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Old 01-20-2016, 12:46 PM
  #271  
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Originally Posted by horrido27
Interesting article from 3 months ago.

Bombardier haunted by decision to enter the commercial jet market - Business Insider

But to state that we can't have CS100/300 aircraft on line few 'at least a few years' is an understatement opinion.
I (and we all have our own opinions on this issue) believe we will end up with the CS100 orders from Republic, at a bargain price while also giving Republic new feeder flying once the Scope 'Choke' gets shifted with a new NSNB order. Also think we could have the first aircraft on line by this time next year. Easily by May of 2017 for the Summer flying season.

Plus, with the rate for the CS100 so low, it's a steal for the company to fly both the 100/300. The blended rate for that BES will also be a win for the company.

The 737-7 order could be a ploy to just get an even better rate from Bombardier for the CS aircraft.. or the 737-7 could be sooo cheap that the company takes them even though the direction was suppose to be MAX aircraft going forward. Just like the 777-300er order.. if the price is right, you never know~

Guess we'll know more come Friday

Always
Motch
Personal opinion only..... but I think pilot pay is a small percentage of the overall cost of the operation. I vaguely remember a 6-9% number in there somewhere (don't quote me on that). It would be interesting to know how much the pay rate actually figures into an aircraft order decision. I suspect it's not an overwhelming factor, but that's just my own speculation
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Old 01-20-2016, 02:06 PM
  #272  
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Originally Posted by horrido27
Interesting article from 3 months ago.

Bombardier haunted by decision to enter the commercial jet market - Business Insider

But to state that we can't have CS100/300 aircraft on line few 'at least a few years' is an understatement opinion.
I (and we all have our own opinions on this issue) believe we will end up with the CS100 orders from Republic, at a bargain price while also giving Republic new feeder flying once the Scope 'Choke' gets shifted with a new NSNB order. Also think we could have the first aircraft on line by this time next year. Easily by May of 2017 for the Summer flying season.

Plus, with the rate for the CS100 so low, it's a steal for the company to fly both the 100/300. The blended rate for that BES will also be a win for the company.

The 737-7 order could be a ploy to just get an even better rate from Bombardier for the CS aircraft.. or the 737-7 could be sooo cheap that the company takes them even though the direction was suppose to be MAX aircraft going forward. Just like the 777-300er order.. if the price is right, you never know~

Guess we'll know more come Friday

Always
Motch
Republic's order is for the CS300. The CS300 is not an NSNB as defined in our contract, so it does not unlock scope choke. And it's pay rate is banded wth the 737-700 and A319 in this TA Extension.
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Old 01-20-2016, 05:50 PM
  #273  
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Jsled

I'm sure you are just stirring the pot but

The C-series is in big trouble if Republic cancels the 40 firm CS300. This might come as a surprise but many airlines convert from one variant to another as long as the total airframes stays the same the manufacture doesn't care (really as long as it is worth the same or more). So a CS300 order could be convert to a 100 with just a stoke of a pen. It's not that hard to do. In fact you can do it with almost anything if both parties can agree on terms. Just bought a used car for my wife. Found out it had several undisclosed issue that car turned into a newer car without issues for the same price (despite a significant difference in sticker price between the first and the second). So if I can do this I am sure that United can work a deal. Like make it 50 firm instead of 40.
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Old 01-20-2016, 06:16 PM
  #274  
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As 82S stated.. easy to swap out orders.
Again.. the company HAS a reason to order a NSNB aircraft. Question becomes, do they go with an older model with old technology, or do they go with a state of the art aircraft.
It's not about today or tomorrow.. it's about looking downrange.
Does the company have plans that include an option that allows them to downgauge aircraft in times of trouble?
If things get bad in 2018-2020.. could the company park 73's and A3xx's and replace them with CS100/300's? Less seats, better economics?

Also.. if we are NOT planning a CS100 order, then why not have a pay rate for $205 an hour for that aircraft? If we are never going to order it (just like the A380), why not at least get a better rate?

GB-
You are probably right about the cost factor being low on the list of reasoning to purchase. BUT, the company knows that the leverage swings to the union/pilot group if they order an aircraft WITHOUT a set payrate.
I'll also make this point.
If the CS100 were to pay $205 an hour (12th yr Capt), that would be $20 more than what is listed now.
Figure 20 aircraft.. 200 Capts. times $20 an hour, times 1000 hours per pilot=
$4 million a year. Times 3 years (2017, 2018 and 2019).. $12 million.
Not a huge amount but that is 12 million that goes into the companys coffer and to managements bonus.
There's also the issue of the blended rate changing too.

Again, we play checkers while the company plays Chess.
Someday, we will have to give up something else in order to get the CS100 payrate higher. The company knows that.

Always
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Old 01-20-2016, 06:43 PM
  #275  
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Originally Posted by horrido27
As 82S stated.. easy to swap out orders.
Again.. the company HAS a reason to order a NSNB aircraft. Question becomes, do they go with an older model with old technology, or do they go with a state of the art aircraft.
It's not about today or tomorrow.. it's about looking downrange.
Does the company have plans that include an option that allows them to downgauge aircraft in times of trouble?
If things get bad in 2018-2020.. could the company park 73's and A3xx's and replace them with CS100/300's? Less seats, better economics?

Also.. if we are NOT planning a CS100 order, then why not have a pay rate for $205 an hour for that aircraft? If we are never going to order it (just like the A380), why not at least get a better rate?

GB-
You are probably right about the cost factor being low on the list of reasoning to purchase. BUT, the company knows that the leverage swings to the union/pilot group if they order an aircraft WITHOUT a set payrate.
I'll also make this point.
If the CS100 were to pay $205 an hour (12th yr Capt), that would be $20 more than what is listed now.
Figure 20 aircraft.. 200 Capts. times $20 an hour, times 1000 hours per pilot=
$4 million a year. Times 3 years (2017, 2018 and 2019).. $12 million.
Not a huge amount but that is 12 million that goes into the companys coffer and to managements bonus.
There's also the issue of the blended rate changing too.

Again, we play checkers while the company plays Chess.
Someday, we will have to give up something else in order to get the CS100 payrate higher. The company knows that.

Always
Motch
Except the pay rate is $195 per hour Jan 2018. No CS100 will be flying here before then (if ever). And that's our NC Chairman's opinion, not mine. So you want an additional 5%...$205/hr? OK. No problem. Contract openers are due out as early as May 2018 after we pass this Extension by a large margin. Let's get that 5% then. Problem solved. BTW, please point out a higher rate than $195 for the E190/E195/CS100 on ANY contract. And yes, you can include the sinister *E2. Thanks.

Last edited by jsled; 01-20-2016 at 07:09 PM.
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Old 01-20-2016, 06:47 PM
  #276  
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Originally Posted by 82spukram
Jsled

I'm sure you are just stirring the pot but

The C-series is in big trouble if Republic cancels the 40 firm CS300. This might come as a surprise but many airlines convert from one variant to another as long as the total airframes stays the same the manufacture doesn't care (really as long as it is worth the same or more). So a CS300 order could be convert to a 100 with just a stoke of a pen. It's not that hard to do. In fact you can do it with almost anything if both parties can agree on terms. Just bought a used car for my wife. Found out it had several undisclosed issue that car turned into a newer car without issues for the same price (despite a significant difference in sticker price between the first and the second). So if I can do this I am sure that United can work a deal. Like make it 50 firm instead of 40.
Plus, the CS300 shares something like 97% commonality with the CS100 and it is expected to be certified 6 months after the first CS100 is placed on line with SWISS in a few months. Substituting CS100s for CS300s or vice versa probably wouldn't be too difficult - especially with Bombardier's willingness to do a deal!
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Old 01-20-2016, 06:57 PM
  #277  
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Originally Posted by horrido27
Does the company have plans that include an option that allows them to downgauge aircraft in times of trouble?
If things get bad in 2018-2020.. could the company park 73's and A3xx's and replace them with CS100/300's? Less seats, better economics?

Also.. if we are NOT planning a CS100 order, then why not have a pay rate for $205 an hour for that aircraft? If we are never going to order it (just like the A380), why not at least get a better rate?
The company is currently extending the life of older WBs that will be parked once the company decides it's cheaper to park them than fly them.

There may be a few guppies and airii that are near the end of their lives but I wouldn't expect too many to be parked since it's likely cheaper to keep flying them than buying new aircraft.

As far as adding CS rates to our pay tables, it will allow us to get better pricing from Boeing and Embraer, as they will now have to compete with the CS. It could be just another option that management wants on the table.
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Old 01-20-2016, 07:00 PM
  #278  
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Originally Posted by 82spukram
Jsled

I'm sure you are just stirring the pot but

The C-series is in big trouble if Republic cancels the 40 firm CS300. This might come as a surprise but many airlines convert from one variant to another as long as the total airframes stays the same the manufacture doesn't care (really as long as it is worth the same or more). So a CS300 order could be convert to a 100 with just a stoke of a pen. It's not that hard to do. In fact you can do it with almost anything if both parties can agree on terms. Just bought a used car for my wife. Found out it had several undisclosed issue that car turned into a newer car without issues for the same price (despite a significant difference in sticker price between the first and the second). So if I can do this I am sure that United can work a deal. Like make it 50 firm instead of 40.

Oh yes. I'm sure it's easy as pie. The orders don't even belong to UAL. And how much more is a CS300 than a CS100? I thought UAL wanted 30 NSNBs, not 50. All this blather about what A/C Ual may or may not order...LOL. They buy em, we fly em. $195/hr is industry leading. That's why this extension passes BIG baby. I'm a get my money on Friday.

Last edited by jsled; 01-20-2016 at 07:11 PM.
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Old 01-20-2016, 08:29 PM
  #279  
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Originally Posted by Andy
I'll go out on a limb and say that I don't expect any aircraft orders in the near future. I expect United to pull back on CapEx and not add any new aircraft to the fleet until the economic conditions improve.

I glanced through Delta's earnings and forecasts. Delta's expecting a revenue decline and a CASM increase in the first quarter. That's not good.

In addition, Delta's international numbers looked pretty bad. That tells me United will do worse because ~30% of Delta's flying is international vs ~50% for United. Delta saw a 14% revenue decline in the Pacific, 7.2% revenue decline in Latin America and 5.4% revenue decline in Europe. It was Delta's domestic operations that saved their bacon - United's much more heavily weighted toward international flying so I'm not anticipating great numbers for the fourth quarter, nor am I expecting optimistic projections for the first quarter.
I use DAL out of Seatac a lot. Their international hub doesn't look like it is doing very well. They have pulled back frequencies to Asia on every route they fly. I think Star Alliance has the PNW market locked up with Air Canada, Air China, ANA, and Asiana all flying to YVR and SEA. I don't think DAL stands a chance out of SEA, at least not to Asia.
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Old 01-21-2016, 04:09 AM
  #280  
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Another thread covers this, but the New Guppies rumor was true:

" We are continuing to move United forward and announced today we would take delivery of 40 new Boeing 737-700 aircraft, which will enter the fleet beginning in mid-2017. These aircraft give our customers the experience they want with first class seats, Economy Plus and Wi-Fi, while enabling us to reduce 50-seat flying."

(Company email this morning).
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