mking84

He's both....and a few other things.

JoeyMeatballs

hes like EVERY OTHER CEO IN THIS COUNTRY, looking to make the Shareholder more money, could care less about the employees, the American way really

Bloodhound

There's not much to be confused about. He started in the company as a bean counter. Now's he's running the joint. I'm not saying all of his decisions have been bad or ego-driven. Most of the recent decisions regarding XJT have been and that is where my disdain for him develops.

ExperimentalAB

In the short time that I was with XJet, even I could see the relationship with CAL turning more sour by the day. Y'all are right - it is completely ego-driven, and very unfortunate for those at one of the leading Regionals...

And on a side-note, not sure if it was this thread talking about SKW not having CAL's approval...but do ya really think SKW mgmt would blindly put in a bid for XJet knowing that information, without getting Daddy's blessing? Give 'em a bit more credit than that! Consider this...if your girlfriend's family is a large part of her life, don't you think you'd ask her folks to marry her before popping the question?

hslightnin

well share holders or themselves

Airsupport

this is the part that caught my attention. how low did skywest go to try and get this flying, that is the question. how much did skywest undercut xj to get them to write this letter? it has to be really low for him to say "MAGNITUDE" of savings. just curious to see how much cheaper skywest said they could do the same flying for.

RamenNoodles

Correct me if I am wrong, but the magnitude of savings negotiated with SkyWest are still for XJT to handle the work. SkyWest is unable to operate on behalf of CAL because of scope clauses: no jets over 50 seats, and SkyWest has a plethora of 66, 70, and 76 seat jets.

My guess is that the "magnitude of savings" is a result of a smaller profit margin than what XJT currently operates with.

Airsupport

yeah i am not saying that xjet wont operate the flights. but how in the world are they going to give cal a "MAGNITUDE" of savings once they buy xjet? are they going to go in, tell the pilots to take the new rates or slowly start furloughing them off and putting skywest pilots in their seats? see where this is going? i mean xjet has 2 choices. let skywest buy them or we wont renew your contract when time is up, and then we will let skywest do the flying with their "MAGNITUDE" of savings. its lose lose for xjet.

Dash8Pilot

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.

JetJock16

Yep, that's what SKW did with/to ASA.

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.

None of the numbers above are hard, they are just to show people that a combined operation that is ran well can reduce cost as well as keep its employees well compensated. After all just look at ASA. They ended up with a sweet new contract and not ONE pilot even came close to the streets. Plus SKW was the go to operation for DAL when MAG bit the bullet and who did Jerry give the flying to? Yes, ASA. You can say whatever you want but we at SKW had the planes, pilots, crews and capability to more than cover it. I’m VERY HAPPY for all ASA pilots and I hope they are starting to understand that they’re futures are brighter with SKW than with DAL. IMHO.

I’m not trying to start anything. It’s just that everyone expects SKW to turn on their employees and they never have, I’m not saying they never will but 35+ years have gone by and it hasn’t happened yet (operative word). Look at ASA; everyone though that SKW would dismantle ASA, furlough their pilots and our pilots would now be running around in ASA birds all over the Southeast. Yea, that can to fruition.

PS. As usual this may come off harsher than intended. I'm just adding my 2 cents.

Good Day.