SKYW provides funding to UA, ASA to fly UAX - Page 10

NightHawk · 10-22-2009, 11:10 AM

Quote:

Originally Posted by blastoff

likewise, just because 13 ac are announced for ASA, don't assume UAL is done awarding flying, otherwise all the Mesa folks would be on here celebrating UAL not cancelling them.

Just want to clarify, there is nothing to cancel and nothing to renew. The contract is up. End of story. The flying will go to regionals who are willing fork out money, followed by the cheapest bidders.

blastoff · 10-22-2009, 12:23 PM

Quote:

Originally Posted by NightHawk

Just want to clarify, there is nothing to cancel and nothing to renew. The contract is up. End of story. The flying will go to regionals who are willing fork out money, followed by the cheapest bidders.

The piont is, there is flying for dozens of aircraft yet to be awarded. Stay tuned.

afterburn81 · 10-22-2009, 01:36 PM

Quote:

Originally Posted by Lambourne

The "loan" from SKYW will never have to be repaid by UAL. Seeing as how the amount is not that great. I am guessing this was UAL's estimate of the amount of monetary penalties that ASA would pile up for lack of performance in the new UAX operation.

L

Is this statement directed towards ASA and how they perform in the DCI? Not really sure where you are going with this one.

Gunga Galunga · 10-22-2009, 04:47 PM

Quote:

Originally Posted by Lambourne

The "loan" from SKYW will never have to be repaid by UAL. Seeing as how the amount is not that great. I am guessing this was UAL's estimate of the amount of monetary penalties that ASA would pile up for lack of performance in the new UAX operation.

L

kindly do us all a favor and keep your ignorant, baseless remarks to your UAL threads. I doubt anyone at ASA who has worked hard over the past few years trying to turn around the operation appreciates your .02

USMC3197 · 10-22-2009, 05:16 PM

Quote:

Originally Posted by Gunga Galunga

kindly do us all a favor and keep your ignorant, baseless remarks to your UAL threads. I doubt anyone at ASA who has worked hard over the past few years trying to turn around the operation appreciates your .02

I think that was his goal. If you look at other posts he makes on APC it's the same. Always trying to stir up the pot.

ERJFO · 10-22-2009, 05:27 PM

Quote:

Originally Posted by BoilerUP

Skywest is getting 11% ROI on their $80M investment

It's not really an 11% ROI. You need to account for opportunity cost and inflation. Even if the opportunity cost is zero it's more line 8%-9% ROI. Also not mentioned is the risk of the deal. Don't get me wrong, I think it was a good deal for SKYW but it's not an 11% ROI.

JetJock16 · 10-22-2009, 08:17 PM

Quote:

Originally Posted by ERJFO

It's not really an 11% ROI. You need to account for opportunity cost and inflation. Even if the opportunity cost is zero it's more line 8%-9% ROI. Also not mentioned is the risk of the deal. Don't get me wrong, I think it was a good deal for SKYW but it's not an 11% ROI.

I understand where you’re coming from but it's still an 11% ROI on the first $80M and 8% on the last $49M. Do you think the money earns that kind of ROI when it’s just sitting in the bank? More than likely it’s not even gaining a rate even close to inflation. Plus when was the last time you purchased a car or took out a loan (not a mortgage) and the bank wanted to adjust your rate every year based upon inflation, risk, value of the dollar and /or taxes? Ok, sounds like a Credit Card loan….LOL! Now if you want to talk about the total ending value of the agreement, that’s a different story because you have to factor in all of the below.

Speaking of Opportunity Cost………………40 jets secured for an average of 8.4 years, 14 a/c placed into service, an 11% ROI on $80M, 8% on $49M and last rights all secured by equipment and airport slots verses a small bank interest rate? Sounds way to damn good to be true.

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