SkyWest turns down Comair, sues Delta....looks for overseas growth...

[120% Torque]

I hope for the sake of my friends at skywest (the 35% and now 707) this growth they are looking at overseas, using the money raised off the little skywest worker bees isnt like the ASA purchase......growth with zero benefit to those who helped raise the money. Also for the sake of my friends at Skywest I hope Skywest doesnt get canned at some point. Maybe another "Kungpow" in the works? I have a feeling Delta is getting less enthusiastic about working with Skywest after cutting a nice deal on ASA and now seeing more and more arrogance out of SGU in return. My guess Delta, now stuck with Comair will look to shift flying over there where possible.

SkyWest will take a pass on Comair, files complaint against Delta

Tuesday February 5, 2008
SkyWest Airlines is interested in future acquisitions, but it has no plans to bid on Delta Air Lines subsidiary Comair, Chairman and CEO Jerry Atkin said.
"It would be a stretch. Consolidation in Delta is not one we would have an interest in," he told ATWOnline. "There are other regionals out there." The largest regional carrier in the US, SkyWest operates a fleet of 437 aircraft in partnership with DL, United Airlines and Midwest Airlines.
SkyWest acquired Atlantic Southeast Airlines from Delta in September 2005 for $350 million. Atkin described ASA as "a bit of a fixer-upper. It's taken a lot longer than we thought to accomplish some of the changes." But he said ASA is close to "where it should be operationally" and the company is beginning to realize purchasing advantages because of its increased size.
For now, SkyWest has earmarked $150 million for investment opportunities outside the US, he said. It has "working relationships" with prospective partners in Europe, Brazil, Mexico and China, but he declined to provide specifics while noting, "We will have substantial opportunities for growth."
Meanwhile, the company yesterday filed a court complaint against Delta claiming the latter withheld some $25 million in payments in December that it owed for so-called "irregular operation expenses." DL has indicated that it does not believe it should reimburse the majority of IROP expenses incurred by SkyWest and ASA.
"Although we and Delta are both committed to maintain a productive and cooperative long-term relationship and remain focused on continued improvements of our Delta Connection operations, we simply have a disagreement over the IROP contract language," Executive VP and CFO Bradford Rich said. "However, due to the inability to resolve the matter informally, we are seeking legal remedies to protect our contractual rights under our agreements."

 

[www.]

Do you really think that JA would come out and say, we are going to bid on it? DAL would jack the price up to make back the money from the ASA deal.

If JA were to buy CMR it would be for assets.

There's nothing here...move along.

 

[DrewBlows]

If JA were to buy CMR it would be for assets.

As opposed to liabilities? Thank you Mr. Obvious.

 

[Dubya]

I hope for the sake of my friends at skywest (the 35% and now 707) this growth they are looking at overseas, using the money raised off the little skywest worker bees isnt like the ASA purchase......growth with zero benefit to those who helped raise the money. Also for the sake of my friends at Skywest I hope Skywest doesnt get canned at some point. Maybe another "Kungpow" in the works? I have a feeling Delta is getting less enthusiastic about working with Skywest after cutting a nice deal on ASA and now seeing more and more arrogance out of SGU in return. My guess Delta, now stuck with Comair will look to shift flying over there where possible.

SkyWest will take a pass on Comair, files complaint against Delta

Tuesday February 5, 2008
SkyWest Airlines is interested in future acquisitions, but it has no plans to bid on Delta Air Lines subsidiary Comair, Chairman and CEO Jerry Atkin said.
"It would be a stretch. Consolidation in Delta is not one we would have an interest in," he told ATWOnline. "There are other regionals out there." The largest regional carrier in the US, SkyWest operates a fleet of 437 aircraft in partnership with DL, United Airlines and Midwest Airlines.
SkyWest acquired Atlantic Southeast Airlines from Delta in September 2005 for $350 million. Atkin described ASA as "a bit of a fixer-upper. It's taken a lot longer than we thought to accomplish some of the changes." But he said ASA is close to "where it should be operationally" and the company is beginning to realize purchasing advantages because of its increased size.
For now, SkyWest has earmarked $150 million for investment opportunities outside the US, he said. It has "working relationships" with prospective partners in Europe, Brazil, Mexico and China, but he declined to provide specifics while noting, "We will have substantial opportunities for growth."
Meanwhile, the company yesterday filed a court complaint against Delta claiming the latter withheld some $25 million in payments in December that it owed for so-called "irregular operation expenses." DL has indicated that it does not believe it should reimburse the majority of IROP expenses incurred by SkyWest and ASA.
"Although we and Delta are both committed to maintain a productive and cooperative long-term relationship and remain focused on continued improvements of our Delta Connection operations, we simply have a disagreement over the IROP contract language," Executive VP and CFO Bradford Rich said. "However, due to the inability to resolve the matter informally, we are seeking legal remedies to protect our contractual rights under our agreements."

*yawn*

 

[Eric]

120, what kind of arrogance are you referring to? If you are talking about the lawsuit, I don't think that is arrogant. It's just business. SkyWest believes that Delta isn't holding up its agreement in the contract.

It would be the same as a pilot grieving a contract pay dispute. Nothing personal. Doesn't mean you don't still like the company. You just want them to pay you what they said they would.

SkyWest did get a good deal on ASA, but it wasn't out of the kindness of DAL's heart. Again, just business. They were bleeding and needed cash. SkyWest had cash and needed growth.

Just my $.02

 

[trip]

SKYW is not in the business to lose money and that is where most regional contracts are heading. Like it or not this biz is changing where it goes is anyones guess!

 

[SKYWRJGUY]

If this was a unionized carrier, we wouldn't have to worry about lawsuits...all would be well; how arrogant a party to a contract try to hold the other accountable. I wouldn't be surprised to see SKYW inject money into a foreign operation without having to be operationally participating.

Can't quite figure out the reference to the 35%/707 (I'm of the latter but no the former, FWIW)...that's about dumb. Another end run for group identification I suppose....

 

[John Pennekamp]

120, what kind of arrogance are you referring to? If you are talking about the lawsuit, I don't think that is arrogant. It's just business. SkyWest believes that Delta isn't holding up its agreement in the contract.

It would be the same as a pilot grieving a contract pay dispute. Nothing personal. Doesn't mean you don't still like the company. You just want them to pay you what they said they would.

SkyWest did get a good deal on ASA, but it wasn't out of the kindness of DAL's heart. Again, just business. They were bleeding and needed cash. SkyWest had cash and needed growth.

Just my $.02

This is not news. Delta is the kind of company that floats all of its bills the full 90 days and fights over every dime. SkyWest Inc suing them over this is a standard collection procedure. I'll wager that they settle out of court for 50 cents on the dollar anyhow.

 

[NoR * CaL]

However you have to love his description of us....

 

[PCL_128]

JP, you went with the Hilldabeast? WTF?

 

[John Pennekamp]

JP, you went with the Hilldabeast? WTF?

I wanted Edwards. But him dropping out left me with only one choice. I don't trust Obama. He has the oratory skill of Hitler, where he can woo a crowd and say absolutely nothing. I fear he will cater to the black special interests and lead us into minority rule on the scale of apartheid.

 

[PCL_128]

Well, I just got back from voting for Obama, so I guess our votes cancel each other out.

 

[John Pennekamp]

Well, I just got back from voting for Obama, so I guess our votes cancel each other out.

Actually, I have discussed this with a lot of Republicans who are crossing over to vote for Hillary just to keep Obama out. I know of at least 20 or so personally who cancelled yours!

 

[120% Torque]

Skywest's tone has changed. There is obviously frustration with their position and now this lawsuit. I still maintain they have a right to sue delta but from everything I have read and a friend who had the COO on the jumpseat the relationship is getting strained. I find it telling that in this news release it says publicly it doesnt want Comair, will sue Delta and is looking only at overseas fllying for growth. Whereas in the past it was always mentioned there were ongoing discussions with other domestic carriers to diversify the tune seems to have changed. Perhaps this is because the mergers that might happen will leave them flat.

Just curious, if Skywest now turns around and dumps say five hundred thousand into Aeromexico for example with no way for original skywest pilots to access that flying, then a year later buys Flybee in the UK with no way for original skywest pilots to access flying yet "doesnt have the money to give a decent raise" or COL increases back that they took away a few years ago how would that make the average skywest pilot feel? If I was still at skywest that would not sit too well with me. Each to thier own though. Watching the majority of pilots at skywest I have a feeling they will pretty much take whatever is crammed down their throats at this point. They have no bargaining position or contract to protect their interests. Good luck to the guys who tried.

 

[PCL_128]

There are also a lot of Reps crossing to vote for Obama. It's a weird race.

 

[Dubya]

No US President has ever been elected without the white male majority.

Neither Hitlery nor Oblackma will receive the white male majority vote in a national election.

They are fighting for second place.

W

 

[www.]

Skywest's tone has changed. There is obviously frustration with their position and now this lawsuit. I still maintain they have a right to sue delta but from everything I have read and a friend who had the COO on the jumpseat the relationship is getting strained. I find it telling that in this news release it says publicly it doesnt want Comair, will sue Delta and is looking only at overseas fllying for growth. Whereas in the past it was always mentioned there were ongoing discussions with other domestic carriers to diversify the tune seems to have changed. Perhaps this is because the mergers that might happen will leave them flat.

Just curious, if Skywest now turns around and dumps say five hundred thousand into Aeromexico for example with no way for original skywest pilots to access that flying, then a year later buys Flybee in the UK with no way for original skywest pilots to access flying yet "doesnt have the money to give a decent raise" or COL increases back that they took away a few years ago how would that make the average skywest pilot feel? If I was still at skywest that would not sit too well with me. Each to thier own though. Watching the majority of pilots at skywest I have a feeling they will pretty much take whatever is crammed down their throats at this point. They have no bargaining position or contract to protect their interests. Good luck to the guys who tried.

Put down the crack and move away from the table.

 

[atlcrjdriver]

No US President has ever been elected without the white male majority.

Neither Hitlery nor Oblackma will receive the white male majority vote in a national election.

They are fighting for second place.

W

Tell me you're kidding...

 

[John Pennekamp]

No US President has ever been elected without the white male majority.

Neither Hitlery nor Oblackma will receive the white male majority vote in a national election.

They are fighting for second place.

W

Agreed. I'm voting for the lesser of two evils.

 

[IronCityBlue]

As opposed to liabilities? Thank you Mr. Obvious.

I think what he's trying to say is they will take assets, not pilots, offer more rapid fire upgrades to SkyWest pilots while only offering Comair pilots pref interviews. IOW his airline can beat up your airline. :smash: