hiring at Jazz!!!

[Jumper]

Just wondering if there are any rumors about hiring in the future.

[JazzJetDriver]

No, non, nyet.

[Dizzy]

Oh, I don't know, apparently WestJet is hiring, so it probably won't be too long...

[catan man]

I've heard so many things with respect to Jazz hiring, or not. Some say to me,"all the reserves are maxing out and they really should pick more up now." Some say, they are trying to make it through the summer without hiring so they don't have to lay off in the fall. Or the waiting game with Air Canada, to see where they are going, to know what to do.

I've heard they will be calling folks soon. With respect to those who are told they are in a waiting pool for the next groungschool, I wonder how long should one wait when there may be other options.

The advice I read in an earlier post woke me up a bit. Don't wait... It's very hard not to wait. It's also equally hard to wait.

Any thoughts?

[swervin]

I was in the office last week talking to one of the Chief Pilot's about the next equipment bid. It's supposed to be out mid July, but the company is trying to push it back to August as we don't get our Winter flying schedule until the end of July from AC. So you should be able to find out sometime in August if we'll be hiring again or not.

[100 above]

Swervin, Thats good news... I heard that a couple of guys are going to Westjet in September so hopefully they will do a groundschool soon

[swervin]

I'd rather the company keep the blocks at 85 hours so we can make a bit of extra cash.... Judging by the sh*tty pairings out there we are still running fat.

[Franky Jr]

Does anyone have a good guess as to how many guys and gals are in the waiting pool for the "next" gs's??

[aerodude]

What the latest?! Looks like downsizing if Big Red's TA come into effect I would presume.

[hithere]

What are you talking about? I thought the TA was for status quo????

[rudder]

What the latest?! Looks like downsizing if Big Red's TA come into effect I would presume.

This is all covered by the terms of the CPA. Anything else that is suggested is just fear mongering.

[aerodude]

But what if CPA is renegociated? With average load factors of 69% at Jazz, I can understand if AC wants to reduce it.

[Inverted2]

Wouldn't be surprised. A lot of the US loads are really light these days.

[teacher]

69% for a dash is still a money maker with gravy on top. Remember, Jazz flys a lot of low density routes that AC would not want to abandon so when times improve the load factors do as well and in many cases AC takes the route back.

[Brick Head]

69% for a dash is still a money maker with gravy on top. .

Teacher,

That defies logic. AC is paying Jazz on average of 27cents/ASM to Jazz under the CPA. I shudder to think what the Dash's break down would be per ASM flying at close to half the speed of the jet fleet. There is no way AC can generate enough revenue to cover the costs of the CPA, save a few niche routes, when using a Dash.

[rudder]

69% for a dash is still a money maker with gravy on top. .

Teacher,

That defies logic. AC is paying Jazz on average of 27cents/ASM to Jazz under the CPA. I shudder to think what the Dash's break down would be per ASM flying at close to half the speed of the jet fleet. There is no way AC can generate enough revenue to cover the costs of the CPA, save a few niche routes, when using a Dash.

If:

Average Stage Length = 200 sm

Average Seating Capacity = 40 seats

Average Load Factor = 70%

Average Fare = $150

Then:

RASM = $0.525


Air Canada does not publicly disclose ANY revenue information related to JAZZ ONLY flights. Perhaps you know something that nobody else does?

[teacher]

You also can't look at it strictly in terms of load factor. As a feeder that person is buying a much more expensive ticket to go somewhere else, not always though. In many cases it costs as much to fly 1.5 hours in a dash as it does to cross the country. I know for a fact that the break even loads are much lower than many would think possible. Sadly I'm not privey to the numbers but do know them to be true.

I once looked up a trip to Kingston Ontario from Milwaukee connecting in Toronto for a friend. Taxes in just over 1800 was the cheapest I could find. Jazz a lot of the times either flies on niche routes like this and charge what it is worth or the high density routes where pricing is a little more critical but compensates with higher loads. More times though it's these smaller routes, especially on the dash where charging 1000+ to fly 1 to 1.5 hours means a very low break even load factor. Again, I wish I had hard numbers but I'm sure they are confidential.

Bombardier states the Q400 breaks even at 40% and I'd think that even if the cheaper 100s and 300s broke even at the same rate it would be 15 and 20 pax respectively.

That being said you can't forget the money that is paid to Jazz that turns around and is paid back to AC for services and those leases that AC does hold (the CRJs I think and a few dashs). That money is not reflected in the load factors or the price AC pays for the CPA.

As for the dash I rarely see a turn that doesn't at the very least average out to the 40% mark and more times than none we have a much better load than break even.

[Brick Head]

Rudder,

All you did was throw some numbers around and say Na na na na na you can't prove me wrong. your right. I could go find a $65 dollar fare and throw it into your math, but one instance here or there? pointless.

I have read your posts. You are way too knowledgeable not to understand that if Jazz's fleet wide CASM is 24cents/ASM, then what would the DH3 or DH1 CASM be if we broke it out? Do you really think a RASM of 27cents/ASM would cover it? You know the math far too well not understand the positive impact to Jazz's CASM if all the Dash's were instead jets. The negative impact if they were all Dash's.

So Jazz has a CASM of 24cents. In order for Jazz to pass on lower costs to AC it must first lower it's CASM. So if you were Calin and Randall how would you do that?

Larger faster right?

it was this comment,not from you, that caught my attention.

"69% for a dash is still a money maker with gravy on top."

With a likely CASM north of 30cents?

Sorry gonna stick with my original comment.

It doesn't add up.

But I digress. Kinda hyjacked a Jazz hiring thread. Sorry.

Out.

[rudder]

Bottom line is that the CPA with Jazz is not the reason that AC once again finds itself teetering on insolvency. The topic is a smoke screen to deflect attention from the closer-to-home issues that would likely make the real difference and not a bandaid approach to restructuring.

[teacher]

Exactly

[Brick Head]

Bottom line is that the CPA with Jazz is not the reason that AC once again finds itself teetering on insolvency. The topic is a smoke screen to deflect attention from the closer-to-home issues that would likely make the real difference and not a bandaid approach to restructuring.

How about yes and no.

Yes Jazz isn't the reason AC finds itself in its present situation.

No it is not a smoke screen. Nor a band aid approach. The employees are just fed up already. fix it. Everything. Now.

The concept is simple. Cost must go down. Costs will either go down in CCAA or out of CCAA.

So rudder what is your bet? In or out of CCAA?

If it is out? Jazz trades yield for an extended CPA term? Or Jazz trades fleet composition for an extended CPA term?

Maybe there is another option to pass along reduced cost?

[hithere]

Brick Head,
How are we going to change fleet composition without your help? the only way would be for you guys to ease scope..........

[Brick Head]

It seems to me that AC can drive a truck through the 50-75 seat range at will.

Lets face it here. Jazz has a contract. Unless AC goes into CCAA that contract can not be tinkered with without consent. Consent will only come with Quid pro quo.

Term? Yeild? Fleet composition?

All I know is that it will be difficult for Jazz to profitably pass much of anything, as far as cost savings onto AC, without dropping its CASM.

But hey, it might just be a yield cut in exchange for a longer term too. The shareholders will just take the hit. Generally though, that is not seen as acceptable by the decision makers.

[mrmiagui]

So after all those interesting facts, will Jazz start a new G/S soon?

[Pourdu_fun]

So after all those interesting facts, will Jazz start a new G/S soon?

No, the july bid was ``delay`` until january 2010, for now.

Pourdu