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SkyWest may seek merger with rival airline ExpressJet
Bloomberg News
Published: Thursday, Jan. 24, 2008 12:16 a.m. MST

SkyWest Inc., cited by an ExpressJet Holdings Inc. investor as a possible merger partner for the rival regional airline, is considering acquisitions as a way to grow, according to SkyWest's chief financial officer Brad Rich.

As SkyWest seeks to expand, new contract opportunities from larger carriers have "kind of slowed down of late," Rich said in an interview Wednesday. "So one alternative is to look for ways to grow through acquisitions."

ExpressJet "would be just one opportunity we see," Rich said, declining to name other potential targets for the St. George-based airline.

SkyWest operates commuter flights for UAL Corp.'s United Airlines and Delta Air Lines Inc., and Houston-based ExpressJet flies mainly for Continental Airlines Inc., Delta and under its own name.

Deseret Morning News | SkyWest may seek merger with rival airline ExpressJet

SharkAir

Whoa, I was just about to start this same thread.

Killer51883

i vaguely understand how mergers help mainline carriers save costs but for a regional to merge with another regional i dont see any real benifit, but i am only a pilot and dont think like a manager or a stock holder.

SharkAir

SkyWest just wants to get their foot back in the door with Continental.

N2rotation

That would be the country's largest regional for sure, I wonder what would happen to pilot work rules.

freezingflyboy

Kind of out of left field but it would position SkyWest very nicely. Contracts with UAL, DAL and CAL would protect them pretty well from any major merger fallout.

The proud Jetstinker in me says that maybe SkyWest just feels threatened by XJT's presence on the DAL side

JetJock16

Sound a lot like the DAL/NWA rumors a year ago.

I wouldn't be surprised and if there was an airline out there that SKW would consider acquiring and completely merging with, XJT’s the BEST CHOICE. They are one of the nation’s best regional airlines and they have a Pro-Mgmnt labor group who performs exceptionally.

Also with the way XJT investors have been lately I don't think it would that hard for Jerry and friends to get it done.

Personally, I don’t see it happening but then again I’m just a pilot.

JetJock16

If they were threatened by anyone it would be 9E seeing they're gaining CR9 flying and that's what SKW Inc. wants.

SharkAir

It would position SkyWest, Inc. very nicely. I can't imagine the operations side of things would merge very easily. ASA is still a separate company and they even have the same airplanes.

And correct me if I'm wrong, but isn't XJT's Delta contract only two years long? And hasn't about one year of it already passed? And if so, are there talks to renew it? I'm just asking.

meritflyer

I'll belive it when I see it. However, a few things stand out as a positive here. One being the obvious relationship with Continental and the second being the ever increasing relationship with Delta on the west coast.

Also, I know Jerry has personally expressed interest in running his own branded operation. ExpressJet has already put the frame work together very successfully in a very short amount of time.