Originally Posted by daOldMan

Here is what has happened...

AAG wanted to get rid of Air Wisconsin. It is too expensive, and they only fly old 50 seat jets. AWAC was not willing to buy 76 seat jets, as well as new hangars, maintenance people, systems, etc. It would have cost them millions more than just the cost of the airplanes.

So, AAG bought a bunch of 76 seat jets and gave them to PSA. The extra lift that PSA was providing would be much cheaper than AWAC due to the low seniority of the pilots at PSA. Those 53 CRJ900s plus a few 700s going to PSA from Envoy would have completely replaced AWAC.

But, once the airplanes went to PSA, Republic started to self destruct. No one really knew for sure what was going to happen there.

So, AWAC is left in limbo until AAG can decide what it is going to do. AWAC is too expensive for what they provide. It isn't just the cost of the pilots that is more expensive, but AWAC itself makes a profit. Even if all other things were even, a Wholly Owned would be cheaper since all profits at PDT/PSA/Envoy go back to mainline.

At this point, AWAC does have a few hundred pilots, but AAG could easily attract 500 new pilots between their three wholly owned at a cheaper cost than it would be to extend a contract to AWAC. They could just give more airplanes to PDT and Envoy, and they would no longer need AWAC. PSA has the training and management staff to support 1800 pilots, but currently has 1200 pilots. They could easily grow, and all it would take would be a little bit of money.

The wildcard is still Republic. If Republic can prove to be dependable, that will be the end of AWAC.

So, AWAC really doesn't care about pilots leaving because they are preparing to wind down operations anyways.

Originally Posted by MKUltra

Read AAG seccond quarter 8k statement available on the web. Republic has signed deals worth united and delta to cover x flying and are reducing American capacity. It's in the filing.

Originally Posted by daOldMan

I read it. Republic is still going to be providing lift for AAG. Envoy is picking up the slack. PDT is taking the 145's.

PSA has grown in total seats. . Envoy has grown in total seats. PDT will be growing in total seats.

Originally Posted by daOldMan

I read it. Republic is still going to be providing lift for AAG. Envoy is picking up the slack. PDT is taking the 145's.

PSA has grown in total seats. . Envoy has grown in total seats. PDT will be growing in total seats.

Originally Posted by akulahunter

Yup... Basically there is something in the works, but the company isn't going to announce anything until ink is on paper (or so close that another delta doesn't happen)...Anyone who leaves here in the near term for a lateral move (including spirit and frontier) will most likely regret the decision. A few more upgrades soon*.

Also, that we will most likely have to give up our 70 seat rates if we want bigger planes.

Best line was that we haven't reached the FO hiring cliff, but we will by January if the company hasn't announced something.

The ACP cadre are saying that they are all pressuring the company to share plans, but that the company is refusing to do so...

Originally Posted by Otterbox

Seems like a pretty bold statement to make... Unless they can deliver a flow agreement with AA, it looks that just about anyone under a 5-7 year CA would benefit more from going to Spirit or Frontier, which are both growing, than staying at a stagnant regional.

Originally Posted by unity2010

The flow is out, Parker has stated the AA flow is for the WO only...

Originally Posted by highflyer0685

Anyone know if there is any pay protection if this were to happen??

Originally Posted by l2flare

I don't buy for a second they would honor the 305 ca number if it would result in an inability to operate, EL has said roughly the same thing btw..

If they were to downgrade the exodus would be rather dramatic by every fo left on the list.