XJT and Skywest in talks again?

[Nevets]

I don't think it is good for XJT that SkyWest chose to leave them alone.

I think that the deal SKW had with CAL for XJT is far worse than what XJT got with CAL.

 

[Erlanger]

Don't mean to highjack this thread (can I use that word on here?) but while I was reading this SKywest/XJT thread, I was also reading a good story about chimps. It seems like they have something in common with flight attendants. Check it out.

http://news.yahoo.com/s/afp/20080618/ts_afp/britainugandaanimalssex

 

[mtsupilot376]

thats hillarious!

 

[XPOO]

I think that the deal SKW had with CAL for XJT is far worse than what XJT got with CAL.

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.

During the week of June 2, 2008, the Special Committee, through its financial advisors at Goldman Sachs, twice requested that SkyWest clarify the status and terms of SkyWest’s merger proposal. SkyWest responded by reaffirming that its merger proposal continued to be conditioned on completion of due diligence, the finalization of a CPA between itself and Continental, and acceptance by our pilots of new employment terms.

On the evening of June 4, 2008, SkyWest forwarded a letter to the Special Committee expressing SkyWest’s continued interest in acquiring ExpressJet and reaffirming that SkyWest’s merger proposal remained conditioned on the completion of due diligence by SkyWest, the finalization of a CPA between SkyWest and Continental, and the acceptance by our pilots of new employment terms. That night, following receipt of SkyWest’s letter, the Special Committee 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. We also secured a one-day extension to June 5, 2008, of Continental’s request for our board to decide on a new CPA between Continental and ExpressJet. Shortly after midnight on June 5, 2008, SkyWest offered a “floor price” of $2.75 per share in cash, conditioned on our pilots approving new employment terms, completion of negotiations between SkyWest and Continental on a new CPA, and the completion of SkyWest’s due diligence.

Based on the consideration by the Special Committee and the board, at meetings on June 4 and 5, 2008, of all relevant factors, including the serious concern that Continental would immediately terminate our existing CPA unless we approved on June 5 a new agreement with Continental, and taking into account the multiple benefits to ExpressJet resulting from the new CPA with Continental, the Board determined on June 5 to authorize the new CPA. We signed the new CPA with Continental on June 5, 2008, and, on June 6, SkyWest announced that it had determined not to pursue the acquisition of ExpressJet.

 

[nimtz]

No. SkyWest has said the opposite. "There done looking at XJT". They only do 15-20 year deals. The 7 year deal that XJT got with CO is not as good as SkyWest would like. "Management has said we are now focusing on other growth strategies".

You sure Jerry can get 15-20 years out of those POS airframes he has?

 

[flyboyzz1]

POS airframes.....really?

 

[Flyerdan]

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.

WOW - Seems like CAL was whipsawing SKW & XJT. I suspect XJT will now need to get pay concessions from its pilot group to stay in business under the new CPA with CAL. I hope this isn't the start of a new trend.

 

[goahead]

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.

 

[XPOO]

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.

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.

 

[Nevets]

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 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.

 

[No.W.]

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.

 

[Nevets]

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.

XJT and SKW got played by CAL. Although SKW didn't have anything to lose from playing the game, as you stated, so it didn't matter to them if they were being played as they probably calculated that the reward was worth that small risk.

In the end, I think the outcome was best mostly for CAL. SKW remains status quo and it remains to be seen for XJT.

 

[XPOO]

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.

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?

 

[USCtrojan]

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.

That's an easy one. SkyWest Inc. will continue to buy back stock since it is at such a discount. I think everyone is circling the wagons, so to speak. SkyW Inc. was barred from buying back stock for a little while due to the XJT offer. That offer is dead (not that it can't be resurrected), but I believe SkyW Inc. will continue to buy back stock and look for unique investing opportunities (like purchasing XJT for $188 million.) Are there any out there? Who knows? Right now everyone will have to wait it out as the Mainline partners are cutting everywhere they can to reduce costs.

Trojan

 

[Nevets]

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.