SkyWest acquisition

[flap operator]

I think Mesaba is a prime candidate for an aquisition. NW and the pre programmed mgmt team (i'm convinced NW has implanted chips into their brains) that we have at Mesaba have single handedly devalued our company over the last few years from $38/share to about $8 today. Not to mention the cash position and viturally ZERO debt the company holds, IMO makes it a prime targer for an aquistion. The only stumbling block Skywest may have is well, BIG RED and the fact that some groups at XJ are unionized. Our successorship language calls for us to retain our current contract... something Skywest would probably rather not deal with, meaning unionized workers. God help us all is Mesa wants to buy MAIR.

FO

 

[Stick Man]

posted to be flamed

I heard that Skywest is going after US Airways. After all, US Airways is a regional, right?

 

[N8Dogg]

As long as we are creating rumors. I say Mesa!!!!

 

[lowecur]

The World According to Lowecur

Skywest, Mesa, or Republic would not buy any regionals that owned a slew of RJ's. The last thing they need are more RJ's. In another 5 years, there will be at least 500 of these a/c parked in the desert. Of course AMR and DL would love to get rid of their regional carriers at this point, but no one is willing to pay them anything and trying to spin them off in an IPO would be fruitless. Plus DL in on the hook for Skywests CL65's as was discussed on a previous thread.

The next 6 months will be pivotal as a big upheavel takes place. My thoughts are that UAL will not get the ATSB loan guaranty (thus keeping them in bankruptcy for a while longer, and will have to downsize about 20%); UAIR will not get the help they need from all the unions, forcing them back into bankruptcy (asset sale will then procede); DL will file for bankruptcy, as the longer it takes to get an agreement the more Greenjeans will want (I understand he's up to 34% from 30% for the pilots). The eventual failure of ATA will expedite the return of more mailine a/c, thus replacing the RJ on many routes.

If UAL and UAIR need to downsize further (meaning mainline and regional), then Mesa and Republic will probably go the route of LCC startups. The DL situation will dictate what Skywest will do, but a bankruptcy or cutback of Skywest routes will more than likely trigger a return to DL of the CL65's and an LCC startup. I look for all three of these carriers maintaining smaller relationships on a regional basis with some of the legacys.

 

[Russ]

"there will be at least 500 of these a/c parked in the desert"

I'd be careful about latching on to what Boyd has to say about the regional side of the industry.

 

[Rogue5]

re: the world according to lowcur

bloviate \BLOH-vee-ayt\, intransitive verb:
To speak or write at length in a pompous or boastful manner.

 

[Harlequin]

The DL situation will dictate what Skywest will do, but a bankruptcy or cutback of Skywest routes will more than likely trigger a return to DL of the CL65's and an LCC startup.

Some generally good points, but I don't agree with the last supposition. I can't see SKW going the LCC route. SKW's senior management has openly scoffed in the past at ACA's attempt to go that route and has repeatedly said that you can't operate the CL65 on an 'at risk' basis.

The SKW RJ pilots wanted more money to fly the CRJ700...they'll demand it (and rightly so) for anything in the 100-120 seater class. Add in the fact the need to add a third Flight Attendant once you add the 101st seat, plus demands for more money from the Mechanics and you can quickly see the overheads going through the roof.

I suspect that SKW is hoping that it's presence in IAH will provide it with a foot in the door to make a bid for Expressjet when the opportunity arises.

This is, above all, a contract flying company and suggestions of it becoming a LCC are, I believe, without foundation.

 

[Tooslow]

I heard Skywest is going to buy Mesa, and force the pilots to take pay cuts, fly CRJ's for the price of Brazilias...and dumps the union thing because the president makes almost $500,000 a year...

 

[Harlequin]

$500,000?.....$500,000?!.......A couple of million $'s a year perhaps......but $500,000??!!

 

[ILStoMinimums]

Yeah - more like a couple of million!

 

[OtterFO]

ILS,


You neglected to mention the other half of ERA. There are three large rotor bases operating everything from B-206B's to B-214ST's. SkyWest is pretty conseritive with their business. The rotor world is far different from fixed wing scheduled 121.

 

[ILStoMinimums]

Fully agree - I'm sure Rowan probably would split the two if the need arises, but then again who knows? Pretty hard to tell what they are doing or plan to do.

 

[lowecur]

Harlequin

Some generally good points, but I don't agree with the last supposition. I can't see SKW going the LCC route. SKW's senior management has openly scoffed in the past at ACA's attempt to go that route and has repeatedly said that you can't operate the CL65 on an 'at risk' basis.

The SKW RJ pilots wanted more money to fly the CRJ700...they'll demand it (and rightly so) for anything in the 100-120 seater class. Add in the fact the need to add a third Flight Attendant once you add the 101st seat, plus demands for more money from the Mechanics and you can quickly see the overheads going through the roof.

I suspect that SKW is hoping that it's presence in IAH will provide it with a foot in the door to make a bid for Expressjet when the opportunity arises.

This is, above all, a contract flying company and suggestions of it becoming a LCC are, I believe, without foundation.

I believe there was a thread a month or so ago where the CEO was in the Denver pilot's lounge discussing the purchase of Embraer 190's for a possible LCC startup. If this rumor is fact, then they certainly are thinking about it.


If the CL 65's are returned to DL, then the existing contract with scope limitations would determine what mgt would do. If rates have been established for a 190 with 100 seats, then that's the way they would go. Not every LCC has to have mainline a/c with long haul capability to survive. If they need to hammer out a new contract, then they would try that before seeking a different OC.


I don't see any regional purchasing EXJ. CAL's future is not sealed in cement, and trying to find a home for 200++ RJ's would be difficult. I see CAL eventually being merged with NWA along with EXJ.

 

[belchfire]

Please add Corporate Airlines to
the list of those to be purchased...
they'd have money to spare!

 

[Ponchus pilot]

The SKW RJ pilots wanted more money to fly the CRJ700...they'll demand it (and rightly so) for anything in the 100-120 seater class. Add in the fact the need to add a third Flight Attendant once you add the 101st seat, plus demands for more money from the Mechanics and you can quickly see the overheads going through the roof.

And exactly how is it that any group at skywest is going to DEMAND things?