winglet

minimwage4,

MAG has already approached MAG ALPA for concessions to gain renewal of the USAirways contract. MAG ALPA refused to discuss concessions.

winglet

winglet

hslightnin,

You beat me to it... I predict that the new MEC Chair and the new Negotiating Committee members will put up a good fight. Hopefully, the remaining MAG pilots won't be so easily fooled by the old carrot-and-stick routine either.

winglet

meyers9163

This is what we all have been saying. For a contract feeder to get this flying it WILL be at a loss!!! It simply will be like the Xjet UAL flying but instead flying 70 plus seat aircraft...

Awac will not take cuts. Mesas MEC states the same... RAH has enough issues with Frontier/Midwest I doubt Airways is considering them... So who knows what will happen. Also its very unlikely another contract operator comes into play that does not currently fly... Keeping in mind it will be done at a loss... What business model will last by doing contract flying for a loss???

mking84

The XJET flying has a profit margin. You are incorrect, now it may have been a loss for your carrier.

winglet

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Fugazi

Meyers may be referring to the concept of the cost of Contract Carriers as opposed to Wholly Owned Subsidiaries. We assume a CC would have to do it at a loss if they underbid Mesa and it looks like Mesa may be doing it at a loss if they don't get concessions on every front.

LCC could pawn it off on either one of their wholly owned airlines (Redheaded Step Children we call ourselves) and at least break even. PSA and PDT are some seriously cheap to to run bottom feeders. Not much better than Mesa, TSA, etc.. Not having the contract requirements and costs, these wholly owned airlines could actually turn a profit where contract carriers may not only based on structure.

Supposedly PSA and Mesa take turns being the lowest cost express provider for Airways and AWAC being the highest.

We suck, Mesa sucks, Republic/Chatauqua sucks, TSA/Gojets sucks, pretty much all regional airlines suck if you ask me. Before anyone starts getting creative on how to underbid the other company or take ANY concessions to keep the flying they already have.. please remember what someone posted before:

The industry trend of contracting the lowest bidder is a business model doomed to ultimate failure. The "race-to-the-bottom" we all hear so much about is totally in the hands of industry "leaders", not the grovelling employees.

minimwage4

Yes. That is the key sentence of your post. They can't seem too eager.

minimwage4

Ok but JO has stated that you will not get the flying if you don't give in. This could very well be a management tactic by making it seem like this is Airways request when the current labor costs are very competitive already. However, I don't think the current pilot group will take a chance. It's all up to usairways.

minimwage4

They did loan them about 80 million for the flying. Pay to fly.

BarbieTrash

I think it's glaringly obvious that this Phantom regional who is willing to operate at a reduced cost is..... Wait for it...........SKW! Bank of SkyWest would love to have a legal monopoly on all regional flying west of the rockies...They would do the same thing they did with United...loan LCC $90M at 10% interest and then operate at a reduced rate and the interest would make up the difference!...MAG has no money to loan so they have to sweeten the pot with lower costs, MAG was the launch customer for the CRJ 900 so they are probably paying the highest lease rate in the industry right now...MAG can't renegotiate the lower leases with Bombardier because they have already screwed them over to the tune of about 40-50 Airplanes! Another option is they could just Buy MAG lump them in with ASA...oops "Atlantic Southeast Airlines"...because no one wants to pollute that precious pool of non-union holy water...PHX goes to SKW ORD CLT and IAD go to "Atlantic Southeast Airlines" go! would finally die, and everything is happy in Candyland!