SkyWest may seek merger with rival airline ExpressJet

[yellowfever]

Who knows. This same question was asked just a few years ago regarding United and Delta. Now everyone is flying these aircraft and will probably be flying larger ones for them too. Everyone laughed whenever anyone would dare suggest that the regionals could be flying these types of aircraft. "Bigger then 50 seaters; never going to happen!", they would say.




True, Skywest doesn't want to add any new aircraft to its fleet for various reasons(though the E170 and E190 was recently added to the payscale), some as you mention but everything is negotiable and if it suits CAL, they'll make the change anyway they have to. Just ask the pilots at Delta and United how management twisted, bent, manipulated and negotiatied larger aircraft for the regionals. So even if XJT keeps their flying, what makes you think CAL won't award addition flying to other regionals using other type aircraft?

Scope combined with a profitable airline that is not in BK.

 

[viper548]

Expressjet has a market cap of about $126 million. And how much more than that do you think the company is worth?

Probably at least double

 

[viper548]

I'm shocked Mesa isn't trying to buy them

 

[homerjdispatch]

I'm shocked Mesa isn't trying to buy them

Maybe they are.....

 

[10nCLR]

Maybe they are.....

Homer, you know too much. Have you been drinking the fruit punch instead of the kool-aid?

 

[homerjdispatch]

Homer, you know too much. Have you been drinking the fruit punch instead of the kool-aid?

Just Duff beer for me.... Duff Man rocks! Much better than that cool-aid fool!

 

[Ben Dover]

Probably at least double

That's pretty interesting. So SkyWest should pay a 100% premium over what Wall Street believes Expressjet is worth?

Does the word delusional mean anything to you?

 

[viper548]

That's pretty interesting. So SkyWest should pay a 100% premium over what Wall Street believes Expressjet is worth?

Does the word delusional mean anything to you?

Wall street is taking into account that Expressjet is losing lots of money due to their branded operation and they expect to lose money in the future. Expressjet isn't worth much to wall street because of that.
I don't think SKYW would pay a 100% premium, but Expressjet is ripe for the picking

 

[ATRCA]

Expressjet has a market cap of about $126 million. And how much more than that do you think the company is worth?

I have no idea and I really don't care. I just don't see SKW parting with that to assume the risks associated.

 

[ATRCA]

Who knows. This same question was asked just a few years ago regarding United and Delta. Now everyone is flying these aircraft and will probably be flying larger ones for them too. Everyone laughed whenever anyone would dare suggest that the regionals could be flying these types of aircraft. "Bigger then 50 seaters; never going to happen!", they would say.




True, Skywest doesn't want to add any new aircraft to its fleet for various reasons(though the E170 and E190 was recently added to the payscale), some as you mention but everything is negotiable and if it suits CAL, they'll make the change anyway they have to. Just ask the pilots at Delta and United how management twisted, bent, manipulated and negotiatied larger aircraft for the regionals. So even if XJT keeps their flying, what makes you think CAL won't award addition flying to other regionals using other type aircraft?

Here are two problems with what you say above,

1. CALALPA has industry leading scope protection and they don't appear willing to budge on that so -700's and -900's...........not anytime soon.

2. They a/c that will/if/may be removed from XJT will be returned to CAL. CAL is the lessor so they will need to place those a/c an a new program or PARK THEM AND PAY THE LEASES!. I seriously doubt they would park the a/c, sign a deal with SKW to operate a different fleet. That would be very expensive.

XJT does not own the a/c. It leases all a/c from CAL. If a/c are removed they are simply returned to the lessor, CAL.