skillett

Don't know who you fly for maybe Skywest, I know you folks have had your own fuel schedule for a while with the 200's. Maybe it was other carriers but I do know that he went to PSA and met with their DO on there fuel savings plan for the 700's and a few more. I will verify some of that. I aslo have contacted a few of my sources on the Airways/Skywest contract and the XJT/United contract. Got some information but just want to verify with one more person before I post so as not to give any false information.

skillett

Actually I know for sure Pacific Wings was a lower bid, hehe. This information is tough to get because of the insiders trade information act but since the contract has been awarded should be able to get something. But I was told we were not the lowest bid on the E-JET flying.

Paid2fly

I'm pretty sure no major airline would have any faith that Pacific Wings could actually carry out any large(or even small)bid award if they did win it...

skillett

Ok got it, the Skywest/Us Airways bid for PHX was bid for a loss in PHX. The stipulation of the contract is when the leases expire for the CRJ 200's, CRJ 900's will replace those aircraft for a Skywest profit. Skywest's 200's were a loss bid to cover the leases until the larger 900's were able to come into service from Delta (not sure) to cover the bid agreement. So Skywest got at least the lease agreement covered on the 200's so no dead leased aircraft were sitting. No reason for Skywest to file bankruptcy because 87 percent of their flying is under contract. Win for Skywest, lease payments are covered but at a loss for crew cost but better than no contract at all. With profits for the future 900 flying. Part deuce.

Flightsoffusion

Curious to know also..

Jet87

You seem to know a lot about the past. What is in store for the future of SkyWest's PHX flying since the contract ends this year?

skillett

Part deuce, ok the XJT flying was awarded to 69 aircraft that were released from Continental flying back in 07. Continental owns all the lease agreements on those aircraft even though they sold the majority portion of the company back in 07. (Not sure but I think 98 percent was sold). Now those aircraft were forced to leave the fleet because XJT holdings could not lower the cost enough to keep all aircraft under contract with Continental. The reason was crew training cost and employee pay. Now according to the bean counters these aircraft were cheaper to release under lease and asked XJT holdings to try and find a new contract under a another carrier. I believe (not sure) some of these aircraft went to Delta but others were used for charter and a independent regional airline with a main base of Ontario,CA. part tres

Navmode

Yes. It's something to the tune of $7,000 for the first 12 months of employment beginning after passing ioe.

skillett

part, tres. Now XJT holdings have all these aircraft that are un-profitable. They cannot file bankruptcy because they have 205 airplanes still under contract with Continental. Now the suits thinking they can still pull this off because XJT holdings could take a loss of millions with their investment into this company and is trying everything they can to make these 69 aircraft profitable. Well there is a savior, unfortunately Continental still owns the leases on these aircraft. Knowing that XJT can file bankruptcy and dump these leases, a good thing happens by chance. Continental and United are starting to have merger talks. The bigs know that this will happen before anyone else, just so happens that the Mesa contract ends in 09. Same time right before the merger agreement. United decides to go with XJT holdings for the contract that Mesa had for their 200 flying and d/8's. Now Mesa never had a chance (but will explain later), if XJT holdings files bankruptcy Continental will be viable for the leases, if XJT stays on their current path it will bleed their great grandsons lunch money. So, during merger talks United/Continental exercised their right to implement the 69 aircraft that THEY were responsible for on those leases and awarded the contract to XJT. Now truly Mesa, didn't have a chance with that much influence, but, we were losing about 1000 pilots a year with the mass exodus of 07/08. That cost us the Delta contract without a doubt. But it's not always the lowest bid that wins and definitely no vendor appreciation, it's about money.

MR JT8D

Is there cheap crack going around?