Skywest buying horizon
#2
Gets Weekends Off
Joined APC: Jan 2016
Posts: 268
There's also an argument to be made for keeping Horizon around as a separate entity. To put it simply, senior Air Group management are "control freaks". They like the ability to play us against Skywest. Maybe we get sold, maybe not, but it will come down to an economic decision, not an emotional one. The pilots will be the LAST to know.
#5
On Reserve
Joined APC: Jul 2022
Posts: 24
#6
Gets Weekends Off
Joined APC: Dec 2021
Posts: 212
Seems plausible to me. I've always heard (from sources who very well could be totally full of crap) that SkyWest operated Alaska flights are significantly cheaper than Horizon operated flights. Mostly given to OO's scale (200+ E-Jets, in-house mx & engine shop savings, etc). So if I was Alaska looking to tighten the belt and give up on fighting to attract regional pilots...having Horizon get absorbed by OO would make a lot of sense.
#7
Gets Weekends Off
Joined APC: Dec 2020
Posts: 266
Seems plausible to me. I've always heard (from sources who very well could be totally full of crap) that SkyWest operated Alaska flights are significantly cheaper than Horizon operated flights. Mostly given to OO's scale (200+ E-Jets, in-house ms & engine shop savings, etc). So if I was Alaska looking to tighten the belt and give up on fighting to attract regional pilots...having Horizon get absorbed by OO would make a lot of sense.
#8
On Reserve
Joined APC: Jul 2022
Posts: 24
Seems plausible to me. I've always heard (from sources who very well could be totally full of crap) that SkyWest operated Alaska flights are significantly cheaper than Horizon operated flights. Mostly given to OO's scale (200+ E-Jets, in-house mx & engine shop savings, etc). So if I was Alaska looking to tighten the belt and give up on fighting to attract regional pilots...having Horizon get absorbed by OO would make a lot of sense.
#10
Makes little sense. Alaska error group has always enjoyed keeping rates low by pitting Skywest against Horizon. When the dust settles, and regional rates have reached equilibrium, they'll want to do so again. If AAG sold of Horizon to OO they'd be handing them all the cards to play in negotiating fee for departure rates as well as tools AAG's competitors would leverage against AGG itself.
They can readily get rid of QX since regional costs will be driven by staff shortages and market forces for the time being. So no benefit to whipsaw for a while.
Later on if they need somebody to keep OO honest, there's always mesa.
Not saying it's going to happen, but if it is now's as good a time as any.
They can even let the pilots keep their flow.
Thread
Thread Starter
Forum
Replies
Last Post