Rumor SkyWest Inc. receives new jet financing?

[JustaNumber]

I've heard this rumor from three different people now, that Skywest Inc has recently secured a multi-billion-dollar loan for new aircraft financing. I couldn't find anything public, other than this somewhat old news article: http://www.airfinancejournal.com/Article/2888629/SkyWest-plans-large-regional-jet-order.html

Has anyone heard anything substantial? And if so, what kind of jets would be purchased? The rumor I heard mentioned C-Series, with some kind of scope-busting guaranteed-seat-purchase codeshare agreement with DL. Not that I agree, but could this be done? Is there anything in the DL pilot contract that would prohibit this kind of innovation? Might this be the reason DL management is trying to get their pilot contract done early, before they spring this surprise?

 

[damnflyboy]

My 2 cents: probably good to have this financing/replacement plan in place to attract suiters. Sort of like being "pre-qualified" when putting in an offer for a house.

Additionally, the mainline partners won't have to pony it up...allowing them to put the money to work elsewhere (be it quality items for customers, or more likely, management bonuses).

SkyWest INC now has one of the largest Canadair/Embrair fleets in the world, giving them massive buying power and market influence.

But, as you know, opinions are like a$$holes. Everybody has one.

 

[TEXAN AVIATOR]

Rumors rumors rumors... Does it really matter? How would anyone validate this anyway?

 

[waterskier]

I have heard this rumor as well.
IMO:
Makes sence for SKW to do something like this.
All the other regionals are basically just a labor recourse, with the planes being owned or financed or co-signed by the mainline carrier. SKW might be trying to change the rules a little.... by SKW being a complete sub contractor (provides the planes, and the pilots.... a true turnkey service) they can demand a little more money for the service. Good business decision because it leverages their good financial position to differentiate themselves from others in the market.

 

[Data]

Here's where it gets fun. Most mainline partners have been pushing for short term agreements (2-3 years etc). Aircraft leases come in 15-20 year flavors. Skywest won't commit to a 15-20 year lease on a new replacement aircraft if Delta is only going to give them a 3 year deal on it. If they're looking for a fleet replacement program, they're going to have to get longer term agreements with their mainline partners. So, that said. If those announcements start coming out, then its a replacement order. If they don't get those agreements with their mainline partners, who knows, maybe it is for something bigger, that's the million dollar question.

 

[ASADriver]

I have been hearing these rumors too. Hopefully it comes true.

 

[amcnd]

SkyWest has the advantage of cash.. That ='s cheap leases.. Mainline airlines are no longer wanting to tie up there credit on RJ's.... So if "scope" is ever lifted Sky Inc. will be able to take on a large order of 70-90 seat aircraft to lower its unit and operating costs.. I think if they could pull off a pure "Code share" deal they would. But i don't see that in the cards at mainline right now...

 

[JustaNumber]

I think if they could pull off a pure "Code share" deal they would. But i don't see that in the cards at mainline right now...

Do you know what the mainline contract says about code-share deals? It seems that if DL can codeshare with Air France who flies 747s, why couldn't they codeshare with SuperDoubleSureJet who might fly Bombardier CS100s?

 

[spudskier]

Laugh at me but hear me out. ACA tried it an failed. ExpressJet failed. Republic Holdings tried it and is failing. SkyWest Inc has had the time, resources and ability to learn from everything else that has happened...

Enough cash/leverage and already having the planes, pilots and resources, who knows. This is ONLY a wild imagination at work, but SkyWest could try to set out on their own in some fashion. Not necessarily ditching everything else, but who knows... maybe they're making a move to start their own SkyWest Mainline. (not SkyWest Airlines that pilots currently flying for, call mainline)

Proceed to make fun of and tear my post apart...

 

[jynxyjericho]

Laugh at me but hear me out. ACA tried it an failed. ExpressJet failed. Republic Holdings tried it and is failing. SkyWest Inc has had the time, resources and ability to learn from everything else that has happened...

Enough cash/leverage and already having the planes, pilots and resources, who knows. This is ONLY a wild imagination at work, but SkyWest could try to set out on their own in some fashion. Not necessarily ditching everything else, but who knows... maybe they're making a move to start their own SkyWest Mainline. (not SkyWest Airlines that pilots currently flying for, call mainline)

Proceed to make fun of and tear my post apart...

I doubt it's skywest airlines mainline creation, or anything of the sort. Delta management want's the 717's, CRJ1000's at a regional level and Skywest is trying to show Delta they could finance it themselves. I agree with the above mentioned that Skywest would only do it, provided they could lock in a 15 or some long time contract. Delta is probing their pilot group, Skywest (and certainly other carriers) are all tossing out bids.