Sky Regional Travel Benefits

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hithere
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Re: Sky Regional Travel Benefits

#26 Post by hithere » Wed Nov 22, 2017 7:58 am

backb0ne787 wrote:
Sun Nov 19, 2017 4:22 pm
+1 Stay away from Sky Regional. Things are really bad right now. The 10 yr CPA extension is such a joke. If a company was good, 13 captain's wouldn't quit in one week.
Just curious what you mean by the 10 year CPA extension being a “joke”. I would have thought that would be good news?
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rudder
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Re: Sky Regional Travel Benefits

#27 Post by rudder » Wed Nov 22, 2017 9:31 am

confusedalot wrote:
Tue Nov 21, 2017 7:25 pm
Mothercorp wants competition amongst the contractors, the structure is by design. If they could find even more contractors, they would do it.

Don't like it, don't agree with it, don't want it, but, at the end of the day, it is all about dollars and the bottom line.

Big red is making money because of the structure, and the stock market is content.

Sad but true.
Don’t be so sure. There are plans..... then there are the actual results.

Lots has changed since this concept was implemented. What is the actual cost differential between Express carriers in 2017 vs 2012? What is it forecast to be in the future? How are the operational performance metrics? Are all Express carriers equal? What are the customer satisfaction reviews? Are all Express carriers equal? What are the individual carrier trends? Improving? Deteriorating? How many AC resources are required to keep the multi-carrier model in place? How much future price competition really exists when at least two of the Express carriers were already awarded 10 year CPA terms and the size of the Express fleet will remain largely static? How is the independent carrier competitive model contributing to employee poaching and migration between Express carriers or to non-AC employers?

One could argue that all of the benefits of the diversification of Express feed have already been realized, and that the bigger challenge will be supporting and sustaining status quo. Time does not stand still. The pilot shortage has arrived and the Express carriers are on the front line. AC has added RRA language which will see Rouge expand and Express growth opportunities now less likely. Unionization at Express carriers is inevitable.

AC has choices. Either to be proactive or to be reactive. History under the current CEO is that AC will be proactive. Offer him something that solves his problems, not creates new ones. Express re-consolidation under the right terms represents a logical evolution for AC given the locked in long term CPA pricing and the long term labour cost certainty that exists within the Jazz labour collective agreements.

There is the opportunity for the current owner at Skyregional to walk away with a good sized cheque in his pocket. The CPA extension with the guaranteed revenue stream makes valuation much clearer. Everything is for sale for the right price. But perhaps it will take a nudge from AC for the parties to have a serious conversation.
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confusedalot
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Re: Sky Regional Travel Benefits

#28 Post by confusedalot » Wed Nov 22, 2017 7:23 pm

OK, since I am nowhere near having a functional crystal ball, I will defer to the notion that anything can happen. Question is, why did this not happen years ago?
Jazz had the maturity and expertise to pretty much take on any aircraft type, even past scope, and almost all sorts of operations, yet, events went in another direction. Now, there is a whole lot of water that went under that bridge, I know, but why fix a situation that is not broken? (If the system is in fact broken, I would be the first to be happy to learn about it)

I would love to believe that AC management projected the warm and fuzzy, life experience tells me they are more of the ilk of sharks that will skillfully play the field to their advantage. That's the nature of life.

As they say, don't take it personally, it's only business.......
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