FlyingDawg
Well-known member
- Joined
- Aug 1, 2002
- Posts
- 239
Bedford's theory is to not buy a company larger than yourself. In doing so the labor rules of the larger company would prevail and that is not good because something isn't working right if they are for sale.
Rumor is, some of the current codeshares want RAH to purchase their higher cost codeshares, thus reducing their costs when RAH inherits the contract.
Current speculation is that DAL is wanting RAH to purchase Comair.
That being said, RAH will not buy Comair in its current form. Some aircraft would need to disappear first and fewer pilots employed there.
However I have discovered and pieced together (and current rumors outside of RAH tend to support) through multiple sources and higher ups that RAH might be up to something completely different.
The only thing that makes me think that this is BS is the sheer complexity of the whole scheme and how much must fall into place at the exact right time; not to mention the number of companies involved in the plan.
Here's the basics:
RAH acquires additional 145 aircraft to operate the CO codeshare. These aircraft come from a current 145 operater who in turn picks up CRJs that are very cheap on the open market to replace ERJs (MESA). Chautauqua still operates a single type and MESA transitions to a single CRJ type (as it relates to the 50 seaters). Both companies win by operating a single type. In addition RAH 145s in United colors (possibly some US codeshare aircraft as well) are transitioned to CO codeshare.
In the meantime, Expressjet enters codeshare agreements to operate aircraft for another codeshare (AMR) or on their own (charter). At some point in time this unit is spunoff or sold, thus downsizing Expressjet. At that time RAH buys the unit operating the CO codeshare (BB "buy smaller approach"). Chautauqua still operates a single type.
The recent announcement by CO to bid out their express flying has put Expressjet on notice. They must reduce costs or risk losing addition aircraft at the next round in 2 years. This might be a better scenario than competing and a possibility of withering on the vine. Placing 69 aircraft can't be an easy task. But trying to do it 4 times is a nightmare. Management has a fiduciary duty its shareholders, this might be their answer.
Like I said, pretty complex. But Wexford has alot of money to play the game, and has ALWAYS been there for RAH financial wellbeing. They have also been rewarded for it.
Now go shoot it down. But remember you heard it here first!
Rumor is, some of the current codeshares want RAH to purchase their higher cost codeshares, thus reducing their costs when RAH inherits the contract.
Current speculation is that DAL is wanting RAH to purchase Comair.
That being said, RAH will not buy Comair in its current form. Some aircraft would need to disappear first and fewer pilots employed there.
However I have discovered and pieced together (and current rumors outside of RAH tend to support) through multiple sources and higher ups that RAH might be up to something completely different.
The only thing that makes me think that this is BS is the sheer complexity of the whole scheme and how much must fall into place at the exact right time; not to mention the number of companies involved in the plan.
Here's the basics:
RAH acquires additional 145 aircraft to operate the CO codeshare. These aircraft come from a current 145 operater who in turn picks up CRJs that are very cheap on the open market to replace ERJs (MESA). Chautauqua still operates a single type and MESA transitions to a single CRJ type (as it relates to the 50 seaters). Both companies win by operating a single type. In addition RAH 145s in United colors (possibly some US codeshare aircraft as well) are transitioned to CO codeshare.
In the meantime, Expressjet enters codeshare agreements to operate aircraft for another codeshare (AMR) or on their own (charter). At some point in time this unit is spunoff or sold, thus downsizing Expressjet. At that time RAH buys the unit operating the CO codeshare (BB "buy smaller approach"). Chautauqua still operates a single type.
The recent announcement by CO to bid out their express flying has put Expressjet on notice. They must reduce costs or risk losing addition aircraft at the next round in 2 years. This might be a better scenario than competing and a possibility of withering on the vine. Placing 69 aircraft can't be an easy task. But trying to do it 4 times is a nightmare. Management has a fiduciary duty its shareholders, this might be their answer.
Like I said, pretty complex. But Wexford has alot of money to play the game, and has ALWAYS been there for RAH financial wellbeing. They have also been rewarded for it.
Now go shoot it down. But remember you heard it here first!
