Originally Posted by
calmwinds
I continue to predict that Xjet will be awarded some or all of the Ejets (possibly as low as 10 initially) in January and United will lead an investor group to buy Xjet. United will own 40% and the CPP will continue. A flow will never happen. Xjet management in Atlanta will be replaced or moved to Chicago or Houston.
It will be a benefit to SkyWest’s stock price if Inc can sell Xjet. So, Xjet is sold.
There is a reason a flow will never occur and the senior captains will stay put at Xjet till they retire or go elsewhere. Eventually, Xjet will stabilize and return to its prior state in the industry before Continental sold.
United has focused on their 50 seat capacity with the regionals where they own 40% because that is the only place where they can grow. And, now United can take back their 70 and 76 seat flying - just like American is doing with its wholly owneds.
If they dont attract new hires to their regional swamp, cancellations will continue and customers who drive revenue ( not cheap regional labour) will continue to leave and United will just have to settle with shrinking capacity. So the answer lies in what will it take to attract new hires away from the competition?