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Quote:

Originally Posted by Bozo (Post 2313665)

What does the crystal ball say? Hmmmm.

1. I have not seen an actual statement in the SKYW INC 10K that the ERJs HAVE been extended to the end of 2018. Only that UAL MAY do

2 - 1 year extensions. I would think that there is a 12 month notification clause in the CPA that UAL must give to XJT, prior to the end of 2017, if they do not plan to exercise the extension clause. So could it be that XJT didn't get an extension but only a 12 month notification clause that will begin at the end of 2017?

2. AA going back to XJT for ERJs? Why. SKYW INC has approx 40 UAL 700s coming off line, UAL didn't want to extend them, and they need to find new homes so as they can pay the lease payments. That's what was done on the DAL flying in DTW. The report I heard was that the reason AA removed XE from flying was due to the XE mechs required that they do all mtc. AA wanted to keep the C and D checks in house. Mechs said no so bye bye.

IMO...AA upgraded the ASA CRJ flying from 200s to 700 in Dallas and in LA for SKYW. I would bet that they continue the dual class upgrading since AW is gone. 200s for 700s.

1. Page 11 of the 2016 Skywest Inc Annual report.

"During the year ended December 31, 2016, United exercised its right to extend the term for an additional 12‑month period for a certain number of aircraft until the end of 2018 intended to facilitate an orderly return of ERJ145 aircraft to United. Additionally, United has the right to extend the term for an additional 12‑month period for a certain number of aircraft upon 180 days written notice until the end of 2019."

So it seems as though there needs to be notification by July 2018 for the second of the one year extension.

2. Page 35 of the 2016 Skywest Inc Annual report.

"We are scheduled to have 49 CRJ700 aircraft in service with American by mid-2017. These 49 CRJ700 aircraft were previously operated in our existing fleet by other major airline partners."

They've already found homes for all of the UAL 700s. As for the mechs, yes, that's my understanding as well. It's in their scope clause that the xjt mechs do all the heavy maintenance but AA wants to outsource that work. It's the same issue that kept XJT from securing AA flying in 2008. Theoretically, they can come up with another short term deal (2 years) again. But I'm not holding my breadth.