SkyWest, Inc. Enters into Agreement to Sell E
12-18-2018, 07:22 AM
#41
Gets Weekends Off
Joined APC: Mar 2018
Posts: 615
Originally Posted by afterburn81
Did SKW not negotiate the CPAs at XJT? Does CC not have control or managing power over every single operational aspect of XJT? Did they know nothing before acquiring XJT?
Sounds to me, CC is just bummed that he has to find another scape goat for his incompetences as the guy that thinks he knows how to run an airline. Sorry SKW, going to have to take responsibility for your own crap now.
Sounds to me, CC is just bummed that he has to find another scape goat for his incompetences as the guy that thinks he knows how to run an airline. Sorry SKW, going to have to take responsibility for your own crap now.
Step 1) Offload your worst customers & contracts
Step 2) Divest or sell off any portions of the company that aren't performing.
Step 3) Watch profits rise since your low margin contracts are gone.
This seems like a pretty standard business move to me.. it happens allllll the time. I.E. GE Energy's latest acquisition & divestitures.
This UAL JV may have bought XJT, but they still have to lease 20 CRJ's from CC...
12-18-2018, 07:55 AM
#42
Banned
Joined APC: Aug 2017
Posts: 130
This is great news!! And yes, as a "joint venture" on paper for certain reasons Ual will own minority share, but you better believe there are agreements where UAL management calls the shots. JV's are people having the same goals and interests in the future. I own many companies myself, and 1 is JV with a "very good friend" I can promise you Ual mangament is in FULL CONTROL HERE! I wouldnt be shocked if the other groups members in the majority stake are secretly UAL people not directly connected to UAL management but are connected, if that makes any sense hahaha
12-18-2018, 07:59 AM
#43
Gets Weekends Off
Joined APC: Apr 2007
Position: A320
Posts: 1,308
Originally Posted by Claxstarr
Poor to Marginal profits?
Step 1) Offload your worst customers & contracts
Step 2) Divest or sell off any portions of the company that aren't performing.
Step 3) Watch profits rise since your low margin contracts are gone.
This seems like a pretty standard business move to me.. it happens allllll the time. I.E. GE Energy's latest acquisition & divestitures.
This UAL JV may have bought XJT, but they still have to lease 20 CRJ's from CC...
Step 1) Offload your worst customers & contracts
Step 2) Divest or sell off any portions of the company that aren't performing.
Step 3) Watch profits rise since your low margin contracts are gone.
This seems like a pretty standard business move to me.. it happens allllll the time. I.E. GE Energy's latest acquisition & divestitures.
This UAL JV may have bought XJT, but they still have to lease 20 CRJ's from CC...
12-18-2018, 08:26 AM
#44
Banned
Joined APC: Aug 2017
Posts: 130
Originally Posted by calmwinds
I suspect it will end up being an LLC where United owns less than 50% to placate the FA contract. United would have to be a party to the agreement in order to agree to protecting the SkyWest CPA’s. Same arrangement as CommutAir.
i also don't see 2 seperate companies in similar arrangements, i can see more news coming combining CommutAir and Xjt into 1 entity. For some reason, i don't think things are done yet... This new entity was most likely created for put Ual at a lower equity share, but this JV was carefully crafted to make sure Ual management controls the shots. Im curious to see who some of these investors are on the majority side, my guess quite a few members are Ual interested people.... its really just a way around contracts. Its amazing how many loopholes there are in business entities now a days! haha
Last edited by FlyingMaryJane; 12-18-2018 at 09:05 AM.
12-18-2018, 08:42 AM
#45
Line Holder
Joined APC: Aug 2015
Posts: 90
Originally Posted by FlyingMaryJane
i also don't see 2 seperate companies in similar arrangements, i can see more news coming combining CommutAir and Xjt into 1 entity For some reason, i don't think things are done yet... This new entity was most likely created for put Ual at a lower equity share, but this JV was carefully crafted to make sure Ual management controls the shots. Im curious to see who some of these investors are on the majority side, my guess quite a few members are Ual interested people.... its really just a way around contracts. Its amazing how many loopholes there are in business entities now a days! haha
12-18-2018, 08:50 AM
#46
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,876
Originally Posted by FlyingMaryJane
i also don't see 2 seperate companies in similar arrangements, i can see more news coming combining CommutAir and Xjt into 1 entity For some reason, i don't think things are done yet... This new entity was most likely created for put Ual at a lower equity share, but this JV was carefully crafted to make sure Ual management controls the shots. Im curious to see who some of these investors are on the majority side, my guess quite a few members are Ual interested people.... its really just a way around contracts. Its amazing how many loopholes there are in business entities now a days! haha
I think this will be a set up for a future UAL pilot feed. We are seeing it here at AA with PDT, PSA and Eagle. DL has their “controlled” feed at EDV. I think the mainlines want a pilot pipeline and control over that feed.
12-18-2018, 09:11 AM
#48
Gets Weekends Off
Joined APC: Dec 2012
Position: Arrgh Jay
Posts: 350
Different players, same game.
Possible further mergers, you say? [Let’s see...merge two (three) majorly disparate groups and have two-year CPP ‘grads’ senior to some 20-30 year ASA pilots who never had access to the CPP in the first place.]
The pain is just beginning, IMO. Better than nothing! Then again, that’s always been my credo.
Possible further mergers, you say? [Let’s see...merge two (three) majorly disparate groups and have two-year CPP ‘grads’ senior to some 20-30 year ASA pilots who never had access to the CPP in the first place.]
The pain is just beginning, IMO. Better than nothing! Then again, that’s always been my credo.
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