Originally Posted by
amcnd
The given reason why they bought L-XJT was to diminish the competition. (Couldn’t have a bankrupt airline undercuting contracts)... Any businessman would know the sell would have some sort of kick back, maybe a 10 year extension on the OO contracts, or 40 more aircraft, Ect..... Im still not sure a sell will happen atleast not tell 2019 or later.. I feel what is happening to XJT is more of a “reset”. Back to the basic 1 aircraft type, centralized operation. Stabilize for a few years. Then evaluate growth... .
Wrong on two points.
1. SkyWest wanted an in with CAL before the eventual “scope relief.” Didn’t matter because of the ual merger.
2. SkyWest was led on by CAL to buy Expressjet because of the beef between Reem and Kellner. SkyWest tried to buyout the BOD and they were rejected. The CFO at CAL wrote a memo to SkyW saying since they didn’t take we will give them an ultimatum if you’re ok with the contract. So then CAL says “we won’t do any CPA with XJT unless they return all the planes flying branded and they fly this (horrible) CPA.” So the board said fine Skywest you can have it. Then sky west complained years that we weren’t profitable and still aren’t somehow even though everyone else is giving out these bonuses and pay raises.