United Ejet award
12-23-2018, 01:16 PM
#51
In a land of unicorns
Joined APC: Apr 2014
Position: Whale FO
Posts: 6,469
Originally Posted by NovemberBravo
ST. GEORGE, UTAH, December 18, 2018 – SkyWest, Inc. (NASDAQ: SKYW) today announced that it is has entered into definitive agreements to sell ExpressJet Airlines, Inc. (“ExpressJet”) to ManaAir, LLC, a company in which United owns a minority interest. The transaction is expected to close in early 2019, subject to customary closing conditions.
Consideration for the transaction includes approximately $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizable value to SkyWest of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise. As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
“Today’s announcement provides further clarity and focus for the future,” said Chip Childs, SkyWest, Inc. President and Chief Executive Officer. “We want to thank the employees of ExpressJet for their valued contributions and we look forward to continuing to strengthen our partnership with United.”
Consideration for the transaction includes approximately $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizable value to SkyWest of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.
The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise. As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.
“Today’s announcement provides further clarity and focus for the future,” said Chip Childs, SkyWest, Inc. President and Chief Executive Officer. “We want to thank the employees of ExpressJet for their valued contributions and we look forward to continuing to strengthen our partnership with United.”
There's a huge difference between a promise, and a "priority position.....should those opportunities arise".
12-23-2018, 01:53 PM
#52
Gets Weekends Off
Thread Starter
Joined APC: May 2017
Posts: 2,145
Originally Posted by dera
Exactly.
There's a huge difference between a promise, and a "priority position.....should those opportunities arise".
There's a huge difference between a promise, and a "priority position.....should those opportunities arise".
Usually, these priority positions, especially with regards to an acquisition, are written into the agreement as pretty iron clad. They are intended to ensure future business is awarded.
12-23-2018, 10:57 PM
#53
In a land of unicorns
Joined APC: Apr 2014
Position: Whale FO
Posts: 6,469
Originally Posted by calmwinds
Yep. There may never be additional 175’s unless United replaces the last 20 CRJ700’s with 175SC’s. The opportunities may never “arise” since United is capped out on 70 and 76 seaters.
Usually, these priority positions, especially with regards to an acquisition, are written into the agreement as pretty iron clad. They are intended to ensure future business is awarded.
Usually, these priority positions, especially with regards to an acquisition, are written into the agreement as pretty iron clad. They are intended to ensure future business is awarded.
Give me an example.
12-24-2018, 03:14 AM
#54
Gets Weekends Off
Thread Starter
Joined APC: May 2017
Posts: 2,145
Originally Posted by dera
Usually?
Give me an example.
Give me an example.
This acquisition by Unktef has been brewing for quite a while. Bloomberg reported it months ago. During the negotiations of this transaction alone, immediately after the CRJ700 retirement was announced by United, United prematurely renewed SkyWest’s CRJ700’s for 5 more years. This was to take off the table SkyWest business.
These agreements are intended to signal to the seller’s shareholders that, in the long term, the seller is not conceding business by selling a competitor to your customer and removing a barrier to entry to your customer of starting from scratch.
The terms of this agreement will make it into the quarterly reports and earnings call. We will all know more then. I believe the agreed to terms will be stronger than a “promise”. My only question, as a Mesa pilot, is if they affect Mesa.
12-24-2018, 08:36 AM
#56
In a land of unicorns
Joined APC: Apr 2014
Position: Whale FO
Posts: 6,469
Originally Posted by amcnd
They renewed OO 700’s do to Aspen. No other air carrier certified for Aspen. And the 700 is the only regional jet aircraft that can do it...(wing span issues, and balked land performance)
12-24-2018, 10:50 AM
#57
Gets Weekends Off
Joined APC: Jul 2008
Posts: 4,203
Originally Posted by dera
Envoy is certified for KASE. Just not actively flying there.
Thread
Thread Starter
Forum
Replies
Last Post
