Skywest/ASA merger

[WyoHerkdriver]

You mean that you do not care for the 12 hour ready reserve days with just eight days off a bid?

 

[SpyFlysDOTs]

Even after a possible bankruptcy, DL could ditch SkyWest. If you think SkyWest is the one calling the shots here, I think you are wrong. They may HAVE to buy ASA to stay in the game at DCI. Where else would SkyWest like to go? Start up a low cost airline with all RJs? Go for it. Right now SkyWest is called DEPENDANCE Air. They depend on two airlines that aren't doing very well, and that is the way it is.



Bye Bye--General Lee

Tell this to the stock market

 

[Palerider957]

All I have to say is I hope they make ASA pilots reapply to skywest. The idea of a basic indoc class filled with ASA pilots sounds like a month long drunken frat party. Bring it on! Just out of curiousity has anyone run the cost of running 1700 already trained pilots through initial. Then the 800 or so skywest upgrades that would have to go through upgrade. The brazilia transitions. ATR transitions.... On top of all that the moving costs and continuous per diem TDY cases... I think the ASA reaply is the best business decision skywest could make.

Looking forward to the party in Salt Lake... We'll put the drunk back into mormon!

Holy sh!t that's funny! I can see it now--a legion of drunk, half-naked, ASA "recruits" spilling into the streets of SLC, chasing every hot mormon chick they can find. Hide your daughters, lock your doors, the marauding ASA herd is here!

Of course trying to recall E-120 prop overspeed immediate action items might be another story.

 

[ArcticFlier]

All I have to say is I hope they make ASA pilots reapply to skywest. The idea of a basic indoc class filled with ASA pilots sounds like a month long drunken frat party. Bring it on! Just out of curiousity has anyone run the cost of running 1700 already trained pilots through initial. Then the 800 or so skywest upgrades that would have to go through upgrade. The brazilia transitions. ATR transitions.... On top of all that the moving costs and continuous per diem TDY cases... I think the ASA reaply is the best business decision skywest could make.

Looking forward to the party in Salt Lake... We'll put the drunk back into mormon!

Holy sh!t that's funny! I can see it know--a legion of drunk, half-naked, ASA "recruits" spilling into the streets of SLC, chasing every hot mormon chick they can find. Hide your daughters, lock your doors, the marauding ASA herd is here!

Of course trying to recall E-120 prop overspeed immediate action items might be another story.

Classy...............................or is that good "character"?


aF

 

[General Lee]

Tell this to the stock market

How would your stock do if Delta dumped your contract? Wall Street would SELL SELL SELL SELL SELL SELL. Grinstein could clean house (with us too I am sure) in bankruptcy to lower costs. If your Jerry doens't want to buy, he may find himself looking for another partner. That last SEC report stated that Grinstein was trying to sell ASA to SkyWest. He could get mad and sell it to someone else under the premise that they could take SLC.


Bye Bye--General Lee

 

[Palerider957]

Classy...............................or is that good "character"?


aF

Lighten up, man. We have pretty rude and crude people on both sides. SLC just seems like such a "stick up the a$$" city. (I guess that's why Park City got born.)

Hey perhaps SKYW ought to buy Delta? I bet it could be had real cheap, then you could staple the General on the bottom of your list.

 

[Russ]

Don't worry gen, you will have some other SkyWest guy as your skipper. I would lose my mind on those long flights heavies do. Three hours is my max. Wouldn't mind the paycheck tho, at least at the pre-bankruptcy rates.

I will say, you are one heck of a cheerleader. Funny enough cheerleaders are right out front all smiles when they're down three TD's in the fourth with 3 seconds on the clock.

 

[Crash Pad]

Arctic Flyer

Hey you all came up with the reaply stuff... I didn't want to be one of those burn it down negative ASA pilots... I found the bright side... Since the beginning of time rape, pillage, and plunder has always been a good time. Make us all sit through a ground school we don't need and you reep what you sow! So skywest lock up your wives hide your girlfriends the ASA September 05 class is coming to town!

BTW I will take your mother Dorothy Flyer out for a nice Sea Food dinner and never call her again.

 

[SpyFlysDOTs]

How would your stock do if Delta dumped your contract? Wall Street would SELL SELL SELL SELL SELL SELL. Grinstein could clean house (with us too I am sure) in bankruptcy to lower costs. If your Jerry doens't want to buy, he may find himself looking for another partner. That last SEC report stated that Grinstein was trying to sell ASA to SkyWest. He could get mad and sell it to someone else under the premise that they could take SLC.


Bye Bye--General Lee

Dont you think Delta might be concerned with completion rate?
Just wait till you see the completion rate when the low ball airline gets the flying!
Today D closed at 2.97
Today oo closed at 21.0+

 

[Russ]

Forget it, just hire some flight instructors to fly the ASA aircraft. Don't want y'awl ripping up SLC.

 

[bigshooter]

Sounds like a great party ( im in there like swim wear) The bastard children of skywest!

P.S. to the " pee in her but guy" priceless
Have not cried laughing in a while!

 

[General Lee]

Dont you think Delta might be concerned with completion rate?
Just wait till you see the completion rate when the low ball airline gets the flying!
Today D closed at 2.97
Today oo closed at 21.0+

And your point is about the stock price? Yes, your stock is higher, great. IF Delta ever decided to dump you guys for some reason, it would fall. That is my point. We were up over $20 dollars for a long time too, and then 9-11 happened. I guess nothing could ever happen to you guys......


As far as the completion rate, there would have to be a good one to stay at DCI, and that would be monitored. How is CHQ's completion rate? I bet it is good.


Bye Bye--General Lee

 

[chperplt]

As far as the completion rate, there would have to be a good one to stay at DCI, and that would be monitored. How is CHQ's completion rate? I bet it is good

Completion rate comparison is a crock of sh!t when dealing with a fee for departure outfit. They are always going to have a high completion rate because they will run a flight hours upon hours late to get the fee. Who cares if your running empty and 7 hours late....just run the trip.

If these outfits were ever given a "window" of opportunity to get the flight in for credit towards the completion rate, you might start to see an efficient outfit. Although, you'd probably end up seeing those 98+% rates come down to the low 90s or maybe even lower.

 

[Russ]

I wonder, I wonder....

If SkyWest saw DAL for what it is, a sinking ship and jumped what would happen to DAL's stock? Might send a signal that even a loyal contractor thinks its doomed and send your stocks down down down.

You're not in the drivers seat nearly as much as you would like to think.

Eastern
Pan Am
TWA
DAL?

 

[chperplt]

If SkyWest saw DAL for what it is, a sinking ship and jumped

Russ,

Where do you think SkyWest could go if they dumped DAL? Outside of parking the Delta fleet, they are tied to Delta and their future hinges on the success, or lack of, of Delta.

 

[General Lee]

I wonder, I wonder....

If SkyWest saw DAL for what it is, a sinking ship and jumped what would happen to DAL's stock? Might send a signal that even a loyal contractor thinks its doomed and send your stocks down down down.

You're not in the drivers seat nearly as much as you would like to think.

Eastern
Pan Am
TWA
DAL?

Russ, Russ, Russ,


Um ok. Add in there Alleghany, United Feeder Service, and ACA/Indy. where did they go? United got rid of ACA, and they turned into INDY, and aren't doing that great. You could be next. As I said before, your name should be DEPENDANCE AIR. What about USair and United? United, your buddy, doesn't have a real plan after 3 years in Chap 11. USAir has gone to court twice in three years. Both are still around. Delta actually has a good plan (Song, ditching DFW, Simplifares, Operation Clockwork in ATL, some pay cuts, stopping the Defined benefit plans, etc) but was late in implementing it. High gas prices have stopped our progress. More will have to be done. But, we also have a good chance of getting pension reform from Congress, which was a huge elephant on our back. So, even if we do go into Chap 11, it sounds like we have a good chance of coming out.(we would go in with enough cash to come out too---we have $2 billion right now) And, to top it off, I heard ASA would have DOH at SkyWest.


Bye Bye--General Lee

 

[JOPILOT]

Look Mr. I have nothing to do with my life, EVER!!! has 5 more posts to reach the 5,000 mark! What an accomplishment! Or what a social retard?

General, Get out of your cave and go do something creative? Maybe like try to get laid for the first time?

 

[General Lee]

HA HA HA. You are right, I am almost at 5,000 posts. I can't believe it. I have enjoyed this board from day 1, which was a long time ago. You have no clue what I do in my spare time, and I have a lot of fun with my wife. I do a lot of turns to the Carribean, so I actually have the ability to be on this board quite often. I don't care what you think. You really do think you are cool though. Keep going with your bad self........ You are awesome. DUMBA$$.


Bye Bye--General Lee

 

[EDUC8-or]

I wonder, I wonder....

If SkyWest saw DAL for what it is, a sinking ship and jumped what would happen to DAL's stock? Might send a signal that even a loyal contractor thinks its doomed and send your stocks down down down.

You're not in the drivers seat nearly as much as you would like to think.

Eastern
Pan Am
TWA
DAL?

Note to Russ: If Delta's stock goes "down down down" and SkyWest being such a "loyal contractor" decides to jump ship I really hope they have a plan to replace the loss of DAL flying. Mesa and Chautauqua would take the SkyWest routes at a cheaper price before SkyWest could even find a place to park their aircraft. From the way your post is worded, it sounds like you would really like Delta to go tango uniform.

 

[Bluto]

Where do you think SkyWest could go if they dumped DAL? Outside of parking the Delta fleet, they are tied to Delta and their future hinges on the success, or lack of, of Delta.

I'm going to have to go ahead and disagree with you there Chperplt. True, DAL is the majority of our feed, but we still do a substantial amount for UAL as well (roughly 40%). SkyWest has and continues to be in discussions with pretty much every major partner out there, and is always looking to diversify. I wouldn't be at all surprised to see an agreement with NWA, or CAL in the near future. It'd be tough to lose Delta, but I don't think it'd be as devastating as you seem to think. The suits in SGU have planned for every contingency, including DAL and/or UAL folding. For now, our growth depends on the survival (not necessarily health) of our major partners. When UAL went into bankruptcy, it meant substantial growth for us. While I'd rather see a healthy, growing partner, it doesn't always hold true that our success is tied to theirs.

 

[spinup]

General,

United, your buddy, doesn't have a real plan after 3 years in Chap 11.

(Song, ditching DFW, Simplifares, Operation Clockwork in ATL, some pay cuts, stopping the Defined benefit plans, etc)

Not looking for a drawn out argument here as I find myself agreeing with you at times. However, many business plans you cited exist at both carriers: Delta has Song and UAL has Ted, Simplifares are a marketing technique not unlike others at UAL, Operation Clockwork in ATL (if I understand it correctly) is fancy speak for UAL's de-peaking at LAX and ORD, and pay cuts and benefit reductions speak for themselves in comparison. My point here is that this industry is simply not that imaginative, continually referencing of one another’s play-book.



I agree, you or I have yet to see UAL's business plan. Yet, I have no doubt there is one as is evident through investing community interest.



My personal opinion; DAL NEEDS to remain CLEAR of BK. I truly hope they do. What this industry needs is not more LCC's. What the industry needs is a strong DAL, AMR, NWAC, CAL, USA and yes UAL. If a SKYW investment in DAL can keep them on the good side of BK, its importance shouldn't be minimized.



BTW, the most uneducated quote on this thread goes to the individual thinking TED will be sold to a regional. I think even General will agree this is absurd.

 

[spinup]

duplicate

 

[Bluto]

If a SKYW investment in DAL can keep them on the good side of BK, its importance shouldn't be minimized.

I think any investment SkyWest could make in DAL would be a drop in the bucket compared to what they'd need to stay out of BK. If DAL can't fix itself, neither can SkyW.

 

[Socalplt]

I'm not sure on the revenue, but SkyWest operates considerably more aircraft for United than Delta. There are 69 aircraft in Delta colors (56 RJs and 13 EMB), and nearly 150 on the UA side.

I beleive that if the Delta ever cancels the contract they are responsible for the aircraft. I think SkyWest has first say but if they don't want them they go to Delta.

 

[Russ]

"From the way your post is worded, it sounds like you would really like Delta to go tango uniform"

Thay would be like hoping I get cancer.


No, I don't wish unemployment upon anyone. That said the SkyWest business plan hopefully has plans should it happen. I'd rather not wait till the music stops to look for a seat if its inevitable.

 

[chperplt]

I beleive that if the Delta ever cancels the contract they are responsible for the aircraft. I think SkyWest has first say but if they don't want them they go to Delta.

Who's talking about Delta canceling the contract??? The above posts mention Skywest bailing on Delta....

You may only have 69 out of 210 or so aircraft on the Delta side, but those 69 aircraft probably make up close to 30% of your revenue. I find it very unlikely that you'll be able to find a new home for them with all the undercutting that MESA can and will do.

At this point, I think the long term health of Skywest is directly linked to it's business with Delta. I'm not saying it's survivability, but it's health.

 

[spinup]

I think any investment SkyWest could make in DAL would be a drop in the bucket compared to what they'd need to stay out of BK. If DAL can't fix itself, neither can SkyW.

Bluto, I honestly don't know bro. In BK and out, large "paper losses" magically seem to have little effect on cash-on-hand. Any additional cash in DAL's coffers may be of greater importance than you or I can imagine. I think it would be remiss to assume that the five hundred million cash (or whatever amount) SKYW offers is the same thing as "paper losses." On the UAL side, they have lost Billions over the last few years; however, their cash on hand has increased throughout BK.

For example, UAL just posted a 1.4B loss last quarter. Still, they added to their DIP financing by borrowing an additional 310m. A comparatively small amount, but important none the less. In DAL's case, this would have an even greater effect because it's not a loan, its income.

What I'm poorly trying to say is that a cash infusion and filed losses are apples and oranges.

 

[Socalplt]

Who's talking about Delta canceling the contract??? The above posts mention Skywest bailing on Delta....

You may only have 69 out of 210 or so aircraft on the Delta side, but those 69 aircraft probably make up close to 30% of your revenue. I find it very unlikely that you'll be able to find a new home for them with all the undercutting that MESA can and will do.

At this point, I think the long term health of Skywest is directly linked to it's business with Delta. I'm not saying it's survivability, but it's health.

The way SkyWest would wind up out of the contract would be if Delta goes into BK and then tries to renegotiate for a rate that wouldn't make it worthwhile. SkyWest would say no and then Delta would give the flying to someone else. Manangement here has no interest in the 50 seater, their eyes are on 90+ seat aircraft.

 

[propjockey]

Cashflow is King -- a brief review of corporate financial statements

And on a related note, cashflow, cashflow, cashflow!

Everything else in accounting is at best, historical data, and at worst, pure fiction. Balance sheets read like a fairy tale unless you really understand what you're looking at and read all the notes in the annual report. The income statement is almost as meaningless as the balance sheet for determining the relative health of a company because of all the magical things you can do in accounting that are perfectly within the bounds of the law and GAAP (generally accepted accounting practices) to paint almost any picture you want. Sometimes you have to read the income statement with a really big grain of salt.

BUT -- If a company has positive cash flow, they ARE making money regardless of what the income statement says. It's a been a while since I looked at UAL's cashflow statement, and I honestly haven't looked at DAL's at all. Last time I looked at UAL, I recall they were still bleeding, but it was more of a pinprick or an oozing cut compared to the gushing severed artery that the income statement (and the media) makes it out to be. But the general public thinks only at the household level of accounting because that's all they understand. There's a lot more to it than simply profit or loss.

(Not tooting my horn, but lest any of you think I'm talking out of my rear, my qualifications: Int'l MBA, Univ of Denver Daniels College of Business 1997, specialization in finance. Worked in corporate finance before preparing to jump ship during the golden years before Sept 11.)

 

[chperplt]

But....if Delta files BK and Skywest rejects the new terms, Delta wouldn't be on the hook for the airplanes..

Skywest would be stuck with 60+ 50 seaters they would need to find a home for....