SkyWest discusses possible Comair purchase

[General Lee]

I know you will vote NO for any Scope TA GL.. But I think over 51% or you brothers will vote yes just to keep a job..

Does that make sense? If larger RJs will allow mainline planes to be parked eventually, why would any FO (half of the pilots) and junior captains (another 25%) vote to eventually replace themselves? (the captains would be downgraded and lose cash) See, you have it wrong, but you like to gode me, which is fine. You need to work on your thought processes more. Really, think about it. Even the last 767 Captain I flew with, a reserve, told me scope was very important to him because he knew there were a lot of guys senior to him on the MD88s and 738s. He would be bumped if they had to displace him. Sorry, you have it wrong.


Bye Bye--General Lee

 

[~~~^~~~]

General:

You used to cry that the CRJ200 was a 737 replacement and needed to be restricted through tighter scope. I told you it wasn't due to seat mile costs & that 50 seat scope was a waste of negotiating capital. Now you trumpet that the RJ is dead due to seat mile costs. Delta has parked CRJ200's while those JT8D's on 737-200's continue to smoke through the Atlanta Sky.

How about you just believe me on this one - the CRJ700 & 900 is not a MD88 replacement. The E190 is close, but even it is no 737-800 / MD88 replacement. Why do you think Jet Blue runs the E190 and the A320?

General - your MEC's negotiating agenda continues to be driven by prejudice and vindictiveness insead of economics.

You are a fool if you think restricting DCI growth some how helps you get a little PIC time. When Comair struck, did it help, or hurt, your loads in CVG?

 

[FDJ2]

I know you will vote NO for any Scope TA GL.. But I think over 51% or you brothers will vote yes just to keep a job..

I think you are wrong.

 

[difete]

Interesting concept. Comair added to SKW. I wonder what the Comair folks think on a posibility of this happening? Also, anyone of you can provide with the approximate pilot group size for Comair?

 

[sweptback]

Interesting concept. Comair added to SKW. I wonder what the Comair folks think on a posibility of this happening? Also, anyone of you can provide with the approximate pilot group size for Comair?

I'll be the first to say it... DOH!

ASA and Comair pilots already agreed to it back in the day, it would be only fair...

 

[wmuflyguy]

Interesting concept. Comair added to SKW. I wonder what the Comair folks think on a posibility of this happening? Also, anyone of you can provide with the approximate pilot group size for Comair?

1800ish

 

[Jon Rivoli]

I'll be the first to say it... DOH!

DOH. Which Brad Holt will likely tell the ASA guys was 9/2005.

 

[surplus1]

"We have no idea what Delta is thinking regarding Comair, although if it looks like there's a deal that fits with our corporate objectives we would be open-minded," SkyWest CFO Bradford Rich said.

The idea that SKYW has "no idea what Delta is thinking re Comair" is a completely ludicrous statement; in other words a lie. The rest of the statement is true -- if there's a deal that fits the objectives of SKYW, Rich will take it. Only a fool would not.

That is contingent on Delta's ability to exit bankruptcy or at least to have the potential of doing so. In turn, Delta's survival is contingent on an agreement with its pilots. Should they walk out, Delta will cease to exist.

If Delta ceases to exist, Comair will cease to exist on the same day -- it is a wholly owned subsidiary. What's left will be a collection of unwanted airframes (and longer lines at the unemployment office). Parked airframes have little value to anyone (that's why the desert remains full of them) and corporations couldn't care less about unemployed workers.

ASA, the SKYW subsidiary, will be left with "nothing to do", i.e, gilted at the altar - out of business. So will approximately 1/2 of Skywest (that feeds Delta).

In that case, Rich will be scrambling to survive -- not worrying about how to buy anything.

We can't get to your "question" until and unless the Delta debacle is resolved. Assuming that it is resolved favorably, your question can be answered.

I restate my question.

What do they have that we might want?

160 + jets that fly for Delta. The "benefit" to Skywest isn't "Comair" per se, it is the control of Delta feed that would accrue to SKYW and the revenue potential that control would guarantee.

Should SKYW acquire CMR, it would "control" approximately 3/4 of all Delta's "regional" feed. You can pretty much bet that Rich would secure that percentage for SKYW before he signs anything (just as he did with ASA). Skywest would then have the leverage to actually negotiate with Delta, rather than be dictated to by Delta as is now the case. Such an acquisition would give Skywest (and Rich) a major power increase and a substantial cash flow/revenue increase.

Power = money and money is the only factor that "fits" the corporate objectives to which Mr. Rich refers.

The company that Rich runs is in business to make money. How that money is made is irrelevant as long as the flow keeps coming and gets bigger over time. [Airplanes, people, etc., are just tools than can be used to generate money.]

The opportunity to make more money is the "thing" that Comair has that Rich might want. That's what generates "interest" and it is also what makes "deals" gel.

Delta's desperate "struggle" is an opportunity for Rich. Should the cards line up, he will play the hand.

Should Delta collapse, its current desperate struggle will become Skywest's desperate struggle. There is no rocket science involved.

That should answer your question.

 

[Jon Rivoli]

Perhaps, if part of the deal included a lock on DCI flying, but just adding 160 jets isn't enough. As I've said before we already have too many 50 seaters. Also, I believe that they've had an eye opener dealing with the ASA pilot group and I think they will be pretty shy about another ALPA pilot group. Comair isn't worth enough to save Delta if the pilots Strike or even significantly help with the bankruptcy. $425 million for ASA and Comair is bigger, I can't see spending that kind of cash to get further in bed with Delta. Right now our flying is about 50/50 DAL/UAL with SkyWest about 75% UAL. ASA helped balance that out, buying Comair would unbalance it again.

Should Delta collapse you say? That is up to DALPA right now, there's no way any deal involving Comair will mitigate that. Nor could one be put together before the DALPA's contract is resolved. No one would risk that kind of money until that is resolved. Somewhere down the road perhaps involving exit financing there might be a deal to be made, but that is a long way down the road.

 

[Tomct]

Not to mention the DOH merging of the seniority lists. JA would have a heart attack. ALPA would be on the property IN FORCE BABY!!