United Explores Investing in ExpressJet
09-03-2018, 07:01 AM
#1
Gets Weekends Off
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Joined APC: Jul 2008
Posts: 606
United Explores Investing in ExpressJet
Bloomberg put forth an article at the very end of last year claiming that United was looking to acquire a stake in ExpressJet (likely similar to the 40% ownership they have in CommutAir). Is anyone aware of any further developments or have the talks fizzled?
For years, ExpressJet appeared to be dying on the vine. Its future is still somewhat ominous, however, there have been some interesting developments within the company. ExpressJet had 20x CRJ-200s transferred from SkyWest to cover flying out of ORD. Additionally, last week the XJT MEC announced in an email that United is pushing for a new TA and that they are getting the 175SCs that UAL recently acquired.
United appears to be reinvigorating XJT, however, its intentions are up for speculation. If UAL is in fact in talks with SkyWest, Inc. about placing 175SCs at ExpressJet, why couldn't they have allocated the new 175SCs to SkyWest Airlines who already the type on their certificate, a glut of trained 175 pilots, etc.? Additionally, SkyWest could have kept the CRJ-200s flying out of ORD without laterally transferring them to ExpressJet. Something is up.
It would seem as though SkyWest, Inc. is looking to offload ExpressJet and, perhaps, United is actually interested in acquiring a controlling stake in the XJT. Someone correct me if I'm wrong, but isn't UAL unable to wholly-own a subsidiary airline under scope or another clause? With Scott Kirby at United, it appears they may be aiming to go the wholly-owned route in their future.
For years, ExpressJet appeared to be dying on the vine. Its future is still somewhat ominous, however, there have been some interesting developments within the company. ExpressJet had 20x CRJ-200s transferred from SkyWest to cover flying out of ORD. Additionally, last week the XJT MEC announced in an email that United is pushing for a new TA and that they are getting the 175SCs that UAL recently acquired.
United appears to be reinvigorating XJT, however, its intentions are up for speculation. If UAL is in fact in talks with SkyWest, Inc. about placing 175SCs at ExpressJet, why couldn't they have allocated the new 175SCs to SkyWest Airlines who already the type on their certificate, a glut of trained 175 pilots, etc.? Additionally, SkyWest could have kept the CRJ-200s flying out of ORD without laterally transferring them to ExpressJet. Something is up.
It would seem as though SkyWest, Inc. is looking to offload ExpressJet and, perhaps, United is actually interested in acquiring a controlling stake in the XJT. Someone correct me if I'm wrong, but isn't UAL unable to wholly-own a subsidiary airline under scope or another clause? With Scott Kirby at United, it appears they may be aiming to go the wholly-owned route in their future.
09-03-2018, 12:07 PM
#2
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I’m thinking XJT gets purchased along with CommutAir (only serves UAL) and they become a single “United Express” that can accept 76 Seat aircraft, enjoy priority for the mainline jumpseat over the FFD UAX carriers (FFD contracts slowly draw down to nothing), and participate in a true flow (with flow back language should we encounter hard economic times).
09-03-2018, 12:57 PM
#3
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Originally Posted by Voski
Someone correct me if I'm wrong, but isn't UAL unable to wholly-own a subsidiary airline under scope or another clause?
1-C-1-c The Company or a Company Affiliate may create, acquire, Control, manage, take an Equity interest in, enter into Code Share Agreements with, or sell, lease or transfer aircraft to United Express Carriers that comply with the provisions of Section 1-C-1, without the flight operations of such air carrier being considered Company Flying or the aircraft of such air carrier being considered Company Aircraft.
09-03-2018, 01:41 PM
#5
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Originally Posted by IDIOTPILOT
It's not the pilots' scope that limits it. It's the FAs'.
1 . Except as specifically provided in the Foreign National Letter of Agreement, neither UAL, Inc ., United Airlines, nor a successor, assign, or subsidiary thereof (hereinafter referred to as the “Company”), will, if such entity has a controlling interest, whether acting individually or jointly with any of the above entities, conduct any commercial flight operations of the type historically performed by United Airlines Flight Attendants, unless it performs such work with Flight Attendants on the United Airlines System Seniority List . Such flying shall be performed in accordance with the terms and conditions of the existing agreement or any other applicable agreement or agreements between the Company and the Union .
2 . Without limiting the foregoing, the Company agrees not to establish or purchase an alter-ego airline in whole or in part .
3 . Notwithstanding Paragraph 1 . above, to the extent permitted by law, the Company will recognize the Union as the exclusive bargaining representative for the Flight Attendants on any commuter airline (primary 135 carrier) which it establishes or purchases in whole or in significant part . Upon recognition, the Union and the Company agree to negotiate in a timely fashion a competitive agreement no less favorable than area standard contracts for similar flying operations .
2 . Without limiting the foregoing, the Company agrees not to establish or purchase an alter-ego airline in whole or in part .
3 . Notwithstanding Paragraph 1 . above, to the extent permitted by law, the Company will recognize the Union as the exclusive bargaining representative for the Flight Attendants on any commuter airline (primary 135 carrier) which it establishes or purchases in whole or in significant part . Upon recognition, the Union and the Company agree to negotiate in a timely fashion a competitive agreement no less favorable than area standard contracts for similar flying operations .
09-04-2018, 06:30 AM
#6
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Originally Posted by IAHB756
I’m thinking XJT gets purchased along with CommutAir (only serves UAL) and they become a single “United Express” that can accept 76 Seat aircraft, enjoy priority for the mainline jumpseat over the FFD UAX carriers (FFD contracts slowly draw down to nothing), and participate in a true flow (with flow back language should we encounter hard economic times).
They can call the new carrier CommuteJet.
09-04-2018, 08:41 AM
#10
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Joined APC: Apr 2015
Posts: 491
Originally Posted by Grumble
Merge them, bring them to mainline, staple to the UAL list, call them United Airlines.
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