another xjt post
11-23-2007 | 05:52 PM
#33
Gets Weekends Off
Joined: Feb 2007
Posts: 3,045
Likes: 1
From: FO
XJT will be fine in the long run...People thought Comair would be shutting the doors, we are still here...the only thing XJT may have to worry about is a buyout, the stock is down and that could make it a target...now that may be good or bad, depending on the intentions of the buyer.
11-23-2007 | 06:13 PM
#37
Gets Weekends Off
Joined: Jun 2006
Posts: 1,276
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From: ERJ FO
XJT will be fine in the long run...People thought Comair would be shutting the doors, we are still here...the only thing XJT may have to worry about is a buyout, the stock is down and that could make it a target...now that may be good or bad, depending on the intentions of the buyer.
Not to mention that (from what I can tell) XJT's management has little to no interest in being operated by or merging with another carrier. This isn't a UAL-type operation where they're just trying to stay afloat until someone can come along and buy up the operation. XJT is interested in remaining their own player in the game. Any merger/buyout would be a hostile one and there's not too many companies out there financially capable of even beginning to pull that off. And the ones that are...well...anti-trust lawyers would have a field day.
People are putting way too much emphasis on stock price and the branded operation. I'll defer to what the current employees have to say, and they're all optimistic. You have to actually be in the room to see the writing on the wall, and they're the only ones in there.
Of course, that doesn't mean I won't call them "DistressJet" every time I hear an errant "Kitty" comment.
11-23-2007 | 09:58 PM
#38
CA
Joined: Oct 2005
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From: I am the Captain now...
11-24-2007 | 05:13 AM
#39
Gets Weekends Off
Joined: Jul 2007
Posts: 125
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From: 787 FO
Lets see if we can put this into perspective.
Granted XJT is having some difficulty right now but so have many others. Some were able to survive, others went by the wayside, and a few were able to thrive. SWA had a very rocky start.
Early losses and financial troubles
The rest of 1971 and 1972 saw operating losses. One of the four aircraft was sold to Frontier Airlines and the proceeds used to make payroll and cover other expenses. Southwest continued to operate a schedule predicated on four aircraft but using only three, and in so doing the "ten minute turn" was born, and was the standard ground time for many years.[9]
Southwest turned its first annual profit in 1973, and has done so every year since — a record unmatched by any other commercial airline.[10] Southwest has used financial techniques such as fuel hedging to bolster its profitability and counteract many of the fiscal disadvantages of operating an airline.
By 1979 Southwest served all of the cities currently served in Texas, plus Beaumont and interstate service began to New Orleans, Oklahoma City and Tulsa was added shortly thereafter. In 1981 Southwest co-launched the 737-300 with USAir. In 1982 the first expansion beyond the Texas area took Southwest to the West Coast, adding Phoenix, Las Vegas and San Diego. In 1984 the 737-300 was placed into service. Chicago Midway and St. Louis service began in March, 1985, spreading low-fare service into Midwest markets.
Southwest hired its first African-American pilot, Louis Freeman, in 1980. In 1992, he was named the first African-American chief pilot of any major U.S. airline.[11]
Innovative thinking and a "can do spirit" kept them competitive. There seems to be this all is doomed attitude from folks that were not even alive when the SWA guys rolled up their sleeves got to work. Was there doubts...I'm sure there were. But the point is that the pilots, FAs, MX, rampers, and yes Management folks worked together to create what most would consider the top tier passenger airline of today. Lets take a look at the quarterly statement filed by XJT.
Did XJT lose a lot of dough? Yep sure did, but how. "
Operating Expenses -
For the nine months ended September 30, 2007, wages, salaries and related costs increased by $38.7 million, or 13.5%, compared to the same period in 2006. The increase represents growth in our work force to support changes in our flight operations and increases in wage rates under some of Airlines' collective bargaining agreements. In conjunction with the increases in base wages, we incurred approximately $9.4 million higher employee benefit costs, such as medical coverage, workers' compensation costs and 401(k) expenses. In addition, we are continuing to experience an increase in overtime pay for our pilots as a result of our training backlog in the early part of this year. We expect the overtime payments to decrease and normalize for the remainder of the year.
During the nine months ended September 30, 2007, fuel expense increased $55.7 million or 32.7%, from the same period in 2006 to support diversification of our flying into Branded Flying, Corporate Aviation and regional service for Delta through the transition of 69 aircraft from the Continental CPA during those months. For the nine months ended September 30, 2007, 88% of our fuel consumption related to our agreements with Continental and Delta. The remaining 12% of our fuel consumption during the period was exposed at an average cost, including related fuel taxes, of $2.33 per gallon.
Notice that management didn't run to the unions and demand concessions to cover the loses. Start up cost for an operation this large is huge. Gates, personnel, fuel, paint, advertisement, a whole new reservation system, and training all come at a cost not shared by mother CAL. With risks come rewards. Our loads are steadily increasing and profitability with our DAL flying is better than forecasted. Instead of posting speculations, again lets look at the balance sheet from the quarterly.
EXPRESSJET HOLDINGS, INC. AND SUBSIDIARIES
PRELIMINARY STATISTICS
Three Months Ended September 30, 2007 Contract (1) Branded (2) System (3)
------------ ----------- ----------
Revenue Passenger Miles (millions) 2,238 534 2,775
Available Seat Miles (ASM) (millions) 2,817 882 3,707
Passenger Load Factor 79.4 % 60.5 % 74.9 %
Block Hours 192,151 50,068 242,666
Departures 102,891 26,088 129,233
Average Price per Gallon of Fuel,
including
fuel taxes (dollars) $0.78 $2.40 $1.13
Fuel Gallons Consumed (000) 68,248 18,660 87,115
Stage Length (miles) 565 678 588
Nine Months Ended September 30, 2007 Contract (1) Branded (2) System (3)
------------ ----------- ----------
Revenue Passenger Miles (millions) 6,747 734 7,508
Available Seat Miles (ASM) (millions) 8,607 1,391 10,047
Passenger Load Factor 78.4 % 52.8 % 74.7 %
Block Hours 600,322 77,403 681,728
Departures 323,365 39,376 365,417
Average Price per Gallon of Fuel,
including
fuel taxes (dollars) $0.74 $2.33 $0.94
Fuel Gallons Consumed (000) 211,044 28,539 240,390
Stage Length (miles) 548 709 564As you can see the the loads and revenue are heading in the right direction. Boyd, Calyon et al can speculate all they want, but don't forget they get a hefty sum for calling what they believe will happen. If they initially thought this would be like FlyI or ACA and that is what they put out on the street, you can bet they will keep beating that drum as long as they can. XJT is different from these other start up as they have diversification of revenue streams. All of its eggs are not in one basket. 75% is in CAL at a guaranteed profit while the company is using another CPA and at risk flying. Valuation of stock is great, but it not the be all end all in the business world unless you are an investor. XJT like SWA is constantly looking for ways to improve...ie when the numbers did not add up for the Corpus route it was dropped for a more lucrative market in AZ.
Don't give up on old XJT just yet...lets just wait and see what happens. Until then lets roll up the sleeves and fly as the professionals that we are.
Remember that XJT has been setting the bar in wages, other compensation and work rules. Its always great to hear that others are asking for "XJT-plus some percent. As you set the bar in your next round of negotiations we will in turn ask for (insert airline here) plus x% thus benefiting all of us.
Just my thoughts Flame away nay-sayers
Granted XJT is having some difficulty right now but so have many others. Some were able to survive, others went by the wayside, and a few were able to thrive. SWA had a very rocky start.
Early losses and financial troubles
The rest of 1971 and 1972 saw operating losses. One of the four aircraft was sold to Frontier Airlines and the proceeds used to make payroll and cover other expenses. Southwest continued to operate a schedule predicated on four aircraft but using only three, and in so doing the "ten minute turn" was born, and was the standard ground time for many years.[9]
Southwest turned its first annual profit in 1973, and has done so every year since — a record unmatched by any other commercial airline.[10] Southwest has used financial techniques such as fuel hedging to bolster its profitability and counteract many of the fiscal disadvantages of operating an airline.
By 1979 Southwest served all of the cities currently served in Texas, plus Beaumont and interstate service began to New Orleans, Oklahoma City and Tulsa was added shortly thereafter. In 1981 Southwest co-launched the 737-300 with USAir. In 1982 the first expansion beyond the Texas area took Southwest to the West Coast, adding Phoenix, Las Vegas and San Diego. In 1984 the 737-300 was placed into service. Chicago Midway and St. Louis service began in March, 1985, spreading low-fare service into Midwest markets.
Southwest hired its first African-American pilot, Louis Freeman, in 1980. In 1992, he was named the first African-American chief pilot of any major U.S. airline.[11]
Innovative thinking and a "can do spirit" kept them competitive. There seems to be this all is doomed attitude from folks that were not even alive when the SWA guys rolled up their sleeves got to work. Was there doubts...I'm sure there were. But the point is that the pilots, FAs, MX, rampers, and yes Management folks worked together to create what most would consider the top tier passenger airline of today. Lets take a look at the quarterly statement filed by XJT.
Did XJT lose a lot of dough? Yep sure did, but how. "
Operating Expenses -
For the nine months ended September 30, 2007, wages, salaries and related costs increased by $38.7 million, or 13.5%, compared to the same period in 2006. The increase represents growth in our work force to support changes in our flight operations and increases in wage rates under some of Airlines' collective bargaining agreements. In conjunction with the increases in base wages, we incurred approximately $9.4 million higher employee benefit costs, such as medical coverage, workers' compensation costs and 401(k) expenses. In addition, we are continuing to experience an increase in overtime pay for our pilots as a result of our training backlog in the early part of this year. We expect the overtime payments to decrease and normalize for the remainder of the year.
During the nine months ended September 30, 2007, fuel expense increased $55.7 million or 32.7%, from the same period in 2006 to support diversification of our flying into Branded Flying, Corporate Aviation and regional service for Delta through the transition of 69 aircraft from the Continental CPA during those months. For the nine months ended September 30, 2007, 88% of our fuel consumption related to our agreements with Continental and Delta. The remaining 12% of our fuel consumption during the period was exposed at an average cost, including related fuel taxes, of $2.33 per gallon.
Notice that management didn't run to the unions and demand concessions to cover the loses. Start up cost for an operation this large is huge. Gates, personnel, fuel, paint, advertisement, a whole new reservation system, and training all come at a cost not shared by mother CAL. With risks come rewards. Our loads are steadily increasing and profitability with our DAL flying is better than forecasted. Instead of posting speculations, again lets look at the balance sheet from the quarterly.
EXPRESSJET HOLDINGS, INC. AND SUBSIDIARIES
PRELIMINARY STATISTICS
Three Months Ended September 30, 2007 Contract (1) Branded (2) System (3)
------------ ----------- ----------
Revenue Passenger Miles (millions) 2,238 534 2,775
Available Seat Miles (ASM) (millions) 2,817 882 3,707
Passenger Load Factor 79.4 % 60.5 % 74.9 %
Block Hours 192,151 50,068 242,666
Departures 102,891 26,088 129,233
Average Price per Gallon of Fuel,
including
fuel taxes (dollars) $0.78 $2.40 $1.13
Fuel Gallons Consumed (000) 68,248 18,660 87,115
Stage Length (miles) 565 678 588
Nine Months Ended September 30, 2007 Contract (1) Branded (2) System (3)
------------ ----------- ----------
Revenue Passenger Miles (millions) 6,747 734 7,508
Available Seat Miles (ASM) (millions) 8,607 1,391 10,047
Passenger Load Factor 78.4 % 52.8 % 74.7 %
Block Hours 600,322 77,403 681,728
Departures 323,365 39,376 365,417
Average Price per Gallon of Fuel,
including
fuel taxes (dollars) $0.74 $2.33 $0.94
Fuel Gallons Consumed (000) 211,044 28,539 240,390
Stage Length (miles) 548 709 564As you can see the the loads and revenue are heading in the right direction. Boyd, Calyon et al can speculate all they want, but don't forget they get a hefty sum for calling what they believe will happen. If they initially thought this would be like FlyI or ACA and that is what they put out on the street, you can bet they will keep beating that drum as long as they can. XJT is different from these other start up as they have diversification of revenue streams. All of its eggs are not in one basket. 75% is in CAL at a guaranteed profit while the company is using another CPA and at risk flying. Valuation of stock is great, but it not the be all end all in the business world unless you are an investor. XJT like SWA is constantly looking for ways to improve...ie when the numbers did not add up for the Corpus route it was dropped for a more lucrative market in AZ.
Don't give up on old XJT just yet...lets just wait and see what happens. Until then lets roll up the sleeves and fly as the professionals that we are.
Remember that XJT has been setting the bar in wages, other compensation and work rules. Its always great to hear that others are asking for "XJT-plus some percent. As you set the bar in your next round of negotiations we will in turn ask for (insert airline here) plus x% thus benefiting all of us.
Just my thoughts Flame away nay-sayers
11-24-2007 | 06:15 AM
#40
Gets Weekends Off
Joined: Jul 2006
Posts: 1,857
Likes: 0
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