Skywest-DAL Rumor

[everyonedoa360]

I agree!

 

[~~~^~~~]

I would believe a purchase rumor before a cessation of the contract rumor.

Right now, the market feels Skywest is vulnerable. Not only is Skywest on a list of creditors that United is seeking bankruptcy protection from, United will use the opportunity to re-negotiate the codeshare revenue allowances.

Delta has recently announced some pretty extreeme moves to try to return to profitability. For example, they told the DOT they were going to ignore the conditions set on the DL / CO / NW code share. It is pretty gutsy to tell the regulators of your industry to "shove it."

It would not surprise me to learn Delta plans to try to take advantage of the situation to (1) Re negotiate the code share agreement, and / or (2) Buy Skywest while the stock is trading at around $10 a share. Either way Delta benefits - after all, didn't Delta sell Skywest when it was around $25 a share? Who remembers?

Anyone remember how ASA was bought at a very competitive price?

Andy - you probably have the straight scoop - what is up with the fastest growing portion of the Delta portfolio of carriers?

 

[sleepy]

ASA was purchased by DAL telling the owners that their contract would be cancled if they didn't sell. I don't think DAL will buy you though. They a scrimping to save money to buy the good parts of U.

 

[~~~^~~~]

They a scrimping to save money to buy the good parts of U.

You mean, Skywest?

There is not much at United that is profitable and that could be had without assuming some debt load to satisfy the bankrutcy judge. Although it would be just delightful to watch the most powerful MEC's in ALPA try to staple eachother to the bottom of a seniority list, or better yet watch them change the merger and fragmentation policy again to make airplanes painted in United colors, "non permitted types."

 

[sleepy]

You mean, Skywest?

There is not much at United that is profitable and that could be had without assuming some debt load to satisfy the bankrutcy judge. Although it would be just delightful to watch the most powerful MEC's in ALPA try to staple eachother to the bottom of a seniority list, or better yet watch them change the merger and fragmentation policy again to make airplanes painted in United colors, "non permitted types."

Yes, that would be something to watch.

 

[Andy Neill]

Delta's shares of SkyWest stock apparently took place in the 4th quarter of 2001 (it is mentioned in the recently released annual financial report for Delta).

A $66 million gain, net of tax, primarily related to the sale of Delta's equity interest in SkyWest, Inc., the parent company of SkyWest Airlines.

In that time frame it was selling in the $17-25 range.

I don't THINK SkyWest is the fastest growing Delta carrier this year. We are certainly growing on the UNITED side in 2003 but I think Comair would be growing more among DC's.