United looking at ExpressJet article.
12-08-2017, 04:47 PM
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United looking at ExpressJet article.
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United Explores Investing in Regional Airline ExpressJet
Michael Sasso 4 hours ago
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United Continental Holdings Inc. is exploring a deal to invest in regional airline ExpressJet to boost its pipeline of pilots and expand service in the eastern and midwestern U.S., people familiar with the matter said.
The Chicago-based carrier is looking at acquiring an ownership stake in ExpressJet among other options in negotiations that are still developing, said the people, who asked not to be identified because the talks are private. There’s no guarantee the discussions will lead to a deal with ExpressJet, an unprofitable subsidiary of SkyWest Inc. that already flies for United.
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The tie-up would help United beef up the domestic network that feeds travelers to other flights, as the No. 3 U.S. carrier works to close a profit gap with Delta Air Lines Inc. and American Airlines Group Inc. United has been adding dozens of flights between smaller cities and its largest airports, trips that can be more lucrative than the heavily-trafficked routes between big hubs.
Financial details of the potential transaction couldn’t be determined. United declined to comment. SkyWest and ExpressJet didn’t respond to requests for comment.
SkyWest jumped on news of the talks, climbing as much as 3.5 percent in intraday trading. The shares rose 1.8 percent to $52.60 at 2:26 p.m. in New York, while United climbed less than 1 percent to $64.12.
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Pilot Recruiting
United, which has a minority stake in CommutAir, is the only one of the three largest U.S. carriers that doesn’t own a regional airline outright. That can put United at a disadvantage in recruiting pilots.
Delta’s Endeavor Air offers pilots a guaranteed interview at the mainline airline after a certain period. American’s wholly-owned regional units have “flow-through agreements” that enable pilot hires to advance straight to a job at the major carrier without an additional interview.
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United is treading carefully to avoid the labor turmoil that would come with acquiring a regional airline carrier outright, the people said. United management and leaders of the pilots union are already taking steps toward opening contract talks ahead of schedule, with a goal of forging a new agreement by early 2019, Captain Todd Insler, chairman of the United Airlines Pilots Master Executive Council, said in an Oct. 20 letter to pilots.
One of the issues expected to loom large in the talks are the restrictions on the scope of United’s Express unit, which subcontracts flying to commuter carriers. While United would like to add more Embraer SA E-175s to expand its reach to smaller markets, the regional operation has reached the maximum number of 76-seat aircraft allowed under the current pilot contract.
Annual Losses
ExpressJet, based in Atlanta, had about $1 billion in sales last year, with an operating loss of $300 million that was widened by special items. The unit posted losses of $34.2 million in 2015 and $118 million in 2014, according to regulatory filings by SkyWest.
The carrier agreed in August to end a carriage deal with Delta earlier than expected. ExpressJet also serves American.
Until it was spun off in 2002, ExpressJet had been a unit of Continental Airlines, which merged with United in 2010. The main airports served by the regional carrier include Atlanta, Cleveland, Chicago, Houston and Newark, New Jersey.
United Explores Investing in Regional Airline ExpressJet
Michael Sasso 4 hours ago
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United Continental Holdings Inc. is exploring a deal to invest in regional airline ExpressJet to boost its pipeline of pilots and expand service in the eastern and midwestern U.S., people familiar with the matter said.
The Chicago-based carrier is looking at acquiring an ownership stake in ExpressJet among other options in negotiations that are still developing, said the people, who asked not to be identified because the talks are private. There’s no guarantee the discussions will lead to a deal with ExpressJet, an unprofitable subsidiary of SkyWest Inc. that already flies for United.
More from Bloomberg.com: Mueller’s Investigation Just Got Some Insurance
The tie-up would help United beef up the domestic network that feeds travelers to other flights, as the No. 3 U.S. carrier works to close a profit gap with Delta Air Lines Inc. and American Airlines Group Inc. United has been adding dozens of flights between smaller cities and its largest airports, trips that can be more lucrative than the heavily-trafficked routes between big hubs.
Financial details of the potential transaction couldn’t be determined. United declined to comment. SkyWest and ExpressJet didn’t respond to requests for comment.
SkyWest jumped on news of the talks, climbing as much as 3.5 percent in intraday trading. The shares rose 1.8 percent to $52.60 at 2:26 p.m. in New York, while United climbed less than 1 percent to $64.12.
More from Bloomberg.com: The Bitcoin Whales: 1,000 People Who Own 40 Percent of the Market
Pilot Recruiting
United, which has a minority stake in CommutAir, is the only one of the three largest U.S. carriers that doesn’t own a regional airline outright. That can put United at a disadvantage in recruiting pilots.
Delta’s Endeavor Air offers pilots a guaranteed interview at the mainline airline after a certain period. American’s wholly-owned regional units have “flow-through agreements” that enable pilot hires to advance straight to a job at the major carrier without an additional interview.
More from Bloomberg.com: Silicon Valley Is Sneaking Models Into This Year’s Holiday Parties
United is treading carefully to avoid the labor turmoil that would come with acquiring a regional airline carrier outright, the people said. United management and leaders of the pilots union are already taking steps toward opening contract talks ahead of schedule, with a goal of forging a new agreement by early 2019, Captain Todd Insler, chairman of the United Airlines Pilots Master Executive Council, said in an Oct. 20 letter to pilots.
One of the issues expected to loom large in the talks are the restrictions on the scope of United’s Express unit, which subcontracts flying to commuter carriers. While United would like to add more Embraer SA E-175s to expand its reach to smaller markets, the regional operation has reached the maximum number of 76-seat aircraft allowed under the current pilot contract.
Annual Losses
ExpressJet, based in Atlanta, had about $1 billion in sales last year, with an operating loss of $300 million that was widened by special items. The unit posted losses of $34.2 million in 2015 and $118 million in 2014, according to regulatory filings by SkyWest.
The carrier agreed in August to end a carriage deal with Delta earlier than expected. ExpressJet also serves American.
Until it was spun off in 2002, ExpressJet had been a unit of Continental Airlines, which merged with United in 2010. The main airports served by the regional carrier include Atlanta, Cleveland, Chicago, Houston and Newark, New Jersey.
12-08-2017, 07:40 PM
#3
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I thought that it may certainly stop the flow of ExpressJet pilots coming to Endeavor... - IF - a "flow-thru agreement" for the pilots is reached with United Airlines.
You know, as previously discussed by many Endeavor pilots the past few months... a direct, stable & secure career path vs. an interview opportunity?
Since 25-33% or more of the posts here at Endeavor focused on the lack of flow, I thought it could add some ammunition for Endeavor pilots going forward in discussions with Delta... if the other wholly owned regionals have a flow to their respective legacy carrier.
And evidently, it is NOT just rumor or speculation anymore?
Also, could it possibly reduce the opportunity for Endeavor pilots at United... - IF - the "flow-thru agreement", as mentioned in the article, materializes?
For example, how many Endeavor pilots are getting hired or even getting interviews at American, given their (what 50%) flow-thru agreement with their wholly owned regionals. It could certainly stack the deck AGAINST the future opportunities available for Endeavor pilots if so many American and United new-hire positions become filled by the commitments established by the flow-thru agreements.
But, I'm sorry if offended any of the Endeavor pilots, as that was not my intention. Given the content, I obviously posted the article for the ExpressJet pilots in their section.
You know, as previously discussed by many Endeavor pilots the past few months... a direct, stable & secure career path vs. an interview opportunity?
Since 25-33% or more of the posts here at Endeavor focused on the lack of flow, I thought it could add some ammunition for Endeavor pilots going forward in discussions with Delta... if the other wholly owned regionals have a flow to their respective legacy carrier.
And evidently, it is NOT just rumor or speculation anymore?
Also, could it possibly reduce the opportunity for Endeavor pilots at United... - IF - the "flow-thru agreement", as mentioned in the article, materializes?
For example, how many Endeavor pilots are getting hired or even getting interviews at American, given their (what 50%) flow-thru agreement with their wholly owned regionals. It could certainly stack the deck AGAINST the future opportunities available for Endeavor pilots if so many American and United new-hire positions become filled by the commitments established by the flow-thru agreements.
But, I'm sorry if offended any of the Endeavor pilots, as that was not my intention. Given the content, I obviously posted the article for the ExpressJet pilots in their section.
12-09-2017, 05:21 AM
#4
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Joined APC: Mar 2015
Position: Boeing 737 FO
Posts: 125
Originally Posted by AU MD FLYER
I thought that it may certainly stop the flow of ExpressJet pilots coming to Endeavor... - IF - a "flow-thru agreement" for the pilots is reached with United Airlines.
You know, as previously discussed by many Endeavor pilots the past few months... a direct, stable & secure career path vs. an interview opportunity?
Since 25-33% or more of the posts here at Endeavor focused on the lack of flow, I thought it could add some ammunition for Endeavor pilots going forward in discussions with Delta... if the other wholly owned regionals have a flow to their respective legacy carrier.
And evidently, it is NOT just rumor or speculation anymore?
Also, could it possibly reduce the opportunity for Endeavor pilots at United... - IF - the "flow-thru agreement", as mentioned in the article, materializes?
For example, how many Endeavor pilots are getting hired or even getting interviews at American, given their (what 50%) flow-thru agreement with their wholly owned regionals. It could certainly stack the deck AGAINST the future opportunities available for Endeavor pilots if so many American and United new-hire positions become filled by the commitments established by the flow-thru agreements.
But, I'm sorry if offended any of the Endeavor pilots, as that was not my intention. Given the content, I obviously posted the article for the ExpressJet pilots in their section.
You know, as previously discussed by many Endeavor pilots the past few months... a direct, stable & secure career path vs. an interview opportunity?
Since 25-33% or more of the posts here at Endeavor focused on the lack of flow, I thought it could add some ammunition for Endeavor pilots going forward in discussions with Delta... if the other wholly owned regionals have a flow to their respective legacy carrier.
And evidently, it is NOT just rumor or speculation anymore?
Also, could it possibly reduce the opportunity for Endeavor pilots at United... - IF - the "flow-thru agreement", as mentioned in the article, materializes?
For example, how many Endeavor pilots are getting hired or even getting interviews at American, given their (what 50%) flow-thru agreement with their wholly owned regionals. It could certainly stack the deck AGAINST the future opportunities available for Endeavor pilots if so many American and United new-hire positions become filled by the commitments established by the flow-thru agreements.
But, I'm sorry if offended any of the Endeavor pilots, as that was not my intention. Given the content, I obviously posted the article for the ExpressJet pilots in their section.
12-09-2017, 06:02 AM
#5
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Joined APC: Feb 2016
Posts: 1,237
Originally Posted by animation
Those are valid questions being that we’ve only had 70 pilots go to American and United in the last 4 years
American and United?
I wonder how many how many 9e CA's are applying.
On another subject is there any data on flow "washout " numbers
From American W/O's?
12-11-2017, 11:48 AM
#7
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Position: CRJ200 CA
Posts: 577
Originally Posted by FODhopper
If one can't see the relevance of the potential XJet news then they need to engage in more critical thinking.. This item absolutely belongs as a topic in our forum.
12-11-2017, 03:10 PM
#8
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Posts: 592
Originally Posted by Flogger
This is relevant as it will influence decisions to bail on xjt for 9e or any other regional. My opinion is that this news is not good enough to stay, but anyone who hasn't already bailed on xjt is really reaching for reasons to stay, so who knows.
12-11-2017, 05:10 PM
#9
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Position: FIRE ALPA
Posts: 3,082
Originally Posted by msprj2
So you're saying we have less than one pilot a month going to
American and United?
I wonder how many how many 9e CA's are applying.
On another subject is there any data on flow "washout " numbers
From American W/O's?
American and United?
I wonder how many how many 9e CA's are applying.
On another subject is there any data on flow "washout " numbers
From American W/O's?
12-21-2017, 04:03 PM
#10
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Position: 6 Train - Panhandler
Posts: 2,001
In recent history, United has moved to do exactly what delta does. Some of the most recent things would letting HR take over pilot hiring and switching from sim evaluations to using cog screen. They still use hogan though. It would seem logical that they buy EV and for now offer what they already offer. Career pathway program.
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