Depends how much of the desert you consider SkyWest to own

 

Most are in IGM and others have been parked around OO MX bases. Still not clear if it means these will actually come to Endeavor but hopefully this is a little bit of good news with some potential instead of all the doom and gloom.

 

around 7 have made to to IGM for lease return. The rest are waiting for, Engine and/or gear swaps...

 

Makes since, Endeavors's payroll is funded via Uncle Sam, why also pay a fee for a departure to a company that also has payroll protection.

 

 

 

So is SkyWest's

SkyWest expects to receive approximately $438 million as payroll support under
the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), of which
approximately $337 million will be a direct grant and approximately $101
million will be in the form of a ten-year, low interest unsecured loan.
SkyWest has elected to receive the funds in four monthly disbursements from
April to July 2020. SkyWest received $219 million of the $438 million in April
2020. In consideration for the funding, SkyWest will issue to the U.S.
Treasury Department warrants to purchase an aggregate of 357,317 shares of
SkyWest common stock. The warrants carry an exercise price of $28.38 per
share.

SkyWest has applied for approximately $497 million in secured loans under the
CARES Act and is evaluating its level of participation in this loan program.

 

The point he is making is that why pay Skywest to do it when Delta is getting Endeavor to do it for essentially nothing since government funds are paying Endeavor salaries. Endeavor does not have a fee for departure.

 

Skywest offered to waive any contractual minimums with partners during this crisis. This is why SKYW parked all the 7/9 and all but a handful of deuces.

 

Im sure that was done in a goodwill effort for future long-term contracts.

But those partners still pay OO a fee for each departure, and they are still hemorrhaging money. In a fluid situation you can throw a 9E plane on a route, remove it, and it still costs the same - the crew. Which is currently being paid for by a government bailout.