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XJT pay concessions pass easily

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Yes there are snapback provisions and profit sharing for us depending on how much the company makes. Oil tumbling down has nothing to do with how much XJT makes unless CAL gives us more block hours, we do not pay for fuel.

Prop sync: You are correct in that pilot contracts do not SOLELY dictate CPAs but labor is the main cost at a vendor "airline." Cheaper labor makes a huge difference in the regional world. I have heard (although I am not sure if I agree) that XJT is now cheaper per block hour than MESA on the 50 seat rate, if that is true that makes XJT a very effecient company to have the highest paid captains and one of the lowest CPA rates.
 
I have a hard time believing pilot contracts solely dictate contracts. I don't know how CHQ operates, but if they serve Delta, AA, UsAir, CO, and now Midwest at a certain city, don't all employees work all of those flights (outstation scenario)? It would seem they could do it cheaper due to one station manager and employees to cover up to four airlines worth of flights. Much more efficient.

Depends on the station. Some employees may be mainline, some may be RAH employees, and some may be contracted out to somebody else.

You are correct to a point that it's just not pilot contracts that are the sole cause. But XJT DID have a pretty high operating cost, due in part to labor. But also the provisions/language of the ORIGINAL CPA of somewhere around cost PLUS 10%, it was later changed.

If I remember correctly, most other regionals were operating somewhere in the 5ish % profit margin area.

I am surprised by this. Conex has more leverage then any other regional around when dealing with their mainline partner.

Not really. The last CPA, although there were protections, CAL pretty much got to call the shots. XJT was heavily restricted as to what they could do with the aircraft. One being the MFN clause, which was a big show stopper as far as sucuring additional flying when there may have been some to be had. Hence the pro rate that escalated with DAL and made up the bulk of that operation.

With the concessions are there any Profit Sharing, or kick backs now that I am sure your gonna make a profit with oil tumbling down.

As was mentioned, oil price has ZERO impact on XJT. CAL is paying for the fuel. All that oil dropping does is reduce CAL's overall operating cost, not XJT's. I think it's doubful that CAL managment would come to XJT's management and agree to up the rate they pay because they are now paying less for fuel.
 
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With a 10% profit margin and exclusive RJ flying guaranteed until 2007 this was the first real test that the XJT pilots had to face.

You guys failed just like everyone else. Welcome to the club.

I cannot believe that with EVERYONE else before you guys PROVING that pilot pay DOES NOT matter and will not save the company. You guys still voted for cuts.
 
With a 10% profit margin and exclusive RJ flying guaranteed until 2007 this was the first real test that the XJT pilots had to face.

True, for the group as a whole. There are many guys here from other airlines that have been through this before.

You guys failed just like everyone else. Welcome to the club.

Thanks, but like I said, some of us are ALREADY members. And for many of us, not because we wanted to join, or have multiple memberships

I cannot believe that with EVERYONE else before you guys PROVING that pilot pay DOES NOT matter and will not save the company. You guys still voted for cuts.

As a tid bit of information, cuts came from labor, ALL labor. Non union groups took cuts, management took cuts, unionized groups WILL be taking cuts. It's not a case of "the pilots saving the airline".
 
Not really. The last CPA, although there were protections, CAL pretty much got to call the shots. XJT was heavily restricted as to what they could do with the aircraft. One being the MFN clause, which was a big show stopper as far as sucuring additional flying when there may have been some to be had. Hence the pro rate that escalated with DAL and made up the bulk of that operation.

Not to mention the hub restrictions, the change of control restrictions, the requirement to renegotiate rates every year, and the biggest ones of them all were CALs ability to reduce 25% of the aircraft every two years, and CALs ability to cancel the whole CPA without cause.
 
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With a 10% profit margin and exclusive RJ flying guaranteed until 2007 this was the first real test that the XJT pilots had to face.

You guys failed just like everyone else. Welcome to the club.

I cannot believe that with EVERYONE else before you guys PROVING that pilot pay DOES NOT matter and will not save the company. You guys still voted for cuts.

The biggest reason why XJT found themselves in this position is because CAL told XJT, "absent our entering into a new CPA with savings on the magnitude that we have negotiated with Skywest..." Anyways, I'm sure you know about CALs threat of canceling the whole CPA otherwise.

Pilot pay seemed to matter on this one, at least to Skywest it did.
 
must've hit a nerve.

Haha.. I'd like you to hit a nerve. I'm always up for a challenge. That would require that you actually make a constructive response first though.

Come on, I dare you. None of this one line insult bullsh*t. I'm not so sure that you're capable.
 

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