SKYW + Comair (or ASA) union or non-union

[N8Dogg]

For the sake of all those involved, let's hope this buy out never happens. It appears there could be a lot of losers on both sides.

 

[FL000]

...you think Skywest mgm. cares what Comair/ASA pilots think if you get bought and stapled to the bottom...

Yes, I think they might care if 3,000+ pilots walk off on day one of any merger that doesn't have fair integration. There's a Home Depot right around the corner that I'd be happy to work at before being stapled.

 

[bayoubandit]

If this is anything, it could be fragmentation. SKW may just want the 70 seat operations from both or one carrier. It's all speculation on what may happen. Stay tuned for a SKW mgmt. info release.

 

[Oakum_Boy]

How much money could a fragmentaion of a regional airline possibly generate? Buying the -700 operation sounds plausible, but personally, I think DL is interested in more serious money.

 

[Jon Rivoli]

The only reasons SKYW management would even look at a buyout of another carrier would be that it was a smoking deal (i.e. Brand new FLYI RJ's for $7mil each) and they could get something they really want, like more larger aircraft. They already have more RJ200's than they want. If both conditions were met I expect that the desireable assets ( RJ700's) would be transfered to SKYW and what was left would be spun off.
These guys don't want a union on the property so I don't believe there is any way they would allow any kind of seniority merger, if anything they would probably operate the two carriers in parallel until the above took place. I believe they would make an honest effort to reach out to Comair/ASA people, but in the end these guys are tough and if things started heading south would cut thier losses and sell what was left. That being said I don't believe it will ever happen.

 

[Oakum_Boy]

Let us hope it doesn't happen. This story is all over the press, so it may be an attempt to draw attention from other investors.

 

[General Lee]

For the sake of all those involved, let's hope this buy out never happens. It appears there could be a lot of losers on both sides.

Yes, but it would give us, DL, needed cash and unload a huge amount of debt over to SkyWest. I think it is a great idea. And, the Comair guys can go to Helena again!!!


Bye Bye--General Lee

 

[chperplt]

I think it is a great idea. And, the Comair guys can go to Helena again!!!

Once again General, you really are too funny!

Delta could dump every asset they have and would still be BILLIONS and BILLIONS in debt.

When do you think the next round of pay cuts will be coming your way?

 

[Smoked Toilet]

Let's remember, Comair is the reason SLC ATIS is so long... "The SLC 9er dep is a radar vector dep.."

nothin but love guys...

hmm...


This could very well suck.

 

[~~~^~~~]

The only reasons SKYW management would even look at a buyout of another carrier would be that it was a smoking deal (i.e. Brand new FLYI RJ's for $7mil each) and they could get something they really want, like more larger aircraft.

No, the reason why Skywest wants ASA and Comair is the same reason that Air Wisconsin wanted US Air DIP financing - to lock in the codeshare arrangement. Independent small jet lift providers are looking for dance partners and are fearful of being shut out, like ACA was.

In the mean time Delta has been burning through their 1.1Bn financing at a much faster rate than planned, and fuel is headed to $60 a barrell.

If ASA and Comair are acquired it will trigger a vote to determine representation. I don't see any way around it. It will be interesting ( to say the least ) to study the merger and fragmentation language Comair and Skywest have in their "contracts." ASA's contract being the oldest, probably does not have the most current M&F language. However anything other than DOH with seat and equipment locks, would be surprising. ASA is probably the "senior" airline, although Comair was senior to ASA prior to their strike.

In other areas the departure of Comair's President and Drew Bedson at ASA fall right in to line with the allegations that Delta was getting rid of redundant management structures to organize in anticipation of a sale.

I do not think the sale is concluded, but it is probably closer than the Delta and Skywest want to talk about publicly. After all, Skywest would not want other potential bidders to drive up the price.

Not a boring career we have picked, eh?

~~~^~~~

 

[General Lee]

Once again General, you really are too funny!

Delta could dump every asset they have and would still be BILLIONS and BILLIONS in debt.

When do you think the next round of pay cuts will be coming your way?

Ha ha. Well, it would have been sooner had we not tried to sell you guys off with all of that debt. You have to agree that getting rid of some debt will help the overall picture. Sure, we have other debt, but we have more than $8 billion in RJ debt. The key here is that we actually have some assets to sell, and we will get some relief for these high gas prices. USAir doesn't have anything left. If they were to go Chap 7, then Delta would benefit greatly. This is turning out to be a survival match, and we still have some things to sell.

So, are you looking forward to going back to Helena? What about dealing with SkyWest's management? They seem pretty tough. It will be interesting.


Bye Bye--General Lee

 

[chperplt]

I never liked Helena to begin with.. Although, being a west coaster I could deal with a SLC base! I just bought a new wide screen DLP projection TV.. I could use some more TV time!

Of course getting rid of some debt is better than not getting rid of any debt.. Economics 101. That being said, you're up sh!ts creak right now, and all the RJs in the fleet only comprise half a paddle.

How do you figure that selling off the RJs will give you relief with the gas prices? You're still paying for all the gas either way.

 

[doh]

General,

I think there's still some fight in the dog. They can't be any tougher than old Satenbergen was.

 

[Jon Rivoli]

If what they wanted was to lock in a code share it would be far easier and cleaner to do it like Air Wisconsin/ US Air and buy it, they have $750 million CASH. I stand by my previous post.

 

[Patriot328]

The only reasons SKYW management would even look at a buyout of another carrier would be that it was a smoking deal (i.e. Brand new FLYI RJ's for $7mil each)

Not challanging the meat of your post, but the CRJs went to SKYW for a tad of $12 million a copy.

 

[~~~^~~~]

If what they wanted was to lock in a code share it would be far easier and cleaner to do it like Air Wisconsin/ US Air and buy it, they have $750 million CASH. I stand by my previous post.

(1) Delta isn't in bankruptcy yet. Skywest could not pull a Debtor in Possession blockade run on the Delta contracts.

(2) ASA's airplanes are leased. Assuming leases on used airplanes would not be a screaming deal.

 

[General Lee]

(1) Delta isn't in bankruptcy yet. Skywest could not pull a Debtor in Possession blockade run on the Delta contracts.

(2) ASA's airplanes are leased. Assuming leases on used airplanes would not be a screaming deal.

Thanks to a cash infusion, Delta will avoid it even longer, and less debt will help too. Also, I read that Delta had more than $8 billion in RJ debt. Are you sure all of ASA's airplanes are leased? Where did that debt number come from---and it was RJ debt.


Bye Bye--General Lee

 

[General Lee]

I never liked Helena to begin with.. Although, being a west coaster I could deal with a SLC base! I just bought a new wide screen DLP projection TV.. I could use some more TV time!

Of course getting rid of some debt is better than not getting rid of any debt.. Economics 101. That being said, you're up sh!ts creak right now, and all the RJs in the fleet only comprise half a paddle.

How do you figure that selling off the RJs will give you relief with the gas prices? You're still paying for all the gas either way.

I guess the other $2.3 billion a year we are now saving won't help......($1 billion alone from pilots, another $1 billion from other employees and lease restructuring, etc...) We don't know how long fuel prices will be sky high, but it is doubtful that they will remain at $60 a barrel for too long, probably settling back into the mid 40's. Then, if USAir finally tanks, DL will benefit greatly----and they have very little to sell. If we get $500 million for ASA, that could help with gas prices for a year at least. Also, fuel surcharges are starting to stick, so that may help. Our fleet consolidation, our closing of our DFW hub, our clockwork program in ATL that is creating a more efficient hub using airplanes more throughout the day, the use of Song on certain routes to beef up revenue, and using DCI better, can only help the old situation that was bad under previous management. I think we are doing better and changing direction of this large boat has started. High fuel prices are tough, but adding a surcharge like we just did can mitigate that problem somewhat. We just have to continue to do it, and NW will go along it seems. If other airlines don't, they will bleed some cash, and if USAir falls they will have no extra money to try to capitalize on the situation.


Bye Bye--General Lee

 

[surplus1]

Well General, I guess its good to see that Comair isn't the only airline that you're circling like a vulture, you've included U as well.

I hope you're right on the price of oil. My guess is we'll see $80 a barrell before we see $40 again. Hope I'm wrong.

Delta guys shouldn't complain about fuel prices though, don't most of you vote Republican? Well, you got what you wanted.

 

[~~~^~~~]

Also, I read that Delta had more than $8 billion in RJ debt. Are you sure all of ASA's airplanes are leased? Where did that debt number come from---and it was RJ debt.

Bye Bye--General Lee

General: That is impossible. Did you get that straight from Mike Pinho? While leases are considered debt obligations, 8Bn would reflect more than 400 airframes. ASA and Comair have around 270.

ASA generally owned their airplanes prior to the Delta purchase. There were exceptions, like the 9 or so ATR-PEC models ( 53_AS tail numbers ). Since the Delta purchase we have leased everything. GECAS holds most the notes.

The E120's were sold for cash which went back to mother Delta. The owned ATR's are also being turned into cash throught the out right sale of airframes and leaseback. Delta has "monetized" everything at ASA that could be sold.