Skywest earning call notes

[maxcackel]

Let me break it down for you. SkyWest, Inc. owns two airlines. One is named Atlantic Southeast. The other is named SkyWest Airlines. Atlantic Southeast and SkyWest Airlines are owned by the same company but have nothing at all to do with one another. SkyWest, Inc. has agreed to buy ExpressJet Holdings, Inc. in exchange for merging with Atlantic Southeast. SkyWest Airlines will continue to have as much to do with Atlantic Southeast after this transaction as it did before. Which is nothing. Not one iota.

You don't really believe this do you? Because if you do the respect for all your post's I've read will start to drop a little.

 

[ERfly]

When was the most junior captain hired at Express Jet? The most junior captain at ASA was hired approx. middle of 2004.

April 2005 is the plug on the Captain list.

 

[zawillif]

Now I just wonder how ALPA will handle seniority.. I don't see this being pretty.

I believe our seniority lists are very very similar. I've heard it might even be a straight DOH integration because we are so close.

 

[NoApu]

I hope that all labor parties involved will seek a fair and reasonable way to integrate so that we can all be one big happy family but it looks like the ExpressJet Flight Attendants are marking their territory already!

http://finance.yahoo.com/news/Machinist-Union-Responds-to-bw-2400749330.html?x=0&.v=1

 

[DCMartin]

XJT is being merged with ASA Holdings not SkyWest Holdings. Therefore SkyWest Airlines doesn't have to merge with XJT. It smells fishy but this apparently has already been pre-approved by Union leaders. The merger will only be ASA and XJT. This loophole was created after SkyWest failed on their first attempt.

 

[Medeco]

I hope that all labor parties involved will seek a fair and reasonable way to integrate so that we can all be one big happy family but it looks like the ExpressJet Flight Attendants are marking their territory already!

http://finance.yahoo.com/news/Machinist-Union-Responds-to-bw-2400749330.html?x=0&.v=1

That is pretty tough talk to come out of the gates with. Posturing is all this is, nothing more.

 

[Hypoxik]

XJT is being merged with ASA Holdings not SkyWest Holdings. Therefore SkyWest Airlines doesn't have to merge with XJT. It smells fishy but this apparently has already been pre-approved by Union leaders. The merger will only be ASA and XJT. This loophole was created after SkyWest failed on their first attempt.

Our MEC (XJT) hasn't even been approached yet. They will fight for the 1 list per our contract!

 

[sunlitpath]

Doesn't the buying airline (ASA), have more leverage in how lists are integrated? Hasn't this been the case historically?

 

[FL990]

And what their extremely competent and well paid legal staffs advised them was possible.

It's hilarious to watch a bunch of regional airline pilots try to out-think corporate MBAs, Skywest VPs and ivy-league lawyers.

I have to agree...it is quite comical! I'm not saying that I oppose a single list, nor am I saying that the contract will not lead to that conclusion, but to hear these guys on here speak so difinitively as if they are qualified and schooled in contract law is laughable.

There is no question that the legal team at INC have worked through this scenario and are confident in there position, so one thing is certain...IF there ends up being one list, IT ISN'T going to come as a surprise to them!

 

[XPOO]

You don't really believe this do you? Because if you do the respect for all your post's I've read will start to drop a little.

You think want you want. I'm not out to impress you. Instead of being presumptious, perhaps you'd like to tell us all exactly how EV and OO are NOT two seperate airlines.

 

[centralpilot]

Skywest owns ASA, they are linked!

Skywest INC does, not Skywest Airlines. I know it is all a BS corporate shell game, but I doubt this would have happened if INC wasn't sure about it. In the Atlantic Southeast Q&A, it was mentioned that ExpressJet would be a wholly-owned subsidiary of Atlantic Southeast (NOT Skywest INC) while the companies work out integration. Based on the language that has been quoted here, I think that distinction will protect Skywest Airlines from being forced to merge. The fact that Atlantic Southeast is itself a wholly-owned subsidiary of Skywest INC may not legally matter.

BTW, I hope I'm wrong. Some others are posting similar opinions but seem happy that Skywest INC found a loophole to protect their golden child. Screw that. One list would be the best case scenario for everyone long term. I just don't think it is going to happen right now. Either way, I hope this thing goes down smoothly and fairly for all involved.

 

[zawillif]

Look at United Technologies, Proctor and Gamble, General Electric, or Bershire Hathaway. These are all holding Inc's with many separate companies--a lot of which are very different from each other. It's the same thing here only its 3 similar companies.

 

[Bako Cap]

Our MEC (XJT) hasn't even been approached yet. They will fight for the 1 list per our contract!

It's stupid to come to the table with only one option. Like the USAir East pilots only wanting DOH with NO negotiating. If this 1List issue goes to arbitration and they lose, will the XJT MEC whine like the USAPA pilots?

Be willing to negotiate. It could work in ASA/XJT's favor. But, no one never know unless your MEC is willing to sit at a table without being thick headed.

(BTW, I want 1List, but don't want you guys to F yourselves in the process)

 

[cybourg10]

It's stupid to come to the table with only one option. Like the USAir East pilots only wanting DOH with NO negotiating. If this 1List issue goes to arbitration and they lose, will the XJT MEC whine like the USAPA pilots?

Be willing to negotiate. It could work in ASA/XJT's favor. But, no one never know unless your MEC is willing to sit at a table without being thick headed.

(BTW, I want 1List, but don't want you guys to F yourselves in the process)

He is talking about our scope clause which was intended to merge all the holding company's lists into one group with one contract. We at XJT are not looking for anything that would be unfair to our ALPA brothers. We want a fair integration with you guys but we also want the intent of our section 1 to be upheld (which would result in XJT/ASA/SKYW merging their pilot groups into one). I think you misinterpreted what he was getting at. We are on the same team here, it is not at all like the USAPA situation.

 

[maxcackel]

The question here is did INC's lawyers do enough homework since the last try at buying XE. Will a judge go for the shell game of making ASA a new holding company and buying XE leaving Skywest INC out of it? Might work, might not. Bad for all three pilot groups if it works.