Expressjet (XJT) BUSINESS ANALYSTS forecast

That's an overstatement of the facts.

Continental COULD pull the entire contract with a years notice, but I'm willing to bet every CPA has that same deal.

Continental COULD get rid of Express 100% over the next 6 years, but they'd be idiots to do so.

Personally I think Express should play chicken with CAL and say, "WE'RE dissolving the contract, and unless you want to find homes for 209 aircraft, and with that, find another 209 aircraft for regional feed, we'd like to renegotiate our contract with you, on OUR terms."

Ream would most likely be fired for doing that, but CAL would be left with their pants down and would be forced sign a more favorable CPA with Express. There's no way they could replace that much lift that fast.
 
XJT's model may be the most viable in today's market with the uncertainty provided mergers, fuel costs, and aircraft shifts. The company is by far, the most liquid provider out there. Now, given the fact as Train said, 18% or so is tied up in branded (soon to be about 15% as corporate aviation increases in size) and the rest sitting in CPA/pro-rate DL and CAL flying, the company is in the same situation as nearly any other regional.

If CAL puts planes back to XJT, DL cuts us out, branded fails, and we furlough big deal. It happens. Life goes on. I made about 9X my current salary prior and will make it after. Aviation doesn't pay enough at the regional level for anyone to cry about a furlough.
 
jtrain609 said:
That's an overstatement of the facts.

Continental COULD pull the entire contract with a years notice, but I'm willing to bet every CPA has that same deal.

Continental COULD get rid of Express 100% over the next 6 years, but they'd be idiots to do so.

Personally I think Express should play chicken with CAL and say, "WE'RE dissolving the contract, and unless you want to find homes for 209 aircraft, and with that, find another 209 aircraft for regional feed, we'd like to renegotiate our contract with you, on OUR terms."

Ream would most likely be fired for doing that, but CAL would be left with their pants down and would be forced sign a more favorable CPA with Express. There's no way they could replace that much lift that fast.
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Jeez, I'm glad you're not management. The "playing chicken with management" is a page right out of the FlyI playbook.

Oil is $110/bbl. If we "played chicken" CAL would have us out on the street like that. Frankly, XJT is getting 10% margin above cost on their contract. Regardless of restrictions, they know they're damn fools to screw around with that... it's an unheard of profit margin. How exactly do you want a "more favorable CPA"... You're not going to get a 10% profit margin AND the ability to charge other rates to other airlines... it wouldn't be prudent for CAL to just hand out money like that.

What XJT really needs is for Mesa to Ch7 right away... If mgmt could get their hands on some CRJ-700/900s, they might actually have something to offer.
 
RIP Flyi...
I hope nothing happens to xjt, we don't need to lose another airline that knows how to treat its employees.
 
Chris_Ford said:
Jeez, I'm glad you're not management. The "playing chicken with management" is a page right out of the FlyI playbook.

Oil is $110/bbl. If we "played chicken" CAL would have us out on the street like that.
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Well, at least he finally admitted it. :)
 
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