XJT and Skywest in talks again?

[XPOO]

I'm not assuming anything. A redacted version of the CPA was released to the XJT MEC. Anyways, SKW made it clear and public to XJT pilots what the deal was that they had between them and CAL. And it had whipsawing all over it.

As for undercutting, you just need to go back to the original CAL letter to XJT which says, "absent our entering into a new CPA with savings of the magnitude we have negotiated with SkyWest..." So it seems that XJT gave CAL savings on the magnitude that SKW had negotiated.

As for the new CPA, you are getting that mixed up with the actual buyout transaction. The special committee would have sold if the price was right regardless of the CPAs. They have a fiduciary responsibility to the shareholders and were trying to get the best value for them in the transaction. In the face of signing the new CPA with CAL it would have been malpractice for them not to ask for the last best offer from SKW before signing the CPA with CAL.

Again, XJT would have signed off on this transaction if the price was right. It was just business for all parties concerned. You need to put down the cup of kool aid already.

No kool-aid about it. You are on here constantly spewing your opinion on this proposed buy-out. You lean the XJT way, and I lean the SKW way. Guess that means you drink your own flavor of kool-aid.

Now if your opinion is that the final deal turned out to fully benefit the XJT pilot group, then yes, I agree with you.

At the same time, at least JA was blunt enough up front to say the branded had to go to make XJT feasible, and the pilot agreement needed to be changed, for a buy-out to go through. There was no whipsaw on JA part at that point, most likely just on CAL part, if anyone.

Now, had the pilots accepted JA offer, would it have left you open for whipsaw? Sure. I believe it would have, too. Would it have actually happened? All you can do is speculate. See, I don't drink the kool-aid as much as you think.

 

[Nevets]

No kool-aid about it. You are on here constantly spewing your opinion on this proposed buy-out. You lean the XJT way, and I lean the SKW way. Guess that means you drink your own flavor of kool-aid.

Now if your opinion is that the final deal turned out to fully benefit the XJT pilot group, then yes, I agree with you.

At the same time, at least JA was blunt enough up front to say the branded had to go to make XJT feasible, and the pilot agreement needed to be changed, for a buy-out to go through. There was no whipsaw on JA part at that point, most likely just on CAL part, if anyone.

Now, had the pilots accepted JA offer, would it have left you open for whipsaw? Sure. I believe it would have, too. Would it have actually happened? All you can do is speculate. See, I don't drink the kool-aid as much as you think.

Ok, fair enough. I was originally talking about the CPAs and how the XJT one is much better than the SKW for the pilots.

As far as the speculation on the whipsaw, there is none on my part. JA made it very clear what their intentions were. Also, SKW didn't need the contract to be changed for them to buy XJT.

 

[goahead]

Maybe I'm biased, but it seems to me JA stuck to his guns. He was either going to get the deal he wanted, at his price, or nothing. Turned out to be nothing.

Meanwhile, SkyWest, Inc. keeps loading millions into the bank account while ExpressJet Holdings, Inc. keeps losing it.

I completely agree with you, when you have money in the bank during a time like this you get to make the rules of a possible deal.
I was just saying, or trying to, that CAL did what they did to get the flying for a reduced price.

 

[XPOO]

Ok, fair enough. I was originally talking about the CPAs and how the XJT one is much better than the SKW for the pilots.

As far as the speculation on the whipsaw, there is none on my part. JA made it very clear what their intentions were. Also, SKW didn't need the contract to be changed for them to buy XJT.

True, they didn't have to. But it was a major factor that the XJT BOD took into consideration when they decided to turn down the offer. Had the pilots been onboard with it, I would guess that the deal would have went through at the original proposed price.

And I believe that XJT did make some headway in terms of alleviating their handcuffs in the new CPA, but it put XJT in a tighter monitary stanglehold for the foreseeable future. Opened quite a few doors, just have to wait for someone to knock now.

 

[XPOO]

I completely agree with you, when you have money in the bank during a time like this you get to make the rules of a possible deal.
I was just saying, or trying to, that CAL did what they did to get the flying for a reduced price.

Exactly, CAL was going to get it one way or another. But I don't believe that JA had all his E-145 plans tied to just this proposal. Only time will tell.

 

[Nevets]

True, they didn't have to. But it was a major factor that the XJT BOD took into consideration when they decided to turn down the offer. Had the pilots been onboard with it, I would guess that the deal would have went through at the original proposed price.

And I believe that XJT did make some headway in terms of alleviating their handcuffs in the new CPA, but it put XJT in a tighter monitary stanglehold for the foreseeable future. Opened quite a few doors, just have to wait for someone to knock now.

Yeah, it was a major factor to the BOD. The SEC filing said, "change to the pilots’ terms of employment significantly reduced the likelihood that a transaction could be concluded...The Special Committee and its advisors attempted repeatedly to secure the satisfaction or removal of the multiple conditions to the SkyWest offer."

They new that that condition made the transaction doubtful and that is why they kept going back to SKW to try to get them to drop that it. If SKW would have dropped it or the pilots would have changed the contract, the buyout probably would have gone through.

Also notable from that same SEC filing is the part that says, "Based on the consideration by the Special Committee and the board, at meetings on June 4 and 5, 2008, of all relevant factors, including the serious concern that Continental would immediately terminate our existing CPA unless we approved on June 5 a new agreement with Continental, and taking into account the multiple benefits to ExpressJet resulting from the new CPA with Continental, the Board determined on June 5 to authorize the new CPA."

Again, I'm sure the BOD signed off on this CPA with eyes wide open considering the alternatives.

 

[Nevets]

I completely agree with you, when you have money in the bank during a time like this you get to make the rules of a possible deal.
I was just saying, or trying to, that CAL did what they did to get the flying for a reduced price.

I always felt like this was all just a negotiating tactic on CAL's part. They get what they want either way.

 

[Nevets]

Exactly, CAL was going to get it one way or another. But I don't believe that JA had all his E-145 plans tied to just this proposal. Only time will tell.

I also thought that there was a possibility for SKW to do some CAL flying even if XJT remained independent but now that XJT is keeping all the 145s and CAL's reduced regional fleet plan, I'm doubting it. But who knows?

 

[PBRstreetgang]

Again, here you go with the "my chitty regional airline job is better than yours" argument. You can bet you bottom dollar(and you have). CAL took the lowest price deal they could. If you think your management group will settle for less profit and allow you to keep your PWA intact, have another frosty cup of the offered kool-aid. Corp. America has found out how to cornhole the workers and I think they get a chubbie when they get to(SKYW included) steal from the employees. I would prepare for the inevitable meeting with your mgmt. team to discuss on the state of your PWA, soon. Not wishing this on you, I just know how truly evil management can/will be. I truly hope I am wrong, but Darwinian economics will prevail.
PBR

 

[Nevets]

Again, here you go with the "my chitty regional airline job is better than yours" argument. You can bet you bottom dollar(and you have). CAL took the lowest price deal they could. If you think your management group will settle for less profit and allow you to keep your PWA intact, have another frosty cup of the offered kool-aid. Corp. America has found out how to cornhole the workers and I think they get a chubbie when they get to(SKYW included) steal from the employees. I would prepare for the inevitable meeting with your mgmt. team to discuss on the state of your PWA, soon. Not wishing this on you, I just know how truly evil management can/will be. I truly hope I am wrong, but Darwinian economics will prevail.
PBR

Yeah, but its still better than what SKW was offering.