Airline Pilot Forums

Airline Pilot Forums was designed to be a community where working airline pilots can share ideas and information about the aviation field. In the forum you will find information about major and regional airline carriers, career training, interview and job seeker help, finance, and living the airline pilot lifestyle.




View Full Version : United Ejet award


calmwinds
12-18-2018, 05:13 AM
In case people here havenít heard. A United-led LLC is purchasing ExpressJet from SkyWest and United is awarding the 25 Ejets that are replacing 25 CRJ700ís to the new ExpressJet. They will start replacing CRJ700ís with the E175SC starting in June 2019. Still no word whether these are GoJet or Mesa CRJ700ís coming offline, but I expect our stock price to drop sharply on the news.


pangolin
12-18-2018, 05:21 AM
In case people here havenít heard. A United-led LLC is purchasing ExpressJet from SkyWest and United is awarding the 25 Ejets that are replacing 25 CRJ700ís to the new ExpressJet. They will start replacing CRJ700ís with the E175SC starting in June 2019. Still no word whether these are GoJet or Mesa CRJ700ís coming offline, but I expect our stock price to drop sharply on the news.

Timing is right for them to be Mesaís. Wonder when we will find out. It makes it easier to move our expiring ejets over to ExpressJet.

calmwinds
12-18-2018, 05:50 AM
Yep. It would not surprise me that both the United contracts are both going to be allowed to expire. If the announcement comes soon, which I expect, watch for hiring to stop and upgrade classes to be cancelled.

The problem with knowing whether it is Mesaís or GoJetís is no one knows the expiration of GoJetís CPA since they are a private company.


pangolin
12-18-2018, 06:11 AM
If the contracts are renewed we should announce that soon to stop a sock price free fall. On the other hand if it tanks Mesa is ripe for the picking as an AA wholly owned.

calmwinds
12-18-2018, 06:15 AM
If the contracts are renewed we should announce that soon to stop a sock price free fall. On the other hand if it tanks Mesa is ripe for the picking as an AA wholly owned.

I agree. And, the rumors I hear out of PSA will come true.

wiz5422
12-18-2018, 06:36 AM
If the contracts are renewed we should announce that soon to stop a sock price free fall. On the other hand if it tanks Mesa is ripe for the picking as an AA wholly owned.

Keep dreaming.....the flow isn't coming your way anytime soon. Keep those apps updated.

Sniper66
12-18-2018, 09:09 AM
In case people here haven’t heard. A United-led LLC is purchasing ExpressJet from SkyWest and United is awarding the 25 Ejets that are replacing 25 CRJ700’s to the new ExpressJet. They will start replacing CRJ700’s with the E175SC starting in June 2019. Still no word whether these are GoJet or Mesa CRJ700’s coming offline, but I expect our stock price to drop sharply on the news.







Now you remember when I told you all Ejets coming in house ?

Alpa UAL MEC goal I said
Wait for the new contract at UAL and tag all pilots from this new Express wholly owned like Lufthansa does I n the bottom.
That was the plan of UAL MEC all along and now watch the orders for the bigger E jets
One seniority all flown by United pilots was the goal
It’s coming

How many E jets you have will be transfer back to UAL as the 5-7 years leases expires with Mesa

I think 48 from Mesa and 20 from Republic will end up back at UAL


I hope they renew your 700s so you keep the jobs
Seriously I do hope

22 plus years into this game I know just a little about this game. Ask your MEC Chair and VP of flight ops
I even told them the 175s coming to Mesa before they knew about it. Ask your head of recruitment and alpa administrator about that as well or ask about the possibility of United buying the 700 operation back in 2006 I believe it was and tag 10 crews per aircraft to UAL seniority that will be your VP to as since he was an MEC Chair at the time

calmwinds
12-18-2018, 09:38 AM
Now you remember when I told you all Ejets coming in house ?

Alpa UAL MEC goal I said
Wait for the new contract at UAL and tag all pilots from this new Express wholly owned like Lufthansa does I n the bottom.
That was the plan of UAL MEC all along and now watch the orders for the bigger E jets
One seniority all flown by United pilots was the goal
Itís coming

How many E jets you have will be transfer back to UAL as the 5-7 years leases expires with Mesa

I think 48 from Mesa and 20 from Republic will end up back at UAL


I hope they renew your 700s so you keep the jobs
Seriously I do hope

22 plus years into this game I know just a little about this game. Ask your MEC Chair and VP of flight ops
I even told them the 175s coming to Mesa before they knew about it. Ask your head of recruitment and alpa administrator about that as well or ask about the possibility of United buying the 700 operation back in 2006 I believe it was and tag 10 crews per aircraft to UAL seniority that will be your VP to as since he was an MEC Chair at the time

The program from ExpressJet will look like CommutAir. There will be no staple on. CommutAir has a similar investor group that owns them as is buying ExpressJet.

We will know shortly whether the Mesa Ejets are extended. United has the option to extend them for two more years. Otherwise, they go back starting in June 2019.

I also think it will be GoJetís 700ís that are retired and not Mesaís for a variety of reasons. But, it could be 20 Mesa 700ís and 5 GoJetís that are retired.

I suspect Mesa and GoJet will hear shortly after the holidays, if not before.

Sniper66
12-18-2018, 10:28 AM
The program from ExpressJet will look like CommutAir. There will be no staple on. CommutAir has a similar investor group that owns them as is buying ExpressJet.

We will know shortly whether the Mesa Ejets are extended. United has the option to extend them for two more years. Otherwise, they go back starting in June 2019.

I also think it will be GoJet’s 700’s that are retired and not Mesa’s for a variety of reasons. But, it could be 20 Mesa 700’s and 5 GoJet’s that are retired.

I suspect Mesa and GoJet will hear shortly after the holidays, if not before.






United will be the sole owner not an investor group in this case
and yes I hope you keep the 700s
Emergency MEC meeting in Chicago by UAL MEC soon to take place

pangolin
12-18-2018, 10:42 AM
United will be the sole owner not an investor group in this case
and yes I hope you keep the 700s
Emergency MEC meeting in Chicago by UAL MEC soon to take place

Wrong. UAL owns 40 percent of the group buying XJet.

Sniper66
12-18-2018, 10:57 AM
Wrong. UAL owns 40 percent of the group buying XJet.



Just got the email you are correct
They said initially it was reported wholly owned
25 planes with limited to 70 seats to replace crjs
The union still trying to get all in house and is trying to convinced management as I type

FlyingMaryJane
12-18-2018, 11:02 AM
The program from ExpressJet will look like CommutAir. There will be no staple on. CommutAir has a similar investor group that owns them as is buying ExpressJet.

We will know shortly whether the Mesa Ejets are extended. United has the option to extend them for two more years. Otherwise, they go back starting in June 2019.

I also think it will be GoJet’s 700’s that are retired and not Mesa’s for a variety of reasons. But, it could be 20 Mesa 700’s and 5 GoJet’s that are retired.

I suspect Mesa and GoJet will hear shortly after the holidays, if not before.


Don't be so naive on how the business world works. "Investor group" are Ual's bestest, coolest, closest buddies that they share drinks with, golf with, have family dinners with.. haha this is the beauty of business entities, they just use these entities to get around loopholes and get what they want and call them "Joint ventures" Don't be fooled! UAL owns and controls Commutair and now Xjt. They call the shots and their bestest buddies are along for the ride and hold the majority equity under the entity and some of those members are of Ual interest also. Expect a consolidation of CommutAir and Xjt into 1 entity. Ual MEC and Management clearly state they want all 76 seat and up in-house flown by UAL pilots.... and they will maneuver as necessary in other ways to get that done. Btw, with an LLC.. you can do anything you want with your operating agreement... i own 2 LLC's that hold apartments and my investors have majority equity, but i control the company as per operating agreement...

backtoregionals
12-18-2018, 11:13 AM
Will be interesting to see if our EJETs get extended. Not keeping my hopes up.

calmwinds
12-18-2018, 11:31 AM
United will be the sole owner not an investor group in this case
and yes I hope you keep the 700s
Emergency MEC meeting in Chicago by UAL MEC soon to take place

You are so wrong. Can you even read the SkyWest press release?

Bonanzer
12-18-2018, 01:02 PM
Yep. It would not surprise me that both the United contracts are both going to be allowed to expire. If the announcement comes soon, which I expect, watch for hiring to stop and upgrade classes to be cancelled.

The problem with knowing whether it is Mesaís or GoJetís is no one knows the expiration of GoJetís CPA since they are a private company.

Why would they cancel the 175 contract. I thought yall were pretty reliable now on the 175.

DonConsult67
12-18-2018, 01:06 PM
"...but I expect our stock price to drop sharply on the news."


Stock price at today's close of $9.14 is down 42.33% from its high of $15.85 on 9/5/18, down 23.83% down from the IPO of $12.00; and, 23.19% lower than it was last Thursday.


One of the key strategies involved in this IPO was to limit the number of outstanding, or floating shares to the general public.


That is, go public without actually going "public" ~ Mesa's stock is held 71.34% by Institutions, other entities (AA), and hedge funds, and 3.77% is held by Insiders, Officers, and Directors, thus leaving only 24.89% of the stock floating in the "market".


This limits the company's exposure to PIA type lawsuits about stock manipulation, insider trading, and the like ~ there is simply not enough stock even available to create this.


However if you want to have some real fun, run the names of your favorite airline executives, DO's, DM's, and other Insiders thru this database: https://www.secform4.com/.

pangolin
12-18-2018, 01:07 PM
Why would they cancel the 175 contract. I thought yall were pretty reliable now on the 175.

They donít have to cancel. They expire a couple at a time over the next several months starting in June. They can easily be given to XJT who will have their E175 program up and running by then.

Downunder
12-18-2018, 01:20 PM
Anyone know if initial hire e jet courses are still running in the new year?

backtoregionals
12-18-2018, 01:41 PM
They donít have to cancel. They expire a couple at a time over the next several months starting in June. They can easily be given to XJT who will have their E175 program up and running by then.

Thatís probably whatíll happen.

calmwinds
12-18-2018, 02:58 PM
Thatís probably whatíll happen.

I personally expect UAL to exercise their 2 year option on the CPA for the Ejets and renew the 20 700ís for a short period. However, as we know, UAL hadnít exercised the extension before Mesaís quarterly report was filed in December and who really knows.....

pangolin
12-18-2018, 03:47 PM
Double volume sell off today.

I personally expect UAL to exercise their 2 year option on the CPA for the Ejets and renew the 20 700ís for a short period. However, as we know, UAL hadnít exercised the extension before Mesaís quarterly report was filed in December and who really knows.....

calmwinds
12-18-2018, 04:00 PM
Double volume sell off today.

Watch who is buying.....

calmwinds
12-18-2018, 04:56 PM
Don't be so naive on how the business world works. "Investor group" are Ual's bestest, coolest, closest buddies that they share drinks with, golf with, have family dinners with.. haha this is the beauty of business entities, they just use these entities to get around loopholes and get what they want and call them "Joint ventures" Don't be fooled! UAL owns and controls Commutair and now Xjt. They call the shots and their bestest buddies are along for the ride and hold the majority equity under the entity and some of those members are of Ual interest also. Expect a consolidation of CommutAir and Xjt into 1 entity. Ual MEC and Management clearly state they want all 76 seat and up in-house flown by UAL pilots.... and they will maneuver as necessary in other ways to get that done. Btw, with an LLC.. you can do anything you want with your operating agreement... i own 2 LLC's that hold apartments and my investors have majority equity, but i control the company as per operating agreement...

Not fooled. Anyone owning 40% is calling the shots. United wonít do a staple on though. United didnít for CommutAir when they controlled them and they wonít for Xjet. United may improve the CPP but there are too many pilots in both groups that United would NOT want to see be mainline pilots ó- but are thrilled to let remain a regional pilot for UAX.

FlyingMaryJane
12-18-2018, 05:52 PM
Not fooled. Anyone owning 40% is calling the shots. United wonít do a staple on though. United didnít for CommutAir when they controlled them and they wonít for Xjet. United may improve the CPP but there are too many pilots in both groups that United would NOT want to see be mainline pilots ó- but are thrilled to let remain a regional pilot for UAX.




Dude, you post wayyy too much... and you think you know everything, its the funniest thing i've seen.. How do you know what the future plans are of the group that is setting up the future? hahaha You have ZERO clue man

Jungedrache
12-18-2018, 05:55 PM
Sounds to me that is happening exactly the same as Delta with Endeavor.

Why would United award Ejets to a company that doesnít operate them when having others that already do it efficiently?? Nobody would put the time and effort of a learning curve if you are not thinking about making a long term investment with them. XJT being now theirs (though legally it isnít) they can control who they hire, how they train them and how they provide the service to the customer, which is the reason why I think Legacies are moving away from the ďoutsorced flyingĒ model.

I think once XJT has the 175 program up and running they will start bringing outsourced flying of 175ís in house (with XJT) just like Delta did with Endeavor.

Hou757
12-18-2018, 05:57 PM
Dude, you post wayyy too much... and you think you know everything, its the funniest thing i've seen.. How do you know what the future plans are of the group that is setting up the future? hahaha You have ZERO clue man


He's been on practically every message board today posting stuff. Really feel sorry for him. Desperately needs a life!

calmwinds
12-18-2018, 07:25 PM
Dude, you post wayyy too much... and you think you know everything, its the funniest thing i've seen.. How do you know what the future plans are of the group that is setting up the future? hahaha You have ZERO clue man

Says the guy who posted 9 times today on Delta, CommutAir, ExpressJet, and Mesa today.

calmwinds
12-18-2018, 07:29 PM
He's been on practically every message board today posting stuff. Really feel sorry for him. Desperately needs a life!

And, the guy who posted 10 times today on Mesa, SkyWest and ExpressJetís forums.

We have some serious issues at Mesa if the CRJ700ís are renewed. I donít think that will happen. But, you are the one who came on here months ago and said ExpressJet was going to take Mesaís Ejets away. Are you still that confident that starting in June 2019 that ExpressJet will take 2 Ejets per month away from Mesa?

Hou757
12-18-2018, 07:57 PM
Look at your join date and the number of posts. That's really sad.

calmwinds
12-18-2018, 08:01 PM
Look at your join date and the number of posts. That's really sad.

You didnít answer my question. Are you still saying ExpressJet is taking Mesaís Ejets starting in June 2019?

FlyingMaryJane
12-18-2018, 08:01 PM
Says the guy who posted 9 times today on Delta, CommutAir, ExpressJet, and Mesa today.




LOL!!! too funny, I have posted 76 total times on here! 76!! I rarely post, but since the big news that came out today, it is an exception on my part. Seeing posts from people like you and maybe 2 others, it is clear you have no life with your 1800+ posts and that you are on every board there is posting!! By your profile, you say you are 62? sounds like to me you are just a bitter old man, who is mad at the way you made your decisions... i feel sorry for you. Time to take up a hobby before you hang it up in a few years. Maybe, do some volunteer work, take up cards with the other old geezers and spend your time doing things instead of posting all day long on forums pretending like you know it all and that you know what company managers future plans are! hahaha

calmwinds
12-18-2018, 08:04 PM
LOL!!! too funny, I have posted 76 total times on here! 76!! I rarely post, but since the big news that came out today, it is an exception on my part. Seeing posts from people like you and maybe 2 others, it is clear you have no life with your 1800+ posts and that you are on every board there is posting!! By your profile, you say you are 62? sounds like to me you are just a bitter old man, who is mad at the way you made your decisions... i feel sorry for you. Time to take up a hobby before you hang it up in a few years. Maybe, do some volunteer work, take up cards with the other old geezers and spend your time doing things instead of posting all day long on forums pretending like you know it all and they you know what companies future plans are! hahaha

I speculate on what companies will do. I donít think that UAL is going to drop CRJ700ís from Mesa.

Hou757
12-18-2018, 08:05 PM
You didn’t answer my question. Are you still saying ExpressJet is taking Mesa’s Ejets starting in June 2019?

Never said we were taking Mesa planes as part of this deal. I do know that it may be a possibility though. You are even saying that!

Hou757
12-18-2018, 08:08 PM
I speculate on what companies will do. I donít think that UAL is going to drop CRJ700ís from Mesa.

You really need to take MaryJanes advice. Get a life!!!

calmwinds
12-18-2018, 08:09 PM
Never said we were taking Mesa planes as part of this deal. I do know that it may be a possibility though. You are even saying that!

I know Mesa Ejet contract is up in June 2019. I donít think it is realistic, but I also was wrong that ExpressJet would get all 25 Ejets. You most definitely said ExpressJet was going to take the Ejets away from us. Do you need me to find the post?

calmwinds
12-18-2018, 08:13 PM
You really need to take MaryJanes advice. Get a life!!!

I have never posted on Deltaís or Americanís forum. Maybe, you need to worry about the Ejets that you think ExpressJet is taking away from Mesa.

I never spent time stalking SkyWestís forum like you have. I post on Mesaís and then on ExpressJetís forum only because you were posting here. I do go to GoJetís forum. Someone has to lose CRJ700ís.

Hou757
12-18-2018, 08:14 PM
I know Mesa Ejet contract is up in June 2019. I donít think it is realistic, but I also was wrong that ExpressJet would get all 25 Ejets. You most definitely said ExpressJet was going to take the Ejets away from us. Do you need me to find the post?

I have probably stated that there is a chance that some could be moved over once the 5 year term is over. I still believe that is a possibility. They could also be given to Republic.

calmwinds
12-18-2018, 08:17 PM
I have probably stated that there is a chance that some could be moved over once the 5 year term is over. I still believe that is a possibility. They could also be given to Republic.

You have more than stated that. And, why would United give them to Republic?

Hou757
12-18-2018, 08:17 PM
I have never posted on Deltaís or Americanís forum. Maybe, you need to worry about the Ejets that you think ExpressJet is taking away from Mesa.

I never spent time stalking SkyWestís forum like you have. I post on Mesaís and then on ExpressJetís forum only because you were posting here. I do go to GoJetís forum. Someone has to lose CRJ700ís.


Go get a life dude. Done arguing.

PontiusPilot
12-18-2018, 08:48 PM
Canít you guys just play nice? Iím wasting precious seconds scrolling through your arguments!

calmwinds
12-19-2018, 01:05 AM
Canít you guys just play nice? Iím wasting precious seconds scrolling through your arguments!

I am gone until we hear about the CRJís. It is too depressing to worry about that shoe to drop. I am happy for ExpressJet. I have a friend over there, who seems to be a lifer, that will enjoy flying the Ejet and is full of excitement at the news.

Ihavenoidea
12-19-2018, 06:03 PM
I am gone until we hear about the CRJís. It is too depressing to worry about that shoe to drop. I am happy for ExpressJet. I have a friend over there, who seems to be a lifer, that will enjoy flying the Ejet and is full of excitement at the news.

Do you think Mesa will lose some of its Ejet flying to YX when their contract expires in 2019?

calmwinds
12-19-2018, 07:50 PM
Do you think Mesa will lose some of its Ejet flying to YX when their contract expires in 2019?

No clue. I believe now that the Xjet announcement is out of the way, the announcement regarding the CRJ700ís and Ejetís will come out shortly.

Tpinks
12-20-2018, 07:30 PM
You have more than stated that. And, why would United give them to Republic?

Why wouldn't they give them to Republic?

calmwinds
12-21-2018, 03:40 AM
Why wouldn't they give them to Republic?

Why would they give them to Republic when United owns a regional that flies 175ís? Plus, United promised the next 25 175ís to SkyWest as part of the purchase of ExpressJet. Those would probably include the E175SCís that will eventually replace the last 20 CRJ700ís.

Republic wonít see any more Ejet flying with United. I am not sure that Mesa will either.

flynd94
12-21-2018, 12:17 PM
It was just announced that the first 4 E175 awarded Xjet are headed to IAH. Revenue flights to begin in 6/19.

calmwinds
12-21-2018, 01:29 PM
It was just announced that the first 4 E175 awarded Xjet are headed to IAH. Revenue flights to begin in 6/19.

Given the first 4 are based in IAH, my guess is all 25 will be based in IAH. May explain the rumor earlier in of Mesaís Ejets going to ORD.

dera
12-23-2018, 10:13 AM
Why would they give them to Republic when United owns a regional that flies 175ís? Plus, United promised the next 25 175ís to SkyWest as part of the purchase of ExpressJet. Those would probably include the E175SCís that will eventually replace the last 20 CRJ700ís.

Republic wonít see any more Ejet flying with United. I am not sure that Mesa will either.

That logic doesn't make any sense.
Why would American give out 175 flying to Compass when they own a regional that flies 175s?
Or Delta giving CRJ flying to SkyWest when they own a regional that flies CRJs?
And no, United did NOT _promise_ next 25 175's to SkyWest.

calmwinds
12-23-2018, 12:54 PM
That logic doesn't make any sense.
Why would American give out 175 flying to Compass when they own a regional that flies 175s?
Or Delta giving CRJ flying to SkyWest when they own a regional that flies CRJs?
And no, United did NOT _promise_ next 25 175's to SkyWest.

When was the last award of 175ís by American to any regional other than their wholly owned? Compass is an old award.

Delta gave an award of jets they do not own, but SkyWest does. They also gave SkyWest an award of Ejets that SkyWest bought

Go read the SkyWest press release on the sale of Xjet for what SkyWest was promised by United. Because ExpressJet is a sale between two public companies, the terms will be public shortly.

NovemberBravo
12-23-2018, 01:13 PM
ST. GEORGE, UTAH, December 18, 2018 Ė SkyWest, Inc. (NASDAQ: SKYW) today announced that it is has entered into definitive agreements to sell ExpressJet Airlines, Inc. (ďExpressJetĒ) to ManaAir, LLC, a company in which United owns a minority interest. The transaction is expected to close in early 2019, subject to customary closing conditions.
Consideration for the transaction includes approximately $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizable value to SkyWest of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise. As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
ďTodayís announcement provides further clarity and focus for the future,Ē said Chip Childs, SkyWest, Inc. President and Chief Executive Officer. ďWe want to thank the employees of ExpressJet for their valued contributions and we look forward to continuing to strengthen our partnership with United.Ē

dera
12-23-2018, 01:16 PM
ST. GEORGE, UTAH, December 18, 2018 Ė SkyWest, Inc. (NASDAQ: SKYW) today announced that it is has entered into definitive agreements to sell ExpressJet Airlines, Inc. (ďExpressJetĒ) to ManaAir, LLC, a company in which United owns a minority interest. The transaction is expected to close in early 2019, subject to customary closing conditions.
Consideration for the transaction includes approximately $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizable value to SkyWest of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise. As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
ďTodayís announcement provides further clarity and focus for the future,Ē said Chip Childs, SkyWest, Inc. President and Chief Executive Officer. ďWe want to thank the employees of ExpressJet for their valued contributions and we look forward to continuing to strengthen our partnership with United.Ē

Exactly.
There's a huge difference between a promise, and a "priority position.....should those opportunities arise".

calmwinds
12-23-2018, 01:53 PM
Exactly.
There's a huge difference between a promise, and a "priority position.....should those opportunities arise".

Yep. There may never be additional 175ís unless United replaces the last 20 CRJ700ís with 175SCís. The opportunities may never ďariseĒ since United is capped out on 70 and 76 seaters.

Usually, these priority positions, especially with regards to an acquisition, are written into the agreement as pretty iron clad. They are intended to ensure future business is awarded.

dera
12-23-2018, 10:57 PM
Yep. There may never be additional 175ís unless United replaces the last 20 CRJ700ís with 175SCís. The opportunities may never ďariseĒ since United is capped out on 70 and 76 seaters.

Usually, these priority positions, especially with regards to an acquisition, are written into the agreement as pretty iron clad. They are intended to ensure future business is awarded.

Usually?
Give me an example.

calmwinds
12-24-2018, 03:14 AM
Usually?
Give me an example.

Look at any acquisition where a vertical integration is taking place and the seller wants to ensure continued business with the parent entity afterwards. This is to allay SkyWest shareholder fears.

This acquisition by Unktef has been brewing for quite a while. Bloomberg reported it months ago. During the negotiations of this transaction alone, immediately after the CRJ700 retirement was announced by United, United prematurely renewed SkyWestís CRJ700ís for 5 more years. This was to take off the table SkyWest business.

These agreements are intended to signal to the sellerís shareholders that, in the long term, the seller is not conceding business by selling a competitor to your customer and removing a barrier to entry to your customer of starting from scratch.

The terms of this agreement will make it into the quarterly reports and earnings call. We will all know more then. I believe the agreed to terms will be stronger than a ďpromiseĒ. My only question, as a Mesa pilot, is if they affect Mesa.

amcnd
12-24-2018, 05:24 AM
They renewed OO 700ís do to Aspen. No other air carrier certified for Aspen. And the 700 is the only regional jet aircraft that can do it...(wing span issues, and balked land performance)

dera
12-24-2018, 08:36 AM
They renewed OO 700ís do to Aspen. No other air carrier certified for Aspen. And the 700 is the only regional jet aircraft that can do it...(wing span issues, and balked land performance)

Envoy is certified for KASE. Just not actively flying there.

amcnd
12-24-2018, 10:50 AM
Envoy is certified for KASE. Just not actively flying there.

Thats right. You are correct. I forgot about Eagle. With there 700ís heading to PSA im sure they will wind that program down. Doubtful PSA would try to get certified.. (geographically doesnít make sense)

buddies8
12-24-2018, 02:13 PM
Psa and aag were told over 2 years ago that it will be cold day in hell before psa will ever get Aspen certified. The FAA said skw and eny are the only 2 certified and they are not certifying anyone else for aspen.