What would happen to SKYW if UAL died?

[USCtrojan]

When UAL was approaching bankruptcy, I suggested to the CFO that SKYW simply buy them. He smiled at the whimsical suggestion and said they actually had looked at it but the cash flow was not something that would be sustainable. Shortly after, UAL entered bankruptcy.

Why would SkyW want to buy them Andy? I mean, right now, they assume no risk. Other than performing and meeting Contractual requirements. Basically like an employee. I wouldn't want anything to do with UAL's business (meaning as an investor). ASA was a big enough challenge, imagine what UAL would be with all the labor strife!

Trojan

 

[Andy Neill]

Why would SkyW want to buy them Andy? I mean, right now, they assume no risk. Other than performing and meeting Contractual requirements. Basically like an employee. I wouldn't want anything to do with UAL's business (meaning as an investor). ASA was a big enough challenge, imagine what UAL would be with all the labor strife!

Trojan

Trojan,
If you look at this in the context of the time period being discussed, it makes more sense. UAL was approaching bankruptcy and SKYW was one of several regionals doing the feed. Adjusted agreements in bankruptcy could mean (and did mean) a substantial reduction in flying for SKYW. SKYW has a killer management team who can do magic.

I was not referring to the present situation at all and my past suggestion was whimsical at best.

 

[SLOTH]

Of course, none of us can predict how UAL would react to having competent management for once.

:laugh:

 

[USCtrojan]

Trojan,
If you look at this in the context of the time period being discussed, it makes more sense. UAL was approaching bankruptcy and SKYW was one of several regionals doing the feed. Adjusted agreements in bankruptcy could mean (and did mean) a substantial reduction in flying for SKYW. SKYW has a killer management team who can do magic.

I was not referring to the present situation at all and my past suggestion was whimsical at best.

I gotcha! Good point. I guess my original point is or was that SkyW would never want to be a major airline because of assumed risk and that more than quadrupling from their current situation. However, that being said, if their parent Company is on the fritz then, yes, they would have a major incentive to become a Major investor in that business. Sort of repeated what your were pointing out, I guess I just needed to write it out cuz I'm slow!

Trojan

 

[sweptback]

So were CMR and DAL....right?

Yeah but CMR fed DAL. ASA doesn't feed SKYW, nor are we dependent on SKYW, Inc. for our income. Apples and oranges.

 

[JoeMerchant]

Yeah but CMR fed DAL. ASA doesn't feed SKYW, nor are we dependent on SKYW, Inc. for our income. Apples and oranges.

If SKYW Inc. declares BK....they can drag ASA into BK....just as MAIR did with Mesaba and DAL did with CMR.....

The majority of Skywest flying is for United...It won't be good for us if UAL goes TU.....

Go ahead and put your faith in our section 1.....I'll continue to hope United makes it....

 

[ASApuppy]

I guess I just needed to write it out cuz I'm slow!

Trojan

This quote is the most truthful thing I've ever read on flightinfo. j/k Mr. USC.. Sir...hee hee

On to the point I'll make. If you are going to talk about a collapse of UAL and its impact on SKYW, I think you must bring in to the discussion the impact on other carriers for UAL. I think they are in a weaker condition and have a bigger share of their respective pie involved with UAL. Gojet, Mesa, and Republic have more at stake than SKYW. Lose of UAL funds for those carriers might just be the death blow and would leave the other carriers to bid on the flying left behind from surviving partners.

Just my 2 cents...

 

[Tarzan]

On to the point I'll make. If you are going to talk about a collapse of UAL and its impact on SKYW, I think you must bring in to the discussion the impact on other carriers for UAL. I think they are in a weaker condition and have a bigger share of their respective pie involved with UAL. Gojet, Mesa, and Republic have more at stake than SKYW. Lose of UAL funds for those carriers might just be the death blow and would leave the other carriers to bid on the flying left behind from surviving partners.

Just my 2 cents...

Agreed. The amount of money SKW Inc has to see things through makes it much more likely to be standing after the dust settled. This even as money in the bank for SKW, ASA and Inc are all separate entities as far as the FAA and SEC is concerned. There is still a much larger amount on hand than Republic, MAG, TSH, XJET could come with together.

 

[PBRstreetgang]

I'm sure Ill get bashed for this but I bet Jerry and the SKW mgmnt team could turn around and make UAL profitable.

Actually "clubbed like a baby seal" comes to mind. Jerry and his kids have never had to run an operation where they were contractually guaranteed less than 7% net profit and most times in the past were much higher, approaching 12-14%. To have to run a global airline from SGU wouldn't work, the 1 phone line is too iffy. They would be idiots to voluntarily give up the fee for departure scheme and compete toe to toe with other carriers. Put your winkie away and dream about the mighty CRJ200, the hug with wings!
PBR

 

[Jon Rivoli]

Back then I asked Ron why we didn't just buy United. He said that $100 million will buy you about $15 billion worth of debt and not much more. So I asked him, "What if UAL liquidates?" He said we buy the Alaska Air Group and we own the west coast. Ron's gone now. I wonder where he is.

 

[Erlanger]

Back then I asked Ron why we didn't just buy United. He said that $100 million will buy you about $15 billion worth of debt and not much more. So I asked him, "What if UAL liquidates?" He said we buy the Alaska Air Group and we own the west coast. Ron's gone now. I wonder where he is.

Ron's living the good life with the Skywest millions they paid him to "retire" in Phoenix. Inspite of what he said in an email to all, he was forced out.

 

[nimtz]

I'm sure Ill get bashed for this but I bet Jerry and the SKW mgmnt team could turn around and make UAL profitable.

Yes you will and should get bashed for this. My thine koolaid runeth thicketh...

 

[flyboyzz1]

Well let's put it this way... they sure as hell couldn't screw it up any worse.

 

[ROSWELL41]

SKYW would be in trouble if UAL went away. This point underlies the differences between two successful companies: Skywest and Republic Holdings. Republic has a highly diverse portfolio of codeshares (some strong and some not so much), while Skywest has enormous contracts with two partners and a small one with a third. If YX goes under, both Skywest and Republic will survive. If UAL goes under, Republic survies...Skywest? This is the largest weakness in the Skywest business model.

 

[Erlanger]

SKYW would be in trouble if UAL went away. This point underlies the differences between two successful companies: Skywest and Republic Holdings. Republic has a highly diverse portfolio of codeshares (some strong and some not so much), while Skywest has enormous contracts with two partners and a small one with a third. If YX goes under, both Skywest and Republic will survive. If UAL goes under, Republic survies...Skywest? This is the largest weakness in the Skywest business model.

The UAL part of Skywest would die, many furloughs and layoffs, the company would be a lot smaller, maybe even integrate Skywest into ASA (I think they'd prefer to keep the Skywest name though) but the DAL stuff would continue and there's no better company out there then Skywest who has the skills and money to rebuild. And you can be sure they would rebuild.

 

[Jon Rivoli]

If UAL died someone else would take over the flying and they would need the feed. There would be a transition period, but it wouldn't be catastrophic for SkyWest.
Airlines the size of United don't just disappear without a trace. TWA got rolled into American. What was PanAm was taken over by United, American and others. The routs are still there, just the color of the planes flying them are different.
If UAL were on the ropes looking at liquidation someone would swoop in buy them, that's if the government didn't step in and bail them out. Recently the government has been doing that a lot. Don't forget UAL's headquarters are in Barry's hometown and one of their major hubs is in Nancy Pelosi's district.

 

[BrickTop]

700+ Million in cash and an employee management relationship like we have I think secures our future in aviation for many many years to come. I for one am not worried.

 

[BrickTop]

SKYW would be in trouble if UAL went away. This point underlies the differences between two successful companies: Skywest and Republic Holdings. Republic has a highly diverse portfolio of codeshares (some strong and some not so much), while Skywest has enormous contracts with two partners and a small one with a third. If YX goes under, both Skywest and Republic will survive. If UAL goes under, Republic survies...Skywest? This is the largest weakness in the Skywest business model.

Its a good point and a clear tactic that has had to much oversight on our part. We need a more diversified partner portfolio.

 

[Dubya]

Gordon Bethune has had an office at UAL headquarters in Chicago for 6 months (saw him downtown a month ago). I bet he is overseeing the reductions at UAL for Continental. The purchase will be soon...and we all know how good the relationship between SKW and CAL is.

Begin speculation.


W

 

[crj567]

This may be the dumbest thread of the year!

-"What sould happen to SKYW if United died?"

-Seriously?

Is that not a bit like asking "what would happen if you took a dump before you removed your pants?"