SkyWest - You broke 'em We BREAK 'em
I didn’t think it would be a likely scenario two years ago when SkyWest Inc. purchased ASA or even a year ago when this thread was first posted. But it seems to be that SkyWest has no interest in completing negotiations with ASA pilots. ALPA has decided to help pilots with their resumes in the event they desire to look for employment elsewhere and SkyWest seems to be positioning to replace them with SkyWest Airlines pilots. SkyWest pilots in the midst of their organization drive with ALPA have been raising concern of the implications of flying ASA legs and their standing with the pilot union. None want to be labeled scabs, but that’s what they will be.
SkyWest is successfully using it’s tried and true technique on ASA. While it is counter intuitive, maintaining high attrition rates keeps seniority and, more importantly, pay low. In doing so, SkyWest effectively puts a cap on it’s biggest expense. In ASA’s case the high attrition has another benefit to SkyWest Inc. In the event there is a contract resolution the back pay owed to pilots will be reduced by the numbers who have left before the new pay scales are adopted. It’s no secret that the cost of pilot salaries is singled out as a major factor in controlling labor costs.
At SkyWest employees are treated as the liability that they are, dispensable and replaceable. Indeed, SkyWest’s business plan relies on continual turnover or continued fast growth. When the employee groups become more senior and command higher pay the labor cost per ASM will move SkyWest into a less profitable position. Though labor cost at SkyWest are reported at 21.6% of revenue compared to Southwest at 29.7%, the cost per ASM is closer at 3.2 cents to Southwest’s 3.29 cents. Labor cost per ASM is driven by the size and salaries of the labor force relative to the size and utilization of the fleet.
It’s apparent that Jerry and Ralph are trying to become airline moguls. From the beginning of SkyWest when Ralph bought Dixie Airlines to Ralphs failed bid for TWA to the purchase of ASA, the Atkin’s are living their dream of turning failing airlines into cash. Look at World Transport Group’s mission statement, it says it all…
From World Transport Group website:
World Transport Group was incorporated in July 1999 in the State of Utah.
Its stated purpose is to "own, hold, and or operate airline companies engaged in the transportation of passengers, cargo, mail, air charter, government contracts and any other incidental service to such air transportation service."
World Transport Group brings management expertise to the airline industry, and we couple our talents with that of financing companies, aircraft leasors, automation vendors, system integrators, and other aviation suppliers providing a strong team that is successful in building profitable airlines. We draw upon our experience of over 50 years in this industry to provide the right solutions to the problems faced by commercial airlines worldwide.
World Transport Group has focused itself on the turnaround of distressed airlines. World Transport Group believes that high quality air transportation is important to economic development and quality of life. We are committed to transactions where all participating parties will benefit and only with the highest standards of moral and ethical behavior.
... well, maybe with the exception of that last bit about “all participating parties will benefit”. I don’t think the ASA pilots are benefiting much from the involvement of the Atkin’s and World Transport Group.
Ralph is involved with the Ghana, West African government through WTG to provide air service to Ghana and Eurosky which operated flights in Austria as well as his heavy hand in SkyWest and ASA.