XJT buying Horizon? (from XJT board)

[Ben Franklin]

I saw this on the XJT only message boards, any one else hear anything about this?

Of course, I am not the one that posted it over there, I just saw it:

sincerely,

B. Franklin



Xjt Buying Horizon?

--------------------------------------------------------------------------------

40% stock 60% cash

to avoid a spinoff they are going to sell directly to XJT holdings and in return sign a capacity purchase agreement with Alaska Airlines.

Sources in the N/Pacific Region say this will happen in Spring/ early summer of 04', after XJT pays debt to Cal.

Alaska is rumored to be raising cash in order to expand network throught midwest and eastern US.




Did anyone else here this rumor.

 

[qxpilot]

Who is XJT? Haven't heard this one yet. Can't really see the Airgroup doing this.

 

[Ben Franklin]

XJT = ExpressJet Holdings, Incorporated.

They fly as Continental Express out of IAH, CLE and EWR


Sincerely,

B. Franklin

 

[BLWME]

It would never happen,


EVER

 

[BLWME]

okay it might, but look at the route structure.

It totally overlaps XJT, thus creating a dual system within a system, no one would ever do that.

 

[T-Gates]

How does Horizon overlap XJet?

 

[FSB99]

How does Horizon overlap XJet?

my question, as well..

horizon is alaska's affiliate, right? northwest u.s., down california?
i don't see much overlap.

anyway, regardless of the truth or not, still a fun rumor!

 

[dkwid]

It seems highly unlikely. What would ExpressJet want with a west coast system? Continental hardly flies on the west coast. Alaska would lose big in Seatte if Express Jet were to take the planes elsewhere, not to mention Horizon has a profitable route strucure in place already which the Alaska Air Group would be better off keeping rather than getting a little cash for. The Air Group is already pretty well set for cash.

This is just rash speculation...but....there has been a LOT of talk around Horizon about a fee based agreement with NW flying some Dash 400. It is sounding fairly certain that Horizon will be getting a dozen new 400's in the near future....SO...Perhaps Continental is actually the custumer that wants Horizon to operate these 400's. Just a wild guess. I really see no logic in the express jet buying Horizon...but who knows...could happen. AND...there is rumors of some "BIG" announcement coming from the Air Group sometime soon.

We will see.

 

[ATRCA]

I see a staple job coming!!!




Just kidding, just startin Shnit!

 

[mckpickle]

I see no logic other than we are soon going to have a bit too much cash on hand. If SKywest doesn't buy us first then we would need to make a purchase or risk being bought out by our own money.

So to perpetuate the rumor. What is the seniority list at Horizon. Average, most senior, ect. What type of planes. YOu guys are ALPA right? Thanks

 

[dkwid]

We are Teamsters. And seniority wise....incredibly senior. We have 700 pilots. 18 CRJ 700, 17 Dash 8 400's, 28 Dash 8 200's.

Average (this is really true) years for RJ captain is 17 years. Now this number has come down a bit just recently with the opening of our base in Denver.

Just for fun. Didn't Express Jet just get rid of all their Turboprops and hence the name Express Jet? In the highly unlikely event this rumor is true, would they change the name again?

 

[mckpickle]

OHHHH teamsters.........sorry. 17 years, crap! As far as name change, who knows. I'll believe this when I have a Dash Type.

 

[Heavy Set]

It is obvious that XJT would want to diversify its interests... It's a public company (meaning it can use its stock in an acquisition) and it probably wants to diversify beyond Continental - it might not want to put all of its eggs in one basket... It would follow the MESA formula and spread out its interests. Makes sense to me. Who knows if it will ever happen...

Just my $0.02

 

[storminpilot]

How about XJT wants to get in the door with other airlines by being able to offer a EMB or CRJ product, just like Mesa?

Buying Horizon allows it to go to any airline and offer a buffet of products for feed (EMB135, EMB145, EMB145LR, CRJ200, CRJ700, CRJ900 or Dash 8-100, Dash 8-200, Dash 8-300, Dash 8-400). Now I know Horizon doesn't operate all the previous aircraft but a few 3 day difference courses and you are on your way.

Consolidation is coming in the regionals. Get ready the pieces are moving.

 

[Ben Franklin]

Consolidation is coming in the regionals. Get ready the pieces are moving.

I agree.

But if XJT makes a move on Horizon, what would that mean for Comair's expansion into the great Northwest?

Wouldn't Comair make a defensive bid for Horizon?

It's all very interesting.

Sincerely,

B. Franklin

 

[dkwid]

In my humble opinion the question is more why would the Alaska Air Group sell Horizon.

They are profitable. The Alaska Air Group has ample cash on hand and has no desire to pay fee for departure like many other majors do. Currently Alaska and Horizon do a decent job of harmonizing aircraft utilization on the proper routes. Selling off Horizon would end this coopoeration unless Alaska wants to pay a fee basis and as I said that sounds like a losing scenerio for Alaska.

Comair, by the way, is not fighting its way into the NW. They are replacing one narrow body round trip per day between SLC and SEA. For a significant REDUCTION in available seats for Delta. Don't look for growth here. Delta requires no feed anywhere in the NW. They are merely looking to shed some losses.

The more you consider the complexity and cost of XJT incorporating Horizon it seems like an insane idea. I have no idea how XJT's contract reads on mergers and acquisitons but Horizons is rather specific and mixing together so many fleet types imagine the skyrocketing costs of training. It's funny to me to hear people on this board mentioning MESA as the carier to imagine. They are totally outclassed and outperformed financially by the likes of Skywest, Comair, XJT, etc. all of whom have very simple fleet types. How can we possible say that offering a diverse fleet of aircraft is a bnus in this age where low cost is EVERYTHING.

So, on another note if XJT holdings wants to operate Horizon airlines as an independant carier as the Alaska Air Group currnently does....I could see that happening.

 

[mckpickle]

So, on another note if XJT holdings wants to operate Horizon airlines as an independant carier as the Alaska Air Group currnently does....I could see that happening.

I agree. I have no idea why XJT would want Horizon OR why ALaska would sell. As far as it being and independant operation however, we would never allow that to happen. To much a chance of whipsaw.

 

[dkwid]

speaking of whipsawing............How is your negotiations going? i keep expecting a TA, seems like for quite some time now. Any word?

 

[mckpickle]

Things are moving.....slowly. 1 year 4 months since our C97 was up. I'm affraid waiting much longer will mean more airlines will sign crappy contracts thus lowering everything for us. I wouldn't expect a TA anytime in the next 3-4 months. Course my opinion and a $1.50 will get you a cup of coffee.

 

[Ben Franklin]

Course my opinion and a $1.50 will get you a cup of coffee.

your opinion plus 5 bucks will get you a Starbucks coffee!

Better get used to Starbucks if XJT buys Horizon!

Sincerely,

B. Franklin