duvie

I've read all the posts about SKW vs XJT in the last month there seems to be a trend of the pilots pointing fingers at each other. Since a few XJT guys here, which may or may not represent the majority, don't think too highly of the boys in St. George (SKW headquarters) I thought I would put my personal perspective out there on behalf of the SKW guys that aren't drunk on SLC koolaid (tony, slaphappy, etc)

From what I've seen and heard between my internship with an involved party and my experience as a SKW pilot I think XJT management put the nail in their own coffin, which unfortunately may take the pilot group with them. XJT is one of the best operated regionals, that is an undeniable fact. The real problem is that XJT management got in a pi$$ing match with CAL's upper echelon and ended up biting the hand that fed them.

I am in no way commenting who started the rift between CAL and XJT. As a crewmember, sometimes you want to turn to the guy next to you and smack him, but handling things in a tactful way keep the cockpit dynamic safe, which is the ultimate goal. We all have to put our pride away, and as a regional airline sometimes we have to cater to the whims of our providers. For whatever reason, right or wrong, XJT management refused to placate CAL management during their falling out and now there is a bunch of CAL flying up for grabs. SKW has wanted to do business since they lost our IAH flying to Colgan four years ago.

Now, given, I'm not Jerry's confidant but I feel confident from my dealings with him and the management I've met that they aren't the type that would relish the chance to put a great airline (XJT) out of business. As evidenced by recent business dealings, they would rather keep XJT flying for CAL then do the flying under the SKW banner. It is advantageous for SKW and XJT. You guys already have a top notch airline in place and you get to retain the flying that you would likely have lost.

As a pilot, my opinion has no effect on the outcome of this situation, but it would be nice to put all the hostility away. From where I stand CAL and XJT's relationship was falling apart, there was a bunch of flying about to be up for grabs and SKW moved on it.

XJT guys: am I totally off base here or what?

meritflyer

It's no secret that Jim Ream and Larry Kellner have some serious issues with eachother. Jim Ream (XJT CEO) has acknowledged this a thousand times. The reality is Continental and Larry Kellner hold the cards, period. XJT thought back on the initial 69 plane release, they'd be in a power position with Continental and ultimately shot themselves in the foot.

There is definitely some serious personality conflicts there.

Again, XJT thought they held the cards with CAL being the primary regional feeder for CAL's hubs. This obviously turned out to be a huge oversight. Jim Ream and Jim Nides of XJT have said they wished CAL would've just canceled the entire CPA at the initial release. Somehow, someway this would've allowed XJT to fly on a pro-rate basis and loosen the grip of CAL's iron fist. I think it's a power play XJT can and never will win.

I've always truly believed Continental simply wants XJT's management out of the picture. Hence, their dealings and negotiations with SKYW behind their back. XJT maintained the SKYW bid was unsolicited. It's obvious it was solicited by mother CAL.

The hostility is unfortunately here to say, IMO. XJT pilots feel that SKYW guys will fly for cheaper (as evidence of their -900 rates), will take their LAX flying, and ultimately move into the CoEx bases. This could've all been averted if XJT management would've realized their rates are above and beyond market value. That's no secret. But hindsight is 20/20 at this point.

From an investor standpoint, Jim Ream and staff are responsible for billions of dollars in shareholder value. I'd be surprised if any of them hold a job at XJT within a year.

duvie

Merit, Thanks for the great response. That was helpful for me to understand where you guys are coming from. Just as you say, hindsight is 20/20. XJT had done such a phenomenal job for CAL that it seemed inconceivable that Larry Kellner and his boys would be willing to put that flying up for bid just to stick it to Jim Ream. I wouldn't have guessed things would shake out this way.

Top Teir regional pilot groups look at each other's work rules when negotiating with their respective managements and XJT is certainly in this group. Losing XJT would not be beneficial to anybody in the regionals long term.

blastoff

That's a fair opinion...although I don't think its anything our management did during negotiation. I think our fate was sealed when Kelner was named Gordon Bethune's successor. All of the internal politicking goes way back to when both Kelner and Ream were at the right hand of Gordon Bethune at CAL. Ream was hand-picked by Gordon to run his own airline, and I'm sure Kelner has had it out for him ever since. We have offered rates lower than the competition to CAL...IMHO our management has negotiated in good faith while the same can't be said for CAL (evidenced by them engineering a buyout by our competition).

meritflyer

XJT offered lower rates to CAL? Lower than CHQ?

I am not sure sure about that. Our rates went to an arbitrator as a result of XJT refusing to budge on the rates CAL was paying.

blastoff

I'm talking after CHQ...we have, they said "no."

meritflyer

I think that may be a rumor more than anything. Ream recently acknowledged that CHQ was a LCC of regionals. If such a rumor is true, Ream has no business of being the Chief Executive of Express. You don't refuse such rates initially (back in '05), single handedly drive a great airline from being profitable to imminent bankruptcy, lose billions of shareholder value, create the possibility of hundreds and hundreds of furloughs only to come crawling back on your knees agreeing to the rates XJT should've given CAL back pre-69 days.

Hindsight?

Ottopilot

Continental created Continental Express from five regional airlines years ago. When I was hired at Express, they had 80 turbo-props. CAL eventually ordered 275 RJ's and grew Express into a large regional carrier. The pilots (like me) fought and got a good contract. Contract '95 sucked, '97 was better, and so was the next. CAL is the brand name, and Continental Express (which became Expressjet) was sold off. CAL is a business and is in the business of making money and staying in business. I spent 9 years at Express and got out ASAP. I thought I'd be there a year or two, but the whole RJ thing happend. I was against anything over 25 RJ's at Express because I didn't want a career at a regional. CAL did what it needed to do with Express business-wise. While I don't agree with most of it; it is done. They are now two separate companies and ExpressJet has no right to anything at CAL. They are not CAL and CAL does what it wants (to a certain point- I know about the CPA). I think Express should have been added to CAL and all jet flying done by CAL pilots (via hiring all the Express pilots, of course). CAL doesn't want a stronger pilot group that gets paid more. 8000 CAL pilots instead of 5000. RJ pay would go up at a "major". CAL is now going to the lowest bidder to save money. OK, I understand that, but like many have said before, "you get what you pay for." Express flying is now done by many different companies in different aircraft. Express pilots no longer have the leverage they once had. Another smart move by CAL management. This is unfortunate, but I saw it coming years ago. Don't get upset at CAL, they are a business, we pilots are nothing to them. Don't bet on a career at a regional, no matter how good it is now. They rely on the majors and it will always be that way. If CAL can get an airline to fly CAL routes for less with pilots who get paid less they will. There are plenty of pilots who will do you job for less. It's a shame, but true. Most instructors get paid $10-20/hr to fly a C152. Regionals will offer them an RJ for more money and less work. Easy choice to make, but it lowers the whole profession. Today's economy doesn't help matters either. Good luck to all and hang in there. There are worse jobs than flying ones.

Nevets

The XJT CEO is going to do what he believes is best for the shareholders. Looking back, you may make a case that his decisions in were not correct in respect to shareholder value. But hindsight is 20/20. I don't think that anything transpired that wasn't just business decisions made at the time with the information given at the time.

duvie

That is where I may not totally agree with you. Jim Ream's decisions weren't very prudent. I don't think they were bad or irresponsible given the information he had but, hindsight or not, he knew he was taking a big risk by playing hardball with CAL.