United to Buy ExpressJet?

[milleR]

Sooooooooo, how can UAL buy XJT when it’s a subsidiary? I guess what I’m wondering is how would that affect the Skywest share holders.

https://www.investopedia.com/terms/s/spinoff.asp

 

[bbmikej]

Sooooooooo, how can UAL buy XJT when it’s a subsidiary? I guess what I’m wondering is how would that affect the Skywest share holders.

XJT and SKW have different operating certificates so it shouldn't be too much of a pain on that end. As far as stocks go, you should see them go up a little as they are getting rid of an "unprofitable" company. After that they will probably even out or go down. I have a hunch that SKW has been shifting fixed costs around to make the financials on that side look better for investors. For example, the article says there was a $118 mil loss in 2014 followed by a $34.2 mil loss in 2015. So it's getting less unprofitable right? Well 2016 says there was a $300 mil loss due to "special items". I just don't buy it.

 

[🦈💜]

... while completely ignoring the poster who claims to have voted yes on a bad deal in a strategic plan to rile up the no voters...

I can see how you read it like that, but that’s not what I said. It’s also not what I did.

-Fox

 

[JordanD]

Hate you?! No way. I'm not on board that attacking the yes/no voters because I disagree. Seems as though that's all I see on our FB page.

Ditto.
@Acrofox , I'd buy you a beer any day of the week. That said, I don't feel at all bad for the ribbing that the yes voters are getting, which you have to even admit is mostly good natured even on the forums/facebook pages. I've never seen it turn into personal attacks. But when it comes down to a difference in pay over the course of a year I could have made picking up two min credit days, while my insurance premiums go up 15% next month, as well as inflation being 3%.... It's kind of hard to bite my tongue on it.

Also side note, best of luck with dealing with the Federales. There's been at least one pretty well publicized story about a captain that's gone through the same thing, not sure if you've spoken with her.

 

[🦈💜]

Ditto.
@Acrofox , I'd buy you a beer any day of the week. That said, I don't feel at all bad for the ribbing that the yes voters are getting, which you have to even admit is mostly good natured even on the forums/facebook pages. I've never seen it turn into personal attacks.

I've definitely seen a harder edge to it on a few occasions.

But when it comes down to a difference in pay over the course of a year I could have made picking up two min credit days, while my insurance premiums go up 15% next month, as well as inflation being 3%.... It's kind of hard to bite my tongue on it.

Of course. Of course, you realize that you wouldn't have made -more- at this point had we voted 'no,' right? Now, if we don't see some significant progress within the next two years, and pilot hiring is still strong, then I was wrong and you are welcome to say so.

Nobody has a crystal ball, and nobody can say with certainty how things are going to go. And my perspective, with good seniority on the west coast in the E175, will probably be different than someone on the CRJ. All any of us can do is take the facts at hand, listen to what everyone has to say, and arrive at their own conclusion.

That's all I really wanted to say for now.

Also side note, best of luck with dealing with the Federales. There's been at least one pretty well publicized story about a captain that's gone through the same thing, not sure if you've spoken with her.

Thanks. ^_^ It should just be a rubber stamp job, at this point... I've submitted all the paperwork, which is all basically "Nothing to see here, airman's good to go." So it's crazy, to me, that it's taking this long. Apparently I can submit in advance next year, though.

And yes, I do know the captain in question, and a few other trans pilots.

-Fox

 

[🦈💜]

Ditto.
@Acrofox , I'd buy you a beer any day of the week.

Also, likewise, of course. ^_^ I'd rather have coffee, though, since I don't drink anymore.

-Fox

 

[ComplexHiAv8r]

Keep your head up @Acrofox. While my eye surgery was kinda an emergency the 4 week recovery shouldn’t of taken, sit down for this, 8 months with the FAA.


Sent from my iPhone using Tapatalk

 

[Richman]

Being on an NC is a thankless task. There are numerous examples of management lowballing, ie Delta’s last contract. TA2 was a better deal. The NO vote was the correct call

Then there’s the example of the joint TA during the merger. The north guys voted NO, the south guys voted YES. Management then split the negotiations and the north guys got a worse deal the second time. Clearly, the YES vote was the correct call.

Aaaaand, that's not what happened, buy a long shot, but that's a thread for another time. There was no "first vote".

 

[bbmikej]

It's gotten so bad at ExpressJet that SkyWest is stealing their forum threads also.

 

[FloridaLarry]

Sooooooooo, how can UAL buy XJT when it’s a subsidiary? I guess what I’m wondering is how would that affect the Skywest share holders.

If XJET exists as a separate corporate entity, it's easier to just sell the whole thing in a simpler transaction. But if it's not, then:

Skywest can sell and transfer whatever of its assets it wants to: aircraft ownership, aircraft leases, airport and maintenance operations, 'goodwill,' contracts to fly for someone, etc. They get whatever they bargain for: cash, assumption of debt, non-competition clause, etc. What somebody gives them in exchange then belongs to Skywest and its shareholders. Skywest can use these things to grow the airline, buy aircraft, pay down debt, buy back shares, distribute as dividends to the shareholders, etc.

Doling certain things in this type of transaction may be restricted by other agreements Skywest has, such as contracts to lease aircraft, right of approval for transfers, payouts for cancelling things, etc.

It's a business transaction. Capitalism 101.

Working it out is why Skywest and UAL have teams of lawyers in St George and Chicago. Should they want to do this.