SKYW and Airtran

[PCL_128]

SkyWest branded ops. Game on, Republic!

I'm not sure where you're getting the idea that this is "branded ops." The tickets will all be sold on the AirTran website. You have no "branded" operation. They just aren't painting the airplanes in AirTran colors. All the money comes to AirTran, and then AirTran divides the money up and sends some of it to Skywest and keeps some of it. The risk is shared, because AirTran only pays Skywest for a portion of its cost up front, and the ticket revenue is supposed to cover the rest. If there is no ticket revenue, then both Skywest and AirTran can lose money.

 

[nimtz]

Better than doing nothing with them. This way when Airtrain files for bankruptcy later on Skywest can move right in with their CRJ1000 ala Midwest/Republic. Airtran does not have RJ scope.

I see a much brighter future for RJ's...

http://inconvenientbody.files.wordpress.com/2009/03/pbr_beer1.jpg

 

[johnpeace]

Let's see:

- Medium sized markets
- High cost RJ's
- Competition from other high cost RJ provider
- Oil solid $80 barrel w/expectations of $100 by Spring

BRILLIANT!
We have never seen such marketing genius before. Bet they will make a killing!

Internet pilot forum expert vs. management team/executive board of a billion dollar company.

Place your bets.

 

[XPOO]

I'm not sure where you're getting the idea that this is "branded ops." The tickets will all be sold on the AirTran website. You have no "branded" operation. They just aren't painting the airplanes in AirTran colors. All the money comes to AirTran, and then AirTran divides the money up and sends some of it to Skywest and keeps some of it. The risk is shared, because AirTran only pays Skywest for a portion of its cost up front, and the ticket revenue is supposed to cover the rest. If there is no ticket revenue, then both Skywest and AirTran can lose money.

Actually, Air Tran is not at risk at all in this deal. The onus is squarely on SkyWest. It is a branded operation. Take your ALPA glasses off and reread the press release.

 

[nimtz]

Internet pilot forum expert vs. management team/executive board of a billion dollar company.

Place your bets.

Airline management is hardly the mark of genius even in Utah. Economics are economics and desperation to find work for dying airframes is reaching fever pitch. Funny how we heard the same arguments with Independence and brand XJT as well. Easiest short call I ever made...

 

[airplane wizard]

SkyWest = the new Skyway

Airtran = the new Midwest Express

Midwest (operated by RAH) = gone in a few years.

 

[PCL_128]

Actually, Air Tran is not at risk at all in this deal. The onus is squarely on SkyWest. It is a branded operation. Take your ALPA glasses off and reread the press release.

I've read the press release more times than I wish to count. As far as I'm concerned, it isn't branded flying when all of the tickets are being sold through the AirTran reservations system. When you guys start marketing and selling your own tickets, get back to me.

 

[Russ]

reread the press release.

A press release doesn't rise to the level of evidence I need to buy off on much of anything. Things might end up as you say, but base your assumptions on something other than what the public relations department puts out. The PR department would put out a positive sounding statement about the recently announced changes to the health care program. Lucky for them Chip beat them to it.

I'd say not enough is truly known yet for anyone to be arriving at any conclusions, at least not with a great degree of accuracy

 

[Bobby Orr 4]

I've read the press release more times than I wish to count. As far as I'm concerned, it isn't branded flying when all of the tickets are being sold through the AirTran reservations system. When you guys start marketing and selling your own tickets, get back to me.

AirTran should be doing this flying on their own.

 

[PCL_128]

AirTran should be doing this flying on their own.

Obviously.