Xjet to fly 22 airplanes for UAL

sherpa said:
glad to see UAL went for quality over cost.
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While I'm sure XJT does provide a quality service, I'm guessing it was also one of the cheapest and isn't going to be very profitable (if at all??) for XJT. Just finding a home for homeless airplanes, I think.
 
Clocks said:
The details are...non-existent...but some wild guesses are that 22 planes isn't enough to need any recalls.
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Probably correct given that reduced flying lines will be a thing of the past and line divisors are getting ready to go through the roof. I think recalls depend on a few things...

1) the base structure...if there is more than one base the chances of recall increase
2) Profitability of the agreement (who knows?)
3) Summer block hours given to us by CAL (ALWAYS increase at the last minute)

If we do recall I don't think it will be very many. Regardless, those pilots on property are going to have a very busy summer and those pilots who are accustomed to reduced flying lines are in for a rude awakening when they are back on reserve in May.
 
I'm starting to smell furry little creatures that hide under bridges.

Lemme go sharpen that axe because my tolerance for tomfoolery is rock bottom.
 
Doug Taylor said:
I'm starting to smell furry little creatures that hide under bridges.

Lemme go sharpen that axe because my tolerance for tomfoolery is rock bottom.
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If the thread on "that other" board is any indicator you are correct sir.
 
What "other" board would that be? I hardly have time to go through my own! ;) Details please.
 
Woohoo! An uptick!

XJT.png

Only 873% more to get my money back! (Yes, I'm a moron. :))
 
Doug Taylor said:
What "other" board would that be? I hardly have time to go through my own! ;) Details please.
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The obvious...XJT paid to play. They will be flying at a loss. My regional is better than your regional. Our payrates are .00001123% higher than your regional payrates therefore we can't be bottom feeders. My RJ has two lavs and 2 flight attendants while yours has a cardboard box and a curtain. We don't have to help clean the airplane per our contract. You know, the typical adult discussions that take place...over there :)

If anyone wants the REAL details much can be found here. http://biz.yahoo.com/e/091116/xjt10-q.html

especially this from the SEC filing...
"United announced today that we were awarded a multiyear arrangement to fly 22 ERJ-145 aircraft as United Express beginning May 1, 2010. The arrangement will have an initial term of three years for 11 aircraft and two years for the remaining 11 aircraft, and will have a renewal option, at United's election, for additional periods up to a total term of five years. From May 2010 through October 2010, we will fly an additional 10 aircraft for United in the current ExpressJet livery. These aircraft will be sourced from our corporate aviation division and as necessary, leased from alternate sources."
 
CRJDriver said:
What the heck is de-ice pay?
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Long story, but due to 'contractual changes' with UAL we are being told not to block out until we have received a clearance to push. Which means all of our Chicago crews (myself included) will not get paid to deice in ORD this winter since we deice at the gate. This deserves a separate thread, but it is a huge problem right now.
 
bike21 said:
Long story, but due to 'contractual changes' with UAL we are being told not to block out until we have received a clearance to push. Which means all of our Chicago crews (myself included) will not get paid to deice in ORD this winter since we deice at the gate. This deserves a separate thread, but it is a huge problem right now.
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WTF???!!!!!!:eek::eek::eek::eek::eek::eek::eek::eek:

Yikes!!!!!!!
 
I'm too dumb to read the financial part of that report, but is ExpressJet operating this new flying at a lost?
 
Soul Brotha' said:
I'm too dumb to read the financial part of that report, but is ExpressJet operating this new flying at a lost?
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Someone smarter than me will have to crunch numbers on the deal (if the specifics are ever released), but the most likely possibility is that flying for UAL is either less of a loss than leaving the airplanes in the slow charter department, or that somehow/someway xjt mgmt managed to squeak out a tiny profit...which would be a miracle.
 
Soul Brotha' said:
I'm too dumb to read the financial part of that report, but is ExpressJet operating this new flying at a lost?
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I read the damn thing, and I can't make heads or tails of it. I'm pretty sure there is no number crunching in there with regard to the United stuff. All I can tell is that "we are going to use airplanes from the charter side" and that the contract is a 5 year agreement.

Truthfully it doesn't look too bad. They are increasing their football charters and using those charter planes for United. That might be a good niche for them.
 
Cav said:
The obvious...XJT paid to play. They will be flying at a loss. My regional is better than your regional. Our payrates are .00001123% higher than your regional payrates therefore we can't be bottom feeders. My RJ has two lavs and 2 flight attendants while yours has a cardboard box and a curtain. We don't have to help clean the airplane per our contract. You know, the typical adult discussions that take place...over there :)

If anyone wants the REAL details much can be found here. http://biz.yahoo.com/e/091116/xjt10-q.html

especially this from the SEC filing...
"United announced today that we were awarded a multiyear arrangement to fly 22 ERJ-145 aircraft as United Express beginning May 1, 2010. The arrangement will have an initial term of three years for 11 aircraft and two years for the remaining 11 aircraft, and will have a renewal option, at United's election, for additional periods up to a total term of five years. From May 2010 through October 2010, we will fly an additional 10 aircraft for United in the current ExpressJet livery. These aircraft will be sourced from our corporate aviation division and as necessary, leased from alternate sources."
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A couple of things- I thought the corporate stuff was doing quite well...why are they taking those airplanes?

Paid to play- it does sound like this is fact.

From the 10Q
"We anticipate that the definitive agreement with respect to the multiyear arrangement will include a grant to United of 2.7 million common stock warrants with an exercise price of $0.01 per share of common stock and that all related documents will be executed in the near future. Once executed, we will file a Current Report on Form 8-K with respect to the definitive agreement. "

Still though- if it brings people off the street, I'm excited about it.
 
SmitteyB said:
A couple of things- I thought the corporate stuff was doing quite well...why are they taking those airplanes?

Paid to play- it does sound like this is fact.

From the 10Q
"We anticipate that the definitive agreement with respect to the multiyear arrangement will include a grant to United of 2.7 million common stock warrants with an exercise price of $0.01 per share of common stock and that all related documents will be executed in the near future. Once executed, we will file a Current Report on Form 8-K with respect to the definitive agreement. "

Still though- if it brings people off the street, I'm excited about it.
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Warrants
A warrant is a long dated option which allows the owner to participate in the capital gains (losses) of a firm without buying the common stock. In effect, the holder of a warrant has a leveraged play on the corporate common stock.

As a form of option, a warrant has an exercise price and an expiry date. The exercise price is the price at which the holder may convert the warrant into common shares of the issuer. The expiry date is the last date on which the warrant may be converted into common shares. Given that a warrant is generally issued to reduce the cost of a debt issuer, the expiry date is usually more than two years from issuance. This allows warrants to trade separately from the bond with which they were issued. Thereby providing the investor with a long dated option on a firm's common stock.

There is a draw back to warrants for those investors concerned with income. As an option, a warrant does not pay a dividend, and is subject to a certain amount of price compression as the underlying stock approaches or surpasses the exercise price. This is only a factor if the investor is purchasing the warrants when the common stock is trading near the exercise price.

Warrant holders have no voting rights until the warrants are converted into common shares. Upon conversion an active role may be taken in corporate governance. If the warrants provide for conversion into preferred shares, it is unlikely the holder will gain any influence into corporate governance upon conversion.
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I had to look up what a warrant was, all mumbo jumbo to me. It does appear that, yes, XJT is giving a share in the company for flying.

Am I right to say that it is tied to their success though?
 
Maybe XJT is sick of being on its own and positioning itself for a buyout from future Unitental?
 
blee256 said:
But just because skywest isnt union doesnt make them the enemy. The have better work rules than most union regionals. In our current contract talks, RAH and Mesa's CBA has hurt us more than SKywest's has.
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Skywest would actually have to have a CBA for you to be hurt by it. Just sayin'.
 
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