Skywest says no to Northwest and American

[Erlanger]

Not flamebait like the others on here today.

JA was asked about buyouts and other rumors and there were two new things he revealed. Everything else was old news.

A deal with Northwest fell through because Northwest only wanted Skywest to provide the crews to fly the planes and Northwest would buy and own the planes. Skywest said no to any deal unless they bought and controlled the planes themselves too.

The other thing he was asked about was American Eagle and he said there were brief talks with American about a buyout but said Skywest was not interested in American Eagle and he believes they won't be bought by anyone and will probably close their doors by years end.

 

[USCtrojan]

Not flamebait like the others on here today.

JA was asked about buyouts and other rumors and there were two new things he revealed. Everything else was old news.

A deal with Northwest fell through because Northwest only wanted Skywest to provide the crews to fly the planes and Northwest would buy and own the planes. Skywest said no to any deal unless they bought and controlled the planes themselves too.

The other thing he was asked about was American Eagle and he said there were brief talks with American about a buyout but said Skywest was not interested in American Eagle and he believes they won't be bought by anyone and will probably close their doors by years end.

Not that I don't believe you, Erlanger, but what's your source?

Trojan

 

[WalterSobchak]

The other thing he was asked about was American Eagle and he said there were brief talks with American about a buyout but said Skywest was not interested in American Eagle and he believes they won't be bought by anyone and will probably close their doors by years end.

I mean this in a strictly business, non-flamebait sort of way...but why buy the expensive business no one wants to buy when you can kick back, wait for it to go away on its own, and come take over the flying with your own people and planes...?

 

[No.W.]

Why would eagle close their doors in a year? Have I been missing something...I know things aren't the best there(but, then again, where ARE they the best). I've got good friends working there, and they haven't said a thing about possibly going out of business.

 

[WalterSobchak]

Why would eagle close their doors in a year? Have I been missing something...I know things aren't the best there(but, then again, where ARE they the best). I've got good friends working there, and they haven't said a thing about possibly going out of business.

AMR is looking to divest Eagle within the next year. If no one wants to buy them, and AMR wants them off the books...

 

[No.W.]

AMR is looking to divest Eagle within the next year. If no one wants to buy them, and AMR wants them off the books...

OK. I heard about AMR selling them, but I thought it would just be an IPO like CoEx did back in the day. I had no idea it's just a straight sale or nothing. That really sucks.

 

[XPOO]

I mean this in a strictly business, non-flamebait sort of way...but why buy the expensive business no one wants to buy when you can kick back, wait for it to go away on its own, and come take over the flying with your own people and planes...?

It would save money in the long run not having to retrain the crews. However, hiring them all back at the bottom of the payscale could also be beneficial. But BR runs the financial numbers. So he would know better than anyone.

 

[labbats]

How can Eagle close its doors when AA needs someone to fly the contract through 2013?

 

[~~~^~~~]

A deal with Northwest fell through because Northwest only wanted Skywest to provide the crews to fly the planes ....

That's just weird. According to the folks who make these sort of decision at several major airlines the RJ's and smaller mainline jets are obsolete in 5 years and they do not want them on the books.

Everyone is waiting for a mini version of a 787 with Pratt's geared turbofan.

 

[fieldinsight]

Not flamebait like the others on here today.

JA was asked about buyouts and other rumors and there were two new things he revealed. Everything else was old news.

A deal with Northwest fell through because Northwest only wanted Skywest to provide the crews to fly the planes and Northwest would buy and own the planes. Skywest said no to any deal unless they bought and controlled the planes themselves too.

The other thing he was asked about was American Eagle and he said there were brief talks with American about a buyout but said Skywest was not interested in American Eagle and he believes they won't be bought by anyone and will probably close their doors by years end.

Lighten up, Francis..... A shutdown of Eagle isn't going to happen....

When AMR announced that they were looking to spin Eagle off, there were a number of possibilities offered. One was a sale. Another was to spin Eagle off as a separate company, via an IPO. Unless a buyer steps forward and AA gives them a VERY favorable agreement, Eagle will go the IPO route.