Originally Posted by iPilot (Post 735606)

The way that deal was explained to me is that the new CAL CPA was a completely different payment model than what XJT was used to. Before it was a cost+10% payment plan which is now a flat hourly rate. The reason it was unprofitable is that the flat hourly rate doesn't make money if CAL gives us low block hours. With the recession CAL cut us back about as far as they could possibly go without getting rid of airframes. So in the end XJT paid the leases but didn't get much money from CAL as they flew the airplanes relatively little.

Now that UA is thrown into the mix the block hours of the entire fleet will bring them into profitability. Hypothetically, if things go the other way and the planes are pushed to their limits then XJT's profits would be at it's peak.

Originally Posted by jsled (Post 735562)

What else would ASA do with those jets?

Originally Posted by Nevets (Post 735601)

Can you cite a source to this? I know that with the new CPA with CAL at the rates XJT was forced to accept due to attempted SKW buyout, it is at a loss at current aircraft utilization, it is at a loss.

As for doing flying at a loss because of parked airplanes, isn't that the same reason why SKW got a deal with UAL to fly 13 out of 20 parked airplanes?

Originally Posted by cybourg10 (Post 735599)

I don't know where you get your information from but I was told (to my face) by our VP of Flight Ops that the United deal is profitable at a certain block hour level. We have already surpassed that level with our projected block hour numbers for the summer and United continues to add to those projected block hours every week, hence why we are having to recall and determine where the new base will be. Our profit margin is lower than our historic margin but that is what the regional airline business is morphing into, less profits and higher quality requirements. The key is XJT is paying 1/2 price for the already discounted lease rates for our aircraft, that coupled with the size of our fleet allows us to operate at a lower price. I know you guys like to assume that we are doing this at a loss but XJT has the lowest cost per hour of any 50 seat operator right now for various reasons. Our UAX operation will not only be cheaper than the others but we will also have wifi, power outlets, and XM radio on our aircraft which will give us a better product. The only reason we are able to underbid everyone is our lease payments that are currently 50-60% lower than any other 50 operator which was part of our new CAL CPA, that coupled with the size of our fleet makes each 145 very very cheap. Glad to see XJT and ASA get new flying and hopefully it is a trend that will continue.........

Originally Posted by John Pennekamp (Post 735632)

I can't. That's why I said "I hear". I'm hearing it from our management. I guess all the managements know what they bid and what each other bid.

Originally Posted by John Pennekamp (Post 735638)

Glad to hear. Good luck, and enjoy that ORD winter. Power outlets and XM! WOW! Mesa could never compete with that! ;)

Originally Posted by cybourg10 (Post 735655)

It can't be any worse than these Northeast winters can it? (If true than I do not want to know ;) )

Originally Posted by SOTeric (Post 734999)

Lets hope the outsourcing stops well before 2017 too.

Originally Posted by cybourg10 (Post 735599)

Glad to see XJT and ASA get new flying and hopefully it is a trend that will continue.........

Originally Posted by Rhino Driver (Post 735613)

Really???:confused:

Originally Posted by Nevets (Post 735644)

Is that the same management that, in April 08, said XJT would file for BK in 6 months (when the CAL CPA was up for "bid")?