why is SKYW interested in XJT at all?
05-23-2008, 08:53 PM
#41
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Originally Posted by Dash8Pilot
To make it a little easier, I'll break your post down to its two basic questions:
Why should SKYW buy XJT?
SKYW negotiated a 10 year CPA with Continental for the 205 aircraft currently at being flown by XJT for Continental. The revenues from this ten year deal, combined with the diversity of revenues by adding another major partner make XJT an attractive target.
Ok but are not the 205 owned by Continental and just operated by XJT?
If the aircraft are owned by CAL then SKYW does not need XJT to complete the CPA with CAL and SKYW already have the certificate approved for the 145 by the FAA
Why not launch a hostile takeover?
SKYW does not want to have to merge the seniority lists of SKYW, ASA, and XJT. The XJT collective bargaining agreement would appear to require this in the event of a buyout or merger. SKYW has to work with XJT pilot group if they want to avoid merging the lists, making a hostile takeover impossible while keeping separate seniority lists.
Why should SKYW buy XJT?
SKYW negotiated a 10 year CPA with Continental for the 205 aircraft currently at being flown by XJT for Continental. The revenues from this ten year deal, combined with the diversity of revenues by adding another major partner make XJT an attractive target.
Ok but are not the 205 owned by Continental and just operated by XJT?
If the aircraft are owned by CAL then SKYW does not need XJT to complete the CPA with CAL and SKYW already have the certificate approved for the 145 by the FAA
Why not launch a hostile takeover?
SKYW does not want to have to merge the seniority lists of SKYW, ASA, and XJT. The XJT collective bargaining agreement would appear to require this in the event of a buyout or merger. SKYW has to work with XJT pilot group if they want to avoid merging the lists, making a hostile takeover impossible while keeping separate seniority lists.
If SKYW already have a CPA with CAL and the certificate to operate 145 then it may just be interested in taking the assets and get rid of the problematic parts....or? Does anything in the pilot contract at XJT prevent another company from buying XJT and just shutting it down? Why I ask is that apparently XJT has more money in the bank than what the market values the company at and because of that they are in a strange situation ........another company can buy them almost for "free"......if the offer would be accepted or a hostile takeover is done...that is......
It has been done in the past by many other airlines
05-23-2008, 09:34 PM
#43
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Originally Posted by TonyWilliams
I believe SWA founder Herb K. was a proponent of a unionized work force. Quite the opposite is true at this non-union carrier.
05-23-2008, 10:18 PM
#44
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Does CAL own the aircraft?
Yes. However, part of the agreement with CAL is that XJT has the option to retain the leases on the aircraft should CAL pull the flying. This is what they did with the aircraft currently in the branded operation. So, CAL can pull the flying but then where do the 205 replacement aircraft come from if XJT decides to keep them?
Can SKYW buy it and just shut it down?
They can close it, but the moment XJT is bought their collective bargaining agreement would require that SKYW merge the seniority lists. This would trigger a representation vote, and likely result in SKYW being represented by ALPA. SKYW management would like to keep their baby non-union.
Yes. However, part of the agreement with CAL is that XJT has the option to retain the leases on the aircraft should CAL pull the flying. This is what they did with the aircraft currently in the branded operation. So, CAL can pull the flying but then where do the 205 replacement aircraft come from if XJT decides to keep them?
Can SKYW buy it and just shut it down?
They can close it, but the moment XJT is bought their collective bargaining agreement would require that SKYW merge the seniority lists. This would trigger a representation vote, and likely result in SKYW being represented by ALPA. SKYW management would like to keep their baby non-union.
05-23-2008, 10:18 PM
#45
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Originally Posted by ExperimentalAB
And how, exactly, would you expect SkyWest to staff nearly 300 addt'l aircraft overnight?
Come on folks. Give Jerry and Co. a bit more faith than that.
Come on folks. Give Jerry and Co. a bit more faith than that.
To staff 205 aircraft is easy if there are hundreds of already trained 145 drivers on the street. That could be reality if XJT and other 145 companies are shut down. SKYW have the time to prepare what is needed for the CAL contracts as it does not start until 2009, I think. Not sure about that or anything. Just speculating about it all to hear different opinions from others......
05-23-2008, 10:28 PM
#46
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Originally Posted by Dash8Pilot
Does CAL own the aircraft?
Yes. However, part of the agreement with CAL is that XJT has the option to retain the leases on the aircraft should CAL pull the flying. This is what they did with the aircraft currently in the branded operation. So, CAL can pull the flying but then where do the 205 replacement aircraft come from if XJT decides to keep them?
Can SKYW buy it and just shut it down?
They can close it, but the moment XJT is bought their collective bargaining agreement would require that SKYW merge the seniority lists. This would trigger a representation vote, and likely result in SKYW being represented by ALPA. SKYW management would like to keep their baby non-union.
Yes. However, part of the agreement with CAL is that XJT has the option to retain the leases on the aircraft should CAL pull the flying. This is what they did with the aircraft currently in the branded operation. So, CAL can pull the flying but then where do the 205 replacement aircraft come from if XJT decides to keep them?
Can SKYW buy it and just shut it down?
They can close it, but the moment XJT is bought their collective bargaining agreement would require that SKYW merge the seniority lists. This would trigger a representation vote, and likely result in SKYW being represented by ALPA. SKYW management would like to keep their baby non-union.
05-24-2008, 06:17 AM
#48
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Joined APC: Jan 2006
Position: Maddog FO
Posts: 651
Originally Posted by JetJock16
I’m sorry that some of our pilots made comments that ****ed you off but there’s no reason to drop to their level and postings like this one aren’t helping you or your pilot group; also try not to judge our or anyone else’s pilot group by a few unwanted comments/opinions.
I wish the best for all of you guys but at some point in time everyone’s luck either runs out or gets bailed out, regardless of how great their labor group or Mgmnt is.
As for your comments on the 50 seaters, I agree but with enormous increases in variable costs there comes a point were no a/c is worth flying on any route unless you can pass the cost directly through to your customers. This holds true for all a/c regardless of size and config, but you know this.
I wish the best for all of you guys but at some point in time everyone’s luck either runs out or gets bailed out, regardless of how great their labor group or Mgmnt is.
As for your comments on the 50 seaters, I agree but with enormous increases in variable costs there comes a point were no a/c is worth flying on any route unless you can pass the cost directly through to your customers. This holds true for all a/c regardless of size and config, but you know this.
05-24-2008, 10:20 AM
#49
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Posts: 181
Originally Posted by HermannGraf
Well. I never said Jerry would do a hostile take over or just take the assets. I just asked what prevents him from doing it. I was just looking at it from different angles and trying to understand why it would be better for SKYW to buy and keep XJT operating than just take over the flying and not touch XJT.
To staff 205 aircraft is easy if there are hundreds of already trained 145 drivers on the street. That could be reality if XJT and other 145 companies are shut down. SKYW have the time to prepare what is needed for the CAL contracts as it does not start until 2009, I think. Not sure about that or anything. Just speculating about it all to hear different opinions from others......
To staff 205 aircraft is easy if there are hundreds of already trained 145 drivers on the street. That could be reality if XJT and other 145 companies are shut down. SKYW have the time to prepare what is needed for the CAL contracts as it does not start until 2009, I think. Not sure about that or anything. Just speculating about it all to hear different opinions from others......
I think the best thing for SKW, ASA, and XJT pilots would be for SKYW to buy the company with the scope in place. The nations largest regional, with multiple aircraft types, all one contract. Can you say leverage?
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