SKYW wants to buy another airline?

[ohplease!]

try thinking a little more out ofthe box....Virgin, Alaska,Spirit....CRJ's (majority of anyways) to ASA/Exjet...C's and buses to SkyW/(insert newly purchased airline here)...

 

[bender]

Management is in SEA supposedly inking a deal with Alaska to fly CRJs for them. It's a fact that they're there but everything else is rumor.

 

[at7driver]

they might be there to buy the seahawks..

 

[Capi_Cafre']

Yeah, its QX. They're already getting the CRJs.

They're buying the Horizon aircraft, and they'll soon be doing the Horizon flying, just not with the Horizon pilots.

 

[johnsonrod]

They're buying the Horizon aircraft, and they'll soon be doing the Horizon flying, just not with the Horizon pilots.

After Delta buys AK and Horizon along with it, the Dash 8-400s will go to ATL. (just a guess anyway)

 

[dojetdriver]

Correction. 2 airlines.

Correction. When SOC is complete, it's 2 airlines.

 

[Nevets]

try thinking a little more out ofthe box....Virgin, Alaska,Spirit....CRJ's (majority of anyways) to ASA/Exjet...C's and buses to SkyW/(insert newly purchased airline here)...

If my memory serves me correct, I think that the ASA/XJT Transition and Protocol Framework prevents Skywest Inc from buying another airline without integrating it with ASA.

But then again, they did get away without integrating Skywest to begin with.

 

[Erlanger]

Yeah, its QX. They're already getting the CRJs.

Skywest isn't buying QX. The word is that QX will continue to fly Dash 8s for Alaska and Skywest will fly the RJs for Alaska. Alot of us aren't looking forward to that since it's going to create bitterness and resentment when a Skywest RJ comes pulling up next to a Dash 8. It's not going to be pretty folks.

 

[WMUSIGPI]

Pinnacle can't afford them. Delta had to finance the Mesaba purchase.

Delta financed them and also financed the sale of Compass because Delta just wanted to be rid of them. They needed the deals done asap and this was the quickest way.

 

[Thebadcat1313]

Delta financed them and also financed the sale of Compass because Delta just wanted to be rid of them. They needed the deals done asap and this was the quickest way.

Tru dat. However, Delta's terms were quite favorable for Delta. I believe Mesaba was purchased for $68 million at 12% interest. If Pinnacle had the money, they would have avoided those terms. They got an extension on their Contract with Delta and double their size as a result which is why they agreed.

 

[NWaviator]

Skywest isn't buying QX. The word is that QX will continue to fly Dash 8s for Alaska and Skywest will fly the RJs for Alaska. Alot of us aren't looking forward to that since it's going to create bitterness and resentment when a Skywest RJ comes pulling up next to a Dash 8. It's not going to be pretty folks.

True... It sure won't be pretty... Esspecially from the older RJ captains that have been there for 20+ years.

 

[bigshooter107]

Skywest buys alaska, they need a company with their reservation system to go out on their own.

 

[AntiJedi]

Skywest buys alaska, they need a company with their reservation system to go out on their own.

Where could/would they get the minimum 1.5B in funding to accomplish that?

 

[rtmcfi]

Where could/would they get the minimum 1.5B in funding to accomplish that?

Not that I believe that SkyWest has any intention of buying anyone, but 1.5 B would be no problem to come up with. They have more than half that in cash. Getting a loan would be no big deal.

 

[BornAgainPagan]

Of course they want to buy another airline. They want to own all the regional feed in the country so they can start dictating price to their mainline partners instead of them telling us what we will be paid.

I imagine that the mainline/regional relationship is like a Whack-a-Mole game. I believe mainline will always have the upper hand as there will always be a new regional to undercut SKW etc..

The only way that SKW can dictate price to mainline is if they build their own branded flying to a significant enough market share. However, then they'll lose feed for mainline.....sort of a catch 22.

Regionals will always be stuck at the bottom.

 

[Nevets]

I imagine that the mainline/regional relationship is like a Whack-a-Mole game. I believe mainline will always have the upper hand as there will always be a new regional to undercut SKW etc..

Skywest already does that on their own. They already have a built in regional to undercut themselves.

 

[flyingfool]

Skywest buys alaska, they need a company with their reservation system to go out on their own.

They got that when they bought ExpressJet.

 

[Thebadcat1313]

Not that I believe that SkyWest has any intention of buying anyone, but 1.5 B would be no problem to come up with. They have more than half that in cash. Getting a loan would be no big deal.

Alaska is trading at $62.76 per share..... Market cap around 2.3 Billion.... I'm not Gordon Gekko. I'm assuming on a straight buyout, shareholders ain't gonna be happy unless they get a FAT premium for that....I'd say minimum double the share price.... Meaning SkyWest would have to pony up in the neighborhood of 4 billion... More, if shareholders want more... That's just the buyout... Now there are many different ways to handle an acquisition, merger, I realize but it's gonna BE REALLY STiCKY with a Regional Airline buying a Legacy airline.... In other words, it would have to be non-cooperative/hostile. Nobody has the kinda jack it would take to purchase Alaska, unless they want to be purchased, acquired, bought, what have you.

 

[BigPappa]

Alaska is trading at $62.76 per share..... Market cap around 2.3 Billion.... I'm not Gordon Gekko. I'm assuming on a straight buyout, shareholders ain't gonna be happy unless they get a FAT premium for that....I'd say minimum double the share price.... Meaning SkyWest would have to pony up in the neighborhood of 4 billion... More, if shareholders want more... That's just the buyout... Now there are many different ways to handle an acquisition, merger, I realize but it's gonna BE REALLY STiCKY with a Regional Airline buying a Legacy airline.... In other words, it would have to be non-cooperative/hostile. Nobody has the kinda jack it would take to purchase Alaska, unless they want to be purchased, acquired, bought, what have you.

Wow, what rock did you crawl from under? Did you not follow the Express Jet acquisition news? What happened to those share holders? You can google it.

 

[IBNAV8R]

Bad Kitty:

You assume, sir, that a buyer would have to buy ALL outstanding stock. In reality, it would only take 50% plus one share to have controlling interest. Comparing net assets, Skyw has 1.3B while ALK has 873M. Don't think it would take much to get the required leverage. OTOH, I don't think Jerry would go for that unless he saw a huge payout. Besides, a regional buying a "major"? It'd NEVER happen.