Express Jet to cut schedule by 30% at end of Summer
05-24-2008 | 02:41 AM
#11
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The problem stems from the contract with CO is it was originally written. CO was to pay costs plus 10%. That immediately created a corporate culture where there was no incentive to keeping costs down.
Keepin' it real.
05-24-2008 | 04:50 AM
#12
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From: SkyWest Capt.
At the risk of sounding too cynical... what makes you think any of the flying is profitable? XE lost what, $60 - 70 million last year, with Continental beating XE down for lower rates? It's going to be increasingly difficult to blame this all on branded set up costs.
The problem stems from the contract with CO is it was originally written. CO was to pay costs plus 10%. That immediately created a corporate culture where there was no incentive to keeping costs down.
Keepin' it real.
The problem stems from the contract with CO is it was originally written. CO was to pay costs plus 10%. That immediately created a corporate culture where there was no incentive to keeping costs down.
Keepin' it real.
I'm not 100% familiar with XJT contracts but I can't imagine them operating under a fee for departure contract with CAL, while taking a loss. I know MAG would but not XJT.
Now; I'm 100% complete with upgrade, I have a SWEET line next month (16 days off and 94 hours credit) and with the next 15 days off...........it's VACATION time. We're headed to the coast with my family to do a little deep sea fishing, drink a lot of alcohol (have a bottle of 21 year Glenlivet's single malt that I've been saving) and enjoy being with those I love.
Good Day all!
Last edited by JetJock16; 05-24-2008 at 06:25 AM.
05-24-2008 | 06:31 AM
#14
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From: SkyWest Capt.
05-24-2008 | 09:22 AM
#16
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Joined: May 2007
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From: A320 CA
I think they are...not sure though. Charter has seen a spike in business and profitability since Champion is going away (no offense to Champion guys).
05-24-2008 | 10:06 AM
#17
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That would be nice, we shall see.
The 30% pull down is on Branded Aircraft after August 23rd. However, they are being moved to Charter. Sounds like our revenue and customer base is growing with charter, so we are rearranging things. Just being proactive to save Branded by only operating the good routes. If we kept growing Charter that would be great since we get based any where we want to live. I think Champion going out of business might be contributing to this (I'm sure it's a lot cheaper to charter a E145 than a 727 when you have less than 50 people). Plus any deal we may strike with a new airline (e.g. United) we would use charter for that. This would prevent our Branded schedules from running into issues if they had to pull ones from that system.
Breakdown of the 69 Non-Coex (205 flying as Coex):
Airplane position before August 23rd
34 Branded
23 Delta
12 Charter
-----------
69
Airplane position after August 23rd
23 Branded
23 Delta
23 Charter
-----------
69
The 30% pull down is on Branded Aircraft after August 23rd. However, they are being moved to Charter. Sounds like our revenue and customer base is growing with charter, so we are rearranging things. Just being proactive to save Branded by only operating the good routes. If we kept growing Charter that would be great since we get based any where we want to live. I think Champion going out of business might be contributing to this (I'm sure it's a lot cheaper to charter a E145 than a 727 when you have less than 50 people). Plus any deal we may strike with a new airline (e.g. United) we would use charter for that. This would prevent our Branded schedules from running into issues if they had to pull ones from that system.
Breakdown of the 69 Non-Coex (205 flying as Coex):
Airplane position before August 23rd
34 Branded
23 Delta
12 Charter
-----------
69
Airplane position after August 23rd
23 Branded
23 Delta
23 Charter
-----------
69
05-24-2008 | 03:05 PM
#18
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Joined: Feb 2007
Posts: 929
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From: e190
At the risk of sounding too cynical... what makes you think any of the flying is profitable? XE lost what, $60 - 70 million last year, with Continental beating XE down for lower rates? It's going to be increasingly difficult to blame this all on branded set up costs.
The problem stems from the contract with CO is it was originally written. CO was to pay costs plus 10%. That immediately created a corporate culture where there was no incentive to keeping costs down.
Keepin' it real.
The problem stems from the contract with CO is it was originally written. CO was to pay costs plus 10%. That immediately created a corporate culture where there was no incentive to keeping costs down.
Keepin' it real.
you think we are expensive because CAL says we are expensive? why would they say we were cheap?
this post on another forum shows a list of the different regionals and their costs per block hour associated with their contracts. it was in an aviation week magazine:
http://www.expressjetpilots.com/the-...onal-jets.html
05-26-2008 | 03:34 AM
#19
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Joined: Nov 2006
Posts: 161
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"Whatever you say cheesy."
Actually no, it's not whatever I say. The intended purpose of this board is to discuss issues with the airline industry, not launch personal attacks. However, this being a free country, you are free to be the person you are.
"I'm not 100% familiar with XJT contracts but I can't imagine them operating under a fee for departure contract with CAL, while taking a loss. I know MAG would but not XJT."
=== The fact is they are taking a loss. Huge. XE is an awesome operation- great maintenance, good management, great contract. But the fact remains, they are losing money. While a significant percentage of that can be attributed to starting branded, it's obvious to any rational person looking at the situation that overhead is pretty high.
"Now; I'm 100% complete with upgrade, I have a SWEET line next month (16 days off and 94 hours credit) and with the next 15 days off...........it's VACATION time. We're headed to the coast with my family to do a little deep sea fishing, drink a lot of alcohol (have a bottle of 21 year Glenlivet's single malt that I've been saving) and enjoy being with those I love.
Good Day all!"
=== Sounds like FANTASTIC news. I can't think of a better way to start a vacation than having completed upgrade training! Sounds like you'll have a wonderful time!
"you think we are expensive because CAL says we are expensive? why would they say we were cheap?
this post on another forum shows a list of the different regionals and their costs per block hour associated with their contracts. it was in an aviation week magazine:
http://www.expressjetpilots.com/the-...onal-jets.html"
==== I suspect XE is expensive because they have not been able to get any CPAs above and beyond the maximum of 10 they can do without giving CAL the same deal. Clearly the info you've posted indicates a low hourly cost XE is operating their planes at. And it's not surprising, given they have a single fleet type of 274 planes. However, there is a high overhead somewhere in the operation, and obviously it's limiting options. CAL is CAL, especially with what's-his-name running the show. In fact, he's only inflaming the situation and it's not helping anything.
At any rate, I think XE is a quality operation and wish the pilots and management the very best. In the end, there are a few hundred pilots in jeopardy of furlough there, and the rest will be just fine.
Actually no, it's not whatever I say. The intended purpose of this board is to discuss issues with the airline industry, not launch personal attacks. However, this being a free country, you are free to be the person you are.
"I'm not 100% familiar with XJT contracts but I can't imagine them operating under a fee for departure contract with CAL, while taking a loss. I know MAG would but not XJT."
=== The fact is they are taking a loss. Huge. XE is an awesome operation- great maintenance, good management, great contract. But the fact remains, they are losing money. While a significant percentage of that can be attributed to starting branded, it's obvious to any rational person looking at the situation that overhead is pretty high.
"Now; I'm 100% complete with upgrade, I have a SWEET line next month (16 days off and 94 hours credit) and with the next 15 days off...........it's VACATION time. We're headed to the coast with my family to do a little deep sea fishing, drink a lot of alcohol (have a bottle of 21 year Glenlivet's single malt that I've been saving) and enjoy being with those I love.
Good Day all!"
=== Sounds like FANTASTIC news. I can't think of a better way to start a vacation than having completed upgrade training! Sounds like you'll have a wonderful time!
"you think we are expensive because CAL says we are expensive? why would they say we were cheap?
this post on another forum shows a list of the different regionals and their costs per block hour associated with their contracts. it was in an aviation week magazine:
http://www.expressjetpilots.com/the-...onal-jets.html"
==== I suspect XE is expensive because they have not been able to get any CPAs above and beyond the maximum of 10 they can do without giving CAL the same deal. Clearly the info you've posted indicates a low hourly cost XE is operating their planes at. And it's not surprising, given they have a single fleet type of 274 planes. However, there is a high overhead somewhere in the operation, and obviously it's limiting options. CAL is CAL, especially with what's-his-name running the show. In fact, he's only inflaming the situation and it's not helping anything.
At any rate, I think XE is a quality operation and wish the pilots and management the very best. In the end, there are a few hundred pilots in jeopardy of furlough there, and the rest will be just fine.
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