Why bother renegotiating at all when you can go CH11 and just rewrite the whole contract - rules, payscale, fleet size, etc...


...

Isn't this RFP based upon United cncl MESA's contract? Or Mesa going under?

Also, with the recent news of oil hitting $135 wouldn't UAL think about just not replacing this flying if MESA were to go CHP11.

I suspect some lift they could pare out... but the fact of the matter is domestic lift is still needed to feed the international routes. On a recent UAX flight from ATL to IAD we had a full boat ( 70 ) ... with 65 international connections.......

interesting times.

This had nothing to do with the airlines really so don't take it there. It was an example. Everyone talks about how the 170/175s aren't desired because they burn more fuel. Truth is that's only one part of the equation. I wanted to show that. There's a reason people keep wanting them. Because of the lower cost structure at RAH it could easily negate what happened. Normally I'd just tell someone that if it was important enough they could find the figures themselves but I'll spare you the searching since it wasn't the easiest to come across.

You can find the price per ASM in their quarterly reports.

Skywest operating cost at $.097
http://money.cnn.com/news/newsfeeds/...____LAW517.htm

RAH at $.076
http://seekingalpha.com/article/7473...t?source=yahoo

*Note that I stated these were the points at which they break even. These are their operating costs. However the importance of these numbers is that the company can pass these savings on to the customer. Obviously these numbers fluctuate over time and the goal of the company is to make money so their rates are higher. However if someone thinks the 170/175 is a bad aircraft that the others don't want simply based on a few different pounds in the fuel burn, which it seems to be what everyone here has been saying, then they need to think again. The cost per departure difference could be more than enough to offset the cost of the extra fuel. I don't know what all makes the operating cost at RAH so much cheaper but I'm sure the aircraft have something to do with it. The EMBs don't have near the MX requirements of the CRJs which is an additional cost the company has to swallow.

Put all the charts you want up there, all the numbers you want. There is a lot more involved in cost than gas, seat miles, pay rates, etc. You guys need to get a life, if someone is awarded the flying, United will let everyone know. You armchair quarterbacks sitting here working the numbers and trying to show how smart you are look like a bunch of idiots.

Pulling numbers from an annual report? Give me a break. You guys look like Lee Corso talking about this years Ohio State team and comparing them with last years starting roster/schedule. Make sense?

I heard the lav of a E-170 carries 2 gallons more $hit than the lav of a CRJ-700, don't forget to take that into consideration when your planning your fuel burn analaysys.

Need to get a life because we look at numbers? Sorry but all you've done is show you know nothing of money or economics. You can denounce it all you want but it's those people that read and follow those numbers that end up making the best decisions about their career and financial future. I find those that don'tread the numbers are the ones who constantly start their statements with "I'm sure" or "I doubt" but they never say "I know". I also find those people are the ones who constantly have money issues and don't know how to live within their means.

I think it was only speculated that this RFP was issued to replace Mesa, but I don't know that to be the truth... although I am hopeful.


Beautifully said... great post.

Just resurrecting this thread to see if anyone knows when a decision is expected to be made about this rfp....

From what I've been able to sqeeze out of a friend at UA, the RFP is on hold due to the fuel prices.

One of our Domicile Mgrs....says its on hold until Delta settles with mesa in court...than drops them. According to him....when Delta drops them entirely...UA will follow suit....at which point the RFP will be decided.