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LAXintl
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Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 3:34 pm

Yesterday Skywest reported its Q4 and 2013 earnings. Overall they posted a $59.0mil profit for the year up from $51.2mil in 2012. Not bad headline numbers.

http://finance.yahoo.com/news/skywes...nces-fourth-quarter-114500065.html

=

However the analyst earnings call turned out to be one of the more interesting ones of recent times. Much of the call was seemingly a venting session about ExpressJet and the frustration management and board have had trying to get ExpressJet turned around since its acquisition.

Here are summary notes:
o ExpressJet entity continues to lose money and has been generating negative cash flow for the last 3-years. Losses were termed as "neighborhood of $50mil" for 2013.
o As ExpressJet entity was producing no returns for the group, and "they have got to eliminate the loss," and the BoD "is not very patient with this". As was laid out, there was no point in having scale if they could not generate positive returns and drag down the rest of the entity.
o Management laid out several part plan they continued to work on for XJT
1) Cost reductions with labor. Critical to have a "solid" collective bargaining agreements - something like OO has. Labor is by far the biggest cost piece of the CPA pie, especially in case of XJT where much of the fleet does not belong to the company but CPA partner instead, so labor becomes the primary area where company has wiggle room.
2) Process improvements, productivity enhancements, joint service and vendor contracts with OO to create better volume and value for the entire group. This area has seen material improvements and success.
3) Improve operational reliability, deliver product which customer expect. This both reduces overall cost but creates increases in base rate compensation and performance incentives. As part of this also open discussions with CPA partners about rate resets, though there is no guarantee how receptive they will be mid contract.
o Management said they knew the contract rates they inherited with XJT were low, but they expected to be able to leverage the strengths of the larger group to make them work, but at this time rates remain below cost instead.
o Without achieving successful outcome they said we could see "fairly significant reduction" in the "unproductive flying". This draw down could come in two ways, either outright elimination of aircraft in mid contract as some customers have been "very vocal about their desire to reduce 50-seaters", or just let go of aircraft as contracts run out over the short/medium term. Much of the E145 fleet has no ownership tail risk for the group.

Some other general tidbits:
o Company already planned to remove 66 50-seater as part of previously announced restructured contracts. 33 were parked already in 2013, 29 planned for removal in 2014, and 4 in 2015
o First E175 due March 24th. Enter service late May. Expect 21 on property by end of 2014.
o United to load schedule next week reflecting E175 deployment.
o MRJ order slipped slightly, now plan Q2 2018.
o On pilot hiring, SKW finding qualified applicants, attrition rate about 20-month, running below plan actually XJT attrition about 30 month. View annual pilot turn over of about 8-10% as normal.
o Believe Skywest family is an attractive place to work. Large diverse operation offering good opportunity
o Have pilot class pipeline lined up for next 6-7 months and "comfortable" with their position.

=

Overall one of the more interesting calls I have heard in recent years.
Skywest management made it overly clear they needed to see a financial turnaround happen with XJT or otherwise there probably was no point in keep operating the entity if it only serves wipe away profits made elsewhere.

[Edited 2014-02-14 07:58:36]
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jfklganyc
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 3:45 pm

Funny how the regional pilot crisis that we all predicted has hit in one week.

"1) Cost reductions with labor. Critical to have a "solid" collective bargaining agreements - something like OO has."

Good Luck

"o On pilot hiring, SKW finding qualified applicants, attrition rate about 20-month, running below plan actually XJT attrition about 30 month. View annual pilot turn over of about 8-10% as normal."

Comical. Wait til AA and DL start hiring en masse later this year.


"o Believe Skywest family is an attractive place to work. Large diverse operation offering good opportunity"

Making themselves and investors feel good.

"o Have pilot class pipeline lined up for next 6-7 months and "comfortable" with their position."

Outright Lie. They have 6 to 7 months of new classes filled up, but their competitors can't fill the class they have tomorrow?? There's a bridge in Brooklyn I would like to sell you
 
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diverdave
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 3:48 pm

Quoting LAXintl (Thread starter):
Skywest management made it overly clear they needed to see a financial turnaround happen with XJT or otherwise there probably was no point in keep operating the entity if it only serves wipe away profits made elsewhere.

An interesting read.

I am wondering if the losses mostly come from the legacy ExpressJet side of the business or the legacy ASA part of ExpressJet.

It's also interesting that they will be purchasing E175s to fly for UA. Doesn't the CR9 have lower operating costs?

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N353SK
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 3:57 pm

Quoting diverdave (Reply 2):
I am wondering if the losses mostly come from the legacy ExpressJet side of the business or the legacy ASA part of ExpressJet.

The ERJ.

Here's a little bit of history:

Back in 2006, Skywest tried to underbid ExpressJet for most or all of the Continental Express flying. The submitted an unrealistically low bid, and Continental told ExpressJet that they needed to match Skywest's bid or the ERJs would be transferred to Skywest. ExpressJet matched Skywest's bid in order to remain an airline. Skywest then bought them in 2010 and is now pretending not to remember how and why ExpressJet is flying CPAs that are unprofitable.
 
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 4:06 pm

They actually touched on ASA. Basically both the original ASA flying and original ExpressJet flying is now loss making.

For ASA specifically they said for the first few years they had good earnings as ASA came with some good assets and tax benefits, but following rate reset with Delta and combining the entity under a single roof both sides are under performing.
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LOWS
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 4:57 pm

Quoting jfklganyc (Reply 1):
Making themselves and investors feel good.

"o Have pilot class pipeline lined up for next 6-7 months and "comfortable" with their position."

Outright Lie. They have 6 to 7 months of new classes filled up, but their competitors can't fill the class they have tomorrow?? There's a bridge in Brooklyn I would like to sell you

If you had to start out at a regional, wouldn't you rather start out with OO? They are probably the best run regional in the Western world and aren't dominated by a single personality like the other US Regionals (TransStates, Mesa, Great Lakes, etc.)
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 5:22 pm

Quoting N353SK (Reply 3):
Back in 2006, Skywest tried to underbid ExpressJet for most or all of the Continental Express flying. The submitted an unrealistically low bid, and Continental told ExpressJet that they needed to match Skywest's bid or the ERJs would be transferred to Skywest. ExpressJet matched Skywest's bid in order to remain an airline. Skywest then bought them in 2010 and is now pretending not to remember how and why ExpressJet is flying CPAs that are unprofitable.

Actually ExpressJet back in 2008 when SkyWest originally tried to purchase it negotiated a new contract with Continental for way below their current contract and even way below the new contract SkyWest had negotiated. In 2010 when ExpressJet was bought the new contract was sweetened a little bit but was still way below what SkyWest had originally negotiated in 2008. In 2010 the management thought the sweetened contract would be profitable, that's not the case.
 
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enilria
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 5:36 pm

Quoting LAXintl (Thread starter):
1) Cost reductions with labor. Critical to have a "solid" collective bargaining agreements - something like OO has. Labor is by far the biggest cost piece of the CPA pie, especially in case of XJT where much of the fleet does not
Quoting LAXintl (Thread starter):
o Company already planned to remove 66 50-seater as part of previously announced restructured contracts. 33 were parked already in 2013, 29 planned for removal in 2014, and 4 in 2015
Quoting jfklganyc (Reply 1):
Outright Lie. They have 6 to 7 months of new classes filled up, but their competitors can't fill the class they have tomorrow?? There's a bridge in Brooklyn I would like to sell you

I think the era of getting pay cuts from pilots is over unless they change the law to essentially recreate Part 135 scheduled airlines with reduced pilot hours.

The pilot situation will be put more pressure on 50 seat jets.
 
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mercure1
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 6:07 pm

So if I read comments right, they could cut off ExpressJet which is maybe half of all revenues, and see their profit double ?

Unless Skywest is a charity, I cant see why they would bother to carry ExpressJet burden if they cannot make improvements to reduce stem losses.

Skywest just won Air Transport World regional airline of the year, so I would think management would endevour to produce best financial performance.
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 6:23 pm

Quoting mercure1 (Reply 8):

So if I read comments right, they could cut off ExpressJet which is maybe half of all revenues, and see their profit double ?

Well in essence yes. Boost profit by $50mil.

Would make results pretty phenomenal by regional standards.

According to their 2012 annual report ExpreesJet represented about 45% of the revenues for the group.
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flight152
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 6:28 pm

Quoting mercure1 (Reply 8):
Unless Skywest is a charity, I cant see why they would bother to carry ExpressJet burden if they cannot make improvements to reduce stem losses.

The losses are problems directly related to decisions they have made. That is a fact.
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 6:46 pm

Quoting mercure1 (Reply 8):
Unless Skywest is a charity, I cant see why they would bother to carry ExpressJet burden if they cannot make improvements to reduce stem losses.

SkyWest isn't a charity, they are a business and they made a promise to United, Delta, and American to operate aircraft for a certain term.

It would be incredibly foolish to rapidly shut down ExpressJet and leave their partners out in the cold. I think SkyWest would find it very hard to compete for the 76 seaters scheduled for delivery if they did something like that.

Coordinated wind down with their partners is one thing (well as coordinated as it can be during a pilot shortage), but just up and dumping the business would be very foolish.
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 6:53 pm

Quoting diverdave (Reply 2):

I am wondering if the losses mostly come from the legacy ExpressJet side of the business or the legacy ASA part of ExpressJet.

It's also interesting that they will be purchasing E175s to fly for UA. Doesn't the CR9 have lower operating costs?


It doesn't matter what SKYW WANTS to fly, United has already bought 75 E175's because That's what they want in their regional fleet.
I suspect because it bears a cabin resemblance to the A319.and B737 Products .
Should SKYW want the CRJ900?? They might have to fly them for someone else until United brings the E175 flying in house which I see them doing if the pilot shortage continues to manifest itself.
This is because I see the Majors as being the Pilot employers of first resort. And the regionals as last resort in coming years. The problem might also include Mechanics as wel, in the future,
although the Regionals for the most part are paying decent wages as there are those who would certainly take a little less to live in a spoke city
if stable employment is available for the quality of Life aspect. And there's NOTHING wrong with that. IMHO
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 6:59 pm

Quoting flight152 (Reply 10):
The losses are problems directly related to decisions they have made. That is a fact.

And now they need to make other decisions to reverse such losses. Be it managing to reduce cost, or letting the whole thing shrink away. Thats another a fact also right?

Quoting norcal (Reply 11):
SkyWest isn't a charity, they are a business and they made a promise to United, Delta, and American to operate aircraft for a certain term.
It would be incredibly foolish to rapidly shut down ExpressJet and leave their partners out in the cold.

But is sounds like some customers be dying to relieve themselves of 50-seaters, so they might take it quite well positively to end such contracts early. Might not be foolish at all, but excellent outcome for both parties.
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Goldenshield
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 7:08 pm

Quoting strfyr51 (Reply 12):
United has already bought 75 E175's

They only bought 30.

Quoting strfyr51 (Reply 12):
Should SKYW want the CRJ900?? They might have to fly them for someone else

They already are.

Quoting strfyr51 (Reply 12):
This is because I see the Majors as being the Pilot employers of first resort.

The majors would have to vastly reduce their requirements, such as turbine 121 requirements if that becomes the case, and I don't see that ever happening.

Quoting norcal (Reply 11):
It would be incredibly foolish to rapidly shut down ExpressJet and leave their partners out in the cold. I think SkyWest would find it very hard to compete for the 76 seaters scheduled for delivery if they did something like that.

Coordinated wind down with their partners is one thing (well as coordinated as it can be during a pilot shortage), but just up and dumping the business would be very foolish.

+1

Quoting N353SK (Reply 3):
Back in 2006, Skywest tried to underbid ExpressJet for most or all of the Continental Express flying. The submitted an unrealistically low bid,

Yet, strangely, I bet that OO would've still made a profit.
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 7:11 pm

Quoting mercure1 (Reply 13):
But is sounds like some customers be dying to relieve themselves of 50-seaters, so they might take it quite well positively to end such contracts early. Might not be foolish at all, but excellent outcome for both parties.

  

As I said in the Republic thread, the reason they pulled the aircraft they did now was they knew there was virtually zero chance of resigning the capacity as the majors dont want the frames, so why expend additional effort to nurse something for only another year or so.

Same here. Skywest as management openly admitted they have clients that would love nothing more to get out of their long term commitment for 50-seaters.

So while I think Skywest will try to continue pushing for cost savings from its pilots to restructure XJT into something competitive, the ultimate outcome might be very much like RAH, where they simply opt to walk away from chunks of the loss making flying and in cooperation with their CPA partners hasten exit of 50-seaters.
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strfyr51
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 7:30 pm

Quoting Goldenshield (Reply 14):
The majors would have to vastly reduce their requirements, such as turbine 121 requirements if that becomes the case, and I don't see that ever happening.

The majors are NOT going to do that but they can "swoop" in and take the majority of the pilots they need and want to fill their coffers.
UA's CEO Jeff Smisek "bamboozled" SKYW's management into buying ExpressJet The airplanes are owned or leased by UA/CO,
And SKYW is kinda stuck with them. If there's a major upheaval at ExpressJet?? It might not go well with UA as the former CO Execs are in charge now.
This could get "Sticky". I myself would like to see how this comes about, because the issues on the table? Are NOT the only issues in the mix.
I suspect the "real" Problems have yet to reveal themselves..
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 7:37 pm

Quoting LAXintl (Reply 15):
As I said in the Republic thread, the reason they pulled the aircraft they did now was they knew there was virtually zero chance of resigning the capacity as the majors dont want the frames, so why expend additional effort to nurse something for only another year or so.

And you are still wrong in that assessment. The CEO of Repblic said they are parking these airplanes early because they don't have the pilots to staff them. Republic just completed a restructuring with the intention of beating out carriers like ExpressJet when there will be more 50 seaters than are wanted. The majors don't want a lot of the 50 seaters long term, but they will need some for the foreseeable future. These aircraft are being lost earlier than planned, before the expiration of contracts. This has been said by both Bedford and Smisek and the reason is a pilot shortage.

Quoting mercure1 (Reply 13):
But is sounds like some customers be dying to relieve themselves of 50-seaters, so they might take it quite well positively to end such contracts early. Might not be foolish at all, but excellent outcome for both parties.

Like I said a coordinated wind down might be good if both parties can agree. SkyWest Inc. has done this twice in the past. Once when they traded CRJ-200s for CRJ-900s with ASA and again more recently when they traded CRJ-200s for -900s at both SkyWest and ASA. Doing things like this need to be well planned out and orderly in order to guarantee that there is a continuation of service.

What we are starting to see industry wide though is an unplanned collapse of 50 seat flying. This is the low season, just wait for the summer, the wheels will really start coming off the regional wagon then.
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 7:39 pm

Quoting Goldenshield (Reply 14):
The majors would have to vastly reduce their requirements, such as turbine 121 requirements if that becomes the case, and I don't see that ever happening.

They haven't always had Turbine 121 requirements - they could go back if they needed to. The pilot requirements go up when demand for pilots is low and supply is high ... and if demand is high and supply is low, they'll go back down. Supposedly back in the late '60s some airlines were talking to pilots with their PPLs ...
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 7:48 pm

Quoting strfyr51 (Reply 16):
UA's CEO Jeff Smisek "bamboozled" SKYW's management into buying ExpressJet

Expressjet was not owned by UA/CO at the time, so UA had no say in the matter.

Quoting strfyr51 (Reply 16):
The airplanes are owned or leased by UA/CO, And SKYW is kinda stuck with them.

No they aren't. SKYW has no say in those airplanes, and thus is in no way 'stuck' with them. OO, on the other hand DOES own their airplanes, but they aren't the ones with the deficit problem, now are they?

Quoting strfyr51 (Reply 16):
If there's a major upheaval at ExpressJet?? It might not go well with UA as the former CO Execs are in charge now.

Why would UA care? They spun off Expressjet a few years prior and washed their hands of them BECAUSE of the rising costs.

P.S.- your posts are VERY hard to read and interpret.

[Edited 2014-02-14 12:48:23]
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FlyHossD
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 8:40 pm

Smells like the whip-sawing has already begun.
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 9:04 pm

Quoting strfyr51 (Reply 16):
UA's CEO Jeff Smisek "bamboozled" SKYW's management into buying ExpressJet

ExpressJet was spun off by CO in 2002, and in 2007 sold its last 8% remaining stake in the company.

ExpressJet was a standalone company with its own management team. (remember its disasterous schedule service attempt during 2007-2009)

Quoting norcal (Reply 17):
And you are still wrong in that assessment. The CEO of Repblic said they are parking these airplanes early because they don't have the pilots to staff them.

Again your though process is too linear, one that expects simple action followed by reaction.

But in reality the situation was much more faceted, and many more subtle factors.

RAH could very well have continued to nurse the operation along all the while hiring for the E175, but with the 50-seater flying in question due for renewal anyhow within the year, and unlikely to be renewed it made more sense to pull them now, take the pilots and stick them in the E175 training program starting in April than expend effort to do run both.

Sure RAH would love for the 50-seaters to earn money for them for years to come, but as such was unlikely it made sense to pull the plug on some now, and be nicely situated for the upcoming 76-seater expansion.

[Edited 2014-02-14 13:38:32]
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freakyrat
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 9:36 pm

I'm sure ISN-DEN and DIK-DEN makes money for Expressjet.
 
bhmdiversion
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 9:37 pm

Quoting diverdave (Reply 2):

The losses stem from the legacy XJT side. The legacy ASA side of the house makes enough money to cover for some of the loss the ERJ contracts are taking.
 
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 10:59 pm

Quoting strfyr51 (Reply 16):
UA's CEO Jeff Smisek "bamboozled" SKYW's management into buying ExpressJet The airplanes are owned or leased by UA/CO,
And SKYW is kinda stuck with them.

Umm, no. Smisek and Continental had already spun off ExpressJet well before SkyWest's purchase.

Quoting norcal (Reply 17):
Like I said a coordinated wind down might be good if both parties can agree. SkyWest Inc. has done this twice in the past. Once when they traded CRJ-200s for CRJ-900s with ASA and again more recently when they traded CRJ-200s for -900s at both SkyWest and ASA. Doing things like this need to be well planned out and orderly in order to guarantee that there is a continuation of service.

I wouldn't be surprised to see more of this in the future with either the 60 E175 "conditional order" or American Eagle's CRJ-700s that management has made clear will be shipped somewhere else. SkyWest Inc has 13 CR2s for Eagle out of LAX and 10 CR2s in PHX for US Airways Express. They also have I think 12 CR2s in DFW on the EV side of the company.
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flight152
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RE: Skywest Frustrated With ExpressJet Losses

Fri Feb 14, 2014 11:09 pm

Quoting freakyrat (Reply 22):
I'm sure ISN-DEN and DIK-DEN makes money for Expressjet.

Uh, you mean United?
 
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RE: Skywest Frustrated With ExpressJet Losses

Sat Feb 15, 2014 12:53 am

Quoting LOWS (Reply 5):
They are probably the best run regional in the Western world

You might want to look into Horizon as far as well run regional goes. The list of lifers at Horizon is a mile long. Heck, it doesn't look like much outside AK but Era also has a pretty loyal following.
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Sat Feb 15, 2014 2:04 am

Today SkyWest filed SEC materials highlighting summary of their existing contracts.

Skywest CPA
AA - 12 - CRJ200 - Expires 2016
Alaska - 7 - CRJ700 - Expires 2018
Delta - 41 - CRJ200 - Expiry staggered commencing 2014
Delta - 19 - CRJ700 - expires 2022
Delta - 32 - CRJ900 - multiple terms, average remaining 5.8 years
United - 61 - CRJ200 - Expiry staggered commencing 2014
United - 70 - CRJ700 - expires 2024
United - 9 - EMB120 - multiple terms, average remaining 1.8 years
United - 40 - EMB175 - Expires 2027
US Air - 10 - CRJ200 - Expires 2015
US Air - 4 - CRJ900 - Expires 2015

Skywest Prorate
Delta - 9 - EMB120 - 120-days notice
Delta - 8 - CRJ200 - 120 day notice
United - 17 - CRJ200 - 120 days notice
United - 27 - EMB120 - 120 days notice
US Air - 1 - CRJ200 - 120 days notice

ExpressJet CPA
AA - 11 - CRJ200 - Expiry 2017
Delta - 76 - CRJ200 - Expiry staggered commencing 2014
Delta - 41 - CRJ700 - expires 2022
Delta - 28 - CRJ900 - multiple terms, average remaining 4.4 years
United - 14 - CRJ200 - expires 2015
United - 22 - E145 - expires 2015
United - 9 - E135 - expires 2014
United - 220 - E145 - multiple terms, average remaining 4.3 years. Last frame 2020.

They also clarified ownership status of frames.

CRJ200 - 87 owned + 173 leased
CRJ700 - 69 owned + 69 leased
CRJ900 - 11 owned + 53 leased
EMB120 - 20 owned + 25 leased
EMB135 - 9 leased
EMB145 - 242 leased

=
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Sat Feb 15, 2014 4:43 pm

Another thing they filed was a planned fleet forecast.


End of Year size: 2013/2014/2015/2016/2017
Brasilia - 45 / 26 / 23 / 12 / 11
Bombardier - 461 / 407 / 385 / 348 / 305
Embraer - 252 / 241 / 197 / 179 / 179

=
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KD5MDK
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RE: Skywest Frustrated With ExpressJet Losses

Sat Feb 15, 2014 7:12 pm

A contract that goes out to 2027 has to have a lot of modification clauses, doesn't it?
 
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Sat Feb 15, 2014 9:47 pm

Quoting kd5mdk (Reply 29):
A contract that goes out to 2027 has to have a lot of modification clauses, doesn't it?

In what way? Price?

Rates can be laddered or there may be inflation based escalation provisions, but with inflation being virtually non-existent in the US the last decade many contract signed have remained essentially flat.

But long term contracts are nothing new - buy or lease a plane, its a long term proposition, lease a terminal is a multi decade affair also.
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RE: Skywest Frustrated With ExpressJet Losses

Sat Feb 15, 2014 11:56 pm

I thought that Skywest was joking about letting the ExpressJet contract flying go, but there seems to be large shrinkage already planned. Since ExpressJet is largely 37-50 seat Embraer feed, we see what is already in the hopper:

2014 - 11
2015 - 44
2016 - 18


If I had to guess, I think the board has given them one more year to sort it out. The solution would be to accelerate the entry of 37 76 seaters into service along with some new narrowbodies. The fastest way would be a CRJ900 order.
 
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Mon Feb 17, 2014 10:40 pm

As promised - first Skywest/UAX E175 routes --

ORD-DCA starting May 17th
&
ORD-BOS starting May 19th.


Say hello to our first Embraer 175 routes
http://hub.united.com/en-us/news/com...ited-first-embraer-175-routes.aspx

=
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FlyPNS1
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RE: Skywest Frustrated With ExpressJet Losses

Mon Feb 17, 2014 10:51 pm

Quoting LAXintl (Reply 32):
As promised - first Skywest/UAX E175 routes --

ORD-DCA starting May 17th
&
ORD-BOS starting May 19th.

Gotta love United, they get new E175's and where's the first place they put them...on routes that should be able to easily fill mainline planes!! In fact, looking at the schedules, UA is using the E175's to cut capacity! No surprise why this airline keeps underperforming.

Quoting LAXintl (Reply 28):
End of Year size: 2013/2014/2015/2016/2017
Brasilia - 45 / 26 / 23 / 12 / 11
Bombardier - 461 / 407 / 385 / 348 / 305
Embraer - 252 / 241 / 197 / 179 / 179

With the fleet shrinking like this, SKYW shouldn't be as severely affected by any pilot shortages.
 
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LAXintl
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RE: Skywest Frustrated With ExpressJet Losses

Tue Mar 04, 2014 9:53 pm

Quoting FlyPNS1 (Reply 33):
With the fleet shrinking like this, SKYW shouldn't be as severely affected by any pilot shortages.

That's similar thinking to what Republic alluded to in their earnings call.

They fully expect the sector to shrink as mainline carriers get away from 50-seat lift. Period of growth and expanding employment is over for the foreseeable future.
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