What is SKYW thinking???
04-25-2008 | 07:29 AM
#11
Underboob King
Joined: May 2005
Posts: 4,412
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From: Guppy Commander
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.
04-25-2008 | 07:36 AM
#12
Line Holder
Joined: Jan 2006
Posts: 1,738
Likes: 15
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.
04-25-2008 | 07:56 AM
#13
SDQ Base Chief
Joined: Mar 2006
Posts: 6,079
Likes: 41
From: 320 CA
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.
04-25-2008 | 08:16 AM
#14
Sit reserve to get lucky
Joined: Mar 2005
Posts: 155
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From: is down range clear?
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. :?
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. :?
04-25-2008 | 08:18 AM
#15
Furlough line holder
Joined: Jan 2007
Posts: 1,845
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From: CRJ2, ATR, CRJ7, E145, 737
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.
04-25-2008 | 08:23 AM
#16
Gets Weekends Off
Joined: Apr 2007
Posts: 3,847
Likes: 10
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.
04-25-2008 | 08:30 AM
#17
Line Holder
Joined: Jan 2006
Posts: 687
Likes: 12
From: Maddog FO
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. :?
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. :?
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.
04-25-2008 | 08:53 AM
#18
Gets Weekends Off
Joined: Mar 2007
Posts: 352
Likes: 0
From: Dreamniner
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).
04-25-2008 | 08:58 AM
#19
Prime Minister/Moderator
Joined: Jan 2006
Posts: 45,129
Likes: 796
From: Engines Turn or People Swim
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.
04-25-2008 | 09:28 AM
#20
Banned
Joined: Jan 2006
Posts: 6,929
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From: A-320
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).
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