Originally Posted by
No Lies
One little problem with your details. UA owns the 145's. UA owns a lot (almost half) of C5. SkyWest made the statement a couple of years ago they were getting out of the 50 seat market.
SkyWest chose to give the gifted people the larger jets that are replacing the 145s and it appears they will shut down the unionized portion of their companies.
Yes I am only talking about the L-XJT side for those whinny asa guys.
I don't think SKYW ever made the statement to get out of the 50 seat market - at least not as far as I can recall or find.
The fact that UA owns all the 145 amplifies the problem for XJET. The only lever for INC is labor arbitrage and operational leverage.
They have no upside in owning / financing the equipment which they are extremely savvy about and drives quite a bit of upside on the SKYW side. Given the unfavorable cost structure at XJET leaves even less room to turn operations around then.