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Chuska
Posts: 757
Joined: Mon May 24, 2010 4:59 pm

Re: Skywest reducing frequency in 18 EAS markets

Fri Feb 04, 2022 9:25 pm

32andBelow wrote:
I support EAS but the whole program is collapsing. There isn’t going to be anyone reasonable to fly these routes if SkyWest leaves them.


So true. In recent years we've lost Great Lakes and Seaport and now Boutique is collapsing. Unless the rules are eased up on pilots for commuter airlines, we all see the end coming.
 
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lightsaber
Moderator
Posts: 24470
Joined: Wed Jan 19, 2005 10:55 pm

Re: Skywest reducing frequency in 18 EAS markets

Fri Feb 04, 2022 9:43 pm

Chuska wrote:
32andBelow wrote:
I support EAS but the whole program is collapsing. There isn’t going to be anyone reasonable to fly these routes if SkyWest leaves them.


So true. In recent years we've lost Great Lakes and Seaport and now Boutique is collapsing. Unless the rules are eased up on pilots for commuter airlines, we all see the end coming.

Sadly, I agree. However, if too many small destinations loose service, there will be a political will to change the rules. I'm not saying if in time for Skywest, that I cannot predict, but I think we'll see a relaxing of rules for the first officer to reduce the time between getting the commercial pilot license and flying as the co-pilot. When? Anyone's guess is probably better than mine.

Lightsaber
 
32andBelow
Posts: 6443
Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Fri Feb 04, 2022 10:28 pm

lightsaber wrote:
Chuska wrote:
32andBelow wrote:
I support EAS but the whole program is collapsing. There isn’t going to be anyone reasonable to fly these routes if SkyWest leaves them.


So true. In recent years we've lost Great Lakes and Seaport and now Boutique is collapsing. Unless the rules are eased up on pilots for commuter airlines, we all see the end coming.

Sadly, I agree. However, if too many small destinations loose service, there will be a political will to change the rules. I'm not saying if in time for Skywest, that I cannot predict, but I think we'll see a relaxing of rules for the first officer to reduce the time between getting the commercial pilot license and flying as the co-pilot. When? Anyone's guess is probably better than mine.

Lightsaber

It’s gonna be hard to change them if they keep wheeling out sully explaining why they need to be what they are
 
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piedmontf284000
Posts: 619
Joined: Wed Jun 15, 2016 12:00 pm

Re: Skywest reducing frequency in 18 EAS markets

Fri Feb 04, 2022 10:39 pm

32andBelow wrote:
lightsaber wrote:
Chuska wrote:

So true. In recent years we've lost Great Lakes and Seaport and now Boutique is collapsing. Unless the rules are eased up on pilots for commuter airlines, we all see the end coming.

Sadly, I agree. However, if too many small destinations loose service, there will be a political will to change the rules. I'm not saying if in time for Skywest, that I cannot predict, but I think we'll see a relaxing of rules for the first officer to reduce the time between getting the commercial pilot license and flying as the co-pilot. When? Anyone's guess is probably better than mine.

Lightsaber

It’s gonna be hard to change them if they keep wheeling out sully explaining why they need to be what they are


I think it will be sooner then anyone thinks. When politicians and their friends/family are unable to fly from their home airports, you will see changes coming fast and furious.
 
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jetblastdubai
Posts: 2272
Joined: Sun Aug 18, 2013 10:23 am

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 1:24 am

atrude777 wrote:
I think however..to use the Bus you're claiming..CGI needs Bus service to STL, not PAH.

If we are going to use CGI, they need service by Bus, Bus Service wouldn't be feasible for CGI-PAH to connect, and vice versa.

CGI-ORD was doing well before COVID hit, and it's unfortunate to see CGI got hit harder then PAH did.



Not to get too far off course here but no, I'm suggesting that the bus service between CGI and PAH would be very workable and far more efficient than any type of air service between two cities that close together. Say for example, the Skywest RJ departs ORD at 11AM for PAH and arrives at approx. noon. A bus could depart CGI at 11AM and get to PAH also around noon. Pax could get off the bus and jump in the return PAH-ORD RJ and pax could get off the RJ and jump on the bus and head back to CGI.

The bus gets 8 MPG and has one driver at $25/hr with no flight attendants, no landing fees, no CPE and no extra cycle on the airframe for a 15-minute flight. The same scenario already works between ORD and Rockford. https://www.rome2rio.com/s/Rockford-Van ... irport-ORD
 
crjflyboy
Posts: 530
Joined: Thu Jun 06, 2019 10:54 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 2:36 am

Perhaps fuel costs are a reason for the Skywest decision ... they bid on these routes when fuel was much cheaper
 
crjflyboy
Posts: 530
Joined: Thu Jun 06, 2019 10:54 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 2:40 am

Chuska wrote:
32andBelow wrote:
I support EAS but the whole program is collapsing. There isn’t going to be anyone reasonable to fly these routes if SkyWest leaves them.


So true. In recent years we've lost Great Lakes and Seaport and now Boutique is collapsing. Unless the rules are eased up on pilots for commuter airlines, we all see the end coming.


Seaport and Boutique were and are 135 carriers ... rules are much different ... Seaport collapsed due to idiotic management, the same curse taking down Boutique
 
sprxUSA
Posts: 944
Joined: Thu Dec 02, 2004 5:17 am

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:04 am

Of course, they are only cutting 2 flts/week.
Now they will have something like 2x MoWedThuFri, 0 Sat , 1 Sun, 1 tues or something like that. Still adequate it would seem.

Maybe route flights like Frontier in early 80s when they had 737s doing OMA LNK GRI LBF BFF DEN. Guess they got 19-20 pax avg per stop?
 
usxguy
Posts: 2234
Joined: Wed Jan 25, 2006 1:28 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:11 am

I bet Pierre and Watertown are glad they have DAC now instead of SkyWest. OO kicked & screamed about DAC winning it, and even ran flights without subsidy for like 6 months....
 
umichman
Posts: 373
Joined: Sun Apr 07, 2019 2:42 am

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:19 am

MILakes wrote:
Seat1F wrote:
The EAS program is largely a waste of money IMHO. I'm in favor of the entire program being canned...at least at a federal level. Let states step in to fund flying for "un-served/under-served communities" if they so choose. If Muskegon wants nonstop air service, the state of Michigan can pay the cost if they want to. I'm sorry but the US government should not be funding this program except in maybe some unique/extreme cases (no other airport within a 4 hour drive maybe). I do not consider a 2-3 hour drive to get to an airport with commercial air service to be a hardship. From where I live in Michigan (not considered metro Detroit), it takes me roughly 90 minutes to get to DTW. For me, it's an easy trip...not at all a hardship. FNT is about the same time distance but I never fly from there due to their limited flight options.


Completely agree. Having lived in both Michigan and Colorado, it is beyond all common reasoning that both MKG and PUB are "EAS worthy." Both about 45 miles on a single interstate to GRR and COS respectively. I agree with many on these EAS discussions about AK and some truly remote areas (mostly western states) being worthy of some taxpayer subsidies for air service in 2022- but the vast majority have turned into political and community status arguments..



The silly thing is the only reason MKG continues to get EAS subsidies is that GRR can't quite crack the FAA "medium sized hub" category. If an EAS airport is within 2 hours of a medium sized hub, it no longer qualifies for EAS. I suspect that if GRR continues to grow at present pace, it may move to medium sized hub category in a few years.

https://www.faa.gov/airports/planning_c ... ategories/
 
32andBelow
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Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:24 am

usxguy wrote:
I bet Pierre and Watertown are glad they have DAC now instead of SkyWest. OO kicked & screamed about DAC winning it, and even ran flights without subsidy for like 6 months....

How’s DAC doing on pilots? How are they going to avoid the market forced that have killed every other small 121 independent
 
DiamondFlyer
Posts: 3755
Joined: Wed Oct 29, 2008 11:50 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:24 am

crjflyboy wrote:
Perhaps fuel costs are a reason for the Skywest decision ... they bid on these routes when fuel was much cheaper


Not at all. Skywest is hemorrhaging pilots (as all regionals are). I'm hearing that its a 2-3 month wait at Skywest now to start OE after completion of sims for new hires.
 
crjflyboy
Posts: 530
Joined: Thu Jun 06, 2019 10:54 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:28 am

DiamondFlyer wrote:
crjflyboy wrote:
Perhaps fuel costs are a reason for the Skywest decision ... they bid on these routes when fuel was much cheaper


Not at all. Skywest is hemorrhaging pilots (as all regionals are). I'm hearing that its a 2-3 month wait at Skywest now to start OE after completion of sims for new hires.


Not sure what my question on fuel costs has to do with pilots ... ?
 
DiamondFlyer
Posts: 3755
Joined: Wed Oct 29, 2008 11:50 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 3:42 am

crjflyboy wrote:
DiamondFlyer wrote:
crjflyboy wrote:
Perhaps fuel costs are a reason for the Skywest decision ... they bid on these routes when fuel was much cheaper


Not at all. Skywest is hemorrhaging pilots (as all regionals are). I'm hearing that its a 2-3 month wait at Skywest now to start OE after completion of sims for new hires.


Not sure what my question on fuel costs has to do with pilots ... ?


The response made it clear, this has nothing to do with fuel costs. The reason for the cuts is lack of pilots, full stop, end of discussion.
 
N383SW
Posts: 177
Joined: Wed Nov 09, 2016 10:28 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 4:22 am

DiamondFlyer wrote:
MIflyer12 wrote:
DiamondFlyer wrote:
The DOT may not have to allow them to back out of it. If Skywest isn't allowed out of it, they'll simply just cancel the flights day after day after day after day, until the local city wants to be able to rebid the flying. But then again, no one will step in to cover it.


The DOT has plenty of lawyers. EAS carriers have an ongoing responsibility to demonstrate they are fit, willing, and able to perform the service or transportation.

What fraction of SklyWest's revenues is EAS? Would they dare to put it all at risk?


And Skywest is filing that they aren't fit to do the flying in some cases, and yet the DOT won't let them leave. A very, very small percentage of OO's revenue comes from EAS. They're not going to sacrifice FFD flying to operate some crap EAS flying.


Well then OO shouldn’t have been writing checks that their hind ends couldn’t cash! They bid these Midwest cities away from 3E and 9K, puffing their chest and now they want out?!? Anyone with any common sense knew this wasn’t attainable so now OO made their bed and they can just go ahead and readjust their magic underwear and deal with their consequences!
 
AndoAv8R
Posts: 220
Joined: Thu Feb 06, 2020 4:29 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 6:19 am

As far as western Nebraska goes, Im not sure why Chadron Alliance and Scottsbluff are all EAS (Im very familiar with the area as the family farm is in this area). I would assume Alliance is only getting it because of the big Burlington Northern Santa Fe rail yard, and Im guessing Chadron is seeing the lowest traffic given the route is being flown with a Cessna Caravan.
 
32andBelow
Posts: 6443
Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 6:51 am

AndoAv8R wrote:
As far as western Nebraska goes, Im not sure why Chadron Alliance and Scottsbluff are all EAS (Im very familiar with the area as the family farm is in this area). I would assume Alliance is only getting it because of the big Burlington Northern Santa Fe rail yard, and Im guessing Chadron is seeing the lowest traffic given the route is being flown with a Cessna Caravan.

Every city that lost service after deregulation is EAS
 
LAXdude1023
Posts: 7370
Joined: Thu Sep 07, 2006 3:16 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 8:10 am

Looks like the UA DEN hub is most effected in terms of destinations.
 
N353SK
Posts: 1040
Joined: Thu Jun 08, 2006 5:08 am

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 2:00 pm

Chuska wrote:

So true. In recent years we've lost Great Lakes and Seaport and now Boutique is collapsing. Unless the rules are eased up on pilots for commuter airlines, we all see the end coming.


Seaport and Boutique were/are both part 135 carriers. Great Lakes operated a large portion of their Beech 1900 fleet under part 135 for their last several years of existence, and even their part 121 certificate allowed them to work their pilots more than other part 121 carriers (120 hours per month off the top of my head). All could/can hire pilots with wet commercial certificates at 250 hours of total time (or, if they graduated from some specific part 141 flight schools, even fewer hours). Boutique Air first officers start out at an annual salary of about $24,000 per year, and despite this they had no shortage of young pilots applying to work for them before they began to contract.
 
atrude777
Posts: 4789
Joined: Wed Aug 13, 2003 11:23 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 5:12 pm

sprxUSA wrote:
Of course, they are only cutting 2 flts/week.
Now they will have something like 2x MoWedThuFri, 0 Sat , 1 Sun, 1 tues or something like that. Still adequate it would seem.

Maybe route flights like Frontier in early 80s when they had 737s doing OMA LNK GRI LBF BFF DEN. Guess they got 19-20 pax avg per stop?


Looking at CGI, you're pretty close on your post!

I don't know if the changes start earlier in February but I used March 6th as the start...every day of the week has a flight. Wednesday and Thursday lost their 2nd Flights.

Days with 2 Daily
Sunday, Monday, Friday,

Days with 1 Daily
Tuesday, Wednesday, Thursday, Saturday

For CGI, SkyWest got rid of the RON's and they are now turns in CGI.

2 Flight Days:
Depart ORD at 8:55am and land at 10:23am, and Depart ORD at 1:25pm and land at 2:54pm
Depart CGI at 11:03am, and land at 12:37pm, and Depart CGI at 3:25pm and land at 4:59pm

1 Flight Days:
Depart ORD at 1:25pm and land at 2:54pm
Depart CGI at 3:25pm and land at 4:59pm

Paducah, while not affected by the list, also lost their RONs too and going back to turns.

Alex
 
SyracuseAvGeek
Posts: 829
Joined: Wed Apr 26, 2017 8:37 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 5:39 pm

drdisque wrote:
TBN is a shame as they just recently started that route

PUB, MKG, DEC are all really short flights.

MCW and FOD are pretty close to each other. It might be helpful to coordinate service between those two markets.


Air Choice One used to connect coordinate MCW and FOD. They did ORD-MCW-FOD-STL. I was shocked that United didn’t make those two cities as tag flights. Neither need twice daily on a 50seat jet.
 
usxguy
Posts: 2234
Joined: Wed Jan 25, 2006 1:28 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 05, 2022 9:08 pm

AndoAv8R wrote:
As far as western Nebraska goes, Im not sure why Chadron Alliance and Scottsbluff are all EAS (Im very familiar with the area as the family farm is in this area). I would assume Alliance is only getting it because of the big Burlington Northern Santa Fe rail yard, and Im guessing Chadron is seeing the lowest traffic given the route is being flown with a Cessna Caravan.


Might wanna check on that one. Chadron hasn't had a Caravan in about 2 weeks.... the FAA finally signed off on the King Air.
 
crj900lr
Posts: 547
Joined: Fri Mar 18, 2011 1:44 am

Re: Skywest reducing frequency in 18 EAS markets

Sun Feb 06, 2022 2:03 am

MIflyer12 wrote:
TWA902fly wrote:
To paint a bigger picture : drive times and distances according to Google Maps to non-EAS airports from all of these:

Alamosa
COS (Colorado Springs) 165 miles, 2:37 drive time.
SAF (Santa Fe) 149 miles, 2:35 drive time.
DRO (Durango) 145 miles, 2:53 drive time.
...

Some of these make more sense than others. Muskegon, Decatur, etc seem like excessive waste of EAS resources. Some smaller towns out west are more understandable, especially given that the mountain passes can close and those drive times can be much longer.



You have omitted some EAS cities like:

Augusta, Maine, to PWM: 59 miles by Interstate, 1:11

Bar Harbor, Maine, to BGR, 51 miles, 1:22

Some eligible cities are a real joke - but eligible they are.



Speaking of being eligible think LNS is still getting money although I have not heard much about them lately. MDT, PHL, & BWI are all close by but they somehow get the cash.
 
FlyingElvii
Posts: 2520
Joined: Wed Dec 27, 2017 10:53 pm

Re: Skywest reducing frequency in 18 EAS markets

Sun Feb 06, 2022 2:22 am

atrude777 wrote:
sprxUSA wrote:
Of course, they are only cutting 2 flts/week.
Now they will have something like 2x MoWedThuFri, 0 Sat , 1 Sun, 1 tues or something like that. Still adequate it would seem.

Maybe route flights like Frontier in early 80s when they had 737s doing OMA LNK GRI LBF BFF DEN. Guess they got 19-20 pax avg per stop?


Looking at CGI, you're pretty close on your post!

I don't know if the changes start earlier in February but I used March 6th as the start...every day of the week has a flight. Wednesday and Thursday lost their 2nd Flights.

Days with 2 Daily
Sunday, Monday, Friday,

Days with 1 Daily
Tuesday, Wednesday, Thursday, Saturday

For CGI, SkyWest got rid of the RON's and they are now turns in CGI.

2 Flight Days:
Depart ORD at 8:55am and land at 10:23am, and Depart ORD at 1:25pm and land at 2:54pm
Depart CGI at 11:03am, and land at 12:37pm, and Depart CGI at 3:25pm and land at 4:59pm

1 Flight Days:
Depart ORD at 1:25pm and land at 2:54pm
Depart CGI at 3:25pm and land at 4:59pm

Paducah, while not affected by the list, also lost their RONs too and going back to turns.

Alex

Easier to crew these flights out of Chicago, I am sure.
 
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JBo
Posts: 1957
Joined: Wed Jan 05, 2005 7:23 am

Re: Skywest reducing frequency in 18 EAS markets

Sun Feb 06, 2022 4:05 am

SkyVoice wrote:
The folks at Muskegon (MKG) are going to scream, but they're only an hour's drive from Grand Rapids. Still, they might be able to salvage some kind of service. Cape Air (9K) is now handling service between Manistee County Blacker Field (MBL) and Chicago, so maybe the folks at MKG can work out something with 9K.


OO isn't pulling out of MKG completely. Just cutting two flights per week.
 
toga998
Posts: 80
Joined: Mon May 25, 2020 8:09 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 1:49 am

Rumor has it that Skywest will be ending most of the EAS contracts when they come up for expiration. With pilot shortages I can see them wanting to focus on routes that make a profit or at least not wanting to risk something that can lose money.
 
seatrump
Posts: 32
Joined: Sat Jun 18, 2016 12:33 am

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 4:46 am

toga998 wrote:
Rumor has it that Skywest will be ending most of the EAS contracts when they come up for expiration. With pilot shortages I can see them wanting to focus on routes that make a profit or at least not wanting to risk something that can lose money.


Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.
 
joeblow10
Posts: 771
Joined: Mon Jun 04, 2018 11:58 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 5:02 am

seatrump wrote:
toga998 wrote:
Rumor has it that Skywest will be ending most of the EAS contracts when they come up for expiration. With pilot shortages I can see them wanting to focus on routes that make a profit or at least not wanting to risk something that can lose money.


Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.


Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.
 
Aliqiout
Posts: 863
Joined: Wed Oct 05, 2016 6:10 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 6:09 am

DaveMetroD wrote:
If you want to move to the middle of nowhere in Alaska, what right do you have to expect flights on commercial airlines?
If flying commercial airlines is important to you, live closer to a commercial airport.

I am not necessarily defending EAS, but this is a strange statement. Very few people are moving to EAS villages in Alaska. The people in those places have been there for hundreds of years.
 
MIflyer12
Posts: 11952
Joined: Mon Feb 18, 2013 11:58 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 12:45 pm

I don't want to take this off-topic but Alaska is unique. The royalties on oil production (diminished to less than a quarter of the 1988 peak) has meant the state could subsidize activities in very remote parts of Alaska in ways that couldn't be imagined (let alone funded) in the Lower 48. Subsidies that pay 70% of the first 500 kWh monthly for an electric bill in remote parts that use (expensive, flown-in fuel) diesel generators. Flying high school sports teams to all competitions... Some avg classroom sizes smaller than eight students.

I wonder how much states spend on Amtrak subsidies, and how much is really state money, not a pass-through of Federal grants. I don't think states are going to cough up $300 million a year to continue EAS as structured today.
 
32andBelow
Posts: 6443
Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 4:13 pm

joeblow10 wrote:
seatrump wrote:
toga998 wrote:
Rumor has it that Skywest will be ending most of the EAS contracts when they come up for expiration. With pilot shortages I can see them wanting to focus on routes that make a profit or at least not wanting to risk something that can lose money.


Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.


Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.

If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much
 
Jshank83
Posts: 6065
Joined: Tue Nov 01, 2016 2:23 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 9:01 pm

joeblow10 wrote:
seatrump wrote:
toga998 wrote:
Rumor has it that Skywest will be ending most of the EAS contracts when they come up for expiration. With pilot shortages I can see them wanting to focus on routes that make a profit or at least not wanting to risk something that can lose money.


Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.


Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.


Cape air, southern, contour, maybe Air Choice One comes off life support. There are options. A lot probably go back to prop planes.
 
FlyingElvii
Posts: 2520
Joined: Wed Dec 27, 2017 10:53 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 10:07 pm

MIflyer12 wrote:
I don't want to take this off-topic but Alaska is unique. The royalties on oil production (diminished to less than a quarter of the 1988 peak) has meant the state could subsidize activities in very remote parts of Alaska in ways that couldn't be imagined (let alone funded) in the Lower 48. Subsidies that pay 70% of the first 500 kWh monthly for an electric bill in remote parts that use (expensive, flown-in fuel) diesel generators. Flying high school sports teams to all competitions... Some avg classroom sizes smaller than eight students.

I wonder how much states spend on Amtrak subsidies, and how much is really state money, not a pass-through of Federal grants. I don't think states are going to cough up $300 million a year to continue EAS as structured today.

Amtrak is a political hot mess, you can't really use it as a comparison to anything. Google AMTRAK and Accounting charges to states.
The former Gov of Indiana stated some years ago that it would be cheaper to charter an airplane to fly between serviced cities and Chicago, than it is to pay for 4 days a week service on Amtrak. That train, the Hoosier State, is now gone.
 
FlyingElvii
Posts: 2520
Joined: Wed Dec 27, 2017 10:53 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 10:09 pm

32andBelow wrote:
joeblow10 wrote:
seatrump wrote:

Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.


Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.

If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much

I could see United giving some of the routes to Commutair.
 
NLINK
Posts: 639
Joined: Sat Nov 15, 2003 3:20 pm

Re: Skywest reducing frequency in 18 EAS markets

Mon Feb 07, 2022 11:05 pm

FlyingElvii wrote:
32andBelow wrote:
joeblow10 wrote:

Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.

If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much

I could see United giving some of the routes to Commutair.


Commutair can't staff the planes either. I'm really not sure United is super concerned about 5 or 6 people a day that fly between some of these tiny cities.
 
atrude777
Posts: 4789
Joined: Wed Aug 13, 2003 11:23 pm

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 1:37 am

32andBelow wrote:
joeblow10 wrote:
seatrump wrote:

Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.


Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.

If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much


I actually floated that idea because United has the EAS bid for PQI-Flying went to CommuteAir and then now GoJet.

IF there is a nice demand for some of the EAS routes, I could see United the airline bidding on them and sending it back to SkyWest or other regional.

Certainly would give flexibility as demand rises or decreases.

I know it's a floating idea but...United has access to the loads, they know what works and doesn't!

Alex
 
drdisque
Posts: 1722
Joined: Mon Mar 26, 2007 9:57 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 2:29 am

NLINK wrote:
FlyingElvii wrote:
32andBelow wrote:
If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much

I could see United giving some of the routes to Commutair.


Commutair can't staff the planes either. I'm really not sure United is super concerned about 5 or 6 people a day that fly between some of these tiny cities.


They wouldn't be interested in EAS that has terrible loads on the reg.

I can see UA bidding for CMX, COD, CKB, JLN, SLN, JMS, PAH.

DEC-ORD is pretty much the ideal route for a lot of the electric commuter aircraft in development.
 
amcnd
Posts: 270
Joined: Sun Mar 29, 2015 4:19 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 2:34 am

seatrump wrote:
toga998 wrote:
Rumor has it that Skywest will be ending most of the EAS contracts when they come up for expiration. With pilot shortages I can see them wanting to focus on routes that make a profit or at least not wanting to risk something that can lose money.


Not a rumor. Skywest had their earnings call on Thursday. They are cutting 10-15% of flights in 2022 specifically due to the majors hiring so many of their Captains. They have no problem filling new hire classes currently, but when a Captain leaves it creates two training occurrences. They talk in the earnings call at length about cutting the EAS flights. They will keep the airframes (they own most of them so cost of ownership is relatively low) so they can expand again of their staffing situation changes but something fundamental will have to change for this to occur. Seach Skywest Airlines Earnings Call transcript and you can read every word from the mouths of the Skywest Execs.

Skywest has about 505 airplanes, slightly under half are E175s, the future of the fleet. I would expect that you will see Skywest shrink to about 250-300 airframes over the next 5 years. The only question is the timing of that. The market reacted to the news that the fact that Raymond James downgraded the stock, also as a result of Skywest giving guidance that they would only break even in 2022.



I see OO going to all E175’s and CRJ700’s. Think they will be down to just the DL owned 900’s soon.. i still think they will be a 400+ aircraft fleet in 5 years. Maybe not 500 aircraft. If they are more 175’s will come..
 
32andBelow
Posts: 6443
Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 2:56 am

drdisque wrote:
NLINK wrote:
FlyingElvii wrote:
I could see United giving some of the routes to Commutair.


Commutair can't staff the planes either. I'm really not sure United is super concerned about 5 or 6 people a day that fly between some of these tiny cities.


They wouldn't be interested in EAS that has terrible loads on the reg.

I can see UA bidding for CMX, COD, CKB, JLN, SLN, JMS, PAH.

DEC-ORD is pretty much the ideal route for a lot of the electric commuter aircraft in development.

UA might take PBG. They already have PQI
 
bomber996
Posts: 586
Joined: Mon Aug 29, 2005 10:21 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 3:02 am

Reference PQI and G7... Any other EAS route with a first class product in the CRJ550? Definitely outside of the normal here.

Peace :box:
 
drdisque
Posts: 1722
Joined: Mon Mar 26, 2007 9:57 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 6:38 pm

32andBelow wrote:
drdisque wrote:
NLINK wrote:

Commutair can't staff the planes either. I'm really not sure United is super concerned about 5 or 6 people a day that fly between some of these tiny cities.


They wouldn't be interested in EAS that has terrible loads on the reg.

I can see UA bidding for CMX, COD, CKB, JLN, SLN, JMS, PAH.

DEC-ORD is pretty much the ideal route for a lot of the electric commuter aircraft in development.

UA might take PBG. They already have PQI


I think PBG depends a lot on if Canadian customers start using it again or not. Its current loads are pretty poor but it did pretty well before the pandemic.
 
32andBelow
Posts: 6443
Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 8:15 pm

Also with more players out United will be able to bid more. You get to recoup all your costs so if regional pilot wages go up they can just put that in their bid
 
Iloveboeing
Posts: 495
Joined: Mon Oct 31, 2005 11:02 am

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 8:30 pm

I'm a bit surprised about TBN. I thought it would be a real winner for UA. The Fort Leonard Wood base is enormous and there's a lot of military personnel going in and out of there all the time. It seems that most of the Missouri commercial aviation traffic continues to revolve around MCI, STL and SGF. Places like COU and BKG aren't doing too hot at the moment. I would've thought that UA would've picked up a lot of the Army traffic.
 
atrude777
Posts: 4789
Joined: Wed Aug 13, 2003 11:23 pm

Re: Skywest reducing frequency in 18 EAS markets

Tue Feb 08, 2022 8:48 pm

Iloveboeing wrote:
I'm a bit surprised about TBN. I thought it would be a real winner for UA. The Fort Leonard Wood base is enormous and there's a lot of military personnel going in and out of there all the time. It seems that most of the Missouri commercial aviation traffic continues to revolve around MCI, STL and SGF. Places like COU and BKG aren't doing too hot at the moment. I would've thought that UA would've picked up a lot of the Army traffic.


TBN Also surprised me too. SkyWest was selected over Cape Air because Cape Air even admitted, that they may have to fly extra segments to carry the extra military bags which would raise the cost per passenger with EAS.

If SkyWest doesn't resume TBN...this was also a new contract that just started, same as CGI too.

United closed COU recently and I saw AA is cutting back flights for a period too with COU.

Alex
 
oosnowrat
Posts: 307
Joined: Mon Sep 17, 2012 6:55 pm

Re: Skywest reducing frequency in 18 EAS markets

Wed Feb 09, 2022 2:08 am

atrude777 wrote:
32andBelow wrote:
joeblow10 wrote:

Once again… raising the question, who takes over these routes? I imagine the government has to pay a pretty penny going forward - OO bid pretty low on most of these over the past few years (minus ATY/PIR). Companies like Denver Air Connection seem well suited, but I doubt they’re immune to the pilot shortage either.

If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much


IF there is a nice demand for some of the EAS routes, I could see United the airline bidding on them and sending it back to SkyWest or other regional.

Alex


None of the regionals have extra pilots. For UA to take the EAS and send it back to a regional, they will have to pull some other regional flying that is almost certainly more profitable.
 
atrude777
Posts: 4789
Joined: Wed Aug 13, 2003 11:23 pm

Re: Skywest reducing frequency in 18 EAS markets

Wed Feb 09, 2022 2:19 am

oosnowrat wrote:
atrude777 wrote:
32andBelow wrote:
If’s gonna be rough. United might cherry pick some of the better ones and may even contract them back to SkyWest (LOL).

DAC can probably grow a little, but I don’t see how they are going to avoid the same fate as every other EAS 121 that has failed before them if they expand too much


IF there is a nice demand for some of the EAS routes, I could see United the airline bidding on them and sending it back to SkyWest or other regional.

Alex


None of the regionals have extra pilots. For UA to take the EAS and send it back to a regional, they will have to pull some other regional flying that is almost certainly more profitable.


I think all eyes will be on PQI then to see what happens going forward.

That's the only station where UA did the EAS and sourced the flying to a regional...

Going to be interesting the next few years!

Alex
 
FlyingElvii
Posts: 2520
Joined: Wed Dec 27, 2017 10:53 pm

Re: Skywest reducing frequency in 18 EAS markets

Wed Feb 09, 2022 5:42 am

atrude777 wrote:
oosnowrat wrote:
atrude777 wrote:

IF there is a nice demand for some of the EAS routes, I could see United the airline bidding on them and sending it back to SkyWest or other regional.

Alex


None of the regionals have extra pilots. For UA to take the EAS and send it back to a regional, they will have to pull some other regional flying that is almost certainly more profitable.


I think all eyes will be on PQI then to see what happens going forward.

That's the only station where UA did the EAS and sourced the flying to a regional...

Going to be interesting the next few years!

Alex

What important Senator and Transportation Committee member lives near PQI that United would love to buy favor with?

Susan Collins. She lives in nearby Caribou.

It wouldn’t be the first time that United has run a flight to curry favor in Congress, in recent years.
 
32andBelow
Posts: 6443
Joined: Mon Sep 03, 2012 2:54 am

Re: Skywest reducing frequency in 18 EAS markets

Wed Feb 09, 2022 6:38 am

FlyingElvii wrote:
atrude777 wrote:
oosnowrat wrote:

None of the regionals have extra pilots. For UA to take the EAS and send it back to a regional, they will have to pull some other regional flying that is almost certainly more profitable.


I think all eyes will be on PQI then to see what happens going forward.

That's the only station where UA did the EAS and sourced the flying to a regional...

Going to be interesting the next few years!

Alex

What important Senator and Transportation Committee member lives near PQI that United would love to buy favor with?

Susan Collins. She lives in nearby Caribou.

It wouldn’t be the first time that United has run a flight to curry favor in Congress, in recent years.

Pqi is like the best paying EAS route in the country. The subsidy when KS flew it was over 5 million
 
USAirKid
Posts: 1576
Joined: Mon Jun 13, 2016 5:42 am

Re: Skywest reducing frequency in 18 EAS markets

Wed Feb 09, 2022 7:08 am

FlyingElvii wrote:
atrude777 wrote:
oosnowrat wrote:

None of the regionals have extra pilots. For UA to take the EAS and send it back to a regional, they will have to pull some other regional flying that is almost certainly more profitable.


I think all eyes will be on PQI then to see what happens going forward.

That's the only station where UA did the EAS and sourced the flying to a regional...

Going to be interesting the next few years!

Alex

What important Senator and Transportation Committee member lives near PQI that United would love to buy favor with?

Susan Collins. She lives in nearby Caribou.

It wouldn’t be the first time that United has run a flight to curry favor in Congress, in recent years.


Are you referring to the melee with the member of the board of Port NY/NJ? That cost the United CEO his job.

Besides these decisions are made by bureaucrats, which is a good thing as it prevents exactly this sort of interference.
 
Pinto
Posts: 278
Joined: Thu Jun 21, 2018 11:30 pm

Re: Skywest reducing frequency in 18 EAS markets

Sat Feb 12, 2022 3:51 am

I heard a rumor OO will be bringing back the PAH - CGI routing in the next few months to help offset the pilot shortage
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