nwa 70 seaters

[mnalpha]

was in the van with a shataukoua/repubic guy the other day and he was saying that the rumor was that they are getting a bunch of 70s to replace NWA's DC9s. I hope that he was just full of crap.

 

[blackbox]

was in the van with a shataukoua/repubic guy the other day and he was saying that the rumor was that they are getting a bunch of 70s to replace NWA's DC9s. I hope that he was just full of crap.

I am sure they are bidding on the RFP that NW put out. At this point anything and everything about 70 seat NWA flying is a rumor. No matter how inside the source is.

 

[YourPilotFriend]

NWA is looking for a company to buy the jets for them, MAIR is the most viable company at the moment; Thats from dougie himself. It all depends on what happens over the next 60 days, pretty much anything is game though. I don't think CHQ/REP is willing to go $3 billion in debt just over NewCo.

 

[Workin'Stiff]

I highly doubt MAIR's $120mill and change will buy very many new jets either... And with exec's at MAIR and XJ doin' a carpet dance in front of the financial community, I doubt anyone will be willing to finance the hundreds of millions it will take to accomplish this.

 

[EMB170Pilot]

how would any pilot know whats going to happen. We are always the last to find out about anything

 

[CoATP]

Ah but speculation and rumor can be accomplished by anyone ;-)

 

[YourPilotFriend]

I highly doubt MAIR's $120mill and change will buy very many new jets either... And with exec's at MAIR and XJ doin' a carpet dance in front of the financial community, I doubt anyone will be willing to finance the hundreds of millions it will take to accomplish this.

They want to throw $3 billion in debt to it. Doesn't matter which company it is, as long as it has a viable certificate, and is totally controled by NWA. NWA believes it can shed $3 billion of it's $9 billion dollar problem onto NewCo's shoulders.

 

[Tomct]

I think that NWA is smoking some BAD Crack! Get REAL!!

 

[FreezinginMN]

Last I heard (from a reputable source) Republic and Mesa were mentioned when discussing to whom NWA might outsource "Farm out" 70 seat flying.
NWA ALPA would obviously be strongly against this, and the appearance of a possible strike might stop such an idea. NEWCO will create 800 jobs in the short term and these jobs should all go to mainline.


And, something about ALPA allowing Mesaba to throw 85 seats in the AVROs. But, not sure if the company (NWA) was interested in the 85 seat offer.

 

[PBRstreetgang]

Press Release Source: SkyWest, Inc.

SkyWest, Inc. Files Registration Statement With Securities and Exchange Commission
Friday November 18, 6:17 pm ET

ST. GEORGE, Utah, Nov. 18 /PRNewswire-FirstCall/ -- SkyWest, Inc. ("SkyWest") (Nasdaq: SKYW - News) today announced the filing of a registration statement with the Securities and Exchange Commission for a proposed offering of 4,000,000 shares of Common Stock by SkyWest. The registration statement includes an underwriters' overallotment option to purchase from SkyWest an additional 600,000 shares. Merrill Lynch & Co. is the sole bookrunning manager for the proposed offering, and Raymond James & Associates, Inc. is acting as a co-manager.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

A copy of the final prospectus for the offering can be obtained from the offices of either:


Merrill Lynch, Pierce, Fenner & Smith Incorporated
4 World Financial Center, North Tower
New York, NY 10080

or

Raymond James & Associates, Inc.
880 Carillon Parkway
St. Petersburg, FL 33716
Any offering will be made only by means of a final prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

SkyWest, Inc., is a holding company that operates two independent subsidiaries, SkyWest Airlines, based in St. George, Utah, and Atlantic Southeast Airlines ("ASA"), based in Atlanta, Georgia. SkyWest Airlines operates as United Express and Delta Connection carriers under contractual agreements with United Air Lines and Delta Air Lines. ASA operates as a Delta Connection carrier under a contractual agreement with Delta Air Lines. System-wide, SkyWest, Inc. serves 212 cities in the United States, Canada, Mexico and the Caribbean, with over 2,400 daily departures. This press release and additional information regarding SkyWest, Inc. can be accessed at www.skywest.com.

In addition to historical information, this release contains forward-looking statements. "SkyWest" may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass SkyWest's beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: Delta's bankruptcy proceedings; the failure to integrate the operations and employees of SkyWest and ASA and achieve the anticipated synergies as a result of the acquisition; the failure to successfully operate as anticipated under the terms of the Delta Connection Agreements; the impact of negotiations with ASA's organized labor forces and the impact of the costs of such labor forces on SkyWest's operations and financial condition; the failure to accurately forecast acquisition-related costs; and the challenges of competing successfully in a highly competitive and rapidly changing industry. Other factors that may cause actual results to vary from SkyWest's expectations include developments associated with fluctuations in the economy and the demand for air travel; bankruptcy proceedings involving United; ongoing negotiations between SkyWest and its major partners regarding their contractual relationships; variations in market and economic conditions; employee relations and labor costs; rapidly escalating fuel costs; the degree and nature of competition; potential fuel shortages in markets where SkyWest Airlines or ASA operate; the impact of weather-related or other natural disasters on air travel and airline costs; the ability of SkyWest Airlines and ASA to expand services in new and existing markets and to maintain profit margins in the face of pricing pressures; aircraft deliveries; SkyWest's ability to obtain financing; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause actual results to differ from management's current expectations are contained in SkyWest's filings with the Securities and Exchange Commission, including the section of SkyWest's Annual Report on form 10-K, entitled "Factors That May Affect Future Results."

4,000,000 shares X 25.00per share=$100,000,000, wonder what they are gonna do with these clams?

 

[pianoman]

I don't understand. NW was the airline always refusing to match fare hikes of the other majors. Good planning there.

 

[SkyW120]

4,000,000 shares X 25.00per share=$100,000,000, wonder what they are gonna do with these clams?

They'll sit on it. I woudn't look too far into this...I think it's basic buy low and sell high opportunity. When they saw the stock running up into the low 30's they saw an chance to take some profit off the table. Jerry and Brad did the same thing in early December to cash in some of thier gains.

[FONT=Verdana, Helvetica, sans-serif]

nsiders bought and sold as SkyWest's stock soared

Common practice: The trades are perfectly legal as long as pertinent information has been made public

By Paul Beebe
The Salt Lake Tribune
Salt Lake Tribune

A cluster of top executives and directors at SkyWest Inc. sold nearly 187,000 shares after the airline company's stock reached a record high in November, following a four-month frenzy when the stock price almost doubled.

The sales took place as the stock price began to retreat from its all-time high of $32.84 on Nov. 11, with most of the activity happening between Dec. 9 and Dec. 15, according to documents filed with the U.S. Securities and Exchange Commission.

The group consisted of SkyWest CEO Jerry Atkin; Ron Reber, president of the St. George-based airline; Bradford Rich, chief financial officer, and directors Sidney Atkin and Steven Udvar-Hazy. Except for Reber, everyone also bought stock during the period, but their purchases were overshadowed by their sales, the documents show.

Rich said it isn't uncommon for insiders to sell stock for reasons unrelated to their companies. He bought and sold 25,000 shares on Dec. 15 for tax and financial planning reasons. It was his first sale in three years, and was a tiny fraction of more than 350,000 shares in stock options that he controls.

"These kinds of transactions are not uncommon as you get to the end of the year," Rich said. "It isn't an indication at all of how I feel about the company."

It isn't surprising that executives always seem to buy and sell stock at the right time. They have access to all the information they could want about their companies. And if they make trades solely on information that is made public, the practice of insider trading is perfectly legal and honorable. It's only when trades are made on material that isn't public that laws are broken.

There is no reason to believe the SkyWest group acted improperly.

In fact, the opposite is more likely. In August, the company made national headlines when it announced it had agreed to buy Atlantic Southeast Airlines, a subsidiary of ailing Delta Air Lines, for $425 million. The deal closed Sept. 7, one week before Delta filed for bankruptcy in a New York court.

At the time, SkyWest's stock was in the midst of an extraordinary rise. Beginning July 8, SkyWest shares began a four-month run that saw shares increase from $18.08 to an intra-day high of $34.09 on Nov. 11, before closing at a still-record $32.84.

Yet none of the five officers and directors bought SkyWest shares until Sept. 29, when Udvar-Hazy exercised an option to purchase 16,000 shares, well after Wall Street had digested news of the ASA acquisition. Jerry Atkin bought 15,000 shares on Dec. 13, and Sidney Atkin, Jerry Atkin's uncle, bought 99,500 shares between Dec. 11 and Dec. 15.

If insiders are buying shares in their own companies, it often means they see favorable business prospects or they think their stock is undervalued, said Michael Lemmon, a University of Utah finance professor.

"In general, insider buying predicts future returns better than insider selling does. So if there were any value to investors, it tends to be following insider buys rather than insider sales. One reason that might be the case is sales can be done for a lot of reasons," Lemmon said.

Other than two sales in July and September by Sidney Atkin, a director, and the November sale by Rich, the chief financial officer, no selling activity took place until December, four weeks after the company's stock had begun to decline and three months after the ASA deal.

What triggered the selling isn't clear.

"Investors might reasonably pose questions or wonder at that point why insiders are selling," said Hendrik Bessembinder, another University of Utah finance professor. "In principal, it could simply be liquidity needs, they might need cash for some purpose, or they know something negative."

It isn't clear why the executives and directors chose to sell earlier this month.

None of the securities analysts following SkyWest has a sell recommendation on the stock. In October, Ray Neidl, an airline analyst for Calyon Securities, improved his recommendation from "add" to "buy," acknowledging that SkyWest, which became the largest regional carrier in the country after buying ASA, is one of only a few U.S. airlines that is profitable and isn't flying in bankruptcy.

Lemmon said it's possible the sales were done to rebalance the individuals' assets and minimize their losses if the stock continues to lose value.

"When a stock has run up a lot, you can imagine that the insiders would want to achieve better diversification," he said. "In finance theory, we say people should want to hold well-diversified portfolios to minimize their risk. Insiders, in particular, have their wealth tied to one particular stock. So they have good incentives to minimize their risk by selling and investing elsewhere."

It's hard to draw broad conclusions about how the group feels about the company's stock. Jerry Atkin, the chief executive officer, still owns 1.7 million shares, while Sidney Atkin's shares total 1.4 million, suggesting neither is overly concerned.

Rich and Udvar-Hazy's holdings are more modest - 6,134 shares and 557 shares, respectively. Only Reber, who sold 50,000 shares on Dec. 13, has completely liquidated his shares.

"Selling is difficult to interpret unless you understand the reasons why they are selling. In this case, it may be pretty benign," Lemmon said. [/FONT]

 

[flyn96]

Skywest might very well be a contender for NWA flying but so is anyone else. The thing you non redtail family members need to know is NWA does not like to do anything or contract anyone they can't comlpete control. Mesaba and Pinnacle are infected with the NWA red tail measles at every level and NWA has complete and utter control of both even if doesn't show it on paper. At this point I would not wish the Red Tail Measles upon anyone.

 

[dondk]

The thing you non redtail family members need to know is NWA does not like to do anything or contract anyone they can't comlpete control. Mesaba and Pinnacle are infected with the NWA red tail measles at every level and NWA has complete and utter control of both even if doesn't show it on paper. At this point I would not wish the Red Tail Measles upon anyone.

The truest statement yet.... Unless aonther carrier is going to hand the keys to the operation over to NWA brass, it is not going to happen. NWA are the ultimate puppet masters when it comes to the red tail family.

 

[kngarthur]

was in the van with a shataukoua/repubic guy the other day and he was saying that the rumor was that they are getting a bunch of 70s to replace NWA's DC9s. I hope that he was just full of crap.

I think the writing is on the wall! Republic is not only going to get awarded some of the 70 seat flying, but all! The E170 is a superior airplane to the CRJ7--which Republic has locked in for the next 3 years. Skywest only has one certificate. Transtates/*************************s/Mesa just suck! Pinnacle has a bad track record.

Plus red tails that say Republic will piss off all the liberals!

 

[YourPilotFriend]

NWA holdings makes money off of leasing aircraft, not operating them. They want to start up a new subsidary to do the same thing, and shed the debt of a fleet upgrade from the parent. Hiring a company like Mesa, completely defeats the purpose of NWA's business plan. NWA is basically outsourcing it's entire DC-9 fleet to a regional carrier that it totally controls. (9E/XJ)

 

[kngarthur]

NWA holdings makes money off of leasing aircraft, not operating them. They want to start up a new subsidary to do the same thing, and shed the debt of a fleet upgrade from the parent. Hiring a company like Mesa, completely defeats the purpose of NWA's business plan. NWA is basically outsourcing it's entire DC-9 fleet to a regional carrier that it totally controls. (9E/XJ)

I thought that they were RESTRUCTURING their business plan.

 

[DoinTime]

NWA holdings makes money off of leasing aircraft, not operating them.

To say NWAC makes money off of subleasing aircraft is not quiet accurate. THEY MAKE A CRAPLOAD OF MONEY OFF OF SUBLEASING.

Pinnacle's CRJ fleet is owned by Wells Fargo who in turn leases them to NWAC for about $85-90 thousand per month each. This is about the current market lease rate for a CRJ. NWAC turns around and subleases these same aircraft to Pinnacle for about $185 thousand per month. This yields approximately $14,000,000/month in gross profits for NWAC for the subleasing of PCL's fleet alone with almost no overhead.

The dirtiest part of the deal is that NW dictates all of the operations for PCL and they dictated that we park 15 CRJ's recently. But just because we had to park these aircraft doesn't mean we don't have to pay the overly inflated lease rates. So now PCL is paying almost $2.8 million per month to lease aircraft that we are not allowed to use.

This exemplifies the type of control that NWAC exerts over its affiliate carriers. I would doubt that NW gets to many other regional carriers even will to put in a bid for their flying.