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-   -   Heres the Letter from Misner to XJT Regarding SKW (https://www.airlinepilotforums.com/regional/25716-heres-letter-misner-xjt-regarding-skw.html)

tpersuit 04-26-2008 07:42 PM


Originally Posted by Slaphappy (Post 374723)
And JA means it, this deal will die if that amendment to the contract isn't made, as it should be.

Slaphappy, I've read all your posts, and you come off only as a flamebait. How would you take it if we turn the table and say XJT is going to buy SKW and take your flying. Be careful, I'm expecting a certain response from you.

dontsurf 04-26-2008 07:44 PM


Originally Posted by ChinsFive (Post 374720)
I guess you missed the letter that JA sent to the XJT BOD... Read the highlighted part.

They can't modify our CBA without our approval, SKYW won't buy us with the CBA how it is. We'll negotiate.

i can read, thanks. that's not what i asked. your other post insinuated that your pilot group would get a vote on whether or not the sale to skywest inc. could or would happen, separate from any vote done by the shareholders. remember, the board of directors cannot by themselves approve this sale, either. only the shareholders can. skywest inc. is offering to buy all outstanding shares of stock.

dontsurf 04-26-2008 07:46 PM


Originally Posted by ChinsFive (Post 374703)
I'm sure we'd be willing relax our scope but it's going to take something in exchange - maybe like one "master" list based off of DOH...

this doesn't make any sense either. "master" list comprised of whom exactly? expressjet pilots? don't you already have a list based on DOH? who else would you like to add to that list?

tpersuit 04-26-2008 08:05 PM


Originally Posted by dontsurf (Post 374738)
this doesn't make any sense either. "master" list comprised of whom exactly? expressjet pilots? don't you already have a list based on DOH? who else would you like to add to that list?

It would be a master list of ALL groups owned by Skywest. Composed of SKW, ASA, and XJT. If you think this wouldn't be the best, than we would just get whipsawed against one another. Also if you think the XJT guys wouldn't want this, you're also dreaming. We would naturally assume most of the new flying would go to the SKW guys. Of course the XJT guys know the SKW guys would prefer it separate because the SKW guys would unfairly benefit. Part of the reason we have a contract is to prevent pilots from undercutting other pilots.

You can't tell me the SKW guys wouldn't want XJT kept separate for this reason, so they can get most of the new flying with fewer companies to compete for it. Do you really think the XJT pilots would fall for that?

I know there are plenty of SKW guys that want our DAL LAX base, but don't want senior guys than them at XJT to be above them. If you want to merge our seniority lists, I'm down to consider that, otherwise if we would be kept separate, I would rather stay an independently owned and separate and compete fairly for new flying.

dontsurf 04-27-2008 10:54 PM


Originally Posted by tpersuit (Post 374743)
It would be a master list of ALL groups owned by Skywest. Composed of SKW, ASA, and XJT. If you think this wouldn't be the best, than we would just get whipsawed against one another.

um...yeah. just like they merged SKW and ASA lists after Skywest Inc. bought ASA from delta. oh wait, they didn't do that. um...that must mean they whipsaw SKW and ASA against one another. oh wait, they gave us both raises. hmmmm...


Originally Posted by tpersuit (Post 374743)
Also if you think the XJT guys wouldn't want this, you're also dreaming.

you obviously have no idea what my dreams are like. i can tell you for sure that they do not include what the XJT guys do or don't want. also, even besides my dreams, i would never claim to know what XJT "guys" want or don't want, nor would i assume that all 2900 of them want or don't want the exact same thing. skywest inc. buying expressjet does not mean the lists would have to merge. there's no precedent for that at all, and i'm not sure to whose benefit that would be. oh...maybe alpa's coffers.

ChinsFive 04-27-2008 11:21 PM


Originally Posted by dontsurf (Post 374736)
i can read, thanks. that's not what i asked. your other post insinuated that your pilot group would get a vote on whether or not the sale to skywest inc. could or would happen, separate from any vote done by the shareholders. remember, the board of directors cannot by themselves approve this sale, either. only the shareholders can. skywest inc. is offering to buy all outstanding shares of stock.

SKYW said they won't buy us unless we amend our contract. If we don't amend our contract they won't buy us. When the BOD/shareholders approve a sale, SKYW will come to the pilot group and ask us to amend the contract, the union will then negotiate with SKYW because we won't just throw pages our of our CBA for nothing... If the union gets a solution they see as "vote-able" the pilot group will then vote on the changes to the CBA, if we don't change the CBA (either becuase the pilot group votes it down or the union can't come to a solution with SKYW) SKYW has said they won't buy us. This would be the make or break vote you're talking about.


Originally Posted by dontsurf (Post 374753)
um...yeah. just like they merged SKW and ASA lists after Skywest Inc. bought ASA from delta. oh wait, they didn't do that. um...that must mean they whipsaw SKW and ASA against one another. oh wait, they gave us both raises. hmmmm...

ASA didn't have anything in their contract that SKYW wants to negotiate out, ASA had no leg to stand on. The XJT pilots do.


Originally Posted by dontsurf (Post 374738)
this doesn't make any sense either. "master" list comprised of whom exactly? expressjet pilots? don't you already have a list based on DOH? who else would you like to add to that list?

Comprised of all the pilot groups under the SKYW umbrella. So that when a furlough happens, or SKYW loses all the CAL flying our 20 year guys don't get sent to the street while SkyWest newhires stay put.

Nevets 04-28-2008 12:01 AM


Originally Posted by Dash8Pilot (Post 373975)
CAL wants a new, lower rate from XJT for all 205 aircraft. A couple percent difference in the profit margin would be around $25 million dollars annually, which I'd consider to be a large magnitude. SKYW makes money, just less than XJT would under the current CPA. Further, elimination of duplication in the offices and combining ground handling at airports where both XJT and SKYW have operations would certainly offer some cost savings as well.

The profit XJT makes off of CAL is about $80 million a year. So $25 million would be a big "magnitude" and more than just a couple percent.


Originally Posted by JetJock16 (Post 373987)
Yep, that's what SKW did with/to ASA. :confused:

As for the Magnitude of savings, I not a SKW or CAL bean counter but if XJT is operating at a 10% margin and SKW can offer a new CPA to CAL for XJT to do the flying at 8% then that will save CAL tens of millions of dollars. Then I'm sure that with all three (SKW, ASA and XJT) combining and reducing overhead with buying power as well as several other combined operations, they will easily be able to cover the 2+% and therefore end up with a cost neutral contract all while never putting a single employee on the street.

XJT operates at around 8.5% profit margin for the CAL CPA.


Originally Posted by JetJock16 (Post 374056)
I'm more than positive that this is not how SKW wanted this to be spun.

This is a BS move by Misner.

Best of luck XJTr's and screw Misner.


Originally Posted by ExperimentalAB (Post 374057)
Absolutely, JJ...It's ego there - CAL/XJet ego. Nothing to do with SKW.

This was a combined orchestrated move by both CAL and SKW. Neither company would have signed off on the wording of these concurrent letters without the other being in on it.


Originally Posted by JetJock16 (Post 374306)
Yes, that's the way I read it. If SKW buys XJT then the new CPA will override the current on and XJT will retain the 51 a/c and there flying.

I truly feel for all of you and I wish you the best of luck. This industry is harsh.


Originally Posted by iahflyr (Post 374328)
I believe you are wrong about this.

The way I read that, it says that if Skywest aquires Expressjet then the new CPA with Skywest will go into effect. It then says if Expressjet does not accept Skywest's buyout, then they take 51 airplanes out of service in December 2009 and let the company die by 2012. I don't see anything about CAL taking those 51 planes of Expressjet is bought by Skywest.

No one other than CAL and SKW knows what the tentative CPA says. It may or may not include the 51 aircraft. It may not be 205 aircraft or it may be for 274 aircraft. We don't know.


Originally Posted by SAABaroowski (Post 374401)
yes, but from my understanding, if airplanes are moved across company lines, the pilots have to go with them.

I don't think so.


Originally Posted by Slaphappy (Post 374624)
Skywest knows very well what the expressjet contract says. Looks like Xjt has 2 choices sell and delete the 5 pages in the contract or stay on their own and lose all their cal flying in the next 3 years not to mention the loss of money on the branded. Seems like the MEC needs to step up to the plate and figure out whats best for the future not try and act macho.

But none of this really matters since expressjet has already said No to the buyout and I don't think JA will want to spend much more the 188 mil for an airline who doesn't own much or own any of their a/c. I think skywest will get the cal flying either with xjt or without.

Don't underestimate JA he is probably one of the smartest people in the biz, and knows all the outcomes, he isn't some pushover just ask the ASA pilots about it.

The XJT MEC will do what is in the best interest of the XJT pilots. Its not about acting macho. In fact, the XJT MEC hasn't even been approached about this so they are not even on the on deck circle, much less the batting box.

Like you said, the XJT BOD rejected the offer so right now there is no reason to even get the XJT MEC involved yet.

By the way, XJT has $214 million in cash an cash equivalents, and $597 million in total assets as of Dec 31, 2007. My guess is that the $188 million bid grossly undervalues XJT.

I don't know what you mean about ASA and JA not being a pushover.



Originally Posted by Slaphappy (Post 374635)
Your MEC is not looking out for your jobs, they are looking to make a political point the same way the ASA pilots tried to make a point and failed and the same way the current USair east pilots are making a point. Sorry but your MEC doesn't have any leverage right now, you may feel differently but the reality is the best way to protect jobs is to work with JA and accept what he is offering. There are so many ways this deal could get even worse that it currently is. For example there is nothing stopping Ream from entering Chpt 11 ala Mesaba style, getting nice cash bonus from whomever and just having your entire contract thrown.

An airline with 280 50 seaters and a branded operation that is losing money and 205 airplanes that will 100% be out of work in 2 years is not one that should strutting around like a male peacock.

SKW has given the XJT MEC leverage by stating what they want from them in order to consummate the deal. If it comes to it, the XJT MEC will negotiate with SKW and look out for the interest of XJT pilots.

Don't confuse the XJT pilots with the XJT BOD. Two different entities. The XJT BOD feels like the offer grossly undervalues XJT. I'm sure they would take the right deal if it is offered. Its not about peacocks. They are looking out for the best interest of the shareholders. The XJT MEC will also listen to any offers made by SKW in return for scope relief. And they will do what is in the best interest of the XJT pilots.


Originally Posted by dontsurf (Post 374708)
no offense, but are you actually trying to say that your pilots will get a make or break vote on whether or not skywest inc. buys expressjet? that doesn't even make any sense. any negotiating you/your mec would do would happen AFTER such a buyout occurs. unless you have some supersecret clause in the contract that the shareholders don't know about or something?


Originally Posted by dontsurf (Post 374736)
i can read, thanks. that's not what i asked. your other post insinuated that your pilot group would get a vote on whether or not the sale to skywest inc. could or would happen, separate from any vote done by the shareholders. remember, the board of directors cannot by themselves approve this sale, either. only the shareholders can. skywest inc. is offering to buy all outstanding shares of stock.

According to the JA letter, the offer would be contingent upon the XJT MEC negotiating away some scope relief. This means that whatever the XJT MEC negotiates in return for the scope relief would have to be ratified by the rank and file pilots at XJT. Nothing secret going on. Of course this is only if the XJT BOD approves whatever offer SKW makes in the future if they even make another offer.


Originally Posted by dontsurf (Post 374753)
there's no precedent for that at all, and i'm not sure to whose benefit that would be. oh...maybe alpa's coffers.

There doesn't need to be any precedent. Its in our contract and precisely why JA wants that part null and void.

JoeyMeatballs 04-28-2008 05:01 AM

I don't think SlapHappy has any idea what goes on in a UNION, becuase he is not part of one. One thing is for sure, our pilot group, will not settle for less, like some we know......................CRJ-900 payrates??????????

And to his ridiculous comment about Expressjets MEC not looking out for the pilot group, thats just ignorance, our Chairmen had the opportunity to flow through to CAL, he could of probably been holding close to 75 CA, so he has a lot vested in this, hes a very very bright guy.

dontsurf 04-28-2008 06:58 AM


Originally Posted by Nevets (Post 374779)
There doesn't need to be any precedent. Its in our contract and precisely why JA wants that part null and void.

just so i understand this correctly: you're saying it's specifically in the expressjet pilot contract that if expressjet gets bought by some other company, the expressjet pilot seniority list must merge with all the other seniority lists of all other companies owned by the company that buys expressjet? if that's the case, then i see what you mean about a "make or break" vote by expressjet pilots.

johnso29 04-28-2008 07:07 AM


Originally Posted by dontsurf (Post 374944)
just so i understand this correctly: you're saying it's specifically in the expressjet pilot contract that if expressjet gets bought by some other company, the expressjet pilot seniority list must merge with all the other seniority lists of all other companies owned by the company that buys expressjet? if that's the case, then i see what you mean about a "make or break" vote by expressjet pilots.


Yes, that's correct. That's why J.A. wants it out, it's a deal breaker.


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