What is SKYW thinking???
 

ExpressJet Special Committee Rejects SkyWest's Unsolicited Proposal and Commences Review of Strategic and Operational Alternatives
Friday April 25, 9:19 am ET


HOUSTON, April 25 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT - News) today announced that a Special Committee composed of independent outside members of its Board of Directors has unanimously rejected a proposal from SkyWest, Inc. (Nasdaq: SKYW - News) to acquire the Company for $3.50 per share in cash.
The Special Committee, which was formed to evaluate the SkyWest proposal, has commenced a full review of strategic and operational alternatives available to ExpressJet. The strategic review will include, among other options, immediately engaging in discussions with SkyWest and other potentially interested parties to evaluate a merger at a higher price, as well as entering into discussions with Continental Airlines, Inc. regarding a new capacity purchase agreement.


Seems everyone is in agreement (on APC anyway) that the future of crj/erj less than 100 seats is in some southwestern graveyard.... why would OO have a desire to purchase MORE???? OO already parked a "few" crj200's. Horizon is ditching all their crj700's and going all Q400 TP... What do Jerry and co have in mind?

There will always be a 50-seat market some where. You wouldn't stick a E170 on a route that only can sell 50 seats because it still costs more to operate than the 145. XJT's XR's are pretty fuel efficient 50-seaters compared to other 50-seaters out there.

how much do you guys burn a side on the xr?

Cruise .80 or 460 TAS at FL370 with 1250 pph/side.

Plus you got to factor in the cost of the airplane. Since the E170 is newer, I'm assuming that costs more as well. And hopefully the crews are paid better on those too. This all adds up to a overall greater total cost to operate a flight. So the E170 would definitely need to have over 50 seats filled to make more over a 145.

the XR is is one of the only true 50 seaters that can carry 50 people, and the only reason SKywest is going through with this, is I am sure there is some serious pressure being put on them by CAL for whatever reason.................

We have 100 XR's with options for 75 more.

Plus we have about 40 on Branded and Delta side that CAL lost when they thought they were going to pull them and give them to RAH. CAL really wanted those planes.

Possibly a similar scenario to ASA. Expressjet is expanding their SLC operation, and Skywest likes having the monopoly on the Delta Connection market there. Just a theory.

If consolidation is needed in the 737/MD market, it is needed in the short range (crj/erj) market too.

I wont try to re-hash the economics again, but one easy reason (besides oil) to ditch routes <500 miles would be an overburdened atc system and congressional scrutiny of congestion at ORD/JFK/IAD etc.

People seem focused on economies of scale in the 73/75/76 market but what about the crj/erj market too? Maybe there is room for just a few (4-6) feeders. Less traffic, fuller planes, only profitable routes.

Can't forget that those feeds fill the international flights. Cut those and you cut into your profits. Feeds do make money for mainline. Just because the ticket is $50-$100 doesn't mean someone just didn't pay $1000+ for a international ticket.

Right on, why do you think Continental is in such a good position compared to the other legacies? EWR - people are either flying into the largest city in the country or connecting to one of their many international destinations out of there
IAH - mid-continent hub, great for small cities feeding into IAH and continuing on to pretty much anywhere in the US and Mexico
I wish I could give figures, but I can only speculate: I think CAL makes tons of money off of their RJ flights to and from their feeder cities.