Rumor Mill: Skywest buying Eagle

[damnflyboy]

If you think they care what you think, you are dead wrong.

Tattoo worthy right here.

 

[NWaviator]

Until Erlanger says it true, I will continue to consider this a made-up fantasy

This guy has been quite right over time and has Horizon guys shaking in their boots.

 

[Jon Rivoli]

The stronger rumor seems to be that we enter the Q400 market with the purchase of Horizon and perhaps the Lynx aircraft to expand our relationship with Alaska airlines.

Not Horizon, their cost structure is way too high and trying to merge seniority lists would resemble the Airways mess. Pilot wages aren't the only thing making them expensive, it has been a career company for all employee groups for a long time. I've been Portland based for week now and it's a dream job, had I been hired a Horizon 12 years ago I would have stayed. There is a reason the Horizon brand is going away and the planes are being painted in Alaska colors. Anyone can fly "Alaska Air Express". Not good for the good people at Horizon.

Lynx on the other hand is a bite sized morsel. I've heard that the cost of adding a new aircraft type to a certificate can run upwards of $20 million and the asking price for Lynx is in the neighborhood of $5 million. Four airplanes and maybe fifty pilots could easily be swallowed and five million out of a stash of almost is billion is an easy check to write.

 

[IBNAV8R]

Anything Jerry signs onto is not going to be "bite-size" or short-term. It would take a lot more than 4 or 5 airframes of a "new" type to make a competitive economy of scale. I'm guessing he's looking at 50+ and a ten-year commitment to make it worthwhile.

 

[Jon Rivoli]

It's a start, get the cert. and the FOM then put in a big order with Bombardier.

 

[wms]

SKW,inc will wait until eagle is spun off and then bid for their flying. Eagle is alpa and it would mean another merger with ASA/xjet. Won't happen.

 

[cbrown1]

Big rumor at skywest now is the q400, I've heard everything from, "its a done deal" to, "we've already ordered the airplanes". But the real thing to look at is the way some the people in certain positions are talking to pilots in the crew rooms about it.

 

[damnflyboy]

SKW,inc will wait until eagle is spun off and then bid for their flying. Eagle is alpa and it would mean another merger with ASA/xjet. Won't happen.

Does Jerry necessarily need to Merge Eagle with ASA/XJET for a purchase to happen? If not, he could just keep them separate.

 

[Fubijaakr]

Just a hunch, but I think it will be QX. Once the CEO announced they were going all CPA and abandoning the branded flying, it read between the lines as a done deal.

 

[PBRstreetgang]

I hate to say it, but Horizon is in Jerry's sights. Problem is that there are expensive pilots attached to the airframes Allegheny-Mohawk style. As soon as he can separate the airframes from the pilots, the deal will be done.
SKYW is mean, just plain mean.
PBR

 

[AntiJedi]

I hate to say it, but Horizon is in Jerry's sights.

SKYW is mean, just plain mean.
PBR

I think you can tack on AS management as well. They know they have to get costs down, and now they have a window to do so, but first, SKW would have to get Q400s on their certificate up and running, then slowly AS could bleed the QX flying out via RFP, giving the contract to SKYW, regardless of the other bids. Underhanded, sure, but it also keeps Colgan off property.

 

[wms]

Does Jerry necessarily need to Merge Eagle with ASA/XJET for a purchase to happen? If not, he could just keep them separate.

ALPA would fight for single list since It'd all be under the same parent company. Inc doesn't want to deal with that. besides, it would be cheaper to under bid and grow organically. they bough xe because it was a great deal and included 70-seat growth scope permitting.

 

[damnflyboy]

ALPA would fight for single list since It'd all be under the same parent company.

Gotcha. Thanks.

 

[PBRstreetgang]

I think you can tack on AS management as well. They know they have to get costs down, and now they have a window to do so, but first, SKW would have to get Q400s on their certificate up and running, then slowly AS could bleed the QX flying out via RFP, giving the contract to SKYW, regardless of the other bids. Underhanded, sure, but it also keeps Colgan off property.

The different management teams lay awake at night thinking up new ways to keep money. The contract flying concept has met the wet dream concept. Award a contract, renew occasionally, then when the employees gain a little seniority, award the contract to a new carrier! Hit reset and do over and over and over, allthewhile the pilots argue with each other as to who works for the best company.
PBR

 

[AntiJedi]

The different management teams lay awake at night thinking up new ways to keep money. The contract flying concept has met the wet dream concept. Award a contract, renew occasionally, then when the employees gain a little seniority, award the contract to a new carrier! Hit reset and do over and over and over, allthewhile the pilots argue with each other as to who works for the best company.
PBR

In this case, I'd bet that JA is playing the 'non-union contracter will be good for you' card.