Mesa Air Group Chapter 11 Info
#911
I think it's glaringly obvious that this regional who is willing to operate at a loss 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!
#912
#914
Gets Weekends Off
Joined APC: Mar 2006
Position: EMB 145 FO
Posts: 425
No. SkyWest did. Any more questions?
http://www.prnewswire.com/news-relea...-64939432.html
Now if it is the stock warrants you are referring to, which i DOUBT you are then XJT gave UAL stock as part of the CPA, which is smart if you think about it. The reason it is smart minimumwage is that if XJT tanks so does UALs stock they own, so UAL now has a financial interest in the regional doing their flying.
Any more brain busters?
http://www.prnewswire.com/news-relea...-64939432.html
Now if it is the stock warrants you are referring to, which i DOUBT you are then XJT gave UAL stock as part of the CPA, which is smart if you think about it. The reason it is smart minimumwage is that if XJT tanks so does UALs stock they own, so UAL now has a financial interest in the regional doing their flying.
Any more brain busters?
#915
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!
But there are some things SKW will not do...
1. Enter enter a non-profitable contract. They are not as risk of making lease payments on parked airplanes, so they have no incentive to take on additional flying. If other regionals are willing to do that, SKW will not get the flying. That's why we have missed out on several recent growth opportunities...lack of desperation on the part of management.
2. Enter into a short-term contract, or one with a whole lot of tail risk on the back end.
I also find it unlikely in the extreme that SKW would ask the pilots for concessions to do this. The pilot group is already sufficiently annoyed by benefits erosion as it is, and given the company's finances it would be a ludicrous request.
#916
#917
#918
SKW might very well do it, they have been discussing this with LCC since the AWA days. SKW has the advantage that it already has 900's on the certificate, and has a bunch of cash if it needs to buy the airplanes all at once (or pay-to-play).
But there are some things SKW will not do...
1. Enter enter a non-profitable contract. They are not as risk of making lease payments on parked airplanes, so they have no incentive to take on additional flying. If other regionals are willing to do that, SKW will not get the flying. That's why we have missed out on several recent growth opportunities...lack of desperation on the part of management.
2. Enter into a short-term contract, or one with a whole lot of tail risk on the back end.
I also find it unlikely in the extreme that SKW would ask the pilots for concessions to do this. The pilot group is already sufficiently annoyed by benefits erosion as it is, and given the company's finances it would be a ludicrous request.
But there are some things SKW will not do...
1. Enter enter a non-profitable contract. They are not as risk of making lease payments on parked airplanes, so they have no incentive to take on additional flying. If other regionals are willing to do that, SKW will not get the flying. That's why we have missed out on several recent growth opportunities...lack of desperation on the part of management.
2. Enter into a short-term contract, or one with a whole lot of tail risk on the back end.
I also find it unlikely in the extreme that SKW would ask the pilots for concessions to do this. The pilot group is already sufficiently annoyed by benefits erosion as it is, and given the company's finances it would be a ludicrous request.
2) No need or demand to enter into a short term contract with any airframe over 50 seats..
3) SKW will not ask for concessions from its pilots...no need to...West coast flying is too profitable, but in all reality they didn't "ask" for the benefits erosion either...
#919
Banned
Joined APC: Dec 2007
Position: EMB 145 CPT
Posts: 2,934
I'll go for Fee for Departure as long as everyone signs on to it on the same day. If we really could get every single regional onboard, that would be the best possible outcome for all of our careers. That said, we don't live in utopia and not everyone would sign up so it would just amount to a windfall of seniority to any failing airline that had that agreement with any non-failing airline.
But if everyone was a party to it.... Awesome! End the whipsaws.
But if everyone was a party to it.... Awesome! End the whipsaws.
Are they still flying under the midwest certificate?
Mesa undercut all other pilots, putting our pay/QOL back 20 years. Now they should be offered a job at another airline?
The fee for departure would give pilots seniority at another airline, they would keep their seat but would start off at year 1 pay.
Airlines would get experienced pilots for 1st year pay in the left seat. How is this not lowering the bar?
It screws all the F/O's that have waited patiently for upgrade at the same time making management look great for having a stellar bottom line. If you want to end whipsawing then have an industry wide pay rate/contract. Thus reducing the effect labor has on the bottom line.
Mesa undercut all other pilots, putting our pay/QOL back 20 years. Now they should be offered a job at another airline?
The fee for departure would give pilots seniority at another airline, they would keep their seat but would start off at year 1 pay.
Airlines would get experienced pilots for 1st year pay in the left seat. How is this not lowering the bar?
It screws all the F/O's that have waited patiently for upgrade at the same time making management look great for having a stellar bottom line. If you want to end whipsawing then have an industry wide pay rate/contract. Thus reducing the effect labor has on the bottom line.
It would be nice on one level, but I doubt it would end whipsaw. The regionals could maybe be convinced by their pilot groups to honor seniority from other airlines, and to hire such people...but there is no way in hell you are going to get them to honor LONGEVITY from another airline! A CA from a failed airline might come in with 20+ years seniority and bid single digits in your domicile, but he is going to be doing it on first year pay!
He loses, you lose, company wins. Any questions?
Also the problem with implementing something like this is that different airlines have different prospects for the future. RAH is going to become a major, and eventually get grandfathered to legacy airline status! Their future's so bright they gotta wear shades...why would they make a deal like this with mesa, which is facing possible Ch.7?
He loses, you lose, company wins. Any questions?
Also the problem with implementing something like this is that different airlines have different prospects for the future. RAH is going to become a major, and eventually get grandfathered to legacy airline status! Their future's so bright they gotta wear shades...why would they make a deal like this with mesa, which is facing possible Ch.7?
My last statement was that i personally believe that Mesa pilots should not have a position reserved for them at other airlines. They are going out of business and it wouldn't be reasonable to expect a job/position elsewhere. They can come over and apply and start at the bottom like everybody else. Mesa pilots took the gamble to work at the worlds worst airline and I am sorry that they will lose their job but Mesa has done far more harm to this industry than good.
When JO comes to them and asks for concessions it hurts all pilots. And to then expect to work at my company with a seniority number above others is just...unjust.
When JO comes to them and asks for concessions it hurts all pilots. And to then expect to work at my company with a seniority number above others is just...unjust.
Every single airline is one JO away from being the next Mesa.
Midwest was bought, Mesa is going under. Two different things. Just because someone went to Mesa for the quick upgrade doesn't mean they should go in front of someone who has been an FO at a quality airline for 4+ years. I think they should just have to interview at airlines like everyone else instead of getting mixed in because they worked for a crappy airline just for the quick upgrade.
Unfortunately we have a seniority based system in the airlines and for better or for worse it's what we all signed up for.
So what to do? We can't reasonably expect to be able to jump to another airline and retain seniority. That's just not fair to the rest of the folks at the new airline. I think our focus going forward is to even out the pay scale at all airlines. The hazing process of ridiculously low 1st year pay followed by ridiculously low FO pay is just giving airlines an excuse to keep the work group fresh. Think of the advantage a major airline can have if they just hand contracts to new airlines every couple of years and make us all start back at the bottom over and over.
If we flatten the pay rates so instead of starting at $19k and end at $120k we can shoot for $30k to $90k? $40k to $70k? That would still give the senior guys a pretty nice paycheck but avoid having pilots starving down at the bottom of the list just wanting the quick upgrade. I doubt Mesa would have gotten all those eager pilots if they didn't promise them that they would be in and out to a major in 3-5 years if they would just take slave wages.
So what to do? We can't reasonably expect to be able to jump to another airline and retain seniority. That's just not fair to the rest of the folks at the new airline. I think our focus going forward is to even out the pay scale at all airlines. The hazing process of ridiculously low 1st year pay followed by ridiculously low FO pay is just giving airlines an excuse to keep the work group fresh. Think of the advantage a major airline can have if they just hand contracts to new airlines every couple of years and make us all start back at the bottom over and over.
If we flatten the pay rates so instead of starting at $19k and end at $120k we can shoot for $30k to $90k? $40k to $70k? That would still give the senior guys a pretty nice paycheck but avoid having pilots starving down at the bottom of the list just wanting the quick upgrade. I doubt Mesa would have gotten all those eager pilots if they didn't promise them that they would be in and out to a major in 3-5 years if they would just take slave wages.
They sold UAL 2.7 million shares for $27k as a material inducement for him to award ExpressJet the flying and in order to align UAL's interests immediately with those of ExpressJet shareholders. No money was lent.
With the FFD thing, first year pay would be a thing of the past unless of course this is your first year in the 121 industry.
Ooh, burn!
#920
Originally Posted by rickair7777
It's 22 now, but 36 second year...can't beat that at mesa.
What makes you think that management will go along with this? The last talk I had with our CEO is that he would welcome the pilots and seniority as long as they all start at year 1 pay.
Why would managment take pilots from Bankrupt airline "A" and give them seniority/pay/longevity? When they could just hire new pilots and upgrade those that actually put energy into the company.
The only way to reduce the whipsawing is to have an industry wide pay rate/contract on each airplane. So it doesn't matter if you worked for airline A or B, they would have same labor costs.
It's 22 now, but 36 second year...can't beat that at mesa.
With the FFD thing, first year pay would be a thing of the past unless of course this is your first year in the 121 industry.
Why would managment take pilots from Bankrupt airline "A" and give them seniority/pay/longevity? When they could just hire new pilots and upgrade those that actually put energy into the company.
The only way to reduce the whipsawing is to have an industry wide pay rate/contract on each airplane. So it doesn't matter if you worked for airline A or B, they would have same labor costs.
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