SKYW wants to buy another airline?

[NWaviator]

Skywest isn't buying QX. The word is that QX will continue to fly Dash 8s for Alaska and Skywest will fly the RJs for Alaska. Alot of us aren't looking forward to that since it's going to create bitterness and resentment when a Skywest RJ comes pulling up next to a Dash 8. It's not going to be pretty folks.

True... It sure won't be pretty... Esspecially from the older RJ captains that have been there for 20+ years.

 

[bigshooter107]

Skywest buys alaska, they need a company with their reservation system to go out on their own.

 

[AntiJedi]

Skywest buys alaska, they need a company with their reservation system to go out on their own.

Where could/would they get the minimum 1.5B in funding to accomplish that?

 

[rtmcfi]

Where could/would they get the minimum 1.5B in funding to accomplish that?

Not that I believe that SkyWest has any intention of buying anyone, but 1.5 B would be no problem to come up with. They have more than half that in cash. Getting a loan would be no big deal.

 

[BornAgainPagan]

Of course they want to buy another airline. They want to own all the regional feed in the country so they can start dictating price to their mainline partners instead of them telling us what we will be paid.

I imagine that the mainline/regional relationship is like a Whack-a-Mole game. I believe mainline will always have the upper hand as there will always be a new regional to undercut SKW etc..

The only way that SKW can dictate price to mainline is if they build their own branded flying to a significant enough market share. However, then they'll lose feed for mainline.....sort of a catch 22.

Regionals will always be stuck at the bottom.

 

[Nevets]

I imagine that the mainline/regional relationship is like a Whack-a-Mole game. I believe mainline will always have the upper hand as there will always be a new regional to undercut SKW etc..

Skywest already does that on their own. They already have a built in regional to undercut themselves.

 

[flyingfool]

Skywest buys alaska, they need a company with their reservation system to go out on their own.

They got that when they bought ExpressJet.

 

[Thebadcat1313]

Not that I believe that SkyWest has any intention of buying anyone, but 1.5 B would be no problem to come up with. They have more than half that in cash. Getting a loan would be no big deal.

Alaska is trading at $62.76 per share..... Market cap around 2.3 Billion.... I'm not Gordon Gekko. I'm assuming on a straight buyout, shareholders ain't gonna be happy unless they get a FAT premium for that....I'd say minimum double the share price.... Meaning SkyWest would have to pony up in the neighborhood of 4 billion... More, if shareholders want more... That's just the buyout... Now there are many different ways to handle an acquisition, merger, I realize but it's gonna BE REALLY STiCKY with a Regional Airline buying a Legacy airline.... In other words, it would have to be non-cooperative/hostile. Nobody has the kinda jack it would take to purchase Alaska, unless they want to be purchased, acquired, bought, what have you.

 

[BigPappa]

Alaska is trading at $62.76 per share..... Market cap around 2.3 Billion.... I'm not Gordon Gekko. I'm assuming on a straight buyout, shareholders ain't gonna be happy unless they get a FAT premium for that....I'd say minimum double the share price.... Meaning SkyWest would have to pony up in the neighborhood of 4 billion... More, if shareholders want more... That's just the buyout... Now there are many different ways to handle an acquisition, merger, I realize but it's gonna BE REALLY STiCKY with a Regional Airline buying a Legacy airline.... In other words, it would have to be non-cooperative/hostile. Nobody has the kinda jack it would take to purchase Alaska, unless they want to be purchased, acquired, bought, what have you.

Wow, what rock did you crawl from under? Did you not follow the Express Jet acquisition news? What happened to those share holders? You can google it.

 

[IBNAV8R]

Bad Kitty:

You assume, sir, that a buyer would have to buy ALL outstanding stock. In reality, it would only take 50% plus one share to have controlling interest. Comparing net assets, Skyw has 1.3B while ALK has 873M. Don't think it would take much to get the required leverage. OTOH, I don't think Jerry would go for that unless he saw a huge payout. Besides, a regional buying a "major"? It'd NEVER happen.

 

[Thebadcat1313]

Wow, what rock did you crawl from under? Did you not follow the Express Jet acquisition news? What happened to those share holders? You can google it.

The XJT shareholders got triple the payout in that aquisition

 

[Thebadcat1313]

Bad Kitty:

You assume, sir, that a buyer would have to buy ALL outstanding stock. In reality, it would only take 50% plus one share to have controlling interest. Comparing net assets, Skyw has 1.3B while ALK has 873M. Don't think it would take much to get the required leverage. OTOH, I don't think Jerry would go for that unless he saw a huge payout. Besides, a regional buying a "major"? It'd NEVER happen.

I was understanding the discussion as a straight buyout....not a merger. Like I stated in my previous post, ALK would want it (not gonna happen). I do see your kind of scenario with DAL, however. Not SKYW. I do frealize there are numerous ways to handle acquisitions, mergers buyouts etc.

 

[dojetdriver]

They got that when they bought ExpressJet.

No, they didn't. That went away 2+ years ago when branded ops shut down. As far as selling tickets as a reservation system goes.

 

[WAVIT Inbound]

Skywest isn't buying QX. The word is that QX will continue to fly Dash 8s for Alaska and Skywest will fly the RJs for Alaska. Alot of us aren't looking forward to that since it's going to create bitterness and resentment when a Skywest RJ comes pulling up next to a Dash 8. It's not going to be pretty folks.

Why would you be mad at us? SkyWest pilots or even SkyWest are not the one's who decided QX should be an ALL TURBO PROP feet.

That was your Management. Be mad at them.

 

[flyingfool]

No, they didn't. That went away 2+ years ago when branded ops shut down. As far as selling tickets as a reservation system goes.

Just because they don't do the flying anymore doesn't mean they don't have the software anymore. That is the expensive part. Skywest could easily hire people to answer phones and make reservations. They already have a new building in SLC for it. They could start that at anytime. I don't think it's going to happen though.

 

[RNP.15]

Skywest people, you need to get over your selves, your not going to buy Alaska. Horizon now that a different story. I could see that.

 

[NWaviator]

Everyone wants everyone elses flying. Everyone is selfish and wants to upgrade. Welcome to the future Alaska Air Express.

 

[captain822]

heard today, SKYW wants to buy another airline..wonder if they will go for another regional or maybe a company with bigger airplanes. How is the Brazilian airline they bought into doing? Tripp i think its called..does owning shares in a airline in south america help stock prices of skywest?

I'll try to contribute to the original post. Historically, SkyWest has made investments they consider "safe". I wouldn't be surprised if they just made an additional investment in TRIP Linhas Aereas. SkyWest owns 20% of TRIP, the max allowed under Brazilian law. That law is going to change to allow 49% foreign ownership.

The initial investment of $30 million could be raised to almost $74 million. Peanuts! Not sure what they have in mind for the $900 million sitting in the bank.

As far as TRIP's stock price, I'm not sure. I believe it is privately owned.

http://blogs.wsj.com/deals/2010/12/...il-opening-its-airlines-to-foreign-ownership/

 

[yahooair]

Im wondering if that is a new trend. buy airlines in other countries..south america is exploding with new entries and asia as well

 

[10nCLR]

I'll try to contribute to the original post. Historically, SkyWest has made investments they consider "safe". I wouldn't be surprised if they just made an additional investment in TRIP Linhas Aereas. SkyWest owns 20% of TRIP, the max allowed under Brazilian law. That law is going to change to allow 49% foreign ownership.

The initial investment of $30 million could be raised to almost $74 million. Peanuts! Not sure what they have in mind for the $900 million sitting in the bank.

As far as TRIP's stock price, I'm not sure. I believe it is privately owned.

http://blogs.wsj.com/deals/2010/12/...il-opening-its-airlines-to-foreign-ownership/

I've been saying this for over a year now. They invest more now since foreign ownership is up to 49%. A robust expanding economy with an increasing young middle class willing to travel, soon to be hosts for the Summer Olympics and the World Cup. The opportunity is there and it's all about the timing. The company is still private and has a great management team, but when it goes public....lookout!! Easy $$$$$$.