Jonneaux

I would invite you to look at the AAG financial reports, specifically under regional flying. Last year OO generated a pre-tax profit of about $93 million with only 15 airplanes on average. Horizon only generated $23 million with 54 airplanes and that was before the new TA and bonuses. So far this year they have been losing about $9 million per quarter.

At some point, someone at AAG is going to ask why are they doing this, spending tens of millions only to lose money and drag down the brand image. Why not simply make a phone call to SGU, sign a contract and make hundreds of millions.

The only question is when.

Jonneaux

SKYW stock is now over $42. Hmmm? All time high.

snackysmores

The Qx numbers are probably not accurate in the slightest. As its been said before, Alaska and Horizon are owned by AAG and they transfer/shuffle/launder money around as needed to appease investors and the BOD. They will never tell us how much profit we actually make, unless it serves their purpose (i.e. saying 'Look! We lost money! We're unprofitable! You pilots need to take concessions or else)

amcnd

In the world of the SEC. I doubt the numbers are “cooked”...

Jonneaux

GAAP would require that they be treated the same. I used to work at an airline that would "shuffle" money between entities. I'll just say that the owner died right before he was to be indicted. That airline and the associated companies are no more.

Cooking the books to make Horizon look worse on the SEC financials would only make the shareholders ask the above question sooner; "Ahh, why are you doing that, because it looks you are wasting my money."

I my former life, at the aforementioned airline, I sat in on meetings where the entire executive agreed on a course of action that was quite obviously a stupid idea that could never work. It failed miserably.

Most likely, AAG saw how profitable OO is for them and someone put forth the idea that if they could just transition QX to 175s that they would also be a cash cow. Executive groupthink said, 'Sounds like a good idea.' A decision was made without much analysis and here we are. Eventually, and pretty soon, reality will rear it's head and someone will say, 'This is stupid. This is a waste of time and money. Why are we doing this?' and that will be the end of jets at Horizon.

Perhaps it has already happened.

Turbosina

All that AAG has to do, to staff QX, is offer a guaranteed flow to Alaska. You'd think that'd fix the problem, no?

In the meantime I guess QX crews will keep flipping us off like the other night in MFR. Whatever, dudes...

JLAMS16

Yeah we got the same in SFO taxiing past a QX 175 yesterday, we laughed and waved back.

Duesenflieger

Regional tribalism is retarded....

Duesenflieger

Something is definitely going on. Our company is making record crazy profits and we are only receiving a skewed portion of it.

rickair7777

It's because you're at a regional.