duvie

I have been reading a lot of things in other threads about why CAL took flying away (Larry is a bean counter, CHQ is a better "wh0re") so I thought I'd comment.

CAL didn't take away part of their flying from XJT to lower costs. The previous relationship was extremely beneficial to both companies from a financial perspective. CAL wanted to diversify their feeder service so that they could avoid a situation where XJT could have them by the balls, like Comair did to Delta. The move was strategic and was not motivated by the "bottom line". It would have been cheaper to keep using XJT that it will be to use another carrier.

XJT is a great company because it was molded in the image of a major instead of a regional. The training department is great and actually having things like their own FOQA department (something that AA and other majors still don't have) are indications of what a great company XJT is.

I have never worked there, so my observations may be flawed, but XJT sure is acting like a teenager being on his own for the first time. They seem very confident that they know the ways of the world. I hope XJT does well, but there may be some humbling experiences in store for them.

Sanchez

Your first two paragraphs were right on, the last one not so much. Everyone is entitled to their opinion, but like you said, you don't work here, so you just don't know! No offence, but unless you've dealt directly with our management you don't know what we need or don't need. I will say this however; when it's all said and done people's jaws are going to drop.

Tinpusher007

How do you know this? And of course XJT will feel slighted. They have 69 airplanes to find new work for and by your own admission, the decision had nothing to do with a the bottom line. This move could potentially cause them to lose growth and profits.

Sanchez

You don't keep up with industry news often do you?

10 XR's to Charter Operations, for which we already have clients.

25 LR's heading south of the border.

That leaves a marginal 34 aircraft, which I can assure you, will find homes whether at one of the current carriers we're looking at, or on our own. Either way, with our current rate of attrition (about 30 a month going to CAL) I promise you noone will be hurting over here. Just keep your ear to the ground, the other shoe will drop before you know it.

JoeyMeatballs

I just hope our management knows what they are doing, I guess only time will tell

duvie

This is the attitude I'm talking about. I admire your enthusiasm for the company, but most people who have been around this industry long enough know better than to make "promises" about their company's success in the future.

Sanchez

When you've been here long enough and have dealt with them, you'll know we have very capable folks running this operation. Just don't pay any attention to the negativity from some of these folks, who are just jealous of our contract and quality of life, or simply don't know what their talking about. Hope your training is going well.

Sanchez

It depends on the circumstance, I'll explain my view with facts.

1. We have 206 aircraft that will continue to generate revenue with CAL under our CPA.

2. We have 10 possibly 15 aircraft that will be generating income on the charter side.

3. We have other ventures generating income (paint shop, mx shop in Mexico, the leases on the 25 LR's)

4. Our rate of attrition is going through the roof as most of our guys are finally getting calls from CAL now that their hiring full swing.

So if you lay out a worse case, best case scenario, here's what you got:

Worst case, we park the remaining 34 aircraft, we continue to hire and upgrade based on attrition, and things stagnate for a while.

Best case, we find homes for the rest of the aircraft, and continue to hire at higher levels as the operation demands it.

Either way no furloughs for the next 36 months, you can take that to the bank.

johnso29

I think you hit the nail on the head with CAL splitting their flying. They don't want all their eggs in one basket. Everyone please excuse the comments of my less informed rookie XJET coworkers. I don't know if you're right about the humbling experiences though. The company has done a good job of diversifying themselves over the last several years by paying off our debt to CAL, opening a paint shop in Mexico, and being the only MX in the US able to rebuild/repair the EMB145 thrust reversers. And I am glad the company is going to do flying outside of the Legacys. I'm tired of being at the mercy of the Legacy beancounters, being their puppets. The regionals are like a pack of wolves fighting over a piece of meat that is always getting smaller. For all of you doubters out there saying 50 seat flying is dead we already have enough customers for 10 airplanes for our charter, and the branded flying might work better than everyone thinks. It does great for Southwest, and how many times do you hear people in the airports complaining about making their connections? How would like to be able to fly from the midwest to a coastal city and avoid connecting through ORD, DFW, IAH, LGA, JFK, IAD, LAX, ATL, EWR, CLT, avoiding ground stops and EDCs. Our branded flying will not be exactly like Independence because we WILL NOT BE COMPETING DIRECTLY WITH A LEGACY FLYING IN AND OUT OF THEIR HUB. Point to point flying is something I think a lot of travelers would welcome with open arms. Rant over.

Sanchez

I agree that brand flying would be a good direction take the company into. As you mentioned we're not competing with any majors, we have the infrastructure (MX and parts, training facilities, station facilities) to support it. Plus we are still generating revenue from our other sources. If it works branded flying would allow XJT to have more control over the future.