It's official...ASA to operate UAX

[EngineOut]

SkyWest appears to have paid for the right to keep 40 UAX aircraft in operation for United for the rest of the lease periods.

Wrong. SkyWest loaned the money to United at 11% interest. SkyWest could have kept their money in the bank, gaining interest, or they could have made this agreement to lend the money to United, gain interest, secure additional flying, and secure current flying with a longer contract. This wasn't a trade for shares like the Air Wisconsin/US Air deal, this was a business loan. SkyWest makes a great business move again![/QUOTE]

Whatever.

Let me correct that: We exchanged cash with United for the 40 aircraft continued UAX service, 11% interest, 13 ASA/UAX aircraft, right of first refusal on Qs, a Hershey's bar, and two cans of Pepsi.

 

[EngineOut]

Duplicate post

 

[EngineOut]

Duplicate post

 

[WalterSobchak]

Let me correct that: We exchanged cash with United for the 40 aircraft continued UAX service, 11% interest, 13 ASA/UAX aircraft, right of first refusal on Qs, a Hershey's bar, and two cans of Pepsi.

I got dibs on one of those Pepsis...

 

[LazyLightnin']

The FAQ mentions crew bases are in the works, but will be announced later when the city or cities are determined.

I'm guessing CAE as one.

 

[BoilerUP]

This wasn't a trade for shares like the Air Wisconsin/US Air deal

You're right.

Eastshore Aviation (nee the private owners of AWAC) made well over 100% ROI selling the shares they got in exchange for the $125M exit financing they gave US Airways in less than 36 months, while securing a 10-year capacity lift deal for AWAC's 70 CRJ-200s that's good until 2015.

This is a great deal for Skywest Inc. as it keeps otherwise out-of-work airplanes in revenue service, guarantees they won't have to eat 40 airplane leases should their contract have been ended, and provides a healthy 11% return on their investment.

Which, when you think about it, is pretty much what Eastshore/AWAC did.

 

[shamrock]

I got dibs on one of those Pepsis...

I see the Pepsi/UAL vs. Coke/DAL issue as being the real problem here...

 

[XPOO]

Good investment if nothing else pans out: $52M in interest recevied by end-of-term--United's credit must be toiletized. Any those are large turboprops, not turbojets [fwiw]...

I kinda figured I wouldn't have to say the word Q4. I thought it was implied.

 

[shamrock]

I'm guessing CAE as one.

The deal is for United flying so I'm guessing we won't see anything new on the DAL/ASA front or any bases new bases outside of ORD or IAD.

 

[WalterSobchak]

I see the Pepsi/UAL vs. Coke/DAL issue as being the real problem here...

I believe UAL is Coke now.