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Really? According to the 8k that XJT filed, it said they called SkyWest asking for one final offer (which JA lowballed even further from the original offer) after CAL stuck a gun to XJT's head and said sign this new agreement or else. XJT really had no other option as CAL said the deal had to be done within a day or their flying was going bye-bye. You spin it your way, I'll spin it mine.
I think CAL used SKYW as a decoy and as stated above used both of them to get the lowest price. Management always gets what they want, ALWAYS.
Really? According to the 8k that XJT filed, it said they called SkyWest asking for one final offer (which JA lowballed even further from the original offer) after CAL stuck a gun to XJT's head and said sign this new agreement or else. XJT really had no other option as CAL said the deal had to be done within a day or their flying was going bye-bye. You spin it your way, I'll spin it mine.
Maybe I'm biased, but it seems to me JA stuck to his guns. He was either going to get the deal he wanted, at his price, or nothing. Turned out to be nothing.
Meanwhile, SkyWest, Inc. keeps loading millions into the bank account while ExpressJet Holdings, Inc. keeps losing it.
I thought it was clear I was talking about the CPA SKW had negotiated with CAL. I was not talking about the buyout price or terms and conditions of the transaction. My comment you quoted was to a reply from a poster who I thought was speaking from the pilot's point of view. From the XJT pilot's point of view, the deal SKW had with CAL for XJT is far worse than what XJT got with CAL.
As for the transaction itself, obviously the special committee didn't think it was a good enough deal either since they "asked SkyWest to respond with its best and final offer to acquire ExpressJet and to remove as many conditions as possible to its merger proposal." Although I think favorably of the XJT management, I'm not naive enough to think they wouldn't have pulled the trigger on the buyout if they thought it was a good deal. That is why I wasn't speaking to the buyout. But I guess you drink enough kool aid that you took it as an attack on SKW and felt compelled to somehow defend what your management was trying to do to XJT pilots and the profession.
Can we please move on from this?
Please?
It's OVER, XJT will go on...and probably be good competition for us at SkyWest. We need to focus on providing a good product and improving our fortunes HERE instead of salivating over what JA and friends are going to do with that 600 million in the bank.
Then admit that you were just ASSUMING that SKW deal with CAL was worse than what XJT got? Since the details of the CPA between SKW/CAL was never released, how would you ever know?
You must also be assuming that in no way did XJT have to undercut the deal that SKW made to sign your own CPA with CAL?
If the new XJT/CAL CPA was that great, why did XJT ask for a one day extension with CAL in order to hear one last proposal from SKW? Did the BOD think JA would finally up his offer past $3.50 per share?
I'm not assuming anything. A redacted version of the CPA was released to the XJT MEC. Anyways, SKW made it clear and public to XJT pilots what the deal was that they had between them and CAL. And it had whipsawing all over it.
As for undercutting, you just need to go back to the original CAL letter to XJT which says, "absent our entering into a new CPA with savings of the magnitude we have negotiated with SkyWest..." So it seems that XJT gave CAL savings on the magnitude that SKW had negotiated.
As for the new CPA, you are getting that mixed up with the actual buyout transaction. The special committee would have sold if the price was right regardless of the CPAs. They have a fiduciary responsibility to the shareholders and were trying to get the best value for them in the transaction. In the face of signing the new CPA with CAL it would have been malpractice for them not to ask for the last best offer from SKW before signing the CPA with CAL.
Again, XJT would have signed off on this transaction if the price was right. It was just business for all parties concerned. You need to put down the cup of kool aid already.
No kool-aid about it. You are on here constantly spewing your opinion on this proposed buy-out. You lean the XJT way, and I lean the SKW way. Guess that means you drink your own flavor of kool-aid.
Now if your opinion is that the final deal turned out to fully benefit the XJT pilot group, then yes, I agree with you.
At the same time, at least JA was blunt enough up front to say the branded had to go to make XJT feasible, and the pilot agreement needed to be changed, for a buy-out to go through. There was no whipsaw on JA part at that point, most likely just on CAL part, if anyone.
Now, had the pilots accepted JA offer, would it have left you open for whipsaw? Sure. I believe it would have, too. Would it have actually happened? All you can do is speculate. See, I don't drink the kool-aid as much as you think.
I completely agree with you, when you have money in the bank during a time like this you get to make the rules of a possible deal.Maybe I'm biased, but it seems to me JA stuck to his guns. He was either going to get the deal he wanted, at his price, or nothing. Turned out to be nothing.
Meanwhile, SkyWest, Inc. keeps loading millions into the bank account while ExpressJet Holdings, Inc. keeps losing it.
Ok, fair enough. I was originally talking about the CPAs and how the XJT one is much better than the SKW for the pilots.
As far as the speculation on the whipsaw, there is none on my part. JA made it very clear what their intentions were. Also, SKW didn't need the contract to be changed for them to buy XJT.
I completely agree with you, when you have money in the bank during a time like this you get to make the rules of a possible deal.
I was just saying, or trying to, that CAL did what they did to get the flying for a reduced price.
True, they didn't have to. But it was a major factor that the XJT BOD took into consideration when they decided to turn down the offer. Had the pilots been onboard with it, I would guess that the deal would have went through at the original proposed price.
And I believe that XJT did make some headway in terms of alleviating their handcuffs in the new CPA, but it put XJT in a tighter monitary stanglehold for the foreseeable future. Opened quite a few doors, just have to wait for someone to knock now.
I completely agree with you, when you have money in the bank during a time like this you get to make the rules of a possible deal.
I was just saying, or trying to, that CAL did what they did to get the flying for a reduced price.
Exactly, CAL was going to get it one way or another. But I don't believe that JA had all his E-145 plans tied to just this proposal. Only time will tell.
Again, here you go with the "my chitty regional airline job is better than yours" argument. You can bet you bottom dollar(and you have). CAL took the lowest price deal they could. If you think your management group will settle for less profit and allow you to keep your PWA intact, have another frosty cup of the offered kool-aid. Corp. America has found out how to cornhole the workers and I think they get a chubbie when they get to(SKYW included) steal from the employees. I would prepare for the inevitable meeting with your mgmt. team to discuss on the state of your PWA, soon. Not wishing this on you, I just know how truly evil management can/will be. I truly hope I am wrong, but Darwinian economics will prevail.
PBR