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United buys 30 E175s

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Old 05-21-2013 | 04:03 AM
  #161  
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With 70 large RJs on order for UAX that a wrap for additional UAX bids until UAL places a small narrow body aircraft at mainline
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Old 05-21-2013 | 04:08 AM
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Originally Posted by Slats
Hate to say I told you so.....


I’m excited to announce that United has selected SkyWest Airlines to fly the Embraer 175 (E175) under a new, long-term flying agreement. Beginning in April 2014, SkyWest will begin taking the first of 40 E175s to fly as United Express. This is a huge accomplishment for SkyWest for a few key reasons: 1) it represents significant, meaningful long-term growth; 2) it diversifies our fleet and maintains our relevance in the industry’s move toward more large RJs; and 3) it reaffirms our relationship with our largest partner, United. New flying in today’s competitive environment is a tremendous accomplishment, and it’s a credit to you and the hard work we’re doing together to stay agile and competitive.

We’ll be working through a lot of the details in the coming weeks and months, including where these aircraft will fly, but here are the basics of the agreement:
Total of 40 E175 aircraft
The 12-year agreement includes 40 E175 aircraft with United beginning next year
I see you made the post and then you edited the most important details out of it.

Here is what you left out from your initial post.

This award comes at the end of a very long proposal (RFP) process. In order to secure the work, we committed to a very aggressive cost structure. I think it’s important for you to know that, because we’ve done a lot of work to get more competitive in a new world; and we’ll need your support and commitment to keep evolving moving forward. We have to keep the conversation open about ways we can become and stay competitive – because it will be up to us to decide if these aircraft become replacement flying or new growth. This is a new airplane, with new processes and new ways of doing things at SkyWest. Our industry has changed dramatically in the last few years, and now is the time to advance.


Be careful what you wish for, the days of SKW being SkyWest could be coming to a close. These RFPs have razor thin margins based on Pinnacle, Eagle, RAH and other cost. SKW will have to match those cost. You guys are correct that SKW was waiting to make a move, and they did but on what cost (literally). The United press release mentions that these aircraft will be replacement, so now YOU will decide who parks 50 seaters.

From United press release

"As United inducts the new aircraft into the United Express fleet, the company will remove some less efficient regional aircraft from the fleet. The E175s will consume less fuel per seat and will have less CO2 emissions per seat than the aircraft they replace."

I hope the best for you guys, but I have a feeling you will come to share the pain many of us are experiencing.
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Old 05-21-2013 | 04:24 AM
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Originally Posted by What
I see you made the post and then you edited the most important details out of it.

Here is what you left out from your initial post.

This award comes at the end of a very long proposal (RFP) process. In order to secure the work, we committed to a very aggressive cost structure. I think it’s important for you to know that, because we’ve done a lot of work to get more competitive in a new world; and we’ll need your support and commitment to keep evolving moving forward. We have to keep the conversation open about ways we can become and stay competitive – because it will be up to us to decide if these aircraft become replacement flying or new growth. This is a new airplane, with new processes and new ways of doing things at SkyWest. Our industry has changed dramatically in the last few years, and now is the time to advance.


Be careful what you wish for, the days of SKW being SkyWest could be coming to a close. These RFPs have razor thin margins based on Pinnacle, Eagle, RAH and other cost. SKW will have to match those cost. You guys are correct that SKW was waiting to make a move, and they did but on what cost (literally). The United press release mentions that these aircraft will be replacement, so now YOU will decide who parks 50 seaters.

From United press release

"As United inducts the new aircraft into the United Express fleet, the company will remove some less efficient regional aircraft from the fleet. The E175s will consume less fuel per seat and will have less CO2 emissions per seat than the aircraft they replace."

I hope the best for you guys, but I have a feeling you will come to share the pain many of us are experiencing.
Eh, if we do, we do. FYI, I'm one leg out the door already. Just awaiting PRIA checks.

Also, Eagle/Pinnacle cannot bid on outside flying because they're owned by their mainline partner....
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Old 05-21-2013 | 04:27 AM
  #164  
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Originally Posted by Slats
Blah, blah, blah... And the haters emerge... FYI, I'm one leg out the door already. Just awaiting PRIA checks.
I am not being a hater, it's the reality. Go read the thread below and look at those numbers. It's staggering to see how much the regionals will have to adjust over the next two years.

http://www.airlinepilotforums.com/re...-100-e175.html
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Old 05-21-2013 | 04:29 AM
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Originally Posted by Slats

Also, Eagle/Pinnacle cannot bid on outside flying because they're owned by their mainline partner....
Who said that? You do know that some companies who are wholly owned by their major partner do contract work for others. Currently no wholly owned operates the flight but there are many maintenance and ground handling contracts out there. I don't think you will see wholly owned airlines fly for others but there is nothing stopping them that I know of.
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Old 05-21-2013 | 04:30 AM
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Originally Posted by What
Who said that? You do know that some companies who are wholly owned by their major partner do contract work for others. Currently no wholly owned operates the flight but there are many maintenance and ground handling contracts out there. I don't think you will see wholly owned airlines fly for others but there is nothing stopping them that I know of.
Sure there is... The lift going towards a competitor....
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Old 05-21-2013 | 04:32 AM
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Originally Posted by What
I am not being a hater, it's the reality. Go read the thread below and look at those numbers. It's staggering to see how much the regionals will have to adjust over the next two years.

http://www.airlinepilotforums.com/re...-100-e175.html
True, the 50seat market is dead. Adjustments have to be made. At the same time attrition will continue to the majors/ lcc and regionals are having a harder time getting applicants with the new mins.
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Old 05-21-2013 | 04:37 AM
  #168  
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Originally Posted by Slats
True, the 50seat market is dead. Adjustments have to be made. At the same time attrition will continue to the majors/ lcc and regionals are having a harder time getting applicants with the new mins.
You are missing the point, I am not arguing with you that obtaining 76 seaters is a good thing for SKW Holdings. The question is how much will this cost the employees if any. SKW has had a great reputation but this is a nasty cut throat business during growth imagine what it is like during shrinkage. I am worried about that paragraph that I highlighted because it affects all of us not just SKW. The contract Pinnacle signed is hurting us all. The contract we Eagle pilots agreed is also hurting us all.
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Old 05-21-2013 | 05:57 AM
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Originally Posted by What
You are missing the point, I am not arguing with you that obtaining 76 seaters is a good thing for SKW Holdings. The question is how much will this cost the employees if any. SKW has had a great reputation but this is a nasty cut throat business during growth imagine what it is like during shrinkage. I am worried about that paragraph that I highlighted because it affects all of us not just SKW. The contract Pinnacle signed is hurting us all. The contract we Eagle pilots agreed is also hurting us all.
Time will tell... With the new hiring mins and lack of qualified applicants at the regional level it would be beneficial for SkyWest to retain and attract applicants with pay/work rules.
But like I said, I'm 1 foot out.
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Old 05-21-2013 | 04:52 PM
  #170  
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So with SkyWest getting airplanes, does this take them out of contention for this RFP? Or is it the general consensus they still have a leg in this fight?
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