ExpressJet to fly for Frontier...

Captain_Bob

Captain_Bob

Well-Known Member
Talk amongst yourselves...

;)

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Bob
 
This is great news on a intermittent basis. It's my understanding ExpressJet will be filling in the for troubled Lynx who is having a difficult time getting the FAA to certify them.

I am still awaiting a longer, more concrete contracts though. The future of ExpressJet can not continue on the back of short term agreements.

ExpressJet must seek out and execute long term (>5 years at a minimum) codeshare deals with carriers. With that being said, I am excited to see where this will lead us.
 
What merit said is correct... this is shaping up to be a temp fill in for Lynx until they can get those Q400's up and running.

Very similar terms to JetBlue... which basically means we get to charge a premium for short term service that others can't do.

Yes... it's a short term deal. Yes... we need to find longer term contracts. But... I believe that with the way things are going in the regional world today... we (regionals) will be seeing more and more short term deals of around 2 years versus the old CPA's of 10+ years.

So much can, will, and has changed over the years... fuel prices, consumer desires, lease rates, market popularity, airline amenities (or lack thereof), etc. that airlines need to have the ability to be more flexible vs. being entrenched in long term contracts.

Being able to seamlessly integrate ourselves into another airlines culture and environment on a regular basis... well, I think that will definately lead to better things down the road. Even if it is more short term contracts.

The regional that can adapt most effectively and efficiently to their customer's needs... will be the winner in this new environment.

/industry forcast ;)

That said... I think our management is leaving no stone unturned to keep our airframes airborne & making money, and our thousands of employees gainfully employed, while creating wonderful brand recognition... and they are doing it in a unique way that folks just aren't used to. To me... that's innovation.

Bob
 
Captain_Bob said:
That said... I think our management is leaving no stone unturned to keep our airframes airborne & making money, and our thousands of employees gainfully employed, while creating wonderful brand recognition... and they are doing it in a unique way that folks just aren't used to. To me... that's innovation.
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While I would like to see some longer term deals, I too appreciate management getting us whatever kind of work they can dig up. And who knows, perhaps some of the short term deals will work into longer term deals. Or if nothing else it gets more passengers exposed to our brand name and product.
 
Captain_Bob said:
Yes... it's a short term deal. Yes... we need to find longer term contracts. But... I believe that with the way things are going in the regional world today... we (regionals) will be seeing more and more short term deals of around 2 years versus the old CPA's of 10+ years.
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I cant agree. Most the majors have sought out implemented multi year CPA agreements. The smallest term out there has been out CPA deal with Delta. Midwest and Skywest implemented a 60 month deal with options to extend the time frame and aircraft deliveries from 15 to 25.

I believe if ExpressJet wants to continue to be a leader and innovator in the airline industry, they need to seek at a minimum five year CPA's or in our case pro rate flying. Any shorter than that and we leave too much to chance. Our branded also depends on the cash received from these deals. We may have posted a loss but we did have positive cash flow. Without positive cash flow, the branded will be cut back. That cash flow came from nowhere but our CPA with Continental.
 
What the heck is an EMB-145 "Amazon"?

mattp1803 said:
My thoughts exactly! I love watching the growth of ExpressJet.
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Is this really "growth"? It sort of sounds like it's using planes and pilots that the company already has. That being said, it sounds like Expressjet seems to be doing a good job of finding flying for their equipment and people. I don't know if I totally agree with Bob about the direction of the industry, but it's definately a good thing to be able to find uses for their planes.
 
LOL! Yeah... admittedly... my thoughts are nothing more than professional "hunches". I'm just thinking that if I were in a Major/Legacy's shoes... then I'd want to have the utmost flexibility in dealing with my "outsourced" workforce and not be pinched into a long term contract that could provide constant income for that outsourced labor while I may be bleeding red on my P&L (ala post 9/11 when the big boys were losing money while the regional feeds were making money from them).

That, and I have been drinking quite a bit of kool-aid lately... ;)

Most folks follow the industry much closer than I do... I just keep my focus on my family and my job at hand... that tends to keep me sane. If I put too much thought into this industry... I'm sure I'd start freaking out like all the other new-hires lately. ;)

Bob
 
zmiller4 said:
Is this really "growth"? It sort of sounds like it's using planes and pilots that the company already has. That being said, it sounds like Expressjet seems to be doing a good job of finding flying for their equipment and people. I don't know if I totally agree with Bob about the direction of the industry, but it's definately a good thing to be able to find uses for their planes.
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I have to agree here. IMO, it's growth if new airframes are bought to start the service. This sounds like XJT is shuffling airframes (or placing unused ones) into service that it already had.

I don't think short terms CPAs are gonna be around, though. The regional industry is so volitile, regional partners are gonna want some kind of assurance they aren't gonna be dumped for a lower bidder after two years. It costs money to acquire aircraft, and more and more regionals are buying the airplanes themselves rather than the contracting major airline partner. Case in point is our -900s. We own those instead of Delta. That's a HUGE financial risk for a two year contract, which is why we went with a longer one. I don't know the specifics, but I think it's closer to 10 years than 2.
 
Captain_Bob said:
Most folks follow the industry much closer than I do... I just keep my focus on my family and my job at hand... that tends to keep me sane. If I put too much thought into this industry... I'm sure I'd start freaking out like all the other new-hires lately.
Bob
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There is just cause for critically looking at your company. After all, it's your future at the company. ExpressJet faces some real challenges that historically have ended in companies going bust. These challenges have made people very nervous and is a reason I believe we'll continue to see high numbers of FO's and Captains making lateral moves and continued high numbers of attrition. People aren't willing to make the gamble. I happen to be optimistic that our management will make the right decisions to preserve our company and jobs. This stems from the "new-hires" all the way up to the most senior check airman. I know because I've heard it directly from both in personal conversation.
 
kellwolf said:
I don't think short terms CPAs are gonna be around, though. The regional industry is so volitile, regional partners are gonna want some kind of assurance they aren't gonna be dumped for a lower bidder after two years. It costs money to acquire aircraft, and more and more regionals are buying the airplanes themselves rather than the contracting major airline partner. Case in point is our -900s. We own those instead of Delta. That's a HUGE financial risk for a two year contract, which is why we went with a longer one. I don't know the specifics, but I think it's closer to 10 years than 2.
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Well said Kellwolf and you're correct, your CPA with Delta is 10 years and NWA alike.
 
meritflyer said:
These challenges have made people very nervous and is a reason I believe we'll continue to see high numbers of FO's and Captains making lateral moves and continued high numbers of attrition.
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Don't know where you are seeing Captains making lateral moves... Senior FO's aren't bailing either... the seniority list and attrition numbers don't back up what you are suggesting.

If anyone is bailing... it's the new hires who haven't got an investment of time & 2nd year pay while approaching upgrade.

I've seen something similar to this before... and I was stressed to the hilt about it. When I was hired in '04, it was at the front of a major hiring wave... and the pilot group was at the end of several years of hard-core contract negotiations. The rumor du jour for us newbies was that we were all hired as potential "scabs" for when the pilot group strikes.

Lot's of folks left early on thinking that a strike was immenent... and if you'd been following the negotiations closely and seeing what the pilot group had gone through... then you too believed it was immenent.

But... before I even finished IOE, we were operating under one of the industry's leading regional contracts with a very happy and satisfied pilot group. The stress was a killer... and I pretty much learned at that point to control what I can control... and let those who choose to run this company do their job. I can still look at them with a critical eye... and if things don't pan out... then I know I'll land on my feet. I made a good life outside of aviation for the last 15 years... so I think I can do it again. :)

The thing is, I chose XJT... and I'm willing to stay the course for the forseeable future. Our ship may be dented... and we may be traversing rough waters... but I don't see a hull breech just yet.

In the meantime... our upper management is on a continous mission to find new flying and increase the brand recognition. I'd rather that be the case than having them sitting up in their offices fat, dumb, and happy raking in the dough... and not focusing on the future (Mesa anyone?).

Also, the newer CPA's aren't nearly as profitable as they used to be... and the risk has increased significantly for the Regionals vs. what pre 9/11 CPA's were. So... we could be taking a slow trickle of a profit... or take a risk and become our own entity where we can set our own course. Who knows... the risk may not work out... but I'm very happy being a part of the team that is willing to do things a bit different and not just take any flying contract that could water down our brand and lead to lower margins which in turn could lead to lower pay & QOL just to fly bigger planes.

Bob
 
Captain_Bob said:
Don't know where you are seeing Captains making lateral moves... Senior FO's aren't bailing either... the seniority list and attrition numbers don't back up what you are suggesting.
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Let me clarify..

Captains are leaving to the majors while the gettin' is still good. No secret about this.

FO's are leaving for competitors that aren't "dented".
 
meritflyer said:
Let me clarify..

Captains are leaving to the majors while the gettin' is still good. No secret about this.

FO's are leaving for competitors that aren't "dented".
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Gotcha...

Well... Captains from all regionals are leaving for the majors. The gettin' is just plain good all around at this time in the industry for that... and getting better. So I don't see that as a mark against us.

And uh... just for grins and the sake of further conversation... name me a few regionals out there... or major airlines... who aren't "dented". ;)

I know... I know... it's a rhetorical question, and I'm sure you of all people can list a few who seem to have bright future. But... just about everyone of them has their own "baggage". ;)

Bob
 
Captain_Bob said:
And uh... just for grins and the sake of further conversation... name me a few regionals out there... or major airlines... who aren't "dented". ;)
Bob
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Ooh, ooh, make the move to Colgan [SIZE=-4](errr, or is that Polganicle, what the heck are we now....don't think anyone knows at the moment)[/SIZE]....we're not "dented" like most of the regionals out there. :laff: :rolleyes:









:sarcasm: :hiya:
 
meritflyer said:
These challenges have made people very nervous and is a reason I believe we'll continue to see high numbers of FO's and Captains making lateral moves and continued high numbers of attrition. People aren't willing to make the gamble. I happen to be optimistic that our management will make the right decisions to preserve our company and jobs. This stems from the "new-hires" all the way up to the most senior check airman. I know because I've heard it directly from both in personal conversation.
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Say wha? I don't know of any Captains making lateral moves...as in XJT CA to Pinnacle FO. If they're going to majors, well...good!

As to new hire FOs...I don't pay much attention, but if they are making lateral moves then they are in for a long career. And really they've wasted alot of people's time. Hopefully when they try to move on to a future job, that hiring committee will see this as a red flag and not choose to invest in them.
 
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