why is SKYW interested in XJT at all?
05-23-2008 | 07:27 AM
#11
Prime Minister/Moderator
Joined: Jan 2006
Posts: 45,277
Likes: 835
From: Engines Turn or People Swim
Couldn't be happier that we have one fleet of 50-seaters. They cost less per hour to operate than any 70-seater out there. Also as fuel rises, you need to increase your ticket prices a ton. Any 70-seat market those 50-seaters were turning into are reverting back to a 50-seat market. Until you invent a 70-seater that burns the same gas per hour the 50-seater will NEVER DIE.
05-23-2008 | 08:08 AM
#12
Line Holder
Joined: Jan 2006
Posts: 690
Likes: 15
From: Maddog FO
I keep hearing the same solutions form everyone:
1. Raise ticket prices
2. Drop 50 seaters in favor of 70 seaters
However, I think tpersuit's point is that if you RAISE prices, you lose some passengers, which would make the 50 seater more economical.
Example: On a certain route, there is enough demand (55-65 pax per flight) to put a 70 seater on it instead of a 50 seater. Then the airline raises ticket prices and now there are only roughly 40-45 passenger per flight. With the raise in ticket prices, the airline is making the same revenue, but is operating cheaper using the 50 seater.
These are only for some, not all routes before all you -700 pilots jump on me..
1. Raise ticket prices
2. Drop 50 seaters in favor of 70 seaters
However, I think tpersuit's point is that if you RAISE prices, you lose some passengers, which would make the 50 seater more economical.
Example: On a certain route, there is enough demand (55-65 pax per flight) to put a 70 seater on it instead of a 50 seater. Then the airline raises ticket prices and now there are only roughly 40-45 passenger per flight. With the raise in ticket prices, the airline is making the same revenue, but is operating cheaper using the 50 seater.
These are only for some, not all routes before all you -700 pilots jump on me..
05-23-2008 | 08:37 AM
#13
Gets Weekends Off
Joined: Dec 2005
Posts: 1,105
Likes: 0
From: Left Seat
CAL had all of its eggs in one basket with the regional flying. If something big happened at X-jet ie: work group strike or some other sort of job action CAL would have been hosed! They are one of the few with so little diversity in the regional market. They were going to give flying to someone be it CHQ or MESA or SKYW regardless of what Xjet may of purposed.
05-23-2008 | 08:39 AM
#14
Gets Weekends Off
Joined: Oct 2006
Posts: 408
Likes: 0
From: 757/767 FO
I keep hearing the same solutions form everyone:
1. Raise ticket prices
2. Drop 50 seaters in favor of 70 seaters
However, I think tpersuit's point is that if you RAISE prices, you lose some passengers, which would make the 50 seater more economical.
Example: On a certain route, there is enough demand (55-65 pax per flight) to put a 70 seater on it instead of a 50 seater. Then the airline raises ticket prices and now there are only roughly 40-45 passenger per flight. With the raise in ticket prices, the airline is making the same revenue, but is operating cheaper using the 50 seater.
These are only for some, not all routes before all you -700 pilots jump on me..
1. Raise ticket prices
2. Drop 50 seaters in favor of 70 seaters
However, I think tpersuit's point is that if you RAISE prices, you lose some passengers, which would make the 50 seater more economical.
Example: On a certain route, there is enough demand (55-65 pax per flight) to put a 70 seater on it instead of a 50 seater. Then the airline raises ticket prices and now there are only roughly 40-45 passenger per flight. With the raise in ticket prices, the airline is making the same revenue, but is operating cheaper using the 50 seater.
These are only for some, not all routes before all you -700 pilots jump on me..
05-23-2008 | 08:40 AM
#15
Gets Weekends Off
Joined: Dec 2005
Posts: 1,105
Likes: 0
From: Left Seat
I keep hearing the same solutions form everyone:
1. Raise ticket prices
2. Drop 50 seaters in favor of 70 seaters
However, I think tpersuit's point is that if you RAISE prices, you lose some passengers, which would make the 50 seater more economical.
Example: On a certain route, there is enough demand (55-65 pax per flight) to put a 70 seater on it instead of a 50 seater. Then the airline raises ticket prices and now there are only roughly 40-45 passenger per flight. With the raise in ticket prices, the airline is making the same revenue, but is operating cheaper using the 50 seater.
These are only for some, not all routes before all you -700 pilots jump on me..
1. Raise ticket prices
2. Drop 50 seaters in favor of 70 seaters
However, I think tpersuit's point is that if you RAISE prices, you lose some passengers, which would make the 50 seater more economical.
Example: On a certain route, there is enough demand (55-65 pax per flight) to put a 70 seater on it instead of a 50 seater. Then the airline raises ticket prices and now there are only roughly 40-45 passenger per flight. With the raise in ticket prices, the airline is making the same revenue, but is operating cheaper using the 50 seater.
These are only for some, not all routes before all you -700 pilots jump on me..
05-23-2008 | 08:46 AM
#16
Tuk er jerbs!
Joined: Mar 2007
Posts: 1,342
Likes: 0
From: B747 Left
Diversity is always a good thing.
Historically, skywest CPA's have ALWAYS been reaffirmed very early in the BK process. Both DAL and UAL appeared to want to retain SKW rather them than leave them nervous and looking for other uses for the airplanes. If a BK company does not reaffirm a contract, the OTHER party can leave anytime they like.
There's no indication that UAL wants to get rid of SKW. Actually I would be more worried about a UAL liquidation than anything else.
Historically, skywest CPA's have ALWAYS been reaffirmed very early in the BK process. Both DAL and UAL appeared to want to retain SKW rather them than leave them nervous and looking for other uses for the airplanes. If a BK company does not reaffirm a contract, the OTHER party can leave anytime they like.
There's no indication that UAL wants to get rid of SKW. Actually I would be more worried about a UAL liquidation than anything else.
05-23-2008 | 08:55 AM
#17
Line Holder
Joined: Jan 2006
Posts: 690
Likes: 15
From: Maddog FO
While I agree that a ticket price increase in certainly overdue, I suspect that the airlines are of the opinion that the majority of their revenue comes from families, and other budget concious people. A small increase in price would likely result in a large decrease in demand, meaning that the example above doesn't work well. If they can fill the larger plane, it's almost always a better idea.
I personally think the airlines need to play the supply/demand game. Cut capacity and raise fares. The people who can afford to fly will fly. Those who can't can either drive or just stay home.
05-23-2008 | 09:07 AM
#18
Gets Weekends Off
Joined: Jan 2007
Posts: 3,048
Likes: 0
From: Self employed
It seems odd that you actually have an issue with our pilot group. Not sure what any one of us ever did to anybody in your house, but at least you're consistent.
05-23-2008 | 12:11 PM
#19
Banned
Joined: Dec 2007
Posts: 2,934
Likes: 0
From: EMB 145 CPT
I think it may just be frustration that the SKW pilot group, in not being unionized, has indirectly allowed your management to put this whipsaw deal on all of us.
05-23-2008 | 12:44 PM
#20
New Hire
Joined: May 2008
Posts: 7
Likes: 0
From: CRJ, Left
I love the term "whipsaw." Is that a real term used in business?
Hey all, SkyWest pilots, being non-union, have little to do with our total cost structure. We do, though, have a lot to offer in regard to our top notch product we give our major contractors. It's just business. We can do it for less, so contracts get sent our way.
Also, I'd actually like to compare W-2s at the end of the year and see how well other regional pilots compare to SkyWest pilots. I'd bet not as well if you were to compare apples to apples, JMHO.
Hey all, SkyWest pilots, being non-union, have little to do with our total cost structure. We do, though, have a lot to offer in regard to our top notch product we give our major contractors. It's just business. We can do it for less, so contracts get sent our way.
Also, I'd actually like to compare W-2s at the end of the year and see how well other regional pilots compare to SkyWest pilots. I'd bet not as well if you were to compare apples to apples, JMHO.
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