Move over ASA, Skywest is coming!
#121
Ok so lets estimate that SKW has, what, $400M in cash? So you pick up a few Boeings and now your pilot group of approx 1000 is now widdled down to 50. Who gets the flying? You have enough cash to fend off those aforementioned lawsuits? Seems to me like an amateur move to go after the 73's just because you can.
#122
If Skywest was to obtain 737s or A320s they would be crushed by Legacies and LCCs wherever they went to compete. You honestly think than Southwest, AirTran, and every other Legacy wouldn't overflood the market with flights so that Skywest would bleed cash? I don't think it would be a smart move.
#123
Gets Weekends Off
Joined: Dec 2005
Posts: 4,047
Likes: 20
From: 7ER B...whatever that means.
The actual cost of brining another aircraft type online is significantly more than the cost of the lease, the crew and the fuel. That first 737 or A320 also requires maintenance programs to be put in place, training of crews, increased crew costs, fleet management apparatus, insurance, "teething" expenses, etc etc.
Also, I'm curious where you got those figures from TD. Assuming they are accurate, thats a 40% increase in cost with no guarantee of being able to fill those seats.
Also, I'm curious where you got those figures from TD. Assuming they are accurate, thats a 40% increase in cost with no guarantee of being able to fill those seats.
#124
Moderator
Joined: Oct 2006
Posts: 13,088
Likes: 0
From: B757/767
The legacy's can't afford to send aircraft somewhere to flood a market they don't already have. They tried that and failed. How do you think Southwest got started? There were the same big players in the field then. This is besides the point. SKW is a regional because they are limited to regional aircraft. I don't care how much they make.
#125
Gets Weekends Off
Joined: Dec 2005
Posts: 4,047
Likes: 20
From: 7ER B...whatever that means.
The legacy's can't afford to send aircraft somewhere to flood a market they don't already have. They tried that and failed. How do you think Southwest got started? There were the same big players in the field then. This is besides the point. SKW is a regional because they are limited to regional aircraft. I don't care how much they make. Lets not take this into the relm of what ifs ect. It doesn't matter. They are a regional. Not a major. They can't exercise the privilages of a major.
#126
Haha, you obviously are unfamiliar with how the airlines work. Ask an ACA guy what United's reaction was when Indy Air popped up in United's east coast hub. Basically United ramped up their capacity in IAD and was able to undercut Indy Air's fares but make some it back on volume. Are these tactics costly to both sides? Absolutely. But usually one side can sustain it longer than the other.
If anything I'm not saying SKW SHOULD or XJT SHOULD get 737s. It's showing the majors should take some of these routes. If only they could be less wasteful in their management. IE:Sending aircraft someplace for competition's sake while taking it in the rear.
#127
BTW HSLD this looks like a better route map.
http://www.skywest.com/routemaps/rm_...mbined_300.jpg
Cincinnati and Atlanta are different... It's more current.
http://www.skywest.com/routemaps/rm_...mbined_300.jpg
Cincinnati and Atlanta are different... It's more current.
#128
Guys, I have no idea what Jerry has planned for SKW but I'm sure he's already working on it. Our United contract is up in 2017, Delta in 2020 and I'm sure Jerry understands that things are bound to change. Sometime!
Two things SKW doesn't have, a reservation system and a market. BUT, buy a Major and there you have it, a beginning. I'm not saying that this is what's going to happen but it's as likely as them launching out on their own. SKW could afford to buy Midwest or someone else and with the purchase they gain a food chain. Beautiful part about Midwest is that they don’t directly compete with Delta or United so we wouldn’t be in breach of our codeshare contracts.
Bottom line, Jerry is already making plans and you can bet that he's doing his research; he sees how others have failed and succeeded. If Jerry launches I'm sure it will be calculated, educated and well prepared.
Just "Fuel for the Fire."
Two things SKW doesn't have, a reservation system and a market. BUT, buy a Major and there you have it, a beginning. I'm not saying that this is what's going to happen but it's as likely as them launching out on their own. SKW could afford to buy Midwest or someone else and with the purchase they gain a food chain. Beautiful part about Midwest is that they don’t directly compete with Delta or United so we wouldn’t be in breach of our codeshare contracts.
Bottom line, Jerry is already making plans and you can bet that he's doing his research; he sees how others have failed and succeeded. If Jerry launches I'm sure it will be calculated, educated and well prepared.
Just "Fuel for the Fire."
#129
The actual cost of brining another aircraft type online is significantly more than the cost of the lease, the crew and the fuel. That first 737 or A320 also requires maintenance programs to be put in place, training of crews, increased crew costs, fleet management apparatus, insurance, "teething" expenses, etc etc.
Also, I'm curious where you got those figures from TD. Assuming they are accurate, thats a 40% increase in cost with no guarantee of being able to fill those seats.
Also, I'm curious where you got those figures from TD. Assuming they are accurate, thats a 40% increase in cost with no guarantee of being able to fill those seats.
I found them by doing a goole for CRJ operating costs. It's on the ICAO webpage. I'll go see if I can find it.
Found it:http://www.icao.int/icao/en/ro/allpi...g4/wp28app.pdf
Granted I wouldn't know my arse from a hole in the ground on the actual cost of it. I'm just basing it on the numbers here and a few things I've read posted by the Boyd group.
Duck
#130
Line Holder
Joined: Feb 2007
Posts: 1,292
Likes: 1
If Skywest was to obtain 737s or A320s they would be crushed by Legacies and LCCs wherever they went to compete. You honestly think than Southwest, AirTran, and every other Legacy wouldn't overflood the market with flights so that Skywest would bleed cash? I don't think it would be a smart move.
Consumers will fly whoever is cheapest. So SKW undercuts the competition for a bit to bully their way in, and theyre in.
Im not saying they should / shouldnt / will / will not, etc.
Just saying.
Thread
Thread Starter
Forum
Replies
Last Post



