BlueRidger
Well-known member
- Joined
- Dec 18, 2001
- Posts
- 103
I am surprised no one on this web board jumped on this. Especially the last two paragraphs about Sky West wanting to buy someone. There is little else more fun in this industry than rampant merger rumor.
Reuters
SkyWest sees United deal intact in case of Ch. 11
Friday November 15, 12:23 pm ET
NEW YORK, Nov 15 (Reuters) - SkyWest Inc., (NasdaqNM:SKYW - News) a regional airline operator that flies small aircraft for Delta Air Lines (NYSE
AL - News) and United Airlines, is confident its contract with United would stay intact if the airline filed for bankruptcy, a SkyWest executive said on Friday.
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No. 2 U.S. airline United, the main operating unit of UAL Corp. (NYSE:UAL - News), is in talks with lenders to arrange for up to $2 billion in loans to keep its business running if it files for bankruptcy.
The airline is working to secure more concessions from its employees, along with $1.8 billion in federal loan guarantees. But United executives have said the company may have to file for bankruptcy if the financing bids fail.
SkyWest runs about 35 percent of its regional jet flights for United, SkyWest Vice President of Finance and Assistant Treasurer Michael Kraupp told analysts at the Salomon Smith Barney Transportation Conference in Key Biscayne, Florida.
Many of SkyWest's upcoming airplane deliveries are aimed at expanding that business, he said, particularly out of Denver, a United hub.
"We've certainly had some discussions with United," Kraupp said. "We would hope and anticipate that the arrangement would be the same under a United bankruptcy, if that were to happen."
He said the status of SkyWest's contract with United, if the carrier filed for bankruptcy, could be determined right away as United asks a court for permission to pay certain vendors to maintain its operations.
Kraupp said he believed SkyWest's relationship with United was similar to that of a fuel vendor, who would be granted payment as soon as possible.
"What's going to be key is what happens that very first day," Kraupp said. "If United does file for bankruptcy, we believe that our contract would continue to stay intact, and that we would continue to fly for them. United publicly has stated that the regional jets are part of the solution, not part of the problem."
Regional jets, which generally seat 50 or 70 passengers instead of hundreds, are cheaper to operate and can allow airlines to run flights in markets with too few travelers to support larger planes.
As the airline industry environment has deteriorated, nearly all of the major airlines have turned toward bigger fleets of regional jets as a potential way to cut costs and sustain revenue.
Kraupp said SkyWest was also in a position to be "acquisition-minded."
"We feel we're a pretty good candidate to go out and look at some other entities" to build growth," he said.
Reuters
SkyWest sees United deal intact in case of Ch. 11
Friday November 15, 12:23 pm ET
NEW YORK, Nov 15 (Reuters) - SkyWest Inc., (NasdaqNM:SKYW - News) a regional airline operator that flies small aircraft for Delta Air Lines (NYSE
AL - News) and United Airlines, is confident its contract with United would stay intact if the airline filed for bankruptcy, a SkyWest executive said on Friday.ADVERTISEMENT
No. 2 U.S. airline United, the main operating unit of UAL Corp. (NYSE:UAL - News), is in talks with lenders to arrange for up to $2 billion in loans to keep its business running if it files for bankruptcy.
The airline is working to secure more concessions from its employees, along with $1.8 billion in federal loan guarantees. But United executives have said the company may have to file for bankruptcy if the financing bids fail.
SkyWest runs about 35 percent of its regional jet flights for United, SkyWest Vice President of Finance and Assistant Treasurer Michael Kraupp told analysts at the Salomon Smith Barney Transportation Conference in Key Biscayne, Florida.
Many of SkyWest's upcoming airplane deliveries are aimed at expanding that business, he said, particularly out of Denver, a United hub.
"We've certainly had some discussions with United," Kraupp said. "We would hope and anticipate that the arrangement would be the same under a United bankruptcy, if that were to happen."
He said the status of SkyWest's contract with United, if the carrier filed for bankruptcy, could be determined right away as United asks a court for permission to pay certain vendors to maintain its operations.
Kraupp said he believed SkyWest's relationship with United was similar to that of a fuel vendor, who would be granted payment as soon as possible.
"What's going to be key is what happens that very first day," Kraupp said. "If United does file for bankruptcy, we believe that our contract would continue to stay intact, and that we would continue to fly for them. United publicly has stated that the regional jets are part of the solution, not part of the problem."
Regional jets, which generally seat 50 or 70 passengers instead of hundreds, are cheaper to operate and can allow airlines to run flights in markets with too few travelers to support larger planes.
As the airline industry environment has deteriorated, nearly all of the major airlines have turned toward bigger fleets of regional jets as a potential way to cut costs and sustain revenue.
Kraupp said SkyWest was also in a position to be "acquisition-minded."
"We feel we're a pretty good candidate to go out and look at some other entities" to build growth," he said.
