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Scope

Old 06-27-2018, 06:32 AM
  #41  
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Originally Posted by Bluedriver View Post
I think we covered this is yesterday's class...
Sorry, but I need it explained to me like I'm an 8-year old.

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Old 06-27-2018, 06:36 AM
  #42  
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Originally Posted by GuppyPuppy View Post
Yeah, why merge with Alaska when we could just code share the whole west coast?

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We may very well want to merge with Alaska, but Alaska management may not want to give up their gravy train.

So, we're both getting beat up by Delta in Boston, New York and Seattle, Alaska's getting beat up by Southwest and United in San Fran. Alaska has to contend with Delta, American and United all fighting over Los Angeles. So we may very well end up doing a big domestic codeshare with Alaska as a mutual survival plan.
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Old 06-27-2018, 06:38 AM
  #43  
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Originally Posted by GuppyPuppy View Post
Sorry, but I need it explained to me like I'm an 8-year old.

GP
It was kind of a joke because we spent half of yesterday arguing over scope. Bottom line, we have scope protections that prevent us from doing a capacity purchase agreement. However, our scope does virtually nothing to protect us with code-sharing domestic or International, including with a regional Airline or with Moxy or Hawaiian or Alaska or JetSuiteX or or or.
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Old 06-27-2018, 06:44 AM
  #44  
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Originally Posted by Bluedriver View Post
We may very well want to merge with Alaska, but Alaska management may not want to give up their gravy train.

so, we're both getting beat up by Delta in Boston New York and Seattle, Alaska's getting beat up by Southwest and United in San Fran. Alaska has to contend with Delta American and United all fighting over Los Angeles. so we may very well end up doing a big domestic codeshare with Alaska as a mutual survival plan.

Alaska can just have Skywest or Horizon do all their flying under Alaska Express and make more $$$, they don't need Jetblue for strictly codesharing. Their regionals already do SEA-MSP...just add a BOS leg. Jetblue's survival plan of having Alaska become a major codeshare partner still means Jetblue has to grow.... but you're right it can be done as long as JB doesn't shrink.
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Old 06-27-2018, 06:51 AM
  #45  
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Originally Posted by nuball5 View Post
Alaska can just have Skywest or Horizon do all their flying under Alaska Express and make more $$$, they don't need Jetblue for strictly codesharing. Their regionals already do SEA-MSP...just add a BOS leg. Jetblue's survival plan of having Alaska become a major codeshare partner still means Jetblue has to grow.... but you're right it can be done as long as JB doesn't shrink.
My favorite part of the scope video is how he emphasizes how great the "growth only" provisions are. So, if the company falls on hard times and begins furloughing we will make them give up ALL their codeshares? Really? Does anyone actually believe this provision is worth the paper it is written on?
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Old 06-27-2018, 07:04 AM
  #46  
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Originally Posted by nuball5 View Post
Alaska can just have Skywest or Horizon do all their flying under Alaska Express and make more $$$, they don't need Jetblue for strictly codesharing. Their regionals already do SEA-MSP...just add a BOS leg. Jetblue's survival plan of having Alaska become a major codeshare partner still means Jetblue has to grow.... but you're right it can be done as long as JB doesn't shrink.
Our scope says to have a big domestic codeshare with Alaska we have to grow JetBlue *a little bit*. Less than any of our previous historical growth rates.

While a agree Alaska has very unwisely leaned on it's regional feed lately for some of it's growth/network, it's not likely to continue to be it's primary growth tool. The best run airline in the country is Delta (Southwest also) and Delta's strong trend the last several years has been to upgauge. More mainline as a proportion of it's overall network, fewer RJs, especially the smallest RJs. And Delta doesn't have an extreme shortage of gate space at some of it's primary hubs (MSP, DTW and ATL) like BJ and Alaska does.

Alaska and JB both have very substantial gate space shortages in it's hubs. That is likely to get worse before it gets better (never). The exception is ANC. The future is also going to be much tougher for airlines to staff the lowest paying positions (RJs). Between the slot restrictions, gate scarcity (worst at large coastal hub cities, you know BJ and Alaska hubs) and pilot short supply, leaning on RJs as your primary lever of growth will soon be more rare than an on-time BJ flight.

Also, for most primary markets with high demand, it's much lower CASM to operate mainline aircraft, like Delta is doing.

The main point of me saying that large airlines are targeting both BJ and Alaska hubs right now is that a large domestic codeshare between us allows for a more complete network for our local customers. A network that begins to compete with the big 4. Right now that is not true. So if one or both companies refuses to merge, and both companies are experiencing pressure from the big 4, a domestic codeshare is the historical way this is resolved.

Delta and Alaska used to have large domestic codeshare. There are others that escape me right now, I think NWA-Continental. The point is it allows airlines to pretend to have a larger more complete network than they really do, without having to grow and compete within each other's respective regions. Which in the case of BJ-Alaska is now almost impossible due to slot and gate shortages.

Long post, sorry.
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Old 06-27-2018, 09:44 AM
  #47  
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Originally Posted by PasserOGas View Post
My favorite part of the scope video is how he emphasizes how great the "growth only" provisions are. So, if the company falls on hard times and begins furloughing we will make them give up ALL their codeshares? Really? Does anyone actually believe this provision is worth the paper it is written on?
The company signed on the dotted line on that paper so yes I do.
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Old 06-27-2018, 10:05 AM
  #48  
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Originally Posted by Bluedriver View Post
JetSuiteX and Alaska and Moxy and Hawaiian and, and, and all would work the same way. We sell the tickets on BlueJet.com and they ride on JetSuiteX and Alaska and Moxy and Hawaiian and, and, and...

We keep a portion of the ticket price, they fly.

Your Skywest example was also on the right track, it COULD work the same as above, we just can't pre-buy capacity (seats) on the plane. But we can sell seats that are available in the reservation system.

Skywest, specifically, probably can't work. But a new regional with less restrictive prior contracts, *or*, Moxy buys C300s AND 60 CRJ900s, BOOM, there's your BJ regional codeshare.

But, is that really worse than JetSuiteX and Alaska and Moxy and Hawaiian and, and, and, and flying our domestic passengers?
How much of the ticket price though BD?
I taught you this yesterday.
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Old 06-27-2018, 10:25 AM
  #49  
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Originally Posted by PasserOGas View Post
My favorite part of the scope video is how he emphasizes how great the "growth only" provisions are. So, if the company falls on hard times and begins furloughing we will make them give up ALL their codeshares? Really? Does anyone actually believe this provision is worth the paper it is written on?
Dude if that provision is not worth the paper than the whole CBA is useless and if the CBA is useless the union is useless and therefore we just wasted lots of time and money.

Yes there is always stuff you can do to a contract but a some point those words mean something, otherwise why have a contract.
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Old 06-27-2018, 10:35 AM
  #50  
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Originally Posted by pilotpayne View Post
Dude if that provision is not worth the paper than the whole CBA is useless and if the CBA is useless the union is useless and therefore we just wasted lots of time and money.

Yes there is always stuff you can do to a contract but a some point those words mean something, otherwise why have a contract.
There was no way that anything would have pleased some the beaten-down guys here.
I get it- B6 ****es me off and has for years, and will continue to, but we have to either be objective or angry- the 2 dont coexist.
For the angry blind out there, at least go to a roadshow instead of poking holes in a TA that you dont fully understand.
I dont fully understand the 300 pages, but Im listening.
Do the same before you decide.
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