Skywest says no to Northwest and American

[DGdaPilot]

Eagle shutting down? Bwaaaahahahhaaha. That's a good one.

 

[10nCLR]

JA is JA and he does know more than you think. JA and Chip might even be FI regulars. Sshhh, don't tell anybody that I said that or I will have to bust your walls.

 

[CFIse]

Not flamebait like the others on here today.

Well if you say so.....

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.

Yeh that's not true - nobody wants to own the asset, the legacy only wants to own the asset because it gives them a measure of control. If SkyWest could not own the asset but get paid to operate it they'd jump at the chance. If such a deal was EVER on the table (and given NorthWest's insular approach to regional lift I doubt it) what killed it wasn't who owns the planes.

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'm sure everybody you can name has had "brief" talks with AMR about Eagle, and I'm sure anybody with a 7th grade financial education and a copy of Excel decided it would be the dumbest buy you could imagine. The only way Eagle gets sold is with ironclad, long term, high cost contracts for lift with AMR - and AMR's not going to offer that because the whole reason they want to sell it is so they can compete all the regionals against each other in the race to the cheapest - a race Eagle could never hope to win.

AMR's not going to shutdown Eagle, they might try and slowly wither it on the vine by bidding out small amounts of flying and shrinking Eagle as it goes, but many of the planes at Eagle are worthless on the market, and almost certainly not worth anything like their book value. Yes, in theory they could just shut it down overnight, but a) where would they get the replacement lift and b) who needs that kind of massive financial hit to the books just when you might be able to sustain a weak profit going forward?

I'm going to call bogus on these two.

 

[BoilerUP]

Skywest must be like that hot girl in high school - everybody always asking you out, but you turn them down because you're content with your current arrangement.

 

[John Pennekamp]

Skywest must be like that hot girl in high school - everybody always asking you out, but you turn them down because you're content with your current arrangement.

Or the hot girl that nobody ever asked out because they assumed they would be shot down. So she sat home alone every Saturday night.

 

[Mookie]

or the hot girl that was home at night on a saturday b/c no one would put up with her bull********************....

mookie

 

[Morning Wood]

or the hot girl that was home at night on a saturday b/c no one would put up with her bull********************....

mookie

Yep. At home on a Saturday night counting all the money they made last quarter. Someone must be willing to put up with their BS.

 

[Nevets]

Yep. At home on a Saturday night counting all the money they made last quarter. Someone must be willing to put up with their BS.

Yep, at home on a Saturday night counting all the money they made last quarter and not giving the pilots a decent COLA at the same time. The pilots "put up" with their BS.

 

[Bushhatesyou]

Skywest must be like that hot girl in high school - everybody always asking you out, but you turn them down because you're content with your current arrangement.

More like the whore who will spread her legs for some dunkin dougnuts and and a 6 pack of Zima..

 

[homerjdispatch]

Or the hot girl that nobody ever asked out because they assumed they would be shot down. So she sat home alone every Saturday night.

Or feeling bad for the fat ugly kid (ASA) and taking him out. Then he bitches when she wont put out!!! (even though she saved him from the crazy bitch, MESA, who would have killed him!)