1. Will SKYW be able to attract and retain enough qualified pilots to man all these RJs that are coming on line, given that they will be competing with ACAI and other enormous consumers of RJs for pilots?
2. Can the company manage all the additional capacity profitably? Or will there be lots of routes with lousy load factors?
Long on SKYW but always looking over the horizon. . . .
SkyWest doesn't hire furloughed pilots. As soon as the company's start hiring again, they are required to hire back the furloughed pilots first. SkyWest isnt going to spend all the money to train new pilots if they know their gonna leave as soon as UAL, DAL, or whomever come callin.
1. SKYW can hire the laid off DAL, UAL, AMR, and U pilots. The pilot shortage is history for now. SKYW seems to be the first choice among the regionals.
2. SKYW flies where DAL and UAL tell them to. SKYW is not responsible for loads. They need to operate in a timely and safe manner, thats it. Many of the new routes are ex-mainline routes and loads should be good, even though they don't matter.
1. Pilot costs should not get out of control (which is good for the stock price).
2. The more RJs they can bring on to meet DAL and UAL route needs, the more they will make - provided DAL and UAL pay SKYW on a fee per departure basis and do not try to renegotiate the terms (a la Mesa). That too would tend to be good for the stock over the near term.
Thanks for the insights.
I must say, by the way, that I am flying SKYW RJs all the time and the load factors are so high that the darned things are uncomfortable to fly in for more than 45 mins or so. Bad for customers, good for operating economics.
I have friends that are studying to be pilots, and all of them would love to get on with SKYW. They tell me it's pretty tough to get on with them, and very competitive. It's a good way for young pilots to get in thier hours.