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ExpressJet Leads Airline-Stock Gains As Investors Hope for Acquisition by SkyWest; Oil Drops

NEW YORK (AP) -- ExpressJet Holdings Inc. led airline stock gains Monday as investors hoped that industry consolidation talks would include a deal between the Houston carrier and larger competitor SkyWest Inc.
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Hayman Advisors LP, which owns a 6.25 percent stake in ExpressJet, advised the company last week to abandon its ramp-up of branded-flying operations, sell non-core assets and look for potential merger or acquisition deals with competitors like SkyWest or Republic Airways Holdings Inc. The investment firm reported its suggestions in a Securities and Exchange Commission filing on Friday.
Media reports said SkyWest Chief Financial Officer Brad Rich responded to the letter by saying Skywest is open to acquiring smaller carriers like ExpressJet. Representatives from SkyWest and ExpressJet could not be immediately reached for comment.
Other airline stocks rose as light, sweet crude for March delivery lost 96 cents to $89.75 a barrel on the New York Mercantile Exchange. The Amex Airline Index rose 1.7 percent to 33.70. Fuel is one of the airline industry's highest costs.
UAL Corp. shares rose after Soleil Securities analyst James Higgins lifted its stock rating to "Buy" from "Hold" in a note Monday, saying its labor problems have diminished. UAL accomodated pilot-union demands by altering some schedules and improving work rules for narrow-body jet pilots.
"More work needs to be done," Higgins wrote, "but we are satisfied for now that labor issues will not disrupt the earnings outlook."
UAL shares rose 70 cents, or 2 percent, to $35.57 in morning trading.
Other gains were posted by AirTran Holdings Inc., which rose 31 cents, or 3.9 percent, to $8.32; Alaska Air Group Inc., which rose 71 cents, or 3.1 percent, to $23.31; US Airways Group Inc., which rose 31 cents, or 2.5 percent, to $12.60; and Continental, which rose 43 cents to $26.18.

tpersuit

I really liked that part

keiundraj

You might wanna stop bad mouthing your potential employers. RAH won't buy you though so better hope SKW come bail you out!

freezingflyboy

This is all the numbnut fund owners like Hayman Advisors wanted. They bought a bunch of stock, spread rumors of a possible merger or their desire for a merger, really someone just belches the word merger and then they wait for the stock to rise and then they sell sell sell.

JetJock16

XJT is smaller than SKW Inc.

Or do you have over 4300 pilots and almost 450 a/c?

freezingflyboy

No body needs "bailing out". TWO quarters of losses. Thats it. And on pace to make a profit Q1 or Q2 of 2008. Give me a friggin break. You gotta spend money to make money, thats all it is. If they would market the branded a bit better and oil was still around $50-60/ barrel like it was when we started this branded stuff then the branded side would be operating in the black. The rumors of XJT's death have been greatly exaggerated.

PS
Even the might Southwest lost money their first year in business so lets not get too excited here.

LivinTheDream28

last i counted 277 a/c? or are you including ASA which i guess is technically yours? 277 to their 274....yea XJT is smaller.

tpersuit

JetJock16

"SKW Inc" should have made it clear and BTW ASA's not mine.

reevesofskyking

How much does continental still own of expressjet.

I was trying to do some reserch before I posted, and the only number I can come up with was 53.1% stake, and they had plans to divest more.

I wish I still had the window open to site the source.

but if they still have a controling stake in expressjet, they can still stop the merge if they try right?

Reeves