Skywest tries to buy Expressjet....Rejected
#42
Man, some of you guys just can't see the forest from the trees! They have the final say, and have to approve any potential buy out/merger etc.
Unless, skywest is willing to operate the Coex side at a potential loss, the rates we're giving CAL cannot get any cheaper, not to metion the fact that CAL already expressed interest in reducing it's regional jet feed...oh and did I forget scope?
Unless, skywest is willing to operate the Coex side at a potential loss, the rates we're giving CAL cannot get any cheaper, not to metion the fact that CAL already expressed interest in reducing it's regional jet feed...oh and did I forget scope?
Further, SKW will easily be able to fly cheaper than XJT for Continental. The current deal between XJT and CAL pays XJT around 10% margins. If SKW is willing to accept 7% that would have save CAL somewhere in the ballpark of $9,000,000 per quarter.
Edit: Just saw the other thread on SKW already having approval from Continental for the deal. I guess it points to SKW being willing to accept lower margins than XJT.
#43
#44
Gets Weekends Off
Joined APC: Feb 2006
Position: DD->DH->RU/XE soon to be EV
Posts: 3,732
And don't forget, there are probably WAY more things in play here that we don't know about. Like a relaxation of scope for one. Not saying it's gonna happen, but still. We're just the pilots, we don't have access to all that's going on behind the scenes.
#46
Nice try Skywest management. Might need to up it to around $10-$15 to make it work. We have at least $500 million in assets. Don't think the shareholders are that stupid to sell all that for $200 million. Glad our management stuck to its guns again. All this shows me is that ExpressJet is a very good company.
Stock just jumped 30%. Man I love our management. I guess I should thank Skywest management because their offer shows how undervalued our stock is right now and it shot up. Should get interesting.
Stock just jumped 30%. Man I love our management. I guess I should thank Skywest management because their offer shows how undervalued our stock is right now and it shot up. Should get interesting.
BTW, Midwest experienced the same jump and remember that in the end, after several counters, they ended up being sold.
Also, the $3.50 per share was a low ball offer seeing you never bid high on the first attempt. This holds true in life in general.
As for XJT’s flying, I guarantee you that if SKW purchases XJT, you guys will retain the flying and SKW will use the 75 EMB options to gain another code share. Not to worry, SKW will do their very best retain all of XJT's employees, just look at West Air & ASA as examples.
Best of luck and I'd rather you guys stay independent but the second best option would be for SKW to buy you.
Last edited by JetJock16; 04-25-2008 at 01:09 PM.
#47
Gets Weekends Off
Joined APC: Mar 2006
Position: EMB 145 FO
Posts: 425
#48
#50
Of course I don't mean 50 seaters, can those options be converted into 170/75/90/95's? If so then that's what they'll be looking to do. SKW doesn't want more 50 seaters and if they do they can get them really cheap on the open market.
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