maybe its because CAL still has a scope that limits regional feed at 50 seats. So as long as CAL needs feed they have to use 50 seaters. Skywest can get in on the CAL feed again, secure more DAL flying, add the branded operation skywest wanted to try and there are your reasons.

I think this was a great move by Skywest. I think Skywest and Expressjet are both great companies, and consolidation is good in the regional industry too. Expressjet's share price was low and Skywest went after the opportunity. I like management teams that seize opportunity! An offer of $200 million is a little low. Hopefully Skywest will up their offer a little and let this deal go through.

If SKYW bought XJT then the combined carrier (SKYW+ASA+XJT) would control more than 40% of the regional market. That is some serious pricing power when it comes time for an RFP in the future, regardless of what type of aircraft it will be for.

I hope with that RFP that some of the new proceeds from the bargaining table would increase the pilot wages, but that's just a little too positive huh? I'm all for consolidation anyways. I don't see ExpressJet lasting that much longer with the fuel sky rocketing like that.

Those xr seems really fue efficient as the CRJ200 (last time I flew it) at FL310 was burning about 1450pph/per side at .74M. I also thought that Embraer isn't producing the XRs anymore. :?

I do not see DL being happy about this. Too much of their system by one airline is currently not in their business model.

Yeah but only two of the three are union...

But what the heck good will this do for SkyWest guys? Hate to sound like "what's in it for me?" but if they're going to spend money we helped earn...it's just another ASA deal.

ExpressJet will last. There is only so much 50-seat flying that Continental would cut. As we said earlier, Continental relies pretty heavily on their regional network and can't go any biger than 50 seats (for jets). Our CAL flying represents 75% of our flying. Branded fuel is hedged and the capacity has been reduced to the markets that are filling up. Charter is doing well...so I've heard. Delta flying is shared risk, not CPA so I could see the fuel affecting that flying.

You are right, Embraer does not produce XRs anymore, but we can always convert the options to 170s, but I won't even begin to open up that Pandora's box.

SkyWest offered a 67% premium on the price of XJT shares at the time of the offer. If ExpressJet loses more CO flying and things turn worse for the company, management is going to have some serious explaining to do to those left holding the bag (employees and shareholders).

That was the OLD dal ceo...the new guy apparently wants fewer regionals. And as long as SKW, ASA, and any other other SKW INC. additions are maintained as seperate operating companies, they should not count as one regional.

you make a good point, and It has been said in CAL new-hire classes that Larry does indeed wish to further reduce Expressjet flying...............