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View Full Version : SkyWest Fleet Changes


Makanakis
12-14-2016, 06:56 AM
SkyWest Announces Additional Fleet Transitions and Bombardier Agreement (http://aviationtribune.com/airlines/north-america/skywest-announces-additional-fleet-transitions-bombardier-agreement/)


iahflyr
12-17-2016, 09:40 AM
So Expressjet is losing all their CRJ-200's? Looks like they have 46 of them. The article mentions SkyWest is returning 76 of them to Bombardier. Does that mean SkyWest is also losing 30?

Sounds like Expressjet gained 12 CRJ-700's for American. Any other news on replacements?

amcnd
12-17-2016, 10:12 AM
This is what SkyWest said about it and there 200 fleet.. "This agreement allows us to continue to profitably operate the fleet without having to sell the aircraft to collect the RVG."... so will they go away. Eventually but not now..


RJDio
12-17-2016, 11:05 AM
For January, after the 700's leave and 175 deliveries, there will be a net decrease of 4 a/c fwiw.

HighFlight
12-17-2016, 11:36 AM
So if I am reading that correctly, SKW is willing to part with all the 200s at a $450 million loss? And what do ye suppose Bombardier will do with all those 200s?

dl773
12-17-2016, 11:40 AM
So if I am reading that correctly, SKW is willing to part with all the 200s at a $450 million loss? And what do ye suppose Bombardier will do with all those 200s?

It's an asset impairment, which is a bit complicated to explain in detail, but it's essentially a rewriting of the balance sheet saying these planes are actually worth $450 million less than it says currently. It's not a cash hit, which is why there is no doom and gloom tone to the article.

HighFlight
12-17-2016, 11:48 AM
Thanks for the explanation. I re-read it after I posted, and kind of got that it was a balance sheet thing, not a cash loss, which is much better for SKW.

Still, where will all those 200s end up? That's a lot of planes.

It's an asset impairment, which is a bit complicated to explain in detail, but it's essentially a rewriting of the balance sheet saying these planes are actually worth $450 million less than it says currently. It's not a cash hit, which is why there is no doom and gloom tone to the article.

chrisreedrules
12-17-2016, 12:18 PM
So if I am reading that correctly, SKW is willing to part with all the 200s at a $450 million loss? And what do ye suppose Bombardier will do with all those 200s?

Cargo conversion? Endeavor? AWAC!?

amcnd
12-17-2016, 12:32 PM
My take is SkyWest wants to own the planes. Not lease them.. So far no 200 reduction on the SkyWest side. Some of the ASA ones will end up to whoever wants them.. think the whole operations set up on cost at XJT vs SKW shows that that plane isn't profitable over at XJT. Just not worth the long term investment.. a tell tell sign of things to come..

trip
12-17-2016, 01:27 PM
My take is SkyWest wants to own the planes. Not lease them.. So far no 200 reduction on the SkyWest side. Some of the ASA ones will end up to whoever wants them.. think the whole operations set up on cost at XJT vs SKW shows that that plane isn't profitable over at XJT. Just not worth the long term investment.. a tell tell sign of things to come..

I think they will just operate them on short term leases, month-to-month. That way SKW has zero "tail risk" if a contract ends or they become unprofitable, or cannot staff it. This what they did with the EMB120's.

HighFlight
12-17-2016, 08:39 PM
If XJT is losing 46, and SKW is giving up 76 total, where are the other 30 coming from, if not SKW?

My take is SkyWest wants to own the planes. Not lease them.. So far no 200 reduction on the SkyWest side. Some of the ASA ones will end up to whoever wants them.. think the whole operations set up on cost at XJT vs SKW shows that that plane isn't profitable over at XJT. Just not worth the long term investment.. a tell tell sign of things to come..

Oooo
12-18-2016, 12:29 AM
Standby for eminent furloughs

iahflyr
12-20-2016, 07:29 AM
If XJT is losing 46, and SKW is giving up 76 total, where are the other 30 coming from, if not SKW?

Bump. That is what I was wondering

amcnd
12-20-2016, 08:45 AM
^so far they say were keeping everything.. and hiring like crazy.. so who knows..

WesternSkies
12-20-2016, 11:08 AM
76 are coming of an RVG agreement.
The agreement is financial in nature and not a flying contract.

MrSkywest
12-21-2016, 05:26 AM
The announcement has me confused, and others too it seems. When they say Skywest they are referring to the entire Skywest/Expressjet/ASA mix. I have never heard anyone talk about any long term plans for the Expressjet side of things, everyone seems to assume they want it to die and wish it would go away. I hear that when a big wig was asked about it he said something like, "what do you do when you have a cancer, you cut it out". But is that just hyperbole?

They own it with all its problems and unprofitable contracts which have been ending. They seem to be taking steps to turn it around, to downsize it and to make it profitable, which I hear they have. Once they make the changes they need to I am thinking there will be a complete 180 and they will want to do to the east coast what they did to the west and now the midwest. Perhaps they would add 100 175s over there and start expanding and/or replacing the smaller planes? Or do you think they will do everything by expanding only the Skywest part of things?

amcnd
12-21-2016, 07:05 AM
Not to confusing if you just look at what's happening over the last few years.. XJT is downsizing. And SkyWest always seems to "move things around" to not downsize.. That trend will continue...