XJT??? Didn't they just get the flying out of NY?
It seems to me that Skywest management has gotten too big for their britches: They lost of LA flying. They allowed DL to put XJT in SLC. They've pretty much have been run out of ATL. They haven't been willing to add another type on the property to work with Southwest. They have filed suit against DL in order to get paid...I don't know, $1 billion in the bank its great, but they seem to have lost their favority child status.
1. The LAX contract for feed is 2 years, with loopholes.
2. Skywest did not lose lose the LAX flying. The SW airline could not bid it at the time due to United contracts.
3. COEX was awarded the contract due to all of the stated reasons in other posts. They low bid it as it was one element in the plan to establish their "Independence type" operation in California (Ontario). By the way, how is the profitabilty of that operation???? They are rumored to be losing their shirt, shorts, and socks. Bottom line, it is not profitable due for multiple reasons--the low bid is only one reason.
4. ASA, wholly owned of Skywest, Inc., flew 5 planes in LAX for about 7 months for ONE MAJOR REASON! It was a timing issue with the COEX award and a hostile move by the LAX airport. The LAX airport petitioned the Bankruptcy court to release unused gates by Delta so that they could lease them out to other competitors--at higher lease payments. It appears, in an end-around-move, that the ASA operation was designed to be a temporary move to UTILIZE the GATES in DISPUTE, until the start date of COEX in June of '07. It APPEARS, that the strategy worked!
5. No slam on COEX, but it appears that it's bid for the DCI flying out of LAX, was so deficient, along with it's separate "Independence type" campaign in California is losing so much money, that investors are revolting and attempting to pressure COEX to cease and desist such bad business practices.
6. A statement was made that SKYWEST Mgmt was getting too big for their britches for the reasons you stated. Your charges are a MAJOR mischaracterization of the facts. Shame on you!
a. Skywest only bids on profitable flying! Their bids
reflect this goal. Why would any good business
do otherwise? COEX is losing money on the LAX
flying. I would have to say that Skywest was
the real winner in this bid because they are not
bleeding red for shortsidedness! COEX will be
financially weaker as a result, and Skywest will
remain strong--and with more cash on hand!
Can I get an AMEN?
b. Skywest Airlines has not been run out of ATL.
At least one plane was sighted last week.
Skywest, Inc., is still stron in ATL--at least
80% of the DCI, ATL flying strong! What's
point?
c. Skywest doing business with Southwest? Ha Ha
They do have reciprocal ZED Fares! You have
bad info--your supposition is not congruent with
Southwest's philosophy and never will be!
d. Their lawsuit is a "friendly dispute" on the terms
of Skywest, Inc.'s contract with Delta. It
apparently centers around compensation for
cancellation of ASA flights during times of IROPs,
when flights were cancelled by the mothership.
No resolution to the terms in dispute could be
reached by the parties of the contract. The
normal next step is to allow the court to
interpret and define, unless the parties can
reach a settlement sooner. This is just normal
business and part of the process. It is not the
end of a good and working partnership.
e. $1 billion in the bank is more than good for the
size company and balance sheet that Skywest
has! It will allow them to survive, thrive, and
contrive in future opportunites. Cash is King!
Skywest, Inc, did not get in this position by
luck! It is a well oiled machine. SMART,
PRUDENT, and STRATEGIC business decisions
are practiced by a very disciplined group of
Corporate Leaders. They will survive well
when others, who lack the talent and acumen,
fail around them!
In summary, in regard to your COEX vs. Skywest Inc, argument in LAX, an old Chinese Warrior once said, in paraphrase, "If your enemy is destroying himself, DON'T get in the way!"
My words: Just be there to pick up the pieces--for future opportunities with less competition or a weaker competitior!