XJT e-mail regarding Skywest purchase
#42
I'm quoting this out of his drunken rambling:
"ALPA is not here to protect me and I am screwed because I can't be a pilot anymore"
He's not a SkyWest guy, so those hater's can relax. Sounds like he got canned from an ALPA carrier.
#43
Gets Weekends Off
Joined: Apr 2007
Posts: 3,847
Likes: 10
It is a small miracle that he isn't a SkyWest'er...::sigh::
#44
> XJT MEC Update
> May 9, 2008
>
> Your MEC met today in Special Session to hear presentations from SkyWest Inc. and ExpressJet executives related to the proposed acquisition of ExpressJet Holdings Inc. by SkyWest.
>
> Prior to today’s meeting, your MEC requested financial and legal analysis of our present economic and contractual protection in light of the proposed transaction. At that point, we had no clear indication of SkyWest’s operational integration intention should the deal be completed. We requested that ALPA staff be present for the SkyWest presentation to offer their analysis of the proposal.
>
> SkyWest Proposal
>
> SkyWest’s plans are to run ExpressJet as a separately held airline under the holding company umbrella, similar to the way they currently hold and operate ASA. SkyWest went on to summarize the CPA they negotiated for ExpressJet with Continental should the proposed deal go through:
>
> • 10-year CPA for 205 A/C (extends to 15 years for any new A/C acquisition). The CPA allows CAL to review the CPA cost after one year if they perceive they are paying more than current market rate. If “not competitive,” the CPA can be sent out for bid BUT SkyWest has the right of “last look.”
>
> • Allows for up to 75 A/C to be removed but replaced one for one. The scenario presented presumed CAL achieves scope relief in the next contract and larger A/C would be introduced in place of the retired A/C.
>
> • Retains current Pass Travel classification.
>
> The presentation included estimates for pilot reductions based on the fact that the current plan only includes the CAL flying at 205 A/C. Through their due diligence process they are reviewing the feasibility of continuing some of the other lines of business. They were clear that Branded would not operate under their ownership. The ultimate fate of the A/C dedicated to this operation is still undecided; however, SkyWest has also reached a CPA with Continental to allow its subsidiary to operate a number of aircraft for Continental outside of the 205 flown by ExpressJet.
>
> Their presentation included no immediate request for contract concession and provided a mechanism for larger aircraft to be flown by ExpressJet pilots.
>
> XJT Presentation
>
> Jim Ream and James Nides joined the meeting in the afternoon. They presented an industry and Company update containing much the same information they have provided previously. The presentation from Jim Ream was not immediately as dire as SkyWest’s view but it was clear that ExpressJet faces serious financial hurdles going forward. They are planning to continue to pull down Branded flying and reallocating some of those aircraft to the Charter operation. It is likely that staff reductions will be required as a result. ExpressJet will re-evaluate the entire Branded operation this fall.
>
> They continue to expect that CAL will pull the next 51 A/C and allow the CPA to expire. While they felt that this provides an opportunity for XJT, it is not without significant risk.
>
>
> The pilots of ExpressJet face tough decisions during the next few weeks and months. Ultimately, any decisions will rest on the vote of the pilot group. Decisions of this magnitude cannot be made without more information. Your MEC needs to engage in further due diligence to provide the best possible information to the group in order to allow each pilot to make an informed decision. This Blastmail is not meant to provide you with information to make an immediate decision and we apologize for the late release. We will continue to review the SkyWest proposal over the weekend and we will request additional information from ExpressJet and SkyWest. The MEC plans to meet again within the week.
>
> Please contact your local council representative for any questions or concerns.
>
> In short, Skywest’s presentation did not paint a rosy picture of the future for ExpressJet as an independent carrier. Putting it bluntly, the Skywest team feels that XJT is heading for bankruptcy. They based this presumption on public filings and Continental’s public stance on the future of the XJT CPA (i.e., pulling down the next 51 aircraft and allowing the CPA to expire). They also feel that there are no meaningful opportunities for replacements for the Continental flying.
>
> Although our current management feels there is significant risk to the Company as a result of the higher fuel cost and the difficulty renegotiating the CPA, the immediate threat, in their view, is less ominous than the dire predictions forecast by SkyWest.
> May 9, 2008
>
> Your MEC met today in Special Session to hear presentations from SkyWest Inc. and ExpressJet executives related to the proposed acquisition of ExpressJet Holdings Inc. by SkyWest.
>
> Prior to today’s meeting, your MEC requested financial and legal analysis of our present economic and contractual protection in light of the proposed transaction. At that point, we had no clear indication of SkyWest’s operational integration intention should the deal be completed. We requested that ALPA staff be present for the SkyWest presentation to offer their analysis of the proposal.
>
> SkyWest Proposal
>
> SkyWest’s plans are to run ExpressJet as a separately held airline under the holding company umbrella, similar to the way they currently hold and operate ASA. SkyWest went on to summarize the CPA they negotiated for ExpressJet with Continental should the proposed deal go through:
>
> • 10-year CPA for 205 A/C (extends to 15 years for any new A/C acquisition). The CPA allows CAL to review the CPA cost after one year if they perceive they are paying more than current market rate. If “not competitive,” the CPA can be sent out for bid BUT SkyWest has the right of “last look.”
>
> • Allows for up to 75 A/C to be removed but replaced one for one. The scenario presented presumed CAL achieves scope relief in the next contract and larger A/C would be introduced in place of the retired A/C.
>
> • Retains current Pass Travel classification.
>
> The presentation included estimates for pilot reductions based on the fact that the current plan only includes the CAL flying at 205 A/C. Through their due diligence process they are reviewing the feasibility of continuing some of the other lines of business. They were clear that Branded would not operate under their ownership. The ultimate fate of the A/C dedicated to this operation is still undecided; however, SkyWest has also reached a CPA with Continental to allow its subsidiary to operate a number of aircraft for Continental outside of the 205 flown by ExpressJet.
>
> Their presentation included no immediate request for contract concession and provided a mechanism for larger aircraft to be flown by ExpressJet pilots.
>
> XJT Presentation
>
> Jim Ream and James Nides joined the meeting in the afternoon. They presented an industry and Company update containing much the same information they have provided previously. The presentation from Jim Ream was not immediately as dire as SkyWest’s view but it was clear that ExpressJet faces serious financial hurdles going forward. They are planning to continue to pull down Branded flying and reallocating some of those aircraft to the Charter operation. It is likely that staff reductions will be required as a result. ExpressJet will re-evaluate the entire Branded operation this fall.
>
> They continue to expect that CAL will pull the next 51 A/C and allow the CPA to expire. While they felt that this provides an opportunity for XJT, it is not without significant risk.
>
>
> The pilots of ExpressJet face tough decisions during the next few weeks and months. Ultimately, any decisions will rest on the vote of the pilot group. Decisions of this magnitude cannot be made without more information. Your MEC needs to engage in further due diligence to provide the best possible information to the group in order to allow each pilot to make an informed decision. This Blastmail is not meant to provide you with information to make an immediate decision and we apologize for the late release. We will continue to review the SkyWest proposal over the weekend and we will request additional information from ExpressJet and SkyWest. The MEC plans to meet again within the week.
>
> Please contact your local council representative for any questions or concerns.
>
> In short, Skywest’s presentation did not paint a rosy picture of the future for ExpressJet as an independent carrier. Putting it bluntly, the Skywest team feels that XJT is heading for bankruptcy. They based this presumption on public filings and Continental’s public stance on the future of the XJT CPA (i.e., pulling down the next 51 aircraft and allowing the CPA to expire). They also feel that there are no meaningful opportunities for replacements for the Continental flying.
>
> Although our current management feels there is significant risk to the Company as a result of the higher fuel cost and the difficulty renegotiating the CPA, the immediate threat, in their view, is less ominous than the dire predictions forecast by SkyWest.
#46
Gets Weekends Off
Joined: Apr 2008
Posts: 194
Likes: 0
Seattlecfi, this is NOT something that should have been posted on here, and you had no right to do so. Mods, if you're gonna edit what I say, please do me and the rest of the XJET pilot group a favor and remove this letter.
#47
Gets Weekends Off
Joined: Nov 2005
Posts: 402
Likes: 0
From: CA 767
Jetlinker, get off your High Horse. This letter is public material once it was given out to the pilots. Just like every contract is public. Skywest employees deserve to know what their management is offering to XJT.
#49
#50
Banned
Joined: Jan 2006
Posts: 6,929
Likes: 0
From: A-320
thats fine, but due to the fact that we were in "executive Session" some facts can not be sent out publicly and there is more to the story the just the email........
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