ASA will fly for United May 2010
- Thread starter gtpilot
- Start date
Worst they can do is throw it away, which they will.
No, they'll put it in the bathroom and use it as tp. We are in cost-cutting mode.
SpiraMirabilis
Possible Subversive
Wouldn't that send a mixed message considering ASA's recent push to have employees go to the bathroom before coming to work?
Save money and the water bill.
ChasenSFO
hen teaser
If I have to go #2 at work, I usually use a plane thats sitting at a gate not going anywhere. No shoe marks on those toilet lids after the flights come in from Asia and everyone jumps up and squats on them.Wouldn't that send a mixed message considering ASA's recent push to have employees go to the bathroom before coming to work?
Lee D
Well-Known Member
Most SKYW pilots do not think this way guys . . . you know that.
Easy on the flame bait there Pat. You are saying stuff to just to enrage the masses :guns:
robair73
Well-Known Member
We hired this past summer . . . I don't remember that.
meyers9163
Well-Known Member
That's OLD news as well probably
Ha ha ha. Nice
kellwolf
Piece of Trash
So, it would seem the only way to get flying now is to loan the major you're flying for $$$ a la Air Wiscosin and Republic. Guess we're hosed since management flushed our cash by buying auction rate securities......
Would be nice if contracts were awarded based on performance, customer service ratings and cost. Seems now that it's the regionals with the most money to loan that will get the flying. Say goodbye to Comair, Mesaba, or any other regional that might be good but not have a lot of disposable income lying around.
mxflyer
Well-Known Member
It's heading that way.
In regards to DAL:
Cost is the only factor now for awarding anything, ground ops and flight ops.
Performance is used to put companies on the chopping block or threaten do to so.
Customer Service seems to have been forgotten a while ago.
I really hope that all these factors come back into consideration as the ecomony picks up.
pilotlight
Well-Known Member
I am interested to see our 3rd quarter info come out. You are right, the majors don't hand out flying anymore and it goes to those that ca buy it. We dont have the cash that Republic and Skywest do. Hey, maybe Skywest will buy pinnacle and let our managment focus on colgan. That I would actually go for :drool:
kellwolf
Piece of Trash
That might be interesting, but I'm not sure anything would really change around here. They're still running ASA separate from Skywest, and we'd likely get lumped in and merged with ASA. Now, I'd much rather do that and go with their contract than drag out our negotiations for an untold amount of time, but it'd probably be close to a year before we even settled on seniority list integration, much less let the dust settle from the fights that would erupt from it.
Then again, maybe we'd get our pass benefits back.
Trip7
Well-Known Member
http://www.sltrib.com/business/ci_13612014?source=rss
$80M SkyWest loan to UAL could spur growth
By Steven Oberbeck
The Salt Lake Tribune
Updated: 10/21/2009 07:37:00 PM MDT
In an arrangement that should pave the way for its future growth, Utah's SkyWest Inc. has agreed to loan partner United Airlines $80 million and will defer collecting up to $49 million in weekly fees from United over the next 10 years.
St. George-based SkyWest is the parent of SkyWest Airlines, which operates 40 regional jets for its partner under the United Express name.
Brad Rich, SkyWest's chief financial officer, said that under the financing agreement United will extend existing contracts that allow the Utah carrier to operate jets for United Express for a fee that is paid weekly.
It addition, Rich said SkyWest's other airline subsidiary, Atlantic Southeast Airlines, will begin to serve as a United Express carrier in the first quarter of next year. The agreement between United and ASA, which to date has served as a feeder airline for former owner Delta Air Lines, has a five-year term.
"This is an opportunity to utilize the strengths of both SkyWest and United to create value for both of us," Rich said.
Robert McAdoo, a senior research analyst covering the airline industry at Avondale Partners in suburban Kansas City, said SkyWest's loan agreement with United was a "reasonable deal" that will benefit the Utah company.
"This isn't a new kind of transaction," McAdoo said. "Think back to 2005 when Delta needed cash and its told SkyWest it should buy ASA for $400 million, and it [Delta] would help SkyWest with its long-term
growth."
In its own way, the SkyWest-United accord is just a miniature version of that 2005 transaction, he added.
McAdoo pointed out that SkyWest is sitting on around $700 million in idle cash. "They're putting the money out to United for 11 percent, which is a lot better than the 1.5 percent they could get in a money-market fund."
And United's promise to help SkyWest grow its business is particularly valuable, coming at a time when most of the major air carriers are cutting back on flights instead of expanding, McAdoo said.
The SkyWest-United deal is part of a major push by many of the nation's bigger airlines to increase their liquidity in the face of years of industry losses and the continuing recession.
UAL Corp., the parent of United Airlines, on Tuesday reported its third-quarter loss narrowed to $57 million, or 39 cents a share, from $792 million, or $6.22, a year earlier.
UAL benefited from shrinking its capacity to match demand, as traffic fell 5.4 percent in the recession and sales tumbled 20 percent, to $4.4 billion. United pared its workforce, flew fewer planes and burned less fuel.
"It's across-the-board squeezing wherever they can," Philip Baggaley, a Standard & Poor's managing director in New York, said of United's cost reductions. "It's a process that's been under way since they first exited bankruptcy."
Seating capacity on United's main jet operations will be trimmed as much as 7 percent this quarter, bringing 2009's reduction to as much as 10 percent. Capacity will fall in a range of 0.5 percent to 1.5 percent in 2010. Cash at the end of last quarter was $2.8 billion, and financing completed this quarter totals almost $1.3 billion, UAL said.
"Probably the most important thing they've done recently is substantially increase their liquidity," S&P's Baggaley said. After posting a $403 million profit in 2007, UAL reported a loss of $5.35 billion last year. The company left Chapter 11 in February 2006.
Bloomberg News contributed to this story
meyers9163
Well-Known Member
And the point of that article Marcus? Although I probably should not ask as you dare not respond these days.... We already know SKYWEST has a CRAP load of money. And now ASA will benefit because of being tied to Skywest... Sad point is the fact UAL needs this money badly. Much like USAirways did with the RAH loan and AWAC. Thankfully the RAH loan is pretty much gone now with the E190 sale...
side note... I thought you already declared this old news... Guess its not old when you want to talk about it?
side note... I thought you already declared this old news... Guess its not old when you want to talk about it?
SpiraMirabilis
Possible Subversive
Thats how Mesa got exclusive rights to all flying out of PHX -- loan America West a big bag of money!
