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Thread: SkyWest to sell ExpressJet to...

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    Registered User Vne's Avatar
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    SkyWest to sell ExpressJet to...


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    United and ManaAir LLC.

    https://m.nasdaq.com/article/skywest...20181218-00396

    Hopefully those guys will get to stop worrying about job security now. I wonder if this is a sign that United and Delta really are working towards a true flow of their own?

    What would that mean for the WO’s recruiting?

    The world wonders...

    ETA: They’re also getting 25 E-175s configured for 70 seats.
    Last edited by Vne; 12-18-2018 at 09:56 AM.

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    Registered User BOHICA's Avatar
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    ExpressJet, formerly a owned by Continental as Continental Express, is being bought by United, who merged with Continental? They've come full circle.

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    Registered User ardvark's Avatar
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    Good for them glad for them. Anything to get out from under skw.

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    By Lewis Lazare – Reporter, Chicago Business Journal
    4 hours ago
    United Airlines on Tuesday moved closer to gaining more managerial oversight of one of its key regional airline vendors, ExpressJet.

    ExpressJet is a unit of another United regional airline operator, St. George, Utah-based SkyWest.

    In an acquisition valued at $70 million in cash plus assumption of liabilities, a new joint venture entity called ManaAir said it will acquire ExpressJet, which operates as United Express in several key United hubs, including Chicago’s O’Hare International Airport, Newark Liberty International Airport, George Bush Intercontinental Airport in Houston, and Denver International Airport.

    Skywest (NASDAQ: SKYW) acquired ExpressJet for $133 million in 2010.

    United described ManaAir as a newly formed joint venture in which United is a significant minority investor. ManaAir, in turn, is a unit of another newly formed entity called KAir Enterprises Inc., which a United spokesman described as an airline investment group comprised of seasoned airline executives.

    The United spokesman declined to name any of the executives who are part of KAir. The spokesman indicated that information would be made public after the federal government issued the necessary approvals for the ExpressJet acquisition.

    United’s regional jet vendors, including both ExpressJet, SkyWest and other regional carriers, have long been something of a thorn in the side of United as it has pushed hard in recent years to improve on-time arrival performance. Though not always the case, United’s regional airline vendors operating as United Express have not proved able to achieve the same optimal on-time arrival performance as mainline flights over which United management has direct control.

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    This acquisition, through a new joint venture, looks designed to help rectify that problem as United now will have a conduit through ManaAir in which to exert more control over ExpressJet operations.

    Furthermore, in the second quarter of 2019, ExpressJet will start taking delivery of 25 specially configured Embraer E-175 jets that offer more of the roomier Economy Plus seats than do other Embraer E-175 planes now operated by United Express regional carriers.

    Pending government approval, the ExpressJet transaction is expected to close in early 2019.

    United Airlines is a unit of United Continental Holdings (NASDAQ: UAL).

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    IMO, one reason and benefit of this move is the ability to more directly control pilot hiring so as to ensure an acceptable and quantifiable standard for future United pilot recruits. I have previously stated it would only be a matter of time before AA's competition (although less direct as arguably AA is now an LCC like the old US Airways and not a premier legacy anymore) would have no choice but to mimic the AA/Eagle system WO flow-thru. Delta is doing this without ownership so far, but soon they will likely take more control themselves to ensure the attractiveness of a pipeline commitment to Delta. The future will have increasingly few candidates for this profession and WILL require "walking the walk" as opposed to just "talking the talk". Soon, both carriers will have an equivalent pathway to their premier legacy operations, but BOTH will have the AA/Eagle flow easily beat for one major reason and that's the quality of the career they both can offer a prospect by having a truly collaborative work environment and industry leading QWL and compensation. Surveying the present landscape at AA and Envoy, it's clear to me AA simply cannot even come close to what these two operations will be doing, especially considering some of their recent moves against their employee's, the AA F/A surveillance situation being one example and in the unlikely situation AAG management rehabilitates their dismal relations with all three mainline labor groups, I fear it will be too little too late.

    You WILL see United move their bar significantly higher in the coming months and years across the board to all employee groups to compete with Delta as they realize they have no other choice. They see that if they get behind the curve now, they will end up with insufficient power to fly out of it. AA on the other hand is not likely to be of much concern to either Delta or United as it's clear to me anyway, they are still living in their stone age cave of seeing their front-line service providers as "them" as opposed to "us". The product has been diluted down to what the LCC's offer except they offer a business class and fly International wide bodies, but the product in both those areas is also not headed to anything industry leading among U.S. carriers and no comparison to foreign carriers. People say the AA flow is a "good back-up" and I suppose so if you see it as a consolation prize. Remember, AA is now about 6th in the pilot QWL/Compensation package race and not likely to improve.
    Last edited by Beagleboy; 12-18-2018 at 07:39 PM.

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