Interesting. Thank you for the information. Even if Expressjet is losing a little money on the at-risk Delta flying, I don't see it going away.

Skywest may decide to keep it if it is only losing a slight amount of money.
Skywest may decide to stop flying on the current agreement and negotiate a tradition cost-plus agreement with Delta.

But Delta has announced its intention to expand internationally, and LAX is one of the largest international gateways in the country, and a Delta focus city. I know for sure that Delta will not give up on this flying. So maybe what Skywest is thinking is say "No deal" on the pro-rated Delta flying, and wait for Delta to issue an RFP for a traditional cost-plus agreement. Then Expressjet has 21? planes in Delta colors sitting on the ramp in LAX that would be a perfect fit. Seems like another smart business move to me.


The other thing is where did you see anything that said Skywest wants to transfer the DAL LAX ERJ-145 flying from Expressjet to Skywest. That sounds like a dumb move (having Skywest operate 21? ERJ-145's while having a CRJ jet fleet when Expressjet has the ERJ-145 fleet). I have read all the literature out there and I don't recall seeing this. Is this just an out of control rumor that someone began spreading, or did Skywest actually put this in writing somewhere. If so, please show it to me.

 

That rumor was started by a SkyWest hater that just propogated and spread like wild-fire...

 

I thought the lawyer specifically said that would not happen. That they would find profitable ops for those (XJT) jets for XJT pilots or shut it all down. Just my take

 

This flying will be on the east coast out of JFK and possibly even BOS, with some in ATL. I don't think you'll see much Asia expansion until after the NW thing shakes out. I think you'll see more European expansion out of JFK, and more Africa/middle east stuff out of JFK/ATL.

 

SkyWest said they would let the XJT guys keep doing the West Coast stuff, until it expired, which is around a year from now, they came back with this after they initial intention of SKW guys doing that particular flying didnt go over so well.

From what I gather the Delta-Pro rate is either losing money or coming close to breaking even

 

It would be our flying until June 2009 when our CPA expires. Then it would be canceled and Skywest would just take it over at that point. This has been posted by actual Skywest pilots, not anti-Skywest posters. I fairly certain a ton of Skywest guys would love to get their hands on that LAX Delta base, even if they have to wait for our CPA to expire in 2009.

Now if Skywest would give any future Delta LAX flying to ExpressJet pilots then we can talk, however I would prefer one list more than anything.

 

No, the sticking point was that in the CPA SKW negotiated with CAL, CAL would be able to put the XJT flying out to bid if they thought it wasn't cost competitive anymore. With SKW having their FAA authorization to operate ERJs and having them on the SKW certificate for a year with their pilots flying them, they would be able to bid for it and transfer those aircraft over to SKW.

The DAL pro-rate or at-risk flying may not be making money. I'm sure the CPA flying is.

This is accurate. If you call your rep they will tell you so. Also, it was reiterated last night on the web cast. This is why SKW has FAA authorization to operate ERJs now or are working on it. They are setting up the whipsaw already.

See my reply above. It is not a rumor. But if this deal does go through, hopefully XJT can mitigate the possibility of whipsaw.

SKW said that XJT would operate 205 for CAL (with the possibility of it being put to bid again in a year) and that about 30 of the ERJs would be operated by SKW in a second separate CAL CPA.

 

Hey Einstein- CPA stands for Capacity Purchase Agreement, not Cost Plus Agreement.

 

His only attire was a pair of flip-flops and a wristwatch.

 

Kill two birds with one stone. Wash the toilet with the lettuce and both jobs get done at the same time.