If if Mesa falls apart I still don't think there will be much of a market for 50 seat aircraft here in the U.S.

 

I love how people jump on the "no 50 seat market" bandwagon, 70 seaters are not that economical either, sure there is a market for them though, just like there is for 50 seaters, its the fact that OIL is so expensive, nothing seems to be the right fit. At this rate, people will say, "there just is no 150 seat market anymore"

 

Does anyone know what TWA's scope was? I believe they integrated at 8 to 1 into American's list. I am sure that wasn't in their ALPA contract. I just don't feel that pilot contracts with this administration are that strong. Does anyone think that the government is going to let AA strike? I know you guys have a great contract and relationship with your management, but I wouldn't count on your contract to keep whatever upper management wants to do from happening. Loook at TSA/gojet...

 

I'm sure that you KNOW that AA/TWA and TSA/GoJet are apples to bowlingballs to this situation, DON'T YOU?

TWA was in and out of BK, they were on the verge of going down. Yeah, it royally sucked for those guys, but the arbitrator would have basically done the SAME thing. Is XJT in BK and on the verge of going under?

TSA/GoJet - You do know that GoJet was an alter ego created to counter TSA, right? Is XJT's management trying to start an alter ego?

 

767's for everyone! YEAH!!!

 

The contract says (over 12 pages so I'll paraphrase) that any CAL flying done by any corporation that owns us or buys us will be done by ExpressJet pilots and it will be done with one senority list. The contract also states that all the merging needs to be done in 9 months from the sale so that we don't go into a 5 year contract negotiation.

There is some less iron-clad verbage saying anyone we merge with will put ALL pilots on one list (not just for the CAL flying) but it isn't specifically worded to a buy-out and that may be it's falling point. The specific CAL scope is IRON clad and those are the pages JA wants removed.

Of course to make the changes JA wants the whole pilot group would have to vote on a proposal from the MEC, if they come up with one that SKYW will go for.

There's the make or break vote.

 

interesting. two different issues there, though. you already mentioned the CAL part. but this isn't a "merger", it's a buyout by what is basically a holding company, skywest inc. it'll be interesting to see how it all works out, negotiation-wise, between not only skywest inc. and the board of directors and shareholders of expressjet, but also between skywest inc. and expressjet pilots, with that issue.

 

That is what it seems and why SKW wants assurances and the holding letter revoked.

CAL may just be posturing. Nothing is for sure, that we know of at least. But I don't think that pilots are against it unilaterally. If the deal is right, I'm sure a majority of pilots would embrace it.

And the sad part is that if the cost of fuel were what they were last April XJT would have proven the naysayers wrong.

I don't think you know what you are talking about. Are you just throwing out red herrings like AA/TWA and TSA/Gojet as flame bait? I'm surprised you didn't mention USA/AWA.

You are confusing two separate and distinct things. The scope clause and holding letter talks about a successor. It doesn't differentiate whether that company becomes a successor through a merger or a buyout. It just says that the SENIORITY LISTS must be merged if there is a successor.

 

There's essentially zero growth market for 50-seaters, and there are reductions being made. A 70 has significantly more revenue potential, with only slightly higher costs, and a 90 more so.

50 seaters can still make money, they just have to be full or almost full on most routes. There will probably always be a niche, but odds are that smaller RJ's move away from mainline routes and go back to doing what they were designed to do in the first place...right sized service to Podunk Falls, at a premium price.

 

all CAL said was unless we renegotiate our rates down to the savings offered in the skywest deal then they will pull the additional airplanes starting in DEC 2009. That is still a long way off. Our management may be looking to renegotiate on their own with CAL and this may have been a persuasion tactic to get our management to reduce our fleet size, drop pass benefits, bring XR's back from our branded operation... all things that they were previously not willing to cave on.

If our management receives a realistic offer from a buyer (3.50 a share doesnt even cover cash on hand) then they may be forced to sell by the BOD but i am sure they will try like hell to renegotiate with CAL independently. SKYWEST needs to up their offer and CAL would need to stonewall their negotiations for us to be sold anytime soon. They are earning a around 10% profit on 205 Airplanes until DEC 2009.