I wouldn't worry about skywest, we've done it before and we'll do it again. I would worry about how much expressjet is going to lose next year and what or who is going buy you when you become bankrupt.

And if I were you I would worry about what could happen to SkyWest, or any regional for that matter when mergers begin because the regionals will be hurt badly.

I wouldn’t worry about SKW; the reduction in our flying will be spread out over a few years which will make its impact minimal on our labor groups. When the merger does happen I’m sure it will affect MEM (Pinnacle & Mesaba) and CVG (Comair) the most. ATL, SLC, LAX & NYC are very important for DAL while MSP & DTW are the same for NWA; as recent global growth has shown us. That leaves MEM and CVG out in the cold and IMO destined for closure. SKW & ASA are mainly SLC & ATL based, bring our contacts into the equation which gives SKW Inc guaranteed %age connection departures from each city and the only way SKW will be affected is with a total decrease in regional flying. Which, in the long run, is good for us all seeing that it means more mainline jobs.

As for the lawsuit, it’s just business and I’m sure both parties will come to an agreement. DAL bent/broke the rules and SKW’s just looking for what rightfully theirs. At its most basic level it’s no different than filing a grievance with your union over something your airline did or didn’t do. In the end SKW won’t burn a bridge and they won’t pull an ACA.

Nothing is guaranteed in this industry. Once you start believing that, you set yourself up for suprises. EVERYONE in this industry is vunerable.

It is correct, I will not argue that, but it's guaranteed as long as DAL honors the contract and if they don't then SKW retains (in other words they have yet to pay DAL per the contract) $125M which is the last installment of the ASA purchase agreement. When the terms of the contract expire then the installment is due, until then the ball is in DAL's court. If DAL does renig then SKW just purchased ASA for $300M instead of $425M and over the coarse of the last 3 years SKW Inc as made around $150M/year, or $450M over 3 years, in profits from ASA which puts them in the black on the purchase ($450M - $300M = +$150m).

PS. #'s are not exact but ballpark.

Unacceptable, only come back when you have the exact #'s!:D

Haaaa, plus or minus a few Mil on the profits only.

What do they say: "Horseshoes, hand grenades & aviation." :D

Jetjock,
Since you know a little about the Delta/Skywest contract, how long is that %% of Delta Connection flying guarenteed to Skywest. When does Skywest have to make that $125 million dollar payment?

http://www.skywest.com/media/05/8-15-05.php

Quote:
"purchase price of $425 million. .................................................. .................. SkyWest shall be entitled to retain $125 million if Delta does not affirm the ASA or SkyWest Delta Connection Agreements in a Chapter 11 proceeding prior to the fourth anniversary of the closing of this transaction. The purchase price is also subject to adjustment based on ASA’s levels of cash and working capital as of the closing date. The transaction, which is subject to regulatory reviews and other conditions, is currently expected to close during September 2005."

The $125M is due 4 years after the agreement which means in late 2009.

Quote:
"Jerry Atkin, SkyWest’s Chairman and Chief Executive Officer, sees the ASA acquisition as an opportunity to strengthen SkyWest’s partnership with Delta. “Through this acquisition, our company will enter into long-term agreements with initial terms of 15 years with Delta at both ASA and SkyWest Airlines, making SkyWest the most significant regional relationship in the Delta Connection program. Moreover, we believe that ASA is well-positioned to pursue additional code sharing relationships.”"

2005 purchase agreement & flying is for 15 years or until 2020.

Disclaimer.. I Dont drink Kool-Aid.... something about Jim Jones syndrome

When I said dont worry about it Delta Loves skywest I was being Sarcastic