Mesa muscle!
06-22-2006 | 08:30 AM
#11
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Originally Posted by rickair7777
CAL owns the 69 aircraft, I think they may own most or all of XJet's planes.
Anyway, CAL revoked 69 airplanes worth of flying to give to a lower bidder. XJet had two choices per the contract:
1) Return the aircraft to CAL so they could be used by the new provider (Chataqua), resulting in massive layoffs. This is what everyone though would happen.
2) Continue to lease the planes from CAL for a higher lease rate. Obviously in order for this to make sense XJet would need to have some other use for those planes.
XJet chose 2), surprising everyone. This has the advantage of putting CAL & Chataqua in a tight spot because they do not have 69 RJ's sitting around to cover that flying...
But XJet still has to find an employer for 69 RJ's...not an easy task. Or they might try an indy-air type stunt, but the long term prospects for success would be P1ss-poor. Anyway, the point is unless XJet announces a NEW major airline partner who needs 69 planes, you would be going out on a limb to take a job there...it would be a gamble, it might work out great. AA is rumored to be a potential partner.
Anyway, CAL revoked 69 airplanes worth of flying to give to a lower bidder. XJet had two choices per the contract:
1) Return the aircraft to CAL so they could be used by the new provider (Chataqua), resulting in massive layoffs. This is what everyone though would happen.
2) Continue to lease the planes from CAL for a higher lease rate. Obviously in order for this to make sense XJet would need to have some other use for those planes.
XJet chose 2), surprising everyone. This has the advantage of putting CAL & Chataqua in a tight spot because they do not have 69 RJ's sitting around to cover that flying...
But XJet still has to find an employer for 69 RJ's...not an easy task. Or they might try an indy-air type stunt, but the long term prospects for success would be P1ss-poor. Anyway, the point is unless XJet announces a NEW major airline partner who needs 69 planes, you would be going out on a limb to take a job there...it would be a gamble, it might work out great. AA is rumored to be a potential partner.
06-22-2006 | 08:35 AM
#12
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Joined: Jan 2006
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From: Engines Turn or People Swim
Originally Posted by Brav989
Part of my brain still isn't understanding. So these 69 jets were used by Xjet, is that right? They decided to keep them, but pay more $, is that right? Well if they were already using them to begin with, why would there be a problem? Because of higher overhead with having to pay more to lease them?
The big issue is that they have 69 planes that are operating on CAL Expess routes which means CAL pays XJet for the service which is where XJet gets the revenue! In 2007 those planes will NOT be able to operate as CAL Express, will NOT be painted with CAL colors, and will NOT earn any money!
The cost of paying lease, mx, and crew costs on 69 planes that are not in use would bankrupt any airline in a matter of weeks or even days. XJet needs to find someone to pay for the service provided by those airplanes, and they have not announced who that is yet (if they even know).
06-22-2006 | 08:39 AM
#14
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Originally Posted by rickair7777
Yes, they pay more for the lease, but that is a minor issue.
The big issue is that they have 69 planes that are operating on CAL Expess routes which means CAL pays XJet for the service which is where XJet gets the revenue! In 2007 those planes will NOT be able to operate as CAL Express, will NOT be painted with CAL colors, and will NOT earn any money!
The cost of paying lease, mx, and crew costs on 69 planes that are not in use would bankrupt any airline in a matter of weeks or even days. XJet needs to find someone to pay for the service provided by those airplanes, and they have not announced who that is yet (if they even know).
The big issue is that they have 69 planes that are operating on CAL Expess routes which means CAL pays XJet for the service which is where XJet gets the revenue! In 2007 those planes will NOT be able to operate as CAL Express, will NOT be painted with CAL colors, and will NOT earn any money!
The cost of paying lease, mx, and crew costs on 69 planes that are not in use would bankrupt any airline in a matter of weeks or even days. XJet needs to find someone to pay for the service provided by those airplanes, and they have not announced who that is yet (if they even know).
06-22-2006 | 09:23 AM
#16
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Originally Posted by Brav989
I see...gotcha. Is it possible CAL might just decide to keep contracting flights with XJet since they're in a bind with the other airline? Or is that a no go?
06-22-2006 | 09:42 AM
#17
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From: Engines Turn or People Swim
Originally Posted by Brav989
I see...gotcha. Is it possible CAL might just decide to keep contracting flights with XJet since they're in a bind with the other airline? Or is that a no go?
One possibility is a lease back, where XJet leases the planes back to CAL, but CAL pays CHQ to actually operate the planes...not good for XJet labor.
The current rumors actually involve XJ operating the planes themselves.
06-22-2006 | 10:26 AM
#18
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There was an article in ATW a few months ago stating that XJT was looking to place those RJs in eastern europe and fly feeder to an unnamed airline. They also said that they are looking at placing planes in China. Mesa is also looking at China as the next growth area. Be careful juinor types, you could end up in Bulgaria or China!
What a wonderful career you signed up for! Have fun commuting home from eastern europe or China on your 5 on 2 off schedule!
What a wonderful career you signed up for! Have fun commuting home from eastern europe or China on your 5 on 2 off schedule!
Last edited by Browntail; 06-22-2006 at 10:29 AM.
06-22-2006 | 10:30 AM
#19
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Originally Posted by Browntail
There was an article in ATW a few months ago stating that XJT was looking to place those RJs in eastern europe and fly feeder to an unnamed airline. They also said that they are looking at placing planes in China. Mesa is also looking at China as the next growth area. Be careful juinor types, you could end up in Bulgaria or China!
What a wonderful career you signed up for! Have fun commuting home from eastern europe or China on your 5 on 2 off schedule!
What a wonderful career you signed up for! Have fun commuting home from eastern europe or China on your 5 on 2 off schedule!
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