Go Back  Airline Pilot Central Forums > Airline Pilot Forums > Regional
Move over ASA, Skywest is coming! >

Move over ASA, Skywest is coming!

Search

Notices
Regional Regional Airlines

Move over ASA, Skywest is coming!

Thread Tools
 
Search this Thread
 
Old 02-27-2007 | 05:50 PM
  #121  
ToiletDuck's Avatar
Che Guevara
 
Joined: Aug 2005
Posts: 6,408
Likes: 0
Default

Originally Posted by Joeshmoe
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.
I was saying that's why they are a regional. Because they can't do these things. If they did run under their own flag their wouldn't be the lawsuits and it isn't illegal to downsize a company. They could get away with it. But that was IF they were a major airline on their own. Which they aren't. Which is why I said SKW is not a major because they don't have these options available. They don't have freedom of choice of aircraft. They are scope claused in. If they weren't. The CRJ's would be a bad choice.
Reply
Old 02-27-2007 | 05:52 PM
  #122  
ToiletDuck's Avatar
Che Guevara
 
Joined: Aug 2005
Posts: 6,408
Likes: 0
Default

Originally Posted by johnso29
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.
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.
Reply
Old 02-27-2007 | 05:54 PM
  #123  
Gets Weekends Off
20 Years
Gets Weekends Off
 
Joined: Dec 2005
Posts: 4,047
Likes: 20
From: 7ER B...whatever that means.
Default

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.
Reply
Old 02-27-2007 | 05:56 PM
  #124  
Moderator
 
Joined: Oct 2006
Posts: 13,088
Likes: 0
From: B757/767
Default

Originally Posted by ToiletDuck
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.
Actually, one of the bad moves ACA made was to go straight into IAD and compete with UAL. As everyone knows, it didn't take long for ACA to bleed to death. My point is that LCCs and Legacies are well spread throughout the US. I highly doubt Skywest would be able to fly somewhere where they didn't encounter competition.
Reply
Old 02-27-2007 | 05:58 PM
  #125  
Gets Weekends Off
20 Years
Gets Weekends Off
 
Joined: Dec 2005
Posts: 4,047
Likes: 20
From: 7ER B...whatever that means.
Default

Originally Posted by ToiletDuck
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.
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.
Reply
Old 02-27-2007 | 06:05 PM
  #126  
ToiletDuck's Avatar
Che Guevara
 
Joined: Aug 2005
Posts: 6,408
Likes: 0
Default

Originally Posted by freezingflyboy
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.
I understand how it works. Doens't mean it can't happen. Doesn't mean it won't (i'm not talking about SKW though). People say it can't and won't yet you've got foreign airlines just fighting to get in here. The UAE is trying to do flying within our borders point to point. You've got Virgin popping up. There is always a way. Sometimes the large volume of another airline is it's downfall(smaller startups and make more efficient decisions). Take a route being flown by CRJ's with high volume and plop a 737 in there. I can understand all the "it would never work" or "do you think other airlines would let it happen" speaches.. but there is always someone thinking outside the box (ie Southwest) and they can make it happen. There is plenty capacity out there and in places you don't think there is you can always simply be more efficient.

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.
Reply
Old 02-27-2007 | 06:09 PM
  #127  
ToiletDuck's Avatar
Che Guevara
 
Joined: Aug 2005
Posts: 6,408
Likes: 0
Default

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.
Reply
Old 02-27-2007 | 06:41 PM
  #128  
JetJock16's Avatar
Gets Weekends Off
 
Joined: Mar 2006
Posts: 2,963
Likes: 0
From: SkyWest Capt.
Default

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."
Reply
Old 02-27-2007 | 07:12 PM
  #129  
ToiletDuck's Avatar
Che Guevara
 
Joined: Aug 2005
Posts: 6,408
Likes: 0
Default

Originally Posted by freezingflyboy
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.
I know it's a 40% increase and no guarantee of being able to fill the seats. You wouldn't use them on every single route though.

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
Reply
Old 02-27-2007 | 08:22 PM
  #130  
Line Holder
 
Joined: Feb 2007
Posts: 1,292
Likes: 1
Default

Originally Posted by johnso29
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.
Well, SKW already makes a profit. All they would have to do is place themselves onto expedia, orbitz, etc etc.

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.
Reply
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
rjboy
Regional
13
01-15-2007 12:59 PM
WAVIT Inbound
Regional
1
12-18-2006 06:51 AM
Slaphappy
Regional
1
09-08-2006 08:17 PM
Slaphappy
Regional
39
08-14-2006 10:13 AM
geshields
Major
2
08-16-2005 03:00 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



Your Privacy Choices