What would happen to SKYW if UAL died?

[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?"