I don't know what you mean by "buy" flying???

Awac has one of the lowest operating costs in the regional world. Awac is fairly caught up on its staffing. With the summer flying slowing down, its finally giving scheduling and pilots a break. I would think some possible hiring in the fall, but nothing that I know of yet.

QOL sucks at any regional airline, thats the bottom line. You work harder than the majors and get paid less. As far as AWAC, the pay is good, and the contract is a whole lot better than most regionals.

The real question should be what is AWAC going to do when the 2015 US airways contract ends. It's also the same time the leases are up on the 200's. A lot of people think they will probably just close up shop, who knows...

 

Did you not get hired or busted a AWAC checkride or something?? This is a second time I have heard you make that false comment about awac buying flying. Get your facts straight.... You fly for Colgan a company saved by Pinnacle. Both companies have just recently emerged as a decent regional carrier because of your NEW contract.

 

I think he just means that AWAC probably wouldn't be flying for US Airways if they didn't have the 80 or so million to give them 10 years ago. AWAC lost the United contract and had no where to go so they told Airways that they'd pay big bucks if they were given Airways routes. At that time, no Airways, no AWAC. (No Airways no PDT/PSA either)

 

Unfortunately that statement is some what true. They gave US AIR a 125 million dollar loan to place those 70 CRJ's into service with them. In a sense they did "buy" that flying, but I am sure they got a very good return on their investment. At the same time they took a huge risk. If US AIR would have gone out of business before that loan was repaid they also could have lost a good amount of that investment. One thing is for sure is that the owners of AWAC are very quiet about their motives. That was a small part of the reason I left AWAC after being there 3.5 years, we just never knew as employees what was going on in regards to our futures.

 

Eastshore Aviation, LLC got a seat on the LCC Board of Directors, $125M in common stock, and a 10 year cost-plus CPA for Air Wisconsin Airlines Corporation in exchange for $125M in exit financing for the merged Airways/America West. Some folks might remember Republic Airways Holdings also put up $125M in exit financing for LCC.

Eastshore sold their $125M in LCC stock for somewhere around $400M before the stock market tanked in 2008, and surrendered their seat on the board.

Tripling their money in less than 4 years, plus guaranteed profits from AWAC for a decade? The Amigos may be a lot of things, but financially stupid ain't one of them.

 

Being an AWAC alum who was there when we lost numerous RFPs because "we cost too much", I literally laughed out loud when I read this.

 

I too am an AWAC Alumni (04-07). I have numerous friends that are there. In just the three years that I was there I cannot tell you how many times I saw where we lost RFP's. It was a great place to be 5+ years ago. Now, I think it is evident that there will be no growth. I think that if you get on as a new hire then you should expect to upgrade due to attrition. That doesn't mean that it won't happen. When I got hired I was 822 of 822. We had 70 CRJ's and 17 BAE-146's. When I left (exactly three years later) I was 3 months from upgrading and there were 70 CRJ's. A LOT of folks bailed after the United split.

 

I do think we now have some of the lowest costs. We are not privy to the books of course, but the airplanes are old and the leases have to be reasonable. We constantly get hounded on crew costs but it is no secret that that is not the only nor is it the biggest cost of running an airline.

Costs have been slashed over the past 3 years or so.

As far as the 'buying flying' goes, as was mentioned, the owners of the company made hundreds of millions on their investment in US Airways. Hardly bad business.

But it is also true that they have never (ever) won an RFP with flying involved.

Future? Anyone's guess. But I think they are still making a ton of money so I suspect that there will be a future at AWAC. What that looks like is anyone's guess, but I suspect it will not involve a lot of high-risk leases on airplanes for short-term contracts.

When the owners come to the table to bargain they come with pretty strong cards in their hands and they appear to know what they are doing.

 

If they are smart they would probably walk away with their money in 2015 and the ground handling operation. I do not see a future for the flying side of AWAC, you can theorize all you want. But the proof is in the pudding.

 

Well, we can speculate all we want. I hope I have a future beyond 2015 with AWAC, but unfortunately only the owners know. But the proof won't be in the pudding for 4 more years.