Potential Strike Topic?

[derateNO]

And one more correction, the two years requirement is gone.

The only requirement is you meet the OTS hiring minimums and your number comes up. You could be 3 months with Jazz or 3 years (if things slow down in the future).

Given how many pilots at Jazz don't have an ATPL or even 1500 hours right now and do not qualify for an AC interview... If you have over 2000 hours and an ATPL and have aspirations to go to AC you'd be a fool not to go to Jazz.

For anyone who is very Jr at Encore with those requirements and wants to go to AC you should quit now and go to Jazz. Based on the OTS hiring from Encore, you'll be waiting years otherwise. Same goes for anyone at SKR.

I think by the end of this year we'll be seeing people in AC groundschools who were at Jazz less than 6 months.

[dash8driver]

Any news from contract negotiations?

[the-minister31]

Apparently they are getting close to a tentative agreement...

[timeflies]

and apparently a memo was sent out by the company saying that there would be flight reductions(due to coronavirus) for the next months? negotiations contract tactics to scare the pilots?

Knowing that at AC and Jazz this ''info'' was never passed along (yet)...

[notwhoyouthinkIam]

Following close on the heals of the recently cancelled initial pilot course SKV HR now has a posting up for DEC's and FO's. Is anyone else having a hard time following this logic

One group of management is in charge of making sure that there is a pool of potential employees to hire.
A different group of management is in charge of deciding how many employees to hire.

[rudder]

Lots of rumours about SKY.

Recall that CPA can be cancelled with notice. 15 175’s owned by AC can be parked without cost. Other 10 are leases.

A220’s arriving at a good pace. 11 MAX orders cancelled. TRZ merger still happening (supposedly).

A lot of rightsizing is going to be happening with mainline NB and Express Jet fleets. CHR has fleet guarantees and 9 900’s arriving over the next 9 months.

Should be interesting.

[Art Garfunkel]

Jet fuel prices are also tanking making those old 175's cheaper (than before) to operate.

[rudder]

Jet fuel prices are also tanking making those old 175's cheaper (than before) to operate.

Like I said - cheaper to park owned aircraft than leased aircraft. Fuel burn is of no consequence if passenger seats are unoccupied.

Which ones are owned. Which ones are leased. AC 190’s will retire quickly. No money is owed to anybody for them (previously sold and leased back with expiring leases 2019/2020).

On the Ouiji board that belongs to AC - the SKY 175’s are part of the broader calculation. If AC has unavoidable lease commitments to NB Airbus 220/319/320/321 fleet and the MAX then the disposition of the Express 76 seat jet fleet will form part of the contingency plan.

Only question now is whether AC will use this crisis to accelerate its ultimate plans for SKY.

[derateNO]

The ultimate plans for sky are for it to disappear.

No way, zero chance, the pilots at AC vote to increase seat scope for regional.

AC has a good jet operator in Jazz. Sky's days are numbered, and always were since day one.

[timeflies]

The ultimate plans for sky are for it to disappear.

No way, zero chance, the pilots at AC vote to increase seat scope for regional.

AC has a good jet operator in Jazz. Sky's days are numbered, and always were since day one.

Last time I saw a CR picture(s), it wasn't with Jazz CEO but with Sky's.

This is a business and AC doesn't care about a good JET operator but a cheap one who gets the job done.

[rudder]

Last time I saw a CR picture(s), it wasn't with Jazz CEO but with Sky's.

This is a business and AC doesn't care about a good JET operator but a cheap one who gets the job done.

If you believe that rounds of golf with CR are a guarantee of status quo then you may be in for a surprise.

CR has a consistent track record. Business comes first.

SKY served a purpose in 2011 when AC wanted to diversify Express work away from Jazz. SKY served a purpose again in 2013 after AC won the right through arbitration to place the 15 mainline 175’s at Express.

Now with another crisis foisted upon AC, it will be what’s best for AC that prevails.

I doubt that status quo is on the table. CEO’s don’t make sentimental decisions. Both RP and CR know that. It is never personal.

[straight2thepoint]

Tentative agreement has been reached. No details until the first road show.

[timeflies]

Last time I saw a CR picture(s), it wasn't with Jazz CEO but with Sky's.

This is a business and AC doesn't care about a good JET operator but a cheap one who gets the job done.

If you believe that rounds of golf with CR are a guarantee of status quo then you may be in for a surprise.

CR has a consistent track record. Business comes first.

SKY served a purpose in 2011 when AC wanted to diversify Express work away from Jazz. SKY served a purpose again in 2013 after AC won the right through arbitration to place the 15 mainline 175’s at Express.

Now with another crisis foisted upon AC, it will be what’s best for AC that prevails.

I doubt that status quo is on the table. CEO’s don’t make sentimental decisions. Both RP and CR know that. It is never personal.

My post had the same intent as yours - it's a business first. but saying that sky days are numbered since day one is not a fact. Not a fan of his, but If one thinks RP wouldn't do anything to keep his airline alive he may be in for a surprise as well.

The question is : with all the booking cancellations, most of the flights are going 30-50% empty if not more. Will AC replace the routes affected with a smaller aircraft? hence the e190 and e175 replacing the A320 on the YYZ-LGA segment in April.

[rudder]

The question is : with all the booking cancellations, most of the flights are going 30-50% empty if not more. Will AC replace the routes affected with a smaller aircraft? hence the e190 and e175 replacing the A320 on the YYZ-LGA segment in April.

This is about owned vs leased.

It is cheaper to park owned since lease payments still have to be made therefore corresponding revenue is critical.

AC can tell Jazz to park aircraft, but contractual CPA payments must still be made which includes CHR cost of ownership on those airframes.

Get out a list of aircraft that AC owns (including Express) and you will have a good idea of which planes will be idled.
Also, near term lease expiries will also be parked.

As for schedule, it will likely be higher gauge/lower frequency until passenger demand recovers.

[GoinVertical]

The question is : with all the booking cancellations, most of the flights are going 30-50% empty if not more. Will AC replace the routes affected with a smaller aircraft? hence the e190 and e175 replacing the A320 on the YYZ-LGA segment in April.

This is about owned vs leased.

It is cheaper to park owned since lease payments still have to be made therefore corresponding revenue is critical.

AC can tell Jazz to park aircraft, but contractual CPA payments must still be made which includes CHR cost of ownership on those airframes.

Get out a list of aircraft that AC owns (including Express) and you will have a good idea of which planes will be idled.
Also, near term lease expiries will also be parked.

As for schedule, it will likely be higher gauge/lower frequency until passenger demand recovers.

Let's say a company has two airplanes - an owned E175 and a leased A320.

Loads are down and flights are averaging 50 Pax. You going to operate the A320 for 50 Pax just because you are paying a lease? You have to pay for it whether you park it or fly it, so why would you lose more money by running a plane that can't turn a profit on the route?

In general I'm sure they would rather operate leases to retain value on their own aircraft, but when we are talking about load factors dropping significantly the E175 may still be cheaper to operate even factoring depreciation.

[rudder]

I won’t copy the previous text.

Your argument best applies for one flight per day with gauge matching demand.

But more likely is that we are talking about routes with existing multiple frequencies where AC will reduce capacity to match demand. Part of that can be accomplished by reducing frequency combined with adjusting upwards applicable gauge.

No different than the strategy AC has used to migrate routes from Jazz/Express to Rouge.

[GoinVertical]

If they lower frequency too much they will end up with even less passengers bothering to travel.

Lots of ways to skin the cat, but I can see some mainline point to point routes that are fairly low frequency to begin with going to Sky in the short term, while Sky loses plenty of spoke routes.

Does ACPA have any route protections, or is the scope strictly limited to number of seats?

[rudder]

If they lower frequency too much they will end up with even less passengers bothering to travel.

Lots of ways to skin the cat, but I can see some mainline point to point routes that are fairly low frequency to begin with going to Sky in the short term, while Sky loses plenty of spoke routes.

Does ACPA have any route protections, or is the scope strictly limited to number of seats?

ACPA has fleet ratio protections.

If mainline gets smaller (less aircraft) -
then Express gets smaller (less 76 seat jets).

[derateNO]

Well, no not really.

Jazz for example as fleet numbers set in stone within their CPA.

They may loose block hours but the aircraft/FIN numbers won't drop below the minimum.

[Art Garfunkel]

I don't think higher gauge less frequency applies to LGA, DCA, EWR, DFW, BOS, ORD and ATL. All will stay mostly with 76 seat jets either 900s or 175s. The forgiveness on slots will only be for a very short term, then back to use them or lose them.

Also, 25% of Air Canada's NB fleet is already parked until the fall.