, but having Skywest around keeps Horizon in fear of being outsourced. It's a win either way for the company.
Alaska pilots are already being bribed to go along with this and have been for years. Every new contract they get that doesn't have scope means money was put on the table to keep that language out of it. Question is - why aren't Alaska pilots the best paid in the industry for not having scope? They're paying insurance money without having insurance.
#38
We know. On that note, sorry to the OO guys out there who are harassed by some of our Captains who are salty as ****. It's misplaced anger that should be directed towards Alaska mgt.
#39
Gets Weekends Off
Joined APC: Mar 2014
Position: A321 - 39E
Posts: 312
What's happening at Horizon and Jets?
I'll second this. It's a small number of people here giving us a bad name. I think the majority of the pilot group is smart enough to realize that blaming Skywest only shifts our attention from the real source of our problems.
How so? QX has felt threatened by outsourcing long before our newfound "commitment to compete." However, regardless of the way you look at the outsourcing of the CRJ's, there are some notable differences.
1. The CRJ's went to Skywest as the CRJ fleet was downsizing due to the loss of the Denver flying.
2. The jets Skywest got from us weren't brand new (I'm guessing AAG has planned all along to phase out the CRJ program with Skywest).
3. Alaska wasn't expanding their route structure with Skywest, they were just looking to save a buck by not having a handful of airplanes flown in house.
Now we're not talking about a few CRJ's, we're talking about 7, then 15, and now 45 E175's that are or could potentially be outsourced. All new airplanes that are expanding Alaska's small lift network that will very likely be on the property for a long time.
How are you Alaska guys looking at this? I can see why you guys wouldn't have cared about the CRJ outsourcing, but do you guys see all these plans to fly into the central US in E175's as a threat to your own expansion?
Last edited by Phteven; 10-26-2015 at 11:36 AM.
#40
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