SkyWest Ends its Midwest Agreement
06-08-2009, 05:19 PM
#12
Gets Weekends Off
Joined APC: Mar 2007
Posts: 638
Call my cynical but perhaps this is RAH doing a Hail Mary. Assume they think the economy is going to tank further and their bread and butter contract flying is about to dry up. The best use of the money will be to try and find new business to squeeze the operation into. Midwest might be that "escape pod," if you will. That way if, say, UA bit the dust, they would at least have their own business to support themselves.
Total and utter conspiracy theory, I know, but that's what I think when a company like RAH spends that kind of money in a recession when everyone else is saving every penny.
Total and utter conspiracy theory, I know, but that's what I think when a company like RAH spends that kind of money in a recession when everyone else is saving every penny.
06-08-2009, 05:22 PM
#13
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Joined APC: Jul 2008
Posts: 77
Well, our year-end bonus is actually a "profit sharing" bonus that comes out right before Christmas, so some call it the "Christmas bonus". I don't know of any regional that gave out $250-$2,000 per employee based on longevity in 2008...that was a tough year. We got bonuses, which would mean profits were made.
His throwing of cash is going to do one of two things: go horribly wrong, or profitably right. Just can't tell......guess we'll all see what the future holds.
His throwing of cash is going to do one of two things: go horribly wrong, or profitably right. Just can't tell......guess we'll all see what the future holds.
06-08-2009, 05:26 PM
#16
Gets Weekends Off
Thread Starter
Joined APC: Jan 2008
Posts: 250
Well, our year-end bonus is actually a "profit sharing" bonus that comes out right before Christmas, so some call it the "Christmas bonus". I don't know of any regional that gave out $250-$2,000 per employee based on longevity in 2008...that was a tough year. We got bonuses, which would mean profits were made.
His throwing of cash is going to do one of two things: go horribly wrong, or profitably right. Just can't tell......guess we'll all see what the future holds.
His throwing of cash is going to do one of two things: go horribly wrong, or profitably right. Just can't tell......guess we'll all see what the future holds.
You are right...this pay to play may be a Godsend or the demise of Republic.
06-08-2009, 05:29 PM
#17
Gets Weekends Off
Joined APC: Apr 2007
Posts: 867
The $6M is just another installment payment for the YX certificate. Sounds like the deal will close January 2010, about 2 years after TPG got involved. Didn't YX lose well over $450M last year? $12M is chump change. TPG/DAL/NWA needs some time to get their master plan worked out, and they have to keep YX viable until that time.
06-08-2009, 05:37 PM
#18
Gets Weekends Off
Joined APC: Mar 2007
Posts: 638
Yeah definitely not a great place to bet the farm with but it is probably the only way a regional like RAH can control their own destiny. As mentioned, if UA goes Ch. 11 you can imagine how their contract will get destroyed. Even though the risks are big at least they will have a chance to make money on Midwest rather than just roll over if their contract partners go tango uniform.
06-08-2009, 05:38 PM
#19
Line Holder
Joined APC: Jul 2008
Posts: 77
I agree, something's going on bigger than we're being told.....it's like gambling at the roulette table, man, gonna go one way or the other, don't know which color. Time will tell......
06-08-2009, 05:42 PM
#20
Banned
Joined APC: Jan 2006
Position: A-320
Posts: 6,929
in all honesty, the economy seems like it is stabilizing at the very least, and if it turns around in a positive way, I think RAH will be in a GREAT position, however if things continue to stagnate and these airlines start filing BK, they might be in big trouble....time will tell I guess
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