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SkyWest CFO: May Seek Merger With Expressjet  
User currently offlineLAXintl From United States of America, joined May 2000, 26028 posts, RR: 50
Posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7729 times:

On the heals of stockholder demands for XJT to discontinue branded flying, and possibly consider M&A,
Expresjet Urged To Immediately Abandon Branded Ops (by LAXintl Jan 24 2008 in Civil Aviation)
Skywest confirms Expressjet could be an acquisition target

Quote:
SkyWest may seek merger with rival airline ExpressJet

Thursday, Jan. 24, 2008

SkyWest Inc., cited by an ExpressJet Holdings Inc. investor as a possible merger partner for the rival regional airline, is considering acquisitions as a way to grow, according to SkyWest's chief financial officer Brad Rich.

As SkyWest seeks to expand, new contract opportunities from larger carriers have "kind of slowed down of late," Rich said in an interview Wednesday. "So one alternative is to look for ways to grow through acquisitions." ExpressJet "would be just one opportunity we see," Rich said, declining to name other potential targets for the St. George-based airline.

http://deseretnews.com/article/1,5143,695246656,00.html


From the desert to the sea, to all of Southern California
56 replies: All unread, showing first 25:
 
User currently offlineRJFlyer0891 From United States of America, joined Jun 2007, 86 posts, RR: 0
Reply 1, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7724 times:

First ill-concieved hype about mainline carriers mergining, now on to the regionals......

User currently offlineMOBflyer From United States of America, joined Sep 2007, 1209 posts, RR: 3
Reply 2, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7660 times:

Skywest absolutely ruined ASA. They don't need to mess with ExpressJet's good service or their improving experiment with branded flying! Things take time - Wall Street has never understood that.

[Edited 2008-01-24 15:40:09]

User currently offlineF16arm From United States of America, joined Aug 2005, 90 posts, RR: 0
Reply 3, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7605 times:

Can anyone else hear a sucking noise coming from utah?  biting  MOBflyer is 100% right about ASA. Even being another airline employee I didn't mind riding ASA, BEFORE the Another Skywest Acquisition happened!


One weekend a month and two (cough, cough 45, 90, 120 days) weeks a year supports my habbit
User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 4, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7567 times:



Quoting MOBflyer (Reply 2):
Skywest absolutely ruined ASA

ASA was a bottom-feeding piece-of-crap airline with a pathetic on-time and baggage-loss record, hard to make that any worse  Yeah sure .


User currently offlineUnitedTristar From , joined Dec 1969, posts, RR:
Reply 5, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7566 times:



Quoting MOBflyer (Reply 2):
Skywest absolutely ruined ASA

pardon my ignorance...but how has ASA been ruined? (not being sarcastic, I dont know)

I always have great experiences with OO flights so I assumed it would be about the same on ASA?

-m

 airplane 


User currently offlineDrewwright From United States of America, joined May 2001, 621 posts, RR: 1
Reply 6, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7567 times:

Actually, ASA management ruined the company before it was purchased. SkyWest, though, did nothing to improve the situation. An acquisition of XJT, however, would surely ruin that company.

User currently offlineA380fo From United States of America, joined Mar 2007, 322 posts, RR: 0
Reply 7, posted (6 years 10 months 1 week 2 days 21 hours ago) and read 7534 times:

no offense but ASA sucks. If OO obtained XJET, i think it would be great.

User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 8, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7533 times:

XJ will ruin itself. The branded operation has been empirically proven to fail, and if I were an investor I'd be throwing a fit as well.

They need to fix the relationship with CO and continue to offer their high quality service as Continental ExpressJet.

NS


User currently offlinePhelpsie87 From United States of America, joined Apr 2006, 498 posts, RR: 2
Reply 9, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7533 times:



Quoting MOBflyer (Reply 2):
They don't need to mess with ExpressJet's good service and improving experiment with branded flying!

Are you trying to say that SkyWest has horrible service?

At least something is possible. This doesn't mean its going to happen, and even if it did, there is plenty of time to see if fall through.

BTW, ASA still operates under its on FAA Cert. SkyWest Inc. owns them, but the staff and Executives are all ASA. So, if you guys have a problem with ASA's service as of late, blame ASA and not SkyWest Inc.


User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 10, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7523 times:



Quoting Phelpsie87 (Reply 9):
BTW, ASA still operates under its on FAA Cert. SkyWest Inc. owns them, but the staff and Executives are all ASA. So, if you guys have a problem with ASA's service as of late, blame ASA and not SkyWest Inc.

That's a nonstarter. Skywest owns them. Skywest is in charge.

US and HP operated separate certs for 2 years, but there was no way to argue that Doug Parker wasn't in charge.

NS


User currently offlineATWZW170 From United States of America, joined Oct 2004, 904 posts, RR: 3
Reply 11, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7512 times:

The sad part is that they have money and investors want to see return. I'm glad that Air Wisconsin is privately held - we don't have to answer to any investor who is jumping to conclusions.

The post does raise a good question - what is going to happen to the regional airlines. There are too many as it is - combine the large carriers and there is not a excess of 50 seaters....so what happens?



Success is getting what you want...happiness is liking what you get
User currently offlineTornado82 From , joined Dec 1969, posts, RR:
Reply 12, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7514 times:

Why would Skywest want a carrier who is contractually stuck flying only high cost 50 (or 37) seaters when the only hopes for continued growth in the regional industry is the 70 seat market and turboprops (yes turboprops)? Not to mention they'd be leaving their all CRJ product line (for jets, I know they have EMB props).

User currently offlinePhelpsie87 From United States of America, joined Apr 2006, 498 posts, RR: 2
Reply 13, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7449 times:



Quoting Gigneil (Reply 10):
That's a nonstarter. Skywest owns them. Skywest is in charge.

I could see your point, but blaming the Inc. is like blaming NWA Inc. for the service on Mesaba and Compass. Both regionals have their own policies and procedures. So, yes it sounds easy to blame the big daddy, but the issues may be more centralized on the operating airline itself.

Do I agree SkyWest Inc. has not done much work on ASA, yes. But do I blame them for lack of customer service on board and else where no. ASA does their own hiring and training. Perhaps if they took a bigger role in operations at EV, thing would be different, and I hope this takes place sooner then later.

Until then, no need to get in a heated debate. This is simply speculation (like we never have that around here right) and we are a long way off from anything major.


User currently offlineNW747-400 From United States of America, joined Jun 1999, 504 posts, RR: 0
Reply 14, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7432 times:

ASA is much better now that SkyWest has taken over, and even better now that the old VP of flight ops at OO is now the president of ASA. So many changes have been made for the better already.

User currently offlineGoldenshield From United States of America, joined Jan 2001, 6101 posts, RR: 14
Reply 15, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7402 times:



Quoting Gigneil (Reply 10):
That's a nonstarter. Skywest owns them. Skywest is in charge.

US and HP operated separate certs for 2 years, but there was no way to argue that Doug Parker wasn't in charge.

You are talking about two seperate situations. HP and US merged. OO and ASA did not.



Two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun.
User currently offlineFxra From United States of America, joined Jul 1999, 708 posts, RR: 2
Reply 16, posted (6 years 10 months 1 week 2 days 20 hours ago) and read 7385 times:

Something about this whole article seems like its a stretch. For example...

Quoting LAXintl (Thread starter):
SkyWest Inc., cited by an ExpressJet Holdings Inc. investor as a possible merger partner for the rival regional airline

Is this the same investor thats pushing XJT to stop their branded service?

Quoting LAXintl (Thread starter):
"So one alternative is to look for ways to grow through acquisitions." ExpressJet "would be just one opportunity we see," Rich said

I like how the quoted statement does not include the ExpressJet name. And if it were, its "just one oppurtunity".

IMHO this is shaky journalism, and some investors trying to make a short term gain off a merger (or speculation of a merger). WHile public corproations do have repsonisbility to make money for the shareholders, they don't have the responsibility to do it in 3 months or less. Wall Street doesn't cater to long term health of a company, they want instant money from their investments. And pressuring companies to produce short term gains at the expense of a long term health will have horrible results for the economy down the road..

But what do I know, I'm just a dispatcher.



Visualize Whirled Peas
User currently offlineAcjflyer From United States of America, joined Aug 2005, 427 posts, RR: 6
Reply 17, posted (6 years 10 months 1 week 2 days 18 hours ago) and read 7232 times:



Quoting Goldenshield (Reply 15):
You are talking about two seperate situations. HP and US merged. OO and ASA did not.

Excellent point. I myself have worked for HP?US during the merger process and OO during the purchase of ASA. Skywest inc. does not handle day to day operations at ASA. They are simply a holdings firm for ASA and as such cannot be blamed for the inefficiences of ASA's operations.

To say otherwise would be saying that investors at airlines are to blame for the inefficiences of the airlines operations. That's simply not the case.


User currently offlineBreaker1011 From United States of America, joined Nov 2007, 938 posts, RR: 2
Reply 18, posted (6 years 10 months 1 week 2 days 18 hours ago) and read 7171 times:



Quoting Acjflyer (Reply 17):
Excellent point. I myself have worked for HP?US during the merger process and OO during the purchase of ASA. Skywest inc. does not handle day to day operations at ASA. They are simply a holdings firm for ASA and as such cannot be blamed for the inefficiences of ASA's operations.

To say otherwise would be saying that investors at airlines are to blame for the inefficiences of the airlines operations. That's simply not the case.

Curious - if you felt American Airlines was an outrageously terrible, poorly run operation, would you not hold it against AMR, Inc. as the holding company? In any family, someone's got to be the parent and take responsibility, right?



Life's tough. It's even tougher if you're stupid. J. Wayne
User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 19, posted (6 years 10 months 1 week 2 days 18 hours ago) and read 7150 times:



Quoting Acjflyer (Reply 17):
To say otherwise would be saying that investors at airlines are to blame for the inefficiences of the airlines operations. That's simply not the case.

It most certainly is. The investors appoint the board of directors, and the directors are ultimately responsible for the performance of the airline.

If it is not performing correctly, the investors will act by removing their director and appoint a new one.

I'm sorry, but I don't agree with any of it. Skywest is not only responsible, but they are directly responsible for ASA's performance.

NS


User currently offlineCWAFlyer From United States of America, joined Mar 2005, 669 posts, RR: 1
Reply 20, posted (6 years 10 months 1 week 2 days 16 hours ago) and read 6990 times:



Quoting Breaker1011 (Reply 18):
Curious - if you felt American Airlines was an outrageously terrible, poorly run operation, would you not hold it against AMR, Inc. as the holding company? In any family, someone's got to be the parent and take responsibility, right?

AMR Corp has been the parent company of American Airlines for years (since 1982 to be exact). SkyWest Inc. has owned ASA for only two years and has been tasked with cleaning up a giant mess that Delta couldn't/wouldn't clean up in the 8 years they owned them. ASA's problems with reliability and customer service go back even further than that and are two of the biggest reason why Delta bought them in 1999. Strapped for cash while in BK, I personally think this was a shotgun marriage that Delta forced on SkyWest Airlines in order to garner more Delta Connection flying.

SkyWest Inc. inherited a pilot contract that had expired and had been in negotiations for over 3 years and also inherited a poorly run operation. Fixing problems this monumental don't happen overnight. A new president/COO are on property as is a farily new VP of Maint. Yes, SkyWest Inc is most certainly responsible, but they are doing things to correct the disaster that Delta left. Why don't you check back in about 2-3 years and then tell me that it's as bad as it was when purchased.

Quoting MOBflyer (Reply 2):
Skywest absolutely ruined

How? Did Delta not do a pretty fair job of ruining ASA? Or rather not doing much to fix things over an 8 year period?


User currently offlineBreaker1011 From United States of America, joined Nov 2007, 938 posts, RR: 2
Reply 21, posted (6 years 10 months 1 week 2 days 16 hours ago) and read 6949 times:



Quoting CWAFlyer (Reply 20):

Hey - I agree with you - ASA is today what it is based on it's own doings (or DL's), not OO. My response was one purely addressing the "reponsibility" question above it, wherein someone claimed that as a holding company, OO (or AMR per se) is NOT responsible for performance. They are. Doesn't mean they made the mess though.



Life's tough. It's even tougher if you're stupid. J. Wayne
User currently offlineGigneil From United States of America, joined Nov 2002, 16347 posts, RR: 85
Reply 22, posted (6 years 10 months 1 week 2 days 16 hours ago) and read 6909 times:

They absolutely didn't create the problem. But they are directly responsible for its solution.

NS


User currently offlineSkyexRamper From , joined Dec 1969, posts, RR:
Reply 23, posted (6 years 10 months 1 week 2 days 16 hours ago) and read 6888 times:

World's Largest ERJ Operator + World's Largest CRJ Operator = yeah right!


I'd like to see the DOJ approve that and not have every other regional carrier screaming foul play.


User currently offlineTOLtommy From United States of America, joined Dec 2003, 3304 posts, RR: 5
Reply 24, posted (6 years 10 months 1 week 2 days 16 hours ago) and read 6862 times:



Quoting Gigneil (Reply 8):
XJ will ruin itself.

XJ = Mesaba. You sure you don't mean XJET?


25 JayDub : Bingo... SkyWest had to work through the messes and pilot contract negotiations first...and now are finally starting to get their own people in over
26 DeltaL1011man : if this happened what would happen in LAX with UAX and DLC?(right now OO can't fly for DL in LAX(well LAX-LC only)) so would EXJET stay like EV or wou
27 OORamper : Wow this is news to me. No one at work has talked about this, I mean no one. It's not on our employee website. Can't find anyone talking about this. I
28 GoBoeing : You throw this into the paragraph as if it actually has relevance. It does not; there are young looking pilots at all of the regional airlines and pl
29 OORamper : Well It would have been nice to tell us. We just saw it pulling in and so we had to delay some of our flights because we didn't have a gate. Cause th
30 DurangoMac : OO no longer has the restriction from UA, this happened several months ago when the new aircraft deal happened. Brad Rich and others have made commen
31 KAUSpilot : Good thing Delta controls Delta connection ops at SLC, not Skywest. Too bad for you. I hope expressjet opens up a base in SLC and kicks Skywest to th
32 OORamper : Um no they don't...We have our own operation people here.
33 KAUSpilot : I'm sure you do, but if delta so chooses they can replace all of your positions in SLC with personell from another regional partner. Welcome to the r
34 MOBflyer : Yes. They are one in the same. My statement regarding OO 'ruining' EV was based on an article I cannot locate regarding ASA's service at MGM.
35 Goldenshield : All in all, not likely. Especially with a nice, long binding contract in force. DL operates B-E ramp control and their own operations, and the gate a
36 Bahadir : Soooo, Jerry will buy his second regional in two years and he will make employees suffer with lower pay every year. His latests proposal was pathetic
37 JayDub : I believe DL controls the ramp at the B gates, which is where OORamper's complaint about ExpressJet occupying gates without the rampers knowing what
38 JayDub : Last I checked this was a business... The pilot group is in negotiation for a new payscale right now. However, money isn't everything, ya know, and a
39 SkyexRamper : Yeah and SkyWest needs to leave the YX side of MKE. We'll trade you guys your Expressjet for our SkyWest.
40 SlcDeltaRUmd11 : skywest has amazing management that has done wonders with its own airline. Years of total profitability. I just hope they dont loose focus and keep th
41 Access-Air : Oooh now thats a plan...Would rather see Midwest fly a 1x2 seater Regional Jet than the squishy CanukBarbieJet...As well, Skywest should concentrate
42 Mav75 : The recording is also used on COEX flights. Make up your mind, dude. Should we or should we not leave SLC? And by the way, we don't call the shots th
43 FLY2TUS : Just started here! Don't let OO ruin us now!
44 Goldenshield : I think that should be "Republic Airlines Buy Every Regional" disease, since they have three certificates not originating from themselves.
45 SkyexRamper : I sure as heck would! I'd love for Expressjet to be our regional carrier as would many of our soon to be former pilots. Our passengers never complain
46 GoBoeing : I understand that, and I understand that SkyWest flight attendants memorize it and read it. Now that I have said that, I completely forgot that what
47 DurangoMac : And this is different than what most of the OO CRJ-200 and EMB-120's how. On flights where there is only one FA, OO FA's do the speech and at the end
48 GoBoeing : I suppose they can do that, then. I didn't realize they could simply ask the passengers if they need to be shown how to use the equipment. As far as
49 SkyexRamper : Stop fighting over spoken vs. pre-recorded. Pre-recorded is smarter because it allows the free use of the FA's hands and it is also a better legal bet
50 Post contains images Goldenshield : If that were the case, then I'm sure there would be X - 1 passengers on said flight who would vouch for the contrary. Also, the briefings are done on
51 Post contains images EA CO AS : XJT's branded flying is a failure in the making (one of their major shareholders has accused the BOD of destroying over $300M in shareholder value si
52 N53614 : SkyWest is good, ExpressJet is good...I would prefer that they don't merge but hell, my opinion doesn't matter...
53 SpencerII : I guess if it comes down to it, others carriers would probably jump into the bidding for ExpressJet as well. What other carriers would be interested?
54 FlyASAGuy2005 : Don't blame ASA, blame Delta... Maybe Republic?
55 ThePinnacleKid : How about XJet buying themselves back??? Go private and not mess with investors wanting quick returns on an industry they know little about?
56 CWAFlyer : How do you explain ALPA represted Mesa, Mesaba, and Pinnacle all paying less than SkyWest? Or Eagle paying a dollar more an hour for an 18 year -700
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