SkyWest ?’s
10-28-2021, 07:37 PM
#2803
Banned
Joined APC: Jun 2021
Posts: 794
Wow, that’s the most Jr. ERJ175 monthly award bid ever correct? That’s including covid time too. So I’d say it’s realistically under a year for new hires today (and it will continue to go more junior).
Separate Topic:
I decided to listen in on the earnings call today (still own some shares), I think it was a guy from J.P. Morgan who brought up attrition numbers. Chip tried to give him the “we’re hiring more pilots than are leaving” answer. The guy gives a slightly smart response “yeah isn’t that expensive? How much is that cutting into your profit margins every month now?”. 😂😂😂
Chip gave him the, “we’re not going into any further details than that publicly atm, but we’re aware”. 😂🤣
It’s a good point that LCC’s had/have issues with as well. It’s tough to match pay rates of any Major at the regional level (obviously won’t happen), so an increased pay rate of $10-20 won’t solve jack $hit, they’ll have to create some sort of incentive to stay (good luck, that “carrot” flow isn’t working too well for attrition over at the WO’s).
It’s great SkyWest is netting more pilots per month, but training 250 new hires a month isn’t cheap (especially when 150 are replacements). They better come up with a solution or C-suite will be taking a massive hit where it hurts the most, their pockets.
Separate Topic:
I decided to listen in on the earnings call today (still own some shares), I think it was a guy from J.P. Morgan who brought up attrition numbers. Chip tried to give him the “we’re hiring more pilots than are leaving” answer. The guy gives a slightly smart response “yeah isn’t that expensive? How much is that cutting into your profit margins every month now?”. 😂😂😂
Chip gave him the, “we’re not going into any further details than that publicly atm, but we’re aware”. 😂🤣
It’s a good point that LCC’s had/have issues with as well. It’s tough to match pay rates of any Major at the regional level (obviously won’t happen), so an increased pay rate of $10-20 won’t solve jack $hit, they’ll have to create some sort of incentive to stay (good luck, that “carrot” flow isn’t working too well for attrition over at the WO’s).
It’s great SkyWest is netting more pilots per month, but training 250 new hires a month isn’t cheap (especially when 150 are replacements). They better come up with a solution or C-suite will be taking a massive hit where it hurts the most, their pockets.
Last edited by KirillTheThrill; 10-28-2021 at 08:21 PM.
10-28-2021, 08:33 PM
#2804
Gets Weekends Off
Joined APC: Dec 2010
Posts: 3,123
They were gearing up for this before Covid, and it's definitely been built into their future contracts already. They'll be ok.
10-28-2021, 08:57 PM
#2805
Banned
Joined APC: Jun 2021
Posts: 794
I’m sure they were, but for 2022 attrition? Doubtful, or CC’s response wouldn’t have been, “we’re aware of the issue”. It will be interesting to see how the next few years play out around the entire industry.
10-28-2021, 09:11 PM
#2807
Banned
Joined APC: Jun 2021
Posts: 794
They have zero reason to go public for any potential proactive measures to counteract attrition. I’m sure CC and his team have likely evaluated, or are evaluating the current hiring environment and have a list of potential solutions.
I just had to laugh a little bit at the “we’re aware” remark because it’s the most SkyWest answer ever. Nothing gets leaked in St. George.
Last edited by KirillTheThrill; 10-28-2021 at 09:26 PM.
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