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SKYW wants to buy another airline?

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Skywest isn't buying QX. The word is that QX will continue to fly Dash 8s for Alaska and Skywest will fly the RJs for Alaska. Alot of us aren't looking forward to that since it's going to create bitterness and resentment when a Skywest RJ comes pulling up next to a Dash 8. It's not going to be pretty folks.


True... It sure won't be pretty... Esspecially from the older RJ captains that have been there for 20+ years.
 
Of course they want to buy another airline. They want to own all the regional feed in the country so they can start dictating price to their mainline partners instead of them telling us what we will be paid.

I imagine that the mainline/regional relationship is like a Whack-a-Mole game. I believe mainline will always have the upper hand as there will always be a new regional to undercut SKW etc..

The only way that SKW can dictate price to mainline is if they build their own branded flying to a significant enough market share. However, then they'll lose feed for mainline.....sort of a catch 22.

Regionals will always be stuck at the bottom.
 
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I imagine that the mainline/regional relationship is like a Whack-a-Mole game. I believe mainline will always have the upper hand as there will always be a new regional to undercut SKW etc..

Skywest already does that on their own. They already have a built in regional to undercut themselves.
 
Not that I believe that SkyWest has any intention of buying anyone, but 1.5 B would be no problem to come up with. They have more than half that in cash. Getting a loan would be no big deal.

Alaska is trading at $62.76 per share..... Market cap around 2.3 Billion.... I'm not Gordon Gekko. I'm assuming on a straight buyout, shareholders ain't gonna be happy unless they get a FAT premium for that....I'd say minimum double the share price.... Meaning SkyWest would have to pony up in the neighborhood of 4 billion... More, if shareholders want more... That's just the buyout... Now there are many different ways to handle an acquisition, merger, I realize but it's gonna BE REALLY STiCKY with a Regional Airline buying a Legacy airline.... In other words, it would have to be non-cooperative/hostile. Nobody has the kinda jack it would take to purchase Alaska, unless they want to be purchased, acquired, bought, what have you.
 
Alaska is trading at $62.76 per share..... Market cap around 2.3 Billion.... I'm not Gordon Gekko. I'm assuming on a straight buyout, shareholders ain't gonna be happy unless they get a FAT premium for that....I'd say minimum double the share price.... Meaning SkyWest would have to pony up in the neighborhood of 4 billion... More, if shareholders want more... That's just the buyout... Now there are many different ways to handle an acquisition, merger, I realize but it's gonna BE REALLY STiCKY with a Regional Airline buying a Legacy airline.... In other words, it would have to be non-cooperative/hostile. Nobody has the kinda jack it would take to purchase Alaska, unless they want to be purchased, acquired, bought, what have you.

Wow, what rock did you crawl from under? Did you not follow the Express Jet acquisition news? What happened to those share holders? You can google it.
 
Bad Kitty:

You assume, sir, that a buyer would have to buy ALL outstanding stock. In reality, it would only take 50% plus one share to have controlling interest. Comparing net assets, Skyw has 1.3B while ALK has 873M. Don't think it would take much to get the required leverage. OTOH, I don't think Jerry would go for that unless he saw a huge payout. Besides, a regional buying a "major"? It'd NEVER happen.
 

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