SkyWest becoming a US Airways partner?

[surreal1221]

So, ASA is losing at least 6 CRJ200s from the Delta Connection portfolio.

For the full exhibit: http://www.sec.gov/Archives/edgar/data/793733/000110465911059798/a11-29024_1ex99d1.htm

From this mornings financial call:

St. George, Utah—SkyWest, Inc. (“SkyWest”) (NASDAQ: SKYW) today reported operating revenues of $955.4 million for the quarter ended September 30, 2011, compared to $686.9 million for the same period last year. SkyWest also reported net income of $0.1 million, or slightly more than $0.00 per diluted share, for the quarter ended September 30, 2011, compared to $25.5 million of net income, or $0.45 per diluted share, for the same period last year.



During the quarter ended September 30, 2011, SkyWest experienced a reduction of approximately $41.4 million in its pretax earnings compared to the same period last year. Following are the significant items that contributed to the pretax reduction:



· Incurred $10.7 million in additional United CRJ200 engine overhaul costs

· Incurred $9.7 million in additional crew related costs due to additional staffing needs

· Incurred $6.7 million in additional maintenance costs related to aircraft paint, parts and airframe heavy check costs

· Incurred $7.0 million of pretax loss from ExpressJet operations (acquired in November 2010)

· Recorded $5.7 million of downward adjustment to the ExpressJet acquisition accounting in connection with the preparation of the 2010 tax return

· Recorded an additional $4.8 million from SkyWest’s share of losses from minority investments in Trip Linhas Aereas (“TRIP”) and Mekong Aviation Joint Stock Company (“Air Mekong”)

· Recognized decreased revenue of $5.3 million as a result of application of provisions under our Delta Connection Agreements

· Generated $6.0 million increase in pretax results from pro-rate operations

and

· Added two new CRJ700 regional jets and three used CRJ200 regional jets and removed two ERJ145 regional jets and one CRJ200 regional jet from service

· Repurchased 1,218,537 shares of outstanding common stock at a cost of $15.9 million

· Total fleet consisted of 727 total aircraft compared to 466 aircraft for the same period last year, primarily as a result of the acquisition of ExpressJet

· Previously announced LOI arrangement with US Airways for 15 CRJ200 regional jets, currently expected to begin operations in December 2011

Guess this is what they are talking about...first I had heard of this agreement...

http://www.skywest.com/media/Press Releases/08_04_11_SkyWest_and_US_Airways_LOI_ReleaseFINAL.pdf

http://www.sltrib.com/sltrib/money/52327203-79/skywest-airways-airlines-alaska.html.csp

How many CRJ200s does SkyWest Airlines have sitting around? Take the six from ASA (haha...), the three they just purchased...and I suppose they can have enough...

It'll be an interesting internal "scope" issue should the 6 CRJ-200s we are taking out of the DCI system end up flying elsewhere, without ASA pilots.

 

[Kingairer]

I intially heard that the CRjs that were supporting the MKE Airtran operation were going to make up the bulk of the USAir agreement.

 

[surreal1221]

I intially heard that the CRjs that were supporting the MKE Airtran operation were going to make up the bulk of the USAir agreement.

Ah ... always forget about that little experiment.

 

[JordanD]

Anybody else find it funny every other airline seems to be trying to reduce the 50 seat flying and Airways seems to just want more of it?
"Hey, let's replace all the Mesa -200 flying with.... more -200 flying!"

 

[skyw82]

There are tons of used crjs sitting around in tus. I know skywest has purchased about 8 of those in the last year. They bought 5 back in jan to try and paint some of the united planes but ended up using them when united wanted more block hours, now that united doesnt need them anymore they are using them with us air along with the ex airtran planes and the 4 delta crjs we swapped for the 8 700s that we got this year. That is where the 15 are coming from.

Another thing they do is lease our newer crjs to foreigh companies and then use that money to lease 2 older crjs from tus.

 

[PropDriver]

Apparently Skywest is losing money on this deal with Airways. But they're losing less money than they would be if they parked the planes. And they undercut Mesa for the deal.

 

[GypsyPilot]

Apparently Skywest is losing money on this deal with Airways. But they're losing less money than they would be if they parked the planes. And they undercut Mesa for the deal.

I've only heard this argument from disgruntled Mesa employees. Do you have any fact to back up your statement?

 

[BobDDuck]

I've only heard this argument from disgruntled Mesa employees. Do you have any fact to back up your statement?

I can't dig it up right now, but in one of the recent town halls, Doug Parker stated that Skywest had agreed to do the flying for less than Mesa was doing it currently and that was the reason they added another Express carrier into the mix.

 

[skyw82]

I can't dig it up right now, but in one of the recent town halls, Doug Parker stated that Skywest had agreed to do the flying for less than Mesa was doing it currently and that was the reason they added another Express carrier into the mix.

True but that doesnt mean they are losing money on it.

 

[Kingairer]

An airline with nothing to lose because theyve got handfulls of planes sitting around is the most dangerous thing in regional aviation.

 

[GypsyPilot]

I can't dig it up right now, but in one of the recent town halls, Doug Parker stated that Skywest had agreed to do the flying for less than Mesa was doing it currently and that was the reason they added another Express carrier into the mix.

Which is exactly what I said.

 

[mrivc211]

Unlike regional pilots, SGU mgmt doesn't do anything for free. I guess you guys haven't figured that out yet.

 

[GaTechKid]

I heard SkyWest is so desperate for work that they are actually paying Airways a small fee for every departure.

 

[robair73]

Oh yeah, well I heard skywest is just doing it so that they can once and for all put mesa out of business and then get their planes and flying for USAir.

 

[mrivc211]

All your base are belong to us

 

[Screaming_Emu]

Unlike regional pilots, SGU mgmt doesn't do anything for free. I guess you guys haven't figured that out yet.

Did you listen to the earnings call? My favorite part was the answer to "what is your plan to realize more of the performance incentives."

"Well...we need to increase our performance."

Another classic was "we have a hard time showing our employees how great full we are for all the hard work they do." Followed 20 mins later by "unfortunately we can't furlough seasonally during slow periods because of the training costs associated and the time it would take."

I know you are on the favorite child side of the house, but if you have confidence in these guys, you need to watch your kool aid intake.

 

[surreal1221]

Did you listen to the earnings call? My favorite part was the answer to "what is your plan to realize more of the performance incentives."

"Well...we need to increase our performance."

Another classic was "we have a hard time showing our employees how great full we are for all the hard work they do." Followed 20 mins later by "unfortunately we can't furlough seasonally during slow periods because of the training costs associated and the time it would take."

I know you are on the favorite child side of the house, but if you have confidence in these guys, you need to watch your kool aid intake.

I think most guys are getting tired of being treated like temporary help because these guys REALLY can not staff the ASA operation for more than 4 months out. This sentiment may not be shared by the comfortable career folks, but everyone's QOL has taken a negative hit due to their failures at leading.

 

[Autothrust Blue]

All your base are belong to us

And planes, and pilots.

Actually, you know, what? We'll just take the planes. Bromance is over.

 

[ASpilot2be]

And planes, and pilots.

Actually, you know, what? We'll just take the planes. Bromance is over.

Holmes.

 

[Autothrust Blue]

Holmes.

Yeah, that.