Originally Posted by Dash8Pilot

Does CAL own the aircraft?
Yes. However, part of the agreement with CAL is that XJT has the option to retain the leases on the aircraft should CAL pull the flying. This is what they did with the aircraft currently in the branded operation. So, CAL can pull the flying but then where do the 205 replacement aircraft come from if XJT decides to keep them?

Can SKYW buy it and just shut it down?
They can close it, but the moment XJT is bought their collective bargaining agreement would require that SKYW merge the seniority lists. This would trigger a representation vote, and likely result in SKYW being represented by ALPA. SKYW management would like to keep their baby non-union.