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.

 

[NoJoy]

I thought UA was Coke Zero?

 

[Cpt Oveur]

I had to reread the announcement, but Skywest, INC was awarded this flying. Guess what happens when ASA throws PBS out? Yes, that's right boys and girls, they take the flying from ASA and give it to Skywest. This will be leverage in the contract negotiations and for PBS.

Thirty turboprops for United? Any guesses? The q400 or ATR can carry more than the Mesa Dash 8's out of Denver. What happens when/if Mesa goes bankrupt?

 

[EngineOut]

I had to reread the announcement, but Skywest, INC was awarded this flying. Guess what happens when ASA throws PBS out? Yes, that's right boys and girls, they take the flying from ASA and give it to Skywest. This will be leverage in the contract negotiations and for PBS.

Thirty turboprops for United? Any guesses? The q400 or ATR can carry more than the Mesa Dash 8's out of Denver. What happens when/if Mesa goes bankrupt?

I really think this is prepositioning SkyWest, Inc. to takeover that Mesa flying (Dashes in DEN, and -200s in ORD). Which would, asI understand it, put Mesa in bankruptcy. Then, the rest of the Mesa United stuff would be up for grabs as well -- ASA gets all the IAD flying, SkyWest gets all the flying from ORD to points west.

I can see SkyWest loaning money to UAL as a hedge against JO offering to renegotiate rates below his cost to keep the UAL flying. This potential Mesa tactic has been identified by some of our management as a likely scenario in the event United gives notice to cancel/not renew.

 

[EngineOut]

I had to reread the announcement, but Skywest, INC was awarded this flying. Guess what happens when ASA throws PBS out? Yes, that's right boys and girls, they take the flying from ASA and give it to Skywest. This will be leverage in the contract negotiations and for PBS.

Thirty turboprops for United? Any guesses? The q400 or ATR can carry more than the Mesa Dash 8's out of Denver. What happens when/if Mesa goes bankrupt?

I don't know what ASA's announcement says, but they have edited all on our side. They've deleted all mention of large turboprops and Q400s from the iShare and internal company release. That's kinda' odd, huh?

 

[LazyLightnin']

What's this crap I hear about the only ones who get United pass benefits are the ones doing the flying? If you're doing the United stuff, do you lose the Delta benefits as well? If not, that's horse hockey.