185flier

when Reeve went under we hired off the street into the left seat
i imagine we would do that again in order to secure the markets
what do you think

Tuff

Era filed to protect itself from its lender. It's new owners have money; million dollar question is whether they are going to make a quick exit given this last fall's problems (Katrina & fuel, botch Aloha deal, etc.). Era is only going in two directions, out of business (unlikely but possible) or is going to take over the state in convincing fashion.

mordi

Tuff, do you think that you could take in a resume over there for me?? Just incase you guys decide to take over all of Alaska?? I sent one to MarkAir when they were taking over too.

Tuff

Era filed for C11 to protect itself from its lender. Its new owners have money. The million dollar question is are the owners going to commit to the airline industry or exit after a scare (Katrina & fuel costs, botched Aloha deal, etc.) Era will not remain as is; they will either go out of business (unlikely, but possible) or will take over the state, 2nd possibly only to Alaska (unless of course AS lets go of the state)!

Tuff

Okay, I suck. My reply didn't show up on any refresh attempts or logout/ins. Although posting twice may be a subliminal attempt to reinforce my point.
Mordi, if you are serious, send a resume to the chief pilot. He is pretty much trying to talk to anyone who pursues a position with the company.

Tuff

I just had the opportunity to peruse the "Anyone know about PenAir" thread and thought that I would add in this thread instead of invading the Penair one.
The reality of the bankruptcy is that the lender, CapitalSource, wants to get into the realty business as a major lender. In order to secure that standing, 90% of their holdings must be in real estate. The holding of the financing of Era (approx. $15 mil. loan) pushes them just below 90%. They decided to hire a auditor to value (devalue would be more appropriate) the company to justify liquidating assets to clear out the loan and get above the 90% mark. The auditor came in and valued the company at almost half of what (4 different auditors is what I heard) valued the airline at during the initial sale during its separation from Rowan.
Era filed for bankruptcy to protect itself.
If you had the chance to attend the hearings, which I understand Danny and a few PenAirs did for the first part of the first day, you would have all this information.
The most supporting statement for this was the fact that the judge didn't even deliberate on the outcome and ruled in favor of Era. The Jan. 27th date is the day that Era has until to secure new DIP financing. Era actually already had new financing in place prior to filing, but CapitalSource refused to budge and thus the financing could not be secured.
We just hired four new pilots in the last 2 months and are starting a Dash class on monday. I think they even hired one of the furloughed PenAir van pilots and are going to put him in the next class.
Don't count out Era until they are out. All it would take is one of the new owners to get a wild hair and the airline would go for a hell of a ride.
That is just what I heard.

akpilot7

ERA is in for a heck of a fight if they think they can take over the state. In order to get any new routes, they would have to compete head to head with Alaska (or another codeshare partner). AS wouldn't like this, and could pull ERA's codeshare and give it to another airline. This is the same reason PenAir can't expand. Alaska Airlines runs the show, if you try to compete against them, you will end up having competition on your best (protected) routes. Just ask the old MarkAir guys; it won't work. The rumors I heard is that ERA is interested in expanding, but in California, not Alaska. Any truth to this?

Rofzu

"CapitalSource, wants to get into the realty business as a major lender. In order to secure that standing, 90% of their holdings must be in real estate. The holding of the financing of Era (approx. $15 mil. loan) pushes them just below 90%. They decided to hire a auditor to value (devalue would be more appropriate) the company to justify liquidating assets to clear out the loan and get above the 90% mark. The auditor came in and valued the company at almost half of what (4 different auditors is what I heard) valued the airline at during the initial sale during its separation from Rowan."
"CapitalSource refused to budge and thus the financing could not be secured."
"All it would take is one of the new owners to get a wild hair and the airline would go for a hell of a ride."



TUFF, you are in for a helluva ride.


I don't see how this "hiccup" helps you guys? It appears like "The wild hair guy" is packin his "CHUTE""
Good luck
ROFZU

Tuff

California was a contract. Hawaii possibly if the Aloha deal can get settled. I'm not suggesting that Era is going to try another Markair (although talking to ex Markair guys, it was fun while it lasted). However, AS is more concerned with their west coast operation and being 'Lower 48 airlines' instead of Alaska Airlines. Eventually the rest of the routes up here are going to fall to the T-Prop world due to economics of jet fuel. Alaska had it good until fuel finally caught up with itself and its late entrance into fuel hedging isn't going to make those 200s any cheaper to operate, let alone reskin, D-check, etc.
Quite frankly, I'm surprised PenAir didn't try to buy Era during one of the go arounds. We don't compete with each other and a larger regional airline will probably have a little better chance of persuading AS to throw a few more bones, instead of playing each of us against each other. I've noticed that PenAir doesn't want to go head-to-head or try to put Era out for good; my guess is for two reasons, 1. money isn't exactly abundant over there either (the reason for the latest furloughs instead of putting them elsewhere) and 2. public perception. I think both companies have favorable public perception and wouldn't want to alter a 'delicate' balance.

185flier

Alaska airlines will always fly jets up here
they have made a huge investment on the 400 combi
PenAir doesn't want the equipment ERA has
and it's much cheaper to wait for the inevitable and just pick up the route structure when ERA goes under
PenAir is the largest regional when you compare RPM's and if ERA were to expand it would get real ugly real quick
both sides in management figured that out a long time ago thats why they don't go head to head but if ERA takes the gloves off
look out we will kick a&&