Originally Posted by
MatchPoint
A quick glance at XJT’s 10K’s shows that XJT hasn’t turned a profit since 2006 and regardless of how you spin XJT’s 2008 contract it was your Mgmt. team that agreed to the terms in an effort to stand alone. Jerry and friends saw an investment opportunity and CAL schooled the two parties. In the end SkyWest is paying for it, literally. Besides XJT’s slide began a long time ago in 2005 when CAL pulled 69 jets and ExpressJet attempted branded operations. I admit it was a bold attempt and ExpressJet’s branded operations had a good model and product but many reason lead to its downfall.
And a quick glance at the industry over the same period shows that nobody besides Southwest and SkyWest fared much better than XJT. But for all the hemming and hawing about buying an "in the red" XJT by SKW and ASA folks, they played a part of that picture from the beginning, and that's no "Spin." If XJT was a money loser, the SKYW Management team wouldn't have tried to buy XJT twice. Despite the CPA not generating enough revenue, the one thing it did do was lock in 10 years of flying, something that guaranteed that XJT was not on "its last legs" as some would contend, and something that now makes SKYW not just a competitive bidder for UAL flying, but also a stakeholder in the eyes of UAL.
Originally Posted by
MatchPoint
I do feel at some point, not today or next year and probably long after I'm gone, but at some point they will have to merge us all.
Agreed. Inc will either be profitable as 2 stand-alone carriers or it will have to be combined, it can be either way, but 5-8 years down the road I can't see them justifying to shareholders why the 2 must be separate with duplicate mgmt teams. Don't be shocked to see radically different 10K filings, especially once a JCBA is done. The SkyWest side also has Pro-Rate flying that will lose a lot of money this summer.