Pinnacle TA consequences forSkyWest/Expessjet
01-11-2013 | 11:26 PM
#71
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From: Happy
Thanks for your contributions gents. Honestly I could care less what you vote. I would understand it if you vote yes. And I would understand if you vote no. In either case I am just curious as to how the outcome, one way or the other, will effect my company. SkyWest, Inc (Expressjet/ASA). I think you are very naive if you think this is going to catch SkyWest inc by surprise regardless of the outcome. Firm order for 200 airplanes. (100 firm, 100 option) right when our CPA is ending ...
For what it's worth; 2nd year pay on the -700 is $38 at SkyWest. Soft credit so you could easily credit 100 / month. Now, would you want to start over at year 1 bottom of the list anywhere ? Of course not... Which is why I sincerely hope it works out for you gents (and girls).
Stay safe. 303.
For what it's worth; 2nd year pay on the -700 is $38 at SkyWest. Soft credit so you could easily credit 100 / month. Now, would you want to start over at year 1 bottom of the list anywhere ? Of course not... Which is why I sincerely hope it works out for you gents (and girls).
Stay safe. 303.
01-12-2013 | 02:18 AM
#72
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That reasoning is beyond ridiculous. Delta has longterm contracts with SKYW /XJT. They can't threaten a Comair/PNCL fate because of that and the fact they don't own us. Delta owned Comair and basically owns Pinnacle so they can do what they want.
The PNCL TA really only affects XJT/SKYW by reducing the rates paid to Delta if there is another "rate reset" in the long term CPA and we are no longer the second lowest cost.
Delta had no choice but to provide PNCL DIP financing, but they used it to work in their favor. If PNCL liquidated SKYW would have an unprecedented amount of leverage in DCI as far as rates.
The PNCL TA really only affects XJT/SKYW by reducing the rates paid to Delta if there is another "rate reset" in the long term CPA and we are no longer the second lowest cost.
Delta had no choice but to provide PNCL DIP financing, but they used it to work in their favor. If PNCL liquidated SKYW would have an unprecedented amount of leverage in DCI as far as rates.
01-12-2013 | 04:50 AM
#73
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Originally Posted by SmitteyB:1328629
That reasoning is beyond ridiculous. Delta has longterm contracts with SKYW /XJT. They can't threaten a Comair/PNCL fate because of that and the fact they don't own us. Delta owned Comair and basically owns Pinnacle so they can do what they want.
The PNCL TA really only affects XJT/SKYW by reducing the rates paid to Delta if there is another "rate reset" in the long term CPA and we are no longer the second lowest cost.
Delta had no choice but to provide PNCL DIP financing, but they used it to work in their favor. If PNCL liquidated SKYW would have an unprecedented amount of leverage in DCI as far as rates.
The PNCL TA really only affects XJT/SKYW by reducing the rates paid to Delta if there is another "rate reset" in the long term CPA and we are no longer the second lowest cost.
Delta had no choice but to provide PNCL DIP financing, but they used it to work in their favor. If PNCL liquidated SKYW would have an unprecedented amount of leverage in DCI as far as rates.
01-12-2013 | 05:14 AM
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From: French-Canadian
And yes I do understand that there AMR was in a whole different situation but I am just making the point that money in the bank is not as big as you are making it seem.
01-12-2013 | 06:36 AM
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From: French-Canadian
Pinnacle had 3 sources of income (or lack there of) before filing BK. SKW is in a much better situation that Pinnacle and the other regionals but it is a safe bet to assume that Delta will look to get better cost out of SKW and in return management will look at labor.
01-12-2013 | 07:32 AM
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You are correct, but those were money bleeding contracts that 9E needed to get out of ASAP. Once Delta began providing financing, it was game over. Skyw Inc. has been smart about its bidding over the years and isn't as exposed to the same volatility as 9E.
I completely agree that we are next on Delta's hit list, but they don't have a gun to our heads like 9E. A rate reset might be an option, but simply holding out on payments and forcing bankruptcy isn't a likely scenario.
Whether or not our company wants to play hardball with two stubborn negotiating committees (LXJT/LASA) and cry poor due to creative accounting is a different story. There is no safe regional, but there are certainly those that will be able to ride this out better than others.
I completely agree that we are next on Delta's hit list, but they don't have a gun to our heads like 9E. A rate reset might be an option, but simply holding out on payments and forcing bankruptcy isn't a likely scenario.
Whether or not our company wants to play hardball with two stubborn negotiating committees (LXJT/LASA) and cry poor due to creative accounting is a different story. There is no safe regional, but there are certainly those that will be able to ride this out better than others.
01-12-2013 | 07:59 AM
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From: French-Canadian
You are correct, but those were money bleeding contracts that 9E needed to get out of ASAP. Once Delta began providing financing, it was game over. Skyw Inc. has been smart about its bidding over the years and isn't as exposed to the same volatility as 9E.
I completely agree that we are next on Delta's hit list, but they don't have a gun to our heads like 9E. A rate reset might be an option, but simply holding out on payments and forcing bankruptcy isn't a likely scenario.
Whether or not our company wants to play hardball with two stubborn negotiating committees (LXJT/LASA) and cry poor due to creative accounting is a different story. There is no safe regional, but there are certainly those that will be able to ride this out better than others.
I completely agree that we are next on Delta's hit list, but they don't have a gun to our heads like 9E. A rate reset might be an option, but simply holding out on payments and forcing bankruptcy isn't a likely scenario.
Whether or not our company wants to play hardball with two stubborn negotiating committees (LXJT/LASA) and cry poor due to creative accounting is a different story. There is no safe regional, but there are certainly those that will be able to ride this out better than others.
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