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Rumor Mill: Skywest buying Eagle

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zawillif

zawillif

Well-known member
Joined
Nov 12, 2005
Posts
602
Heard it from a guy who knows a guy. Says there would be a 20 year CPA with the purchase. Asking price would be in the high hundreds of millions. Anyone else hear this?
 
Never going to happen. It doesn't make sense. If Skywest buys Eagle it probably means AMR is done with regional feed.

CAL & UAL scope is going to make Skywest a lot different than we know it to be today.
 
Metro752 said:
Never going to happen. It doesn't make sense. If Skywest buys Eagle it probably means AMR is done with regional feed.

CAL & UAL scope is going to make Skywest a lot different than we know it to be today.
Click to expand...

I think it could happen. Skywest wants to diversify its feed and add American as a partner. Right now there is too much competition in the regional market to have any pricing power. Jerry wants to change that.

CAL & UAL scope is going to make Skywest a lot different than we know it today. I forsee bigger airplanes, code share agreements and international bases.
 
AntiJedi said:
Yeah, I was thinking to myself that there was no way that SkyWest was going to leverage its entire cash balance on a company that might envertiably put them out of business.
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Like they did with ExpressJet??
 
WWEfan said:
I think it could happen. Skywest wants to diversify its feed and add American as a partner. Right now there is too much competition in the regional market to have any pricing power. Jerry wants to change that.

CAL & UAL scope is going to make Skywest a lot different than we know it today. I forsee bigger airplanes, code share agreements and international bases.
Click to expand...

Are you an advocate of B scale, or even C scale wages?

Come on!

I doub't AMR cares about what Skywest wants to do. Why would they give up so much control? Skywest couldn't possibly do it any cheaper than Eagle already does. The only thing AMR would gain is less liability it would seem, and maybe selling off Eagle to finance a bankruptcy or avoid one all together.

Just a guess, and I'm not an expert.
 
A purchase of Eagle seems way too big right now. It feels like Skywest Inc. is focused on keeping the wheels from coming off while they finish integrating XJT & ASA.

The stronger rumor seems to be that we enter the Q400 market with the purchase of Horizon and perhaps the Lynx aircraft to expand our relationship with Alaska airlines.
 
Until Erlanger says it true, I will continue to consider this a made-up fantasy
 
WWEfan said:
I think it could happen. Skywest wants to diversify its feed and add American as a partner. Right now there is too much competition in the regional market to have any pricing power. Jerry wants to change that.

CAL & UAL scope is going to make Skywest a lot different than we know it today. I forsee bigger airplanes, code share agreements and international bases.
Click to expand...

I guess we will see with the coming "new identity" for ASA/ExpressJet. But if they think "economy of scale" is going to fill me with enthusiasm and convince me to be happy with paycheck stagnation while the company grows around me, they're dead wrong.
 
AMR is going to do what they need to do to stay in business. Just like DAL needed to raise cash by selling ASA, American may need to do the same thing. Jerry has the cash. For the right deal I could see it happening. He doesn't even have to merge it with ASA/XJT...at least not until that fiasco of a merger is over.

But I have no idea what the price tag would be. How many airplanes does Eagle own? How many are on lease? How long of a CPA could AMR guarantee? Lots of questions I don't know the answer to.
 
Flyerdan said:
The stronger rumor seems to be that we enter the Q400 market with the purchase of Horizon and perhaps the Lynx aircraft to expand our relationship with Alaska airlines.
Click to expand...

Not Horizon, their cost structure is way too high and trying to merge seniority lists would resemble the Airways mess. Pilot wages aren't the only thing making them expensive, it has been a career company for all employee groups for a long time. I've been Portland based for week now and it's a dream job, had I been hired a Horizon 12 years ago I would have stayed. There is a reason the Horizon brand is going away and the planes are being painted in Alaska colors. Anyone can fly "Alaska Air Express". Not good for the good people at Horizon.

Lynx on the other hand is a bite sized morsel. I've heard that the cost of adding a new aircraft type to a certificate can run upwards of $20 million and the asking price for Lynx is in the neighborhood of $5 million. Four airplanes and maybe fifty pilots could easily be swallowed and five million out of a stash of almost is billion is an easy check to write.
 
Anything Jerry signs onto is not going to be "bite-size" or short-term. It would take a lot more than 4 or 5 airframes of a "new" type to make a competitive economy of scale. I'm guessing he's looking at 50+ and a ten-year commitment to make it worthwhile.
 
It's a start, get the cert. and the FOM then put in a big order with Bombardier.
 
SKW,inc will wait until eagle is spun off and then bid for their flying. Eagle is alpa and it would mean another merger with ASA/xjet. Won't happen.
 
Big rumor at skywest now is the q400, I've heard everything from, "its a done deal" to, "we've already ordered the airplanes". But the real thing to look at is the way some the people in certain positions are talking to pilots in the crew rooms about it.
 
wms said:
SKW,inc will wait until eagle is spun off and then bid for their flying. Eagle is alpa and it would mean another merger with ASA/xjet. Won't happen.
Click to expand...

Does Jerry necessarily need to Merge Eagle with ASA/XJET for a purchase to happen? If not, he could just keep them separate.
 
Just a hunch, but I think it will be QX. Once the CEO announced they were going all CPA and abandoning the branded flying, it read between the lines as a done deal.
 
I hate to say it, but Horizon is in Jerry's sights. Problem is that there are expensive pilots attached to the airframes Allegheny-Mohawk style. As soon as he can separate the airframes from the pilots, the deal will be done.
SKYW is mean, just plain mean.
PBR
 
PBRstreetgang said:
I hate to say it, but Horizon is in Jerry's sights.

SKYW is mean, just plain mean.
PBR
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I think you can tack on AS management as well. They know they have to get costs down, and now they have a window to do so, but first, SKW would have to get Q400s on their certificate up and running, then slowly AS could bleed the QX flying out via RFP, giving the contract to SKYW, regardless of the other bids. Underhanded, sure, but it also keeps Colgan off property.
 
damnflyboy said:
Does Jerry necessarily need to Merge Eagle with ASA/XJET for a purchase to happen? If not, he could just keep them separate.
Click to expand...

ALPA would fight for single list since It'd all be under the same parent company. Inc doesn't want to deal with that. besides, it would be cheaper to under bid and grow organically. they bough xe because it was a great deal and included 70-seat growth scope permitting.
 
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AntiJedi said:
I think you can tack on AS management as well. They know they have to get costs down, and now they have a window to do so, but first, SKW would have to get Q400s on their certificate up and running, then slowly AS could bleed the QX flying out via RFP, giving the contract to SKYW, regardless of the other bids. Underhanded, sure, but it also keeps Colgan off property.
Click to expand...
The different management teams lay awake at night thinking up new ways to keep money. The contract flying concept has met the wet dream concept. Award a contract, renew occasionally, then when the employees gain a little seniority, award the contract to a new carrier! Hit reset and do over and over and over, allthewhile the pilots argue with each other as to who works for the best company.
PBR
 
PBRstreetgang said:
The different management teams lay awake at night thinking up new ways to keep money. The contract flying concept has met the wet dream concept. Award a contract, renew occasionally, then when the employees gain a little seniority, award the contract to a new carrier! Hit reset and do over and over and over, allthewhile the pilots argue with each other as to who works for the best company.
PBR
Click to expand...

In this case, I'd bet that JA is playing the 'non-union contracter will be good for you' card.
 

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