SkyWest rumors w/DAL and UAL mergers
 

Just wanted to know what Uncle Jerry and others are saying about both OO's major partners in merger negotiations. I dont know if it could be good or bad. On one hand OO has most of the UA and DAL regional flying so that could continue with the merged airlines. I know that there are long contracts in place with both partners, are those contracts void with a merger? On the other hand, I also think/hope that the premerger pilot negotiations will look for much tighter scope to preserve mainline jobs. (This is good for all involved.)
I heard that the current class is the last one for a while, any rumors why?

Last I checked DAL was going to merge with NWA, not UAL. I think that UAL's name was mentioned just to get the blood flowing.

As far as its effect on SKW? I think the entire regional industry will have a reduction in flying mainly due to $100 oil. SKW Inc mainly operates out of SLC & ATL and both cities play a huge part in DAL's future operations (just look at their new international routes for proof) as well as we have excellent performance and we are among the lowest in cost.

Yes DAL/NWA is correct but UAL/CAL will be right around the corner if DAL/NWA go through. The reality is that both OO's major partners will probably merge.

True but once again we are one of the best performing regionals, we have had no real problem staffing ourselves and we are among the lowest in cost. There will be a reduction (national wide) in flying but I'm sure it won't call for furloughs and massive cutbacks here at SKW. I just wouldn't expect upgrades to stay below 2 years; 2.5-3 will be more realistic on the RJ.

Personally I'm looking forward to mainline taking some of the flying back. I believe that it's better for our future if regional growth begins to stagnate and maybe shrink a little.

Point taken, but you guys are also one of DL's largest partners and pretty much have SLC all to yourselves. DL doesn't seem to comfortable as of late having one regional do all of their flying in a hub. Furthermore, you need only look at XJT which was born as COEX and desgined from the outset to operate just like big brother CO. They were/are an excellent performer for CO but that didn't stop them from bringing in CHQ and they even admitted it had nothing to do with money.

DAL has divested enough when it comes to regional partners. With a merger you will see DAL get out of contracts with ones that they can. SKW is not one of them. That contract is as ironclad as one can get.
If I were at ComAir or Mesa I would be worried. But as DAL has already stated they are a near min levels as it pertains to these contracts anyway. I could see DAL getting rid of some 50 seat lift, but most of it will be replaced with 76 seat jets, not mainline craft. Some will, but not all of it.
There will be a decent reduction in flying, but if I was a wholly owned subsidiary I would be worried. Those are the "contracts" that can be voided with out much issue. The only loss would be one on paper.

Remember that the main reason for DAL wanting other operators is because of Comair. We are not union, not that that's good for us pilots but it's great for our company’s partners. DAL, UAL and Midwest LOVE the fact that there will NEVER BE A STRIKE here as long as we stay non-union and if we did go union tomorrow then it would be the better part of a decade before we could ever be release.

DAL is expanding our operations in LAX and if they want to decrease our roll in SLC it’s going to cost them $125M seeing our current contract calls for SKW Inc to operate a guaranteed %age of departures in both SLC & ATL. The contract is good through 2020 and has ironclad (that is as ironclad as one can be) merge clauses.

UAL and DAL both like SKW. The SLC monopoly is not really an issue since we don't have a union at SKW.

As was mentioned, SKW has not had to take work out of desperation, they have turned contracts down on several occasions where the terms were too risky. The code-share contracts that we have are pretty air-tight as far as those things go, especially with DAL...that was a condition of taking ASA off their hands.

uh i hope you guys dont think slc is safe. it seems like every few years slc is on the chopping block to be reduced or lose hub status. Just google it and you will see lots of articles from as recent as last week to a couple years ago. do i think slc will close,, no. do i think mem will close,, no. i don't even think there will be a drop in flights. our planes are operating full, infact i think in the last report we were a little over 80% on load factor. like jack bauer said in another thread there is enough flying to go around and since delta and northwest share no major hubs, i see things pretty much staying the same.

SLC is definately safe. Do you really think the world's largest airline (DAL/NWA combo) will have no hubs west of the Mississippi?? (ok, MSP is technically on the west side, but you get the idea)

I think SLC, LAX, and JFK will probably grow after the merger. MEM will get reduced, but it may still be used to take some strain out of ATL. Probably CVG on the chopping block too (can't have MSP/DTW/CVG/MEM/ATL)

Just my opinion..