ASA / Skywest / ExpressJet

[NotTooBad]

Wouldn't it make sense to earn more money on your money while securing more money for yourself? Sounds to me like aviation businessmen doing an exceptional job. Should we continue to criticize them for making decisions that benefit us all (mainline and regional)?

1: United obviously needed money given they accepted the terms. The could clearly justify the expense. Some will say its a desperate attempt to exist, however the amount SKYW gave them is relatively insignificant to the losses they incurred last year.

2: Skywest obviously wanted new flying or they wouldn't have bid for it in the first place. Why shouldn't they make more money while obtaining their original goal?

Please remember they run a business. Fact is SKYW management does a hell of a job too. Not perfect - but damn sure better than most.

 

[SSDD]

Skywest got more than just new flying for that loan. They also got some concessions from UA dealing with the whole Express operation.

 

[10nCLR]

The term loan bears interest at a rate of 11%, with a ten-year amortization period. The term loan is secured by certain ground equipment and airport slot rights held by United. SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines under the existing United Express Agreement. The maximum deferral amount is $49 million and any amounts so deferred accrue a deferral fee of 8%, payable weekly. United’s right to defer such payments is scheduled to terminate in ten years.

 

[wms]

I don't think it's any secret that every airline is ready to pounce on any opportunity created by the demise of their competition.

 

[rene]

The term loan bears interest at a rate of 11%, with a ten-year amortization period. The term loan is secured by certain ground equipment and airport slot rights held by United. SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines under the existing United Express Agreement. The maximum deferral amount is $49 million and any amounts so deferred accrue a deferral fee of 8%, payable weekly. United’s right to defer such payments is scheduled to terminate in ten years.

Which makes them just another very large unsecured creditor when UAL files for BK-CH-11 again sometime during the next 10 years. Which many believe is an almost certain event.

I guess history will determine what airline made the best strategic choices?

 

[rtmcfi]

Which makes them just another very large unsecured creditor when UAL files for BK-CH-11 again sometime during the next 10 years. QUOTE]

The term loan is secured by certain ground equipment and airport slot rights held by United.

So which is it?? Secured or unsecured?

 

[dojetdriver]

Please remember they run a business. Fact is SKYW management does a hell of a job too. Not perfect - but damn sure better than most.

And that's a damn truthful statement right there. Since 9/11, their management has navigated the landscape they operate in almost flawlessly. As far as running a business goes. Seriously, has their management done ANYTHING that wasn't good for their business? The same could almost be said for RAH. But who knows how the reverend's latest actions will shake out in the big picture.

But just like your statement is right on, running a successful business isn't coincident with successful airline employee careers is also.

 

[cybourg10]

XJT is looking to pick up Freedumb's EMB-145s.......source from multiple human beings on planet earth.

 

[hou757]

XJT is looking to pick up Freedumb's EMB-145s.......source from multiple human beings on planet earth.

Would love to see these go to XJT. Well deserved.

 

[XPOO]

And what aircraft is SkyWest going to use to cover this Mesa meltdown? They had to pull two more 200s out of the desert to cover their own flying for the next few months. Almost 1900 flights a day now.