SkyWest may seek merger with rival airline ExpressJet

[bender]

SkyWest elected to terminate the agreement, not Continental.

 

[Erlanger]

Hey dumba$$ Skywest already had Continental flying, and lost it.....

Who are you calling dumba$$? You did read Bmpilot2003's and Bender's response, right?

One more thing; When Continental opens up a base at LAX in 2009 or 2010, lets see who gets the flying out of there. Do you have any idea why Skywest fought and recently got reprieve from the exclusivity clause with United and Delta out of LAX?

 

[ATRCA]

For some of you that think Skywest and ExpressJet would merger, well you're delusional. Skywest doesn't need to merge with anyone. They may buyout ExpressJet like they did ASA but no merger.

Jerry Atkin has always said from the start that he doesn't think that ExpressJet branded flying would ever work. When they first started it, I personally heard him say he gives them 2 years and then they'll end up like Independence. During Independence's days he also said it wouldn't work. The Skywest bigwigs have always said the branded flying is not in Skywest's future. They don't believe it can work. If Skywest was to buy ExpressJet you can bet that Skywest would stop the branded flying immediately.

As far as a merger of the senority list; ain't going to happen even if there was a buyout.

Skywest bought ASA to protect the DCI flying. ExpressJet has very little DCI flying (the LAX flying is eventually going back to Skywest, Inc.) and nor does their failing branded flying threaten anyone. Skywest will eventually get Continental flying without ExpressJet.

OMG, Cool-Aide is some crazy $hit. I truly don't know how SkyWest does it. How do they find these guys. Where? My guess is that XJT will shut down the branded stuff before too long, but that will have very little if any long term effect on XJT. They will turn the a/c back over to CAL and simply move on.

I doubt SKW will part with the bling that it would take to buy XJT. As far as SKW doing CAL flying........
1. Better think about getting your cost REAL LOW
2. 50 seat flying only. Who's looking for 50 seat flying anymore? Why would SKW want to make that kind of investment in a/c that have a limited future?

 

[Erlanger]

ATRCA says;

My guess is that XJT will shut down the branded stuff before too long, but that will have very little if any long term effect on XJT.

XJT stands to loose another 25% of their CAL flying next year.

ATRCA says;

I doubt SKW will part with the bling that it would take to buy XJT. As far as SKW doing CAL flying........
1. Better think about getting your cost REAL LOW
2. 50 seat flying only. Who's looking for 50 seat flying anymore? Why would SKW want to make that kind of investment in a/c that have a limited future?

Who said anything about 50 seat flying? There are CRJ700s, CRJ900, E170, E190 and the soon to be out CRJ1000 and the NextGen CRJ700/900s. Besides, don't count the 50 seaters out. They're going to be around for quite a while even though they won't be produced anymore.

 

[Superpilot92]

Who said anything about 50 seat flying? There are CRJ700s, CRJ900, E170, E190 and the soon to be out CRJ1000 and the NextGen CRJ700/900s. Besides, don't count the 50 seaters out. They're going to be around for quite a while even though they won't be produced anymore.

Not for CAL there isnt, but you already know that....

 

[ATRCA]

ATRCA says;

XJT stands to loose another 25% of their CAL flying next year.

ATRCA says;

Who said anything about 50 seat flying? There are CRJ700s, CRJ900, E170, E190 and the soon to be out CRJ1000 and the NextGen CRJ700/900s. Besides, don't count the 50 seaters out. They're going to be around for quite a while even though they won't be produced anymore.

Two Q's;

1. Do you think SKW will be doing CAL flying in -700's, -900's ?
2. In order to do the CAL flying should XJT lose additional flying SKW would have to use XJT's a/c. Those a/c belong to CAL and would be returned if the flying is taken from XJT. Do you think SKW will want to introduce the EMB a/c to their system??

Its hard to introduce a new fleet type and compete on costs. There are other carriers suited for that in my opinion.

 

[Hypoxik]

Wow...you OO guys just know how to get sleazier and sleazier.

 

[Erlanger]

Two Q's;

1. Do you think SKW will be doing CAL flying in -700's, -900's?

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.

2. In order to do the CAL flying should XJT lose additional flying SKW would have to use XJT's a/c. Those a/c belong to CAL and would be returned if the flying is taken from XJT. Do you think SKW will want to introduce the EMB a/c to their system??

Its hard to introduce a new fleet type and compete on costs. There are other carriers suited for that in my opinion.

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?

 

[10nCLR]

Wow...you OO guys just know how to get sleazier and sleazier.

and fruitier and fruitier. Cheers!

 

[Ben Dover]

I doubt SKW will part with the bling that it would take to buy XJT. As far as SKW doing CAL flying........

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

 

[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.