I am very aware of the facts of the SKW buyout and CPA, I lived through it including the initial offer in 2008 that included 15% paycuts/PBS/and 700 furloughs.

SkyWest CAN CH11 bankrupt the XJT side (confirmed by our own union) which would probably increase the stock price since it would cut out the only money losing portion of Inc. If you are not in the top 1800 or so on the list I would be looking for a new job immediately.

 

16% pay cut which included PBS, getting rid of the defined contribution fund, and other contractual changes (which we know from the failed TA that they wanted to get rid of our LTD, doctor's notes, workers comp, decrease per diem, and decrease sick accrual) That was to bring down the XJT pilot into parity with Skywest pilots. And 750 furloughs plus 25 of our ERJs going over to Skywest for their pilots to operate. But they were going to give the furloughs preferential interviews.

 

INC can declare bankruptcy on the XJT side alone. That's the tricky thing about INC's, but why would they drag XJT along for five years loosing money just to file now?

 

Because the TA got voted down and they give up.

It's really OK with them the way I see it. Internal whipsaw.

 

I guess I'm confused as to why Skywest had a huge part in the money-loosing CPA's? Why would they be a huge part in the loosing CPA and then still want to buy Expressjet? That just seems a little odd to me. Sounds like United got what they wanted out of the deal more than anyone. Let me see if I understand, Skywest made a bid for the flying because they are $30 million dollars cheaper to run which meant expressjet had to match the bid to get the contract. Since they matched the bid it made it a loosing money CPA on the expressjet side but a money maker of the Skywest side?

Why in the world is the expressjet contract $30 million more than Skywest? That seems like a very big difference in numbers? Do Skywest pilots get paid half as much? That just seems like a very big difference and either someone's contract is out of whack or someone is getting screwed? All in all the majors are getting what they want in the end, cheaper regional flying?

 

You have to remember it was a strategic move. You couldn't have a bankrupt airline out there competing with you, flying well below a normal CPA cost.. Long term I'm sure they got a good deal from UA. Short term they loss money but, keep one competition out of the works...

 

It NEVER ceases to amaze me how a bachelor's degree and a pilots license seem to somehow qualify people in Corporate Law.

 

Don't forget we're all basically CEOs and Presidents as well, with some slight logistical mastery throw in.

 

Solitary Legends every one...(#1127 System wide 185 or so on the airplane)....

 

Better check again, Professor. Resarch the MAIR, Inc/Mesaba Aviation bankruptcy.