Rumor Mill: Skywest buying Eagle

[NWaviator]

I personally dont' think too many QX guys/gals would be upset with being bought by SkW. Of course with fair seniority integration and fences. People that want to fly jets can upgrade to IAH and SKW that want to stay up in the NW can fly the mighty Q. I personally feel that the best growth for QX would be with SKW. Sad but true.

 

[cbrown1]

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.

If that's true why didn't alpa force the issues with skywest?

 

[Jon Rivoli]

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.

SkyWest's rates on the 700 are about 20% lower than Horizon's were. I have heard that they are lower than Horizon's Q400 rates. SkyWest doesn't need to get Q's on the property to further displace Horizon. A mix of 700's and 200's could do it. I have heard that it is United that wants the Q400's.

If SkyWest wants Q400's, buying Lynx would be a far easier way to do it, get the cert and put an order in with Bombardier.

And, the flying we are doing for Alaska wasn't put up for bid. SkyWest was taking all of the 700's from them and along the way the subject of contract rates came up. Alaska was done with RJ's, but when they learned the rates Skyw charges they didn't believe it. As I said above, about 20% less than Horizon. The result of those conversations was a tentative deal for five airplanes to prove the concept. Once Alaska is satisfied that the rates are for real, there is more to come. We opened both SEA and PDX with enough crews for 9 airplanes when we are only flying 5 for Alaska, we wouldn't do that unless we were pretty sure there would be more coming.

There are many markets that are viable at Skyw's rates that weren't with Horizon.

 

[fo.mafia.4 life]

If that's true why didn't alpa force the issues with skywest?

Direct for the mouth of the former Expressjet MEC chair to me "Jerry told us if we force the issue he will drop the deal and buy us in bankruptcy, airplanes no pilots."

 

[drinksonme]

If that's true why didn't alpa force the issues with skywest?

Plus SKYW is not ALPA. No union there at all remember. Eagle is ALPA and has Scope language on a buyout...well so did XJT, but JA hardball scared XJT ALPA enough to not fight. However, Transition and Process Agreement in place during the merger of XJT/ASA would force a merger of Eagle/ASA/XJT....nightmare and extremely high cost until all are in one SOC. Also, XJT/ASA negotiating committees are looking for more scope protection to be in the joint CBA. If XJT/ASA finish merger, and the SKYW INC bought Eagle, it would be another merger train wreck for at least 2 more years if Scope language forced merger. I am sure Jerry would love to gain Eagle, but I am sure all regional executive would. Maybe the rumor should be SKYW wants to buy Eagle...but will only if it makes sense and money quickly.

 

[damnflyboy]

Direct for the mouth of the former Expressjet MEC chair to me "Jerry told us if we force the issue he will drop the deal and buy us in bankruptcy, airplanes no pilots."

And here I thought Mormons were supposed to be nice! The ones that knocked on my front door brought me my newspaper AND told me stories!

 

[BoilerUP]

Direct for the mouth of the former Expressjet MEC chair to me "Jerry told us if we force the issue he will drop the deal and buy us in bankruptcy, airplanes no pilots."

Unless the bankruptcy was Chapter 7 liquidation proceedings, I'm pretty sure XJT's fragmentation language would have something to say about that.

 

[PBRstreetgang]

And here I thought Mormons were supposed to be nice! The ones that knocked on my front door brought me my newspaper AND told me stories!

Newsflash!
Never, repeat never stand between a Mormon and what they perceive as their cash. The machete wounds heal slowly!
PBR

 

[fo.mafia.4 life]

Unless the bankruptcy was Chapter 7 liquidation proceedings, I'm pretty sure XJT's fragmentation language would have something to say about that.

And a lot of guys were sure their scope letter had something to say about not merging all three too. Any contract or part of, is only as good as your elected officials and lawyers. If they don't have the back bone or skill to fight you might as well have printed it on toilet paper. I was just relaying what I was told by the HMFWIC at the time. I'm just a lowely ASA gear snatcher, but I did bust his chops about not fighting to uphold the contract his pilot group had voted in. I guess making the deal happen was just more important to him. Oh by the way, I just wanted to thank all the Expressjet guys and gals for buying me some beer that night, it was extra tasty, even the gojets guy thought so.

 

[AntiJedi]

And, the flying we are doing for Alaska wasn't put up for bid. SkyWest was taking all of the 700's from them and along the way the subject of contract rates came up.

You're missing my point. OO needs the planes in house first so that if my scenario were to play out, they'd be ready. They can't just take planes they have no idea how to fly.

Also, the jets were going OUT of the system, so they couldn't play QX against another carrier via RFP.

 

[cbrown1]

Direct for the mouth of the former Expressjet MEC chair to me "Jerry told us if we force the issue he will drop the deal and buy us in bankruptcy, airplanes no pilots."

Now that the deal is done, what is stopping them from bringing in the nmb to make a ruling Ala republic/frontier?

 

[Jon Rivoli]

You're missing my point. OO needs the planes in house first so that if my scenario were to play out, they'd be ready. They can't just take planes they have no idea how to fly.

Not missing the point. Q400's and further displacing Horizon are two separate issues. We can do all the flying Alaska wants us to do with CRJ's, it is United that wants Q400's.

Also, the jets were going OUT of the system, so they couldn't play QX against another carrier via RFP.

Correct, Alaska has never contracted out flying before, but in building a relationship with Skyw they were impressed enough to give it a shot. They are only interested in a quality product (of which Horizon is the finest) and not the low bidder. They were done with CRJ's, until they got to know SkyWest during negotiations over Horizons 700's.

 

[Fubijaakr]

I'll tell you what they are concerned about...the Gold reports of crappy service on Alaska painted/owned CRJs operated by SKW crews.

 

[fo.mafia.4 life]

Now that the deal is done, what is stopping them from bringing in the nmb to make a ruling Ala republic/frontier?

I don't know. Thats above my pay grade. I don't know how anyof this works really. Just repeating what I was told.

 

[dojetdriver]

I hardly think they leveraged much on us. They got us for a song. I think our assets alone(hard assets plus cash in the bank) were worth more than what they paid for us.

True, but it's not like XJT has that many assets to begin with. Never mind the "thanks for helping us punk ExpressJet" check that Larry "the horse tooth" Kellner wrote them the first time.

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

As mentioned, probably couldn't do that. The 2 way merge just between XJT and ASA is going to take a while from the flight ops side. I couldn't imagine how much more ugly it would get with Eagle's expensive contract. Although Jerry could make one hell of a case to the shareholders of the billions of dollars save in "synergies" by combining the three groups. Only to later turn around and drop the fear grenade that there's no way they get a leading JCBA because it's too tough of a market to negotiating an industry leading pilot contract.

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

As Boiler mentioned, not likely. McCaskill would get in the way.

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

That ship sailed the SECOND and successful time that Inc. bought XJT. The first time it was a major sticking point. There were solutions offered by the XJT MEC on a pilot list integration, SKW wanted NO part of it.