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-   -   Gambling on XJT and their future (https://www.airlinepilotforums.com/regional/28534-gambling-xjt-their-future.html)

ExperimentalAB 09-16-2008 03:35 AM


Originally Posted by Nevets (Post 462319)
Just to set the record straight, it wasn't CAL who named the price. It was SKW who named the price and XJT was forced to accept it or lose all the CAL flying.;)

True...but if SkyWest can make money at that price, and XJT cannot (we have similar enough labor costs), obviously y'all just have to clean house a little and trim the fat ;)

ToiletDuck 09-16-2008 06:43 AM


Originally Posted by Bond (Post 461690)
Once again, you're not seeing the forest from the trees! CAL does not control our executive structure or compensation, CAL does not control our labor cost, and they certainly do not control their ability to fly anything over 50 seat jets which directly affects their CASM. They indirectly affect all of the above by means of the CPA. If they owned us, they would have direct control over all of the above.

It's very obvious, and you're very transparent in the fact that you don't want this deal to happen because of your desire to go to CAL. It's a shame really, it would be a great thing for the profession and for both companies.

You're right CAL doesn't have a say in XJT's structure directly. However since XJT depends on CAL who hold's who's fate?

It's very obvious I don't want this deal to happen? Don't start pouting I don't even understand how wanting to CAL has anything to do with XJT.

Nevets 09-16-2008 10:22 AM


Originally Posted by ExperimentalAB (Post 462336)
...we have similar enough labor costs...

That is not true, according to SKW upper management. Its all water under the bridge now anyways.

dojetdriver 09-16-2008 03:27 PM


Originally Posted by Nevets (Post 462319)
Just to set the record straight, it wasn't CAL who named the price. It was SKW who named the price and XJT was forced to accept it or lose all the CAL flying.;)

I wonder, if it was XJT that set the price. You know, when the 69 airplanes were pulled and XJT submitted a cost structure below CHQ's.

I'm curious if that was what the CPA's cost was based on, not the SKW thing.

ExperimentalAB 09-16-2008 03:59 PM


Originally Posted by dojetdriver (Post 462705)
I wonder, if it was XJT that set the price. You know, when the 69 airplanes were pulled and XJT submitted a cost structure below CHQ's.

I'm curious if that was what the CPA's cost was based on, not the SKW thing.

I'm sure they both set the downward pressure...

Bond 09-16-2008 04:56 PM


Originally Posted by dojetdriver (Post 462705)
I wonder, if it was XJT that set the price. You know, when the 69 airplanes were pulled and XJT submitted a cost structure below CHQ's.

I'm curious if that was what the CPA's cost was based on, not the SKW thing.

Not to down play the CPA itself, but according to Ream (from the road shows), it was the price we paid for getting released from the AFN clause, which will in his words "might help open other doors later"; and for financial pressure relieve on the remaining 30 (non-coex) aircraft.

Bond 09-16-2008 05:06 PM


Originally Posted by ToiletDuck (Post 462418)
You're right CAL doesn't have a say in XJT's structure directly. However since XJT depends on CAL who hold's who's fate?

It's very obvious I don't want this deal to happen? Don't start pouting I don't even understand how wanting to CAL has anything to do with XJT.

CAL needs the feed from us, just as much as we need CAL, don't be naive to think that just because they have the upper hand, they hold all the cards. Just look at the numbers on the last CAL quaterly report, I'm too lazy to look up the link and page number, but they can't replace that much feed overnight without taking a huge hit.

You don't want this to happen, it would mean you don't get to CAL for about 10 years, that's assuming that they would hire you with your attitude.

dojetdriver 09-16-2008 07:37 PM


Originally Posted by Bond (Post 462763)
Not to down play the CPA itself, but according to Ream (from the road shows), it was the price we paid for getting released from the AFN clause, which will in his words "might help open other doors later"; and for financial pressure relieve on the remaining 30 (non-coex) aircraft.


Yeah, I remember the MFN going away, one of the FEW things that is good for XJT in the new CPA.

Too bad there's not anybody looking for a new 50 seat provider any time soon.

LAX/DelCon.....R.I.P.

ExperimentalAB 09-16-2008 07:40 PM


Originally Posted by dojetdriver (Post 462876)
Yeah, I remember the MFN going away, one of the FEW things that is good for XJT in the new CPA.

Too bad there's not anybody looking for a new 50 seat provider any time soon.

LAX/DelCon.....R.I.P.

Very true...it is a classic case of too little, just a bit too late :(

Bond 09-16-2008 07:43 PM


Originally Posted by dojetdriver (Post 462876)
Yeah, I remember the MFN going away, one of the FEW things that is good for XJT in the new CPA.

Too bad there's not anybody looking for a new 50 seat provider any time soon.

LAX/DelCon.....R.I.P.

Sorry I meant MFN. I hear you though, but assuming things turn around in the next couple years (and assuming the hypothetical CAL buyout doesn't happen) those 70 options with embraer are now worth something.

You never know, I know I'm being optimistic again, but we left in good terms with Delta. Maybe after the water settles with the merger, they may need our services again.


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