Would Skywest Sell ExpressJet?
#1
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Would Skywest Sell ExpressJet?
I believe that ExpressJet, as a restructured entity, could be viable as a 100% pro-rate carrier. The reason that most 50 seat contracts are now loss making is that the majors believe that they are doing the regional carriers a favor by extending their contracts so that they do not have any tail risks or overstaffing. However, today's pilot crunch is going to break this model. There is a possibility that a profitable 50 seat contract may never be signed again.
By flying pro-rate, ExpressJet would be able to share directly in the success of failure of the route. They would also be able to choose where they fly. Without it, the chance that ExpressJet would be profitable by 2015 is almost zero.
By flying pro-rate, ExpressJet would be able to share directly in the success of failure of the route. They would also be able to choose where they fly. Without it, the chance that ExpressJet would be profitable by 2015 is almost zero.
#2
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Posts: 776
I believe that ExpressJet, as a restructured entity, could be viable as a 100% pro-rate carrier. The reason that most 50 seat contracts are now loss making is that the majors believe that they are doing the regional carriers a favor by extending their contracts so that they do not have any tail risks or overstaffing. However, today's pilot crunch is going to break this model. There is a possibility that a profitable 50 seat contract may never be signed again.
By flying pro-rate, ExpressJet would be able to share directly in the success of failure of the route. They would also be able to choose where they fly. Without it, the chance that ExpressJet would be profitable by 2015 is almost zero.
By flying pro-rate, ExpressJet would be able to share directly in the success of failure of the route. They would also be able to choose where they fly. Without it, the chance that ExpressJet would be profitable by 2015 is almost zero.
All of Colgan SAAB flying was pro-rate. It was a perennial money-losing operation. What makes you think they could make it work?
#3
Sell to whom though? They already are owned by the best regional holding company in slywest and united or delta won't buy them unless they file chapter 11 first and come out only flying for united or delta. That is exactly what happened to pinnacle. We had a good contract that we fought hard to get. Delta and united said no and delta took us and transformed us into endeavor for their future needs. United is the only legacy without a "go to regional" for the future so maybe the same thing happens to express jet. Either way good luck
Last edited by PinnacleFO; 03-14-2014 at 12:42 PM.
#4
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Will not happen.. Delta will not buy us back due to integration with XJT side. Plus, we left sour taste in their mouth with spikey hair, backpack toting generation. Also, too expensive of risk for other regionals to buy. Next..
#6
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#9
THIS ^^^^. Actually it was to gain a toehold with Continental and keep Republic from conquering the world, and then the United merger went and screwed it all up. ExpressJet lost insane amounts of money trying to go it alone pro-rate the first time, why on Earth would it work now?? (Disagree? Then explain why the Delta LAX flying was being done at cost just to keep the airframes moving. If pro-rate was feasible across the board then ExpressJet could have painted the rest of their planes like the AquaFresh tubes and given Continental the middle finger.)
#10
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Originally Posted by CRM114
Your premise, like your grammar, is flawed.
Originally Posted by SmitteyB
Its not going to happen, too much risk.
All of Colgan SAAB flying was pro-rate. It was a perennial money-losing operation. What makes you think they could make it work?
All of Colgan SAAB flying was pro-rate. It was a perennial money-losing operation. What makes you think they could make it work?
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