SkyWest Ground Handling

[Speedtape]

True, SKW controls the airplanes and the gates.

And Mainline owns 60% of Skywest's revenues and Mainline has figured out how to make the Fee for Departure "reset" work for them(utilizing the Compass and Mesaba average cost.) Look for profits to drop dramatically and performance bonus to evaporate. Therefore, they don't need to own the planes or the gates.

Moreover, if it came down to it, who could more easily replace who? What's that saying--"Don't put all your eggs in one basket or even 2!"

My fate is tied to INC. first and then Mainline, but there are some bad things on the horizon!

 

[FSIGRAD]

Hope they take over DEN, only place I deal with SKW and although not on the level of IAD it is crap. Only place RAH does the ramp is US in IND. I don't think they are in the market.

 

[USCtrojan]

Dam, SkyW stock is sinking hard. I wonder if this has to do with the groundstations moving to RHS. Or does it have to do with the profits halving in the 4th Qtr? Andy Neil, what's going on?

Trojan

 

[Andy Neill]

Dam, SkyW stock is sinking hard. I wonder if this has to do with the groundstations moving to RHS. Or does it have to do with the profits halving in the 4th Qtr? Andy Neil, what's going on?

Trojan

If you're appealing to my stock expertise, I don't have a clue. It is noteworthy that SKYW is lower than it's lowest monthly close since 03. The same can be said for AMR, CAL, DAL, UAUA, LCC (all time lows for all three since coming out of bankruptcy), XJT, MESA, PNCL (all 3 at all time low since I have records), and LUV (low for the last 12 years).
If you're appealing to my inside knowledge of SKYW, I haven't been there for over 2 years.
In either case, there are two Ls in Neill.

 

[USCtrojan]

If you're appealing to my stock expertise, I don't have a clue.
If you're appealing to my inside knowledge of SKYW, I haven't been there for over 2 years.
In either case, there are two Ls in Neill.

LMAO!! I'm just appealing to your general knowledge of the Company. Don't mean to put you on any spot in any way. Just looking for an educated opinion.

Trojan

 

[Andy Neill]

LMAO!! I'm just appealing to your general knowledge of the Company. Don't mean to put you on any spot in any way. Just looking for an educated opinion.

Trojan

No problem. I edited my post since your response showing what the overall performance in the airlien industry is. My most profitable trade last month was a 96% profit in UPS puts.

 

[USCtrojan]

No problem. I edited my post since your response showing what the overall performance in the airlien industry is. My most profitable trade last month was a 96% profit in UPS puts.

Thanks, good job on UPS! Sorry about the misspelling. Perhaps we are reaching capitulation, or it's imminent?

Trojan

 

[Speedtape]

Dam, SkyW stock is sinking hard. I wonder if this has to do with the groundstations moving to RHS. Or does it have to do with the profits halving in the 4th Qtr? Andy Neil, what's going on?

Trojan

USCtrojan,

The whole industry is down. But, particularly, SkyW stock is down because Mainline reset their "Fee for Departure" to a much lower amount. This will affect profits drastically. There will be no more $39 million quarters. Your Performance Bonus Plus will evaporate, as profit margins will be less than 1%.

 

[USCtrojan]

USCtrojan,

The whole industry is down. But, particularly, SkyW stock is down because Mainline reset their "Fee for Departure" to a much lower amount. This will affect profits drastically. There will be no more $39 million quarters. Your Performance Bonus Plus will evaporate, as profit margins will be less than 1%.

Thanx for the info. Do you have any info on what the old rates and new rates were? I thought these were contractual and were not negotiable unless both parties agree? Just off the top of my head, I wonder if this was a concession Inc. would agree to so as to not cut more capacity?

I know what would get that stock price back up real quick.....;-)

Trojan

 

[ROSWELL41]

Considering the markets are at a 1997 level, I'm not really surprised to see airline sector stocks at six year lows.