SAPA 'Negotiations' Update
 

SkyWest Airlines Pilot Association

SAPA President Update

June 21, 2013

Negotiations Update

The negotiating committee met with management this week and everyone seems to want to know how it is going. Frankly, it is still very early in the process. This update will be a little short on details but I will be working with the committee in the coming weeks to get more data and information to the pilot group.

Our goal as the SAPA negotiating committee is to get the BEST overall package that we can. With 3200 pilots, we know the group will have 3200 different opinions on what is best. We are listening to your ideas as well as your wants and needs and will try to convince SkyWest to deliver. The SAPA Representative Board will guide and advise the negotiating committee through this process. Once we have a package that the Board finds acceptable, it will be sent to the pilot group. At that point, THE PILOTS will decide by a direct vote to approve or reject. We have no idea how long this will take, or even IF we will be able to negotiate an agreement that we can support.

It should come as no surprise that both SAPA and the Company have both spent a lot of time prepping for these negotiations. Much of the first meeting was spent talking about the current state of the industry, SkyWest profitability, the new E175 orders, and pilot contracts/pay at other carriers. In addition, we explored a few ideas that would provide mutual benefits to SkyWest and our pilots. We agreed to meet again in a few weeks after reviewing some of the ideas presented.

First, the good news is that SkyWest, Inc. IS making money. The recent orders for E175s show that SkyWest INC is willing to invest in this market and has a positive long term outlook. Publically filed financial statements show that SkyWest Airlines is doing well, while ExpressJet still has a lot of work to do to regain profitability.

The challenge is that the 50 seat market is slowly shrinking and being replaced by new 70-90 seat aircraft. The number of SkyWest CRJ 200s will be reduced as scope limitations kick in. SkyWest has approximately 100 aircraft coming off contract in the next 3 years. ExpressJet has about 150 coming off contract in the same time frame. SkyWest is competing for new flying against a number of other carriers with costs significantly lower than ours. It is important for everyone that we win our fair share of the replacement flying, and the hope is that SkyWest can win enough to continue to grow.

So what does that mean for us? It's hard to tell. In the last year, SkyWest won 40-E175s for United, and a handful 700s and 900s for Alaska and US Air. Unfortunately, we missed out on some significant awards for Delta and American. The additional E175 orders/options are contingent on us winning more flying contracts. We know we won't win them all, but our expectation is that SkyWest will continue to compete and will secure new flying opportunities. Management contends that our pilot compensation is one of the biggest challenges to winning new contracts and believes that Mesa and Pinnacle contracts are the new standard.

In addition, the FAR 117 rest rule changes and the possible 'pilot shortage' from mainline hiring make it anyone's guess on how things will actually play out. Many have suggested that it may be unwise to lock ourselves into anything long term while facing so much uncertainty.

Well, that's the short update. We've been asked to provide more info to the pilot group so look for future updates from the committee with graphs, tables, and other information. We appreciate your support.

First Eagle, now Skywest Inc.

Shorts on details? That says it all. Management thinks pilots at skywest are paid too much money.

When we work for regionals we are nothing but contractors. We can be replaced fairly easily, never forget that when you go asking for that big payday. We all see what happened to comair. The only way to control your own destiny is to do your best to get hired at a major. The next round of consolidation is coming, airlines with a lot of 50 seaters better watch out.

Sounds like the high and mighty Skywest types are about to learn about reality is. Hopefully they don't get too deep of cuts but sounds like pays about to take a cut and airplanes get bigger...... At the end of the day do the pilots have a leg to stand on at SKW? No union no contract means management can do whatever no?

Best of luck but I just don't see it. The 50 seat comment on this goes against what your pilots say on here that the E175 are growth. Sounds to be replacement in the long term.

Ding ding ding, we have a winner.

They cut the wages of the (non union) rampers this spring ... I guess the pilots are next.

Bigger airplanes for less pay. This industry is sickening. Airline management is getting exactly what they want. There is no hope for this career.

They don't carry anymore pax than what SKW currently has. I think.

I would like to see this method of negotiations.

Oh right, because a union at Pinnacle certainly stopped management!


"Management contends that our pilot compensation is one of the biggest challenges to winning new contracts and believes that Mesa and Pinnacle contracts are the new standard."

And 9E union thought that a BK concessionary contract wouldn't affect the rest of the regionals outside bankruptcy. Oops.