There's so much BS out there about XJT, ManaAir, etc. But the details are all right here in the SkyWest annual report from last year. http://inc.skywest.com/assets/Upload...nualReport.pdf page 76

Summary
1) The "asset sale" - UA bought some assets related to XJT from SkyWest for $60mil. " including, among other things, aircraft engines, auxiliary power units, rotable spare parts, ground support equipment and flight training equipment" Note there is no mention of ManaAir related to these assets

2) ManaAir acquired all stock (kind of implying remaining assets) from SkyWest for $16 mil. Kair Enterprises, Inc, is mentioned as the majority owner of ManaAir with United being a minority owner. In the UA annual report from last year, it clearly states that UA owns 49.9% of ManaAir, leaving Kair Enterprises as the 50.1% owner.

3) as part of the deal, SkyWest made a loan to Kair Enterprises of $26mil. Hmm...….

Net - ManaAir did not buy XJT for $60mil or $76 mil. UA bought sims, parts and support equip for $60 mil and ManaAir bought the cert, the employees and the training program for $16mil. And ManaAIr is owned 50.1% by Kair Enterprises and 49.9% by UA.

So what does XJT really own? Seems to me the following:
a) operating certificate
b) stable of well trained and current pilots, FA's, Ops folks, MX folks, etc
c) great EMB145 AQP program
d) a bunch of building leases...…

What's the value of these things in this environment?

And Kair Enterprises had a loan from SkyWest for $26mil. No info on the terms.




Here's the relevant section of the SkyWest annual report for reference

ExpressJet Sale
On January 22, 2019, the Company completed the previously announced sale of its wholly owned subsidiary
ExpressJet. The Company anticipates the sale of ExpressJet will result in a gain in 2019. The closing of the transaction
was completed in two parts, through an asset sale and stock sale, as further described below.


Asset Sale
On January 11, 2019, pursuant to the terms and conditions of the Asset Purchase Agreement, dated as of
December 17, 2018 (the “Asset Purchase Agreement”), by and among the Company, ExpressJet and United, United
acquired certain specified assets and liabilities of ExpressJet, including, among other things, aircraft engines, auxiliary
power units, rotable spare parts, ground support equipment and flight training equipment for $60.0 million in cash,
subject to certain purchase price adjustments (the “Asset Sale”). Certain assets and liabilities of ExpressJet were
expressly excluded from the Asset Sale.

Stock Sale
Additionally, on January 22, 2019, pursuant to the terms and conditions of the Stock Purchase Agreement, dated
as of December 17, 2018, by and among the Company and ManaAir, LLC, a company in which United owns a minority
interest (the “Buyer”), the Buyer acquired all of the outstanding shares of capital stock of ExpressJet from the Company
for $16.0 million in cash, subject to certain purchase price adjustments (the “Stock Sale,” and collectively with the Asset
Sale, the “ExpressJet Sale”). To facilitate payment of the purchase price for the Stock Sale, at the closing of the Stock
Sale, the Company loaned $26 million to Kair Enterprises, Inc., the majority owner of the Buyer. The Company agreed
to lease 16 CRJ200 aircraft to ExpressJet for up to a five year term as part of the transaction.

Yes! and BTW, since this comes up a lot, too, per the UA 10-K, UA owns 19% of Republic. Considering that Republic is >2X the size of XJT and it includes ownership of airplanes, UA's stake in Republic is actually larger than UA's stake in XJT in terms of real assets/value.

Thanks for this!

good point. Does Republic own any of their airplanes or are they all leased?

Is this statement based on XJT being able to meet the original qualifications to receive the money, or the expectation that they get an exemption for some reason? Since they can’t provide the required stock warrants, and they don’t own any assets, how would you handle the application if you were processing them?

We own the majority of them. There are about 20 UA frames and a handful of DL frames that we lease, but of our 200 aircraft, I believe about 150 are owned.

I don't have a direct answer to this, but take a step back and approach it from a pragmatic perspective. If there wasn't a way, would they still be in negotiations nearly 3 weeks later? Conventional wisdom would dictate at this point it's the details being sorted out, not the basic question of if.

I can speak for YX and say they're currently negotiating a valuation of the company and waiting for our stakeholders to approve a change to our bylaws that allows us to issue an equity stake to the Treasury.

There's almost always a way.

Another simple question. Why does a 50+ year old regional lifer troll other regional airline boards.

“Mom!!!!.....meatloaf”

You better run.

How will Republic pay the notes on those when the CARES act only pays for about 75% of wages and nothing towards operating expenses?

Did Republic inflate their asking amount? Would think their ask is significantly above $100M?

Can Republic file bankruptcy again since they already filed a few years ago?

Lol.....perfect.

I don’t know either, but people running around saying that XJT will be around as long as United is are selling a false hope. XJT could survive, thrive, or fail during this mess. With the comments made by United about 50 seat flying, and the devastating impact on the airlines that this pandemic has caused, XJT is far from a sure bet.

i give it 50/50 that XJT will be around in a year

We have a good cash reserve lying around, and while it's drastically reduced, our income from our CPAs is not zero. Beyond that, I don't have specifics. We are definitely trying to streamline/cut costs right now. We let go 5% of our workforce today, all non-crew. Sad times for a lot of good people.

We asked for $271 million and received $206 million. That was equal to the 74% pro-rata everyone else received. I don't believe there was a way to "inflate" an asking amount as it was based on readily-verifiable payroll data from last year.

No idea about the bankruptcy. I don't think that is an imminent concern.

You keep saying 50+, not sure what that’s about.. Mom, meatloaf?

What does your CEO say about the loan??

My soon-to-be CEO said he doesn’t foresee any 50-seaters operating after this is all over. (To paraphrase)

*that would include the CRJ550, I would imagine. Not so good for you. Ideally, ALL the 50-seaters get shut down and mainline carriers hire all those pilots when things recover. Except maybe you.........

Meh.....you can come, too.

Scott Kirby is doing another town hall next Friday. Hopefully he clarifies what he sees for the fleet. Is it almost gone, a thing of the past, or a significant reduction? Either way, being on a 50 seat jet is a risky spot going forward.

Soon to be CEO?? I asked about the loan not the future of 50 seaters. Read bro read

Furloughs has begun, guys at Mesa are already getting the letters.

You think? Skywest loaned 26 mil to Kair enterprise ( UAL investors group) what happens when they default on the loan? Investing 101, don’t borrow money to invest..lol
Would SkyWest take the company over again since UAL can’t own a regional?

My CEO didn’t comment about the loan. His only relevant comment was about the future of 50-seaters. I read your nonsense, and understood it 100%. You asked the wrong question, or at least you asked the wrong person. My CEO isn’t Subodh.

You threw me off when you said soon to be CEO. Now he is your CEO? Why are you even commenting on a question I didn’t ask?

What are you talking about???
Mesa got the money from Cares Act and issued a letter in the MAG email saying no furloughs are coming last week. Also agreed to 76hrs with 13 days off.
This is not being reported on Mesas message board, FB group, in a letter, or in RPAs fb (and they know everything before everyone else). I would love to see your source...

have you ever heard of margin before?

50 jet flying at ExpressJet/ManaAir enterprises is secure unless United fails and shuts down completely. Your job at UA is most at risk.

Well yes. Why do you ask?

Kirby is taking over as CEO and Oscar goes to the BOD. Not sure when, exactly....and I’m not looking it up. As for why I dignified your with any sort of response.....I have to ask myself that same question. Boredom, maybe?

y’all waste so much darn time demeaning this man. Let him live and keep to the subject at hand. It’s tiring to have to see this type of stuff on every dang gone forum. Obviously the man has lived through downturns. No more picking on each other please

He takes over in May, Interesting fella. Fired from American Airlines and known for battling the pilot union. He has been banned from150 casinos for card counting . Stand up guy ..

flyguy is a wild one. I think he predicted 80% furloughs come oct. 1st. It’s best to ignore him.

Do you borrow 10 grand to play in the stock market? I guess I skipped the chapter that said “if you want to invest borrow the money “

If that really made you laugh out loud (mom meatloaf) you need to get out more. Did anyone hear you laugh?

I chuckled briefly.....because I understood the reference.

You do need to get out more. You said you laugh out loud .Now it was just a chuckle? What reference? About meatloaf?

It’s from the movie, “Wedding Crashers”. It refers specifically to Will Ferrell’s character that makes an appearance towards the end of the movie. You’d have to watch it to understand. Me describing it doesn’t do the joke justice.

Say what? You speak for readonly?

https://youtu.be/7kKvlv-IY7k

here ya go, boomer

Will ExpressJet survive this?
 

You guys are feeding him the meatloaf by replying to him

WTF are you talking about?