Rumor SkyWest Inc. receives new jet financing?

[JoeMerchant]

You might want to look at 10k and qs. They tell a different story.

Don't confuse the legacy XJT folks with facts....In their world XJET was wildly profitable and it was the evil Skywest Inc. that brought them to their knees....

 

[rjacobs]

Don't confuse the legacy XJT folks with facts....In their world XJET was wildly profitable and it was the evil Skywest Inc. that brought them to their knees....

Oh, we are under no delusion that we were hemorrhaging money while branded was operating. I think had we had possibly 1.5-2 more years that branded would have started making money(remember oil dropped $100+ per barrel only a few months after this happened and during the recession everybody was/is still looking for the cheapest ticket, which we were in most cases). However the fact still remains that Skywest Inc. made a buyout offer that included a cost neutral(or negative possibly even) CPA for CAL(nobody ever saw exactly what that deal was) and that CAL threatened to cancel our CPA as a whole if we didnt either accept the deal with SKW(which included paycuts and furlough of 700 pilots immediately with no protections for the remaining XJT pilots) or give them(CAL) an equally good deal, close branded and Delta and return those airplanes. We chose option 2 which then caused us to get into the situation that we were in when SKW did indeed purchase us.

Like I said, I dont think any of us were under any delusion of the situation we were in and our ********************ty management(thanks Hanley) didnt help at all. However its not like we were going to close the doors next week like a lot of people thought. We were making operational loss's, however our cash on hand wasnt really changing much(it actually went up 2 or 3 quarters in a row even though we lost millions of dollars operationally). Accounting tricks anybody? I think our old management team had the books cooking on a low simmer for quite a while to keep from having to give us our pay concessions back.

 

[amcnd]

It's pretty simple. SKW got approved for a multi billion dollar loan. Well of course they did. Inc has an excellent credit rating. They aren't going to execute the loan until they have a CPA with mainline carrier(s). Plenty of possibilities on where they're going with this one:

AMR CRJ900 or E170 flying
1 for 1 swap large RJ for E145 up to 75 aircraft for new United per CPA
Airways large RJ flying

Bingo.!!. Thats the most overlooked thing why SkyWest bought XJT. The 1-1 swap to larger RJ's.....

 

[trip]

It's for the new next gen 50 seater. Total redesign, new engines etc.

 

[jynxyjericho]

It's for the new next gen 50 seater. Total redesign, new engines etc.

Hehe, you guys laugh but that engine could be redesigned and STC'ed in a matter of months if anyone would pony up the money. Mainline guys are worried about the 50 seat market for reasons other than gas, I've heard a range of explanations from "worried about passenger comfort" (myth) to "won't be enough pilots to fly them anyway" (myth). Might be the $$$ to make the engine more efficient is greater than the $$$ to finance a new airplane, file chapter 11, and then pay at a reduced rate.

 

[NWaviator]

Pretty sad how happy the SKW guys got when they were thinking about the C series. Keep that trash mainline.......

 

[jynxyjericho]

Pretty sad how happy the SKW guys got when they were thinking about the C series. Keep that trash mainline.......

That's up to mainline, nothing SKW guys can do about it.

 

[enuffalready]

Pretty sad how happy the SKW guys got when they were thinking about the C series. Keep that trash mainline.......

not sad... many are happy at ASA.. have no desire to go to mainline and would be very pleased with a c-series at ASA.

 

[777forever]

It's for the new next gen 50 seater. Total redesign, new engines etc.

Hehe, you guys laugh but that engine could be redesigned and STC'ed in a matter of months if anyone would pony up the money. Mainline guys are worried about the 50 seat market for reasons other than gas, I've heard a range of explanations from "worried about passenger comfort" (myth) to "won't be enough pilots to fly them anyway" (myth). Might be the $$$ to make the engine more efficient is greater than the $$$ to finance a new airplane, file chapter 11, and then pay at a reduced rate.

Yes we laugh because the chance of this happening is less than nil.....

It was a good laugh though!



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[COOPERVANE]

No...thats sad