Jeff's comment on outsourcing
#1
Pilots plan to protest today on outsourcing | Business | Chron.com - Houston Chronicle
I find this comment interesting. He made the same comments about the pre-merged Continental. However, as Jeff pointed out earlier this year, from 2000-2009, CAL lost $1 billion. That's $1 billion OVER A 10 YEAR PERIOD while solely having a max of 50-seat small-jets. Now, no loss of money is a good thing I admit. However, if you compare that to the other legacy carriers, CAL lost the least amount of money over that same period while those other carriers HAD 70-seat small jets. CAL was considered to be in good shape financially (this is not a CAL vs. UAL statement and is not aimed at UAL guys related to anything to do with JCBA or SLI).
So Jeff, I ask you, how exactly is the combined company at a competitive disadvantage FINANCIALLY because CAL has a scope clause that limits you to 50-seat jets for the feeders? CAL seemed to do OK before this merger with just 50-seaters.
In a conference call with analysts last month to discuss quarterly earnings, United CEO Jeff Smisek said the Continental rule limiting outsourcing to 50-seat jets was hurting the merged company.
"We have been hampered and competitively disadvantaged," he said.
Large airlines hire regional carriers to fly to some of the smaller markets they serve because of cheaper labor costs, among other reasons.
"We have been hampered and competitively disadvantaged," he said.
Large airlines hire regional carriers to fly to some of the smaller markets they serve because of cheaper labor costs, among other reasons.
I find this comment interesting. He made the same comments about the pre-merged Continental. However, as Jeff pointed out earlier this year, from 2000-2009, CAL lost $1 billion. That's $1 billion OVER A 10 YEAR PERIOD while solely having a max of 50-seat small-jets. Now, no loss of money is a good thing I admit. However, if you compare that to the other legacy carriers, CAL lost the least amount of money over that same period while those other carriers HAD 70-seat small jets. CAL was considered to be in good shape financially (this is not a CAL vs. UAL statement and is not aimed at UAL guys related to anything to do with JCBA or SLI).
So Jeff, I ask you, how exactly is the combined company at a competitive disadvantage FINANCIALLY because CAL has a scope clause that limits you to 50-seat jets for the feeders? CAL seemed to do OK before this merger with just 50-seaters.
#2
Line Holder
Joined: Aug 2005
Posts: 534
Likes: 15
From: 18%er but I’ll enforce UPA23 to the last period.
Practically anybody can do the same lousy job of managing this company for pennies on the dollar as Mr Smisek. Perhaps he should show us personally how outsourcing can benefit us. Maybe he'd like to lead the way and outsource himself first?
#4
Actually, they are not. Please don't be so easily fooled by a simple illusion. They just look like pure geniuses when compared to the batch of selfish leeches running several of the legacy carriers right now.
Where is the next Herb?
Where is the next Herb?
"Some of the business schools regarded that as a conundrum. They would say: Which comes first, your people, your customers, or your shareholders? And I would say, it's not a conundrum. Your people come first, and if you treat them right, they'll treat the customers right, and the customers will come back, and that'll make the shareholders happy".
SP
Last edited by SONORA PASS; 11-24-2010 at 08:02 PM.
#5
Please don't send Jet Daily hate mail. He was often beat up as a child by his peers and most of the way through MBA online and night school courses. Swirlies, snuggies, getting his books knocked to the floor from his arms. . . the usual stuff.
He's assigned himself to post anti-pilot slurs on this website. It helps him validated the fact that he drives a desk, steals wages from pilots and attempts to break unions for a living. It's how some deal with self loathing.
He's assigned himself to post anti-pilot slurs on this website. It helps him validated the fact that he drives a desk, steals wages from pilots and attempts to break unions for a living. It's how some deal with self loathing.
#6
Instead of fighting for scope relief, why doesn't the CEO try to negotiate a rate for 70 seaters on the UA/ CO certificate? Then the UA/ CO pilots would be flying it. No scope given up, both parties happy.
#7
It would be GREAT NEWS to have mainline take back the 70 seaters. But the logistics of doing so Is mind boggling. Management would not be willing to cancel the long term 70 seat contracts UAL has with Skywest, Republic, TSA/Gojets and Mesa and pay millions in breach of contract fees. Then a mainline training program for FAA, pilots and mechanics will have to be started. More millions. Some have suggested just let the contracts expire and go from there. There is still many many years left on some of those contacts. Mainline pilots would be sacrificing a lot of negotiating capital and possible pay raises to be successful on this one. My hats off to them if they succeed.
#8
Moderator
Joined: Oct 2006
Posts: 13,088
Likes: 0
From: B757/767
It would be GREAT NEWS to have mainline take back the 70 seaters. But the logistics of doing so Is mind boggling. Management would not be willing to cancel the long term 70 seat contracts UAL has with Skywest, Republic, TSA/Gojets and Mesa and pay millions in breach of contract fees. Then a mainline training program for FAA, pilots and mechanics will have to be started. More millions. Some have suggested just let the contracts expire and go from there. There is still many many years left on some of those contacts. Mainline pilots would be sacrificing a lot of negotiating capital and possible pay raises to be successful on this one. My hats off to them if they succeed.
#9
Gets Weekends Off
Joined: Dec 2009
Posts: 2,058
Likes: 2
From: Capt
It would be GREAT NEWS to have mainline take back the 70 seaters. But the logistics of doing so Is mind boggling. Management would not be willing to cancel the long term 70 seat contracts UAL has with Skywest, Republic, TSA/Gojets and Mesa and pay millions in breach of contract fees. Then a mainline training program for FAA, pilots and mechanics will have to be started. More millions. Some have suggested just let the contracts expire and go from there. There is still many many years left on some of those contacts. Mainline pilots would be sacrificing a lot of negotiating capital and possible pay raises to be successful on this one. My hats off to them if they succeed.
#10
It would be GREAT NEWS to have mainline take back the 70 seaters. But the logistics of doing so Is mind boggling. Management would not be willing to cancel the long term 70 seat contracts UAL has with Skywest, Republic, TSA/Gojets and Mesa and pay millions in breach of contract fees. Then a mainline training program for FAA, pilots and mechanics will have to be started. More millions. Some have suggested just let the contracts expire and go from there. There is still many many years left on some of those contacts. Mainline pilots would be sacrificing a lot of negotiating capital and possible pay raises to be successful on this one. My hats off to them if they succeed.
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