Originally Posted by
air101
Quote:
Originally Posted by Flycameron
Why would they need to do BK with XJT? They don't need to do that. They can just continue awarding any new flying to Skywest and continue to wind down the XJT side of the operation. Whipsaw as you say it. XJT is too expensive, won't negotiate and is loosing money so you don't continue to put money into the operation you put it where you will get a return. They will not BK XJT!
The only benefit would be to have a judge throw out the labor contracts, and SKYW can basically scare XJT into signing a deal that cuts costs or shut them down. They can also renegotiate some of the CPAs. Like I said, I don't believe bankruptcy is in the plans.
And don't forget, all the CPAs have language in them that say if XJT goes bk, the mainline partner can terminate the CPAs. Not just the 50 seater part. EVERYTHING! That gives them a lot of leverage to extract concessions from Skywest in order to have them do the flying even cheaper. Lastly, I think that there are still some CRJ200 on the ASA side which Skywest owns. That's tail risk that Skywest doesn't want to end up with.