SKYW provides funding to UA, ASA to fly UAX
10-20-2009, 01:53 PM
#51
Gets Weekends Off
Joined APC: Aug 2009
Position: Guru
Posts: 182
As far as I know MAG does not have the money to do the swap
10-20-2009, 02:58 PM
#52
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Joined APC: Oct 2008
Posts: 1,530
Wow I'm happy for any new flying for ASA but the way it was secured is just crazy. Basically United is pimping out its flying. Skywest paid to get it. Why not just fly for free? UA is that desperate for cash that they even bring in an airline that is not even UAX is not even based in IAD. Moral of the story here as long as you're not 500 million in debt and you bottom feed by paying UA millions you'll get UA flying.... this is going to do wonders for our managements' will to raise our salaries.
10-20-2009, 03:40 PM
#53
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,611
Wow I'm happy for any new flying for ASA but the way it was secured is just crazy. Basically United is pimping out its flying. Skywest paid to get it. Why not just fly for free? UA is that desperate for cash that they even bring in an airline that is not even UAX is not even based in IAD. Moral of the story here as long as you're not 500 million in debt and you bottom feed by paying UA millions you'll get UA flying.... this is going to do wonders for our managements' will to raise our salaries.
Skywest is getting 11% ROI on their $80M investment, getting revenue from 13 ASA airframes that otherwise would be soon earning none, and ensuring that down the road they won't be stuck with leases on 40 airplanes UAL might decide they no longer want.
This is a very smart and very savvy financial deal for Inc, providing a return (11 percent) that every single one of us would LOVE to be earning on our personal investments.
10-20-2009, 03:43 PM
#54
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Joined APC: Jul 2009
Position: ERJ145 Captain
Posts: 473
Wow I'm happy for any new flying for ASA but the way it was secured is just crazy. Basically United is pimping out its flying. Skywest paid to get it. Why not just fly for free? UA is that desperate for cash that they even bring in an airline that is not even UAX is not even based in IAD. Moral of the story here as long as you're not 500 million in debt and you bottom feed by paying UA millions you'll get UA flying.... this is going to do wonders for our managements' will to raise our salaries.
Either way congrats to the ASA guys, hopefully they will be able to get some guys off the street. I just hope this wasn't a tactic by management to lure you guys into the PBS trap.
Best of luck,
goaround
10-20-2009, 03:52 PM
#55
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,611
Some of you don't know seem to know the difference between a "payment" and an "investment".
Sure, an investment of $125M for exit financing into US Airways by AWAC's ownership group looked like they were buying a 10 year contract for 70 airframes worth of 50 seat flying...but when the same group turned the $125M in LCC stock they were given in exchange for that exit financing into more than a 100% return on their investment in less than 3 years, it becomes a pretty damn smart investment.
Republic put up similar money to Airways, which not only got them a long-term contract for the E-Jets bought BOUGHT MidAtlantic, the US Airways E170 operation. This was an asset purchase that came with a capacity lift agreement. Along those same lines, RJET loaned Airways $35M last year, and that debt was paid by the 10 E190s Airways "sold" them, in addition to RJET assuming their debt payments.
Many investors realize that airlines, on the whole, are a gigantic money pit...so financing isn't widely available to a legacy airline and when it is, it normally comes at a steep price via high interest rate and/or unfavorable loan terms. Financing comes easier from those who have a financial interest in your survival (like a regional airline partner)...but it also allows that regional partner to often get something pretty valuable in return and make a good return on their investment into their mainline partner.
Like it or not, its simply business...
Sure, an investment of $125M for exit financing into US Airways by AWAC's ownership group looked like they were buying a 10 year contract for 70 airframes worth of 50 seat flying...but when the same group turned the $125M in LCC stock they were given in exchange for that exit financing into more than a 100% return on their investment in less than 3 years, it becomes a pretty damn smart investment.
Republic put up similar money to Airways, which not only got them a long-term contract for the E-Jets bought BOUGHT MidAtlantic, the US Airways E170 operation. This was an asset purchase that came with a capacity lift agreement. Along those same lines, RJET loaned Airways $35M last year, and that debt was paid by the 10 E190s Airways "sold" them, in addition to RJET assuming their debt payments.
Many investors realize that airlines, on the whole, are a gigantic money pit...so financing isn't widely available to a legacy airline and when it is, it normally comes at a steep price via high interest rate and/or unfavorable loan terms. Financing comes easier from those who have a financial interest in your survival (like a regional airline partner)...but it also allows that regional partner to often get something pretty valuable in return and make a good return on their investment into their mainline partner.
Like it or not, its simply business...
10-20-2009, 03:55 PM
#56
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Joined APC: Apr 2009
Position: Right...CL65
Posts: 279
10-20-2009, 04:21 PM
#58
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Joined APC: Feb 2006
Position: DD->DH->RU/XE soon to be EV
Posts: 3,732
How many carriers did they end up with while in, and post BK?
Like somebody else posted, it's UAL.
10-20-2009, 04:24 PM
#59
Gets Weekends Off
Joined APC: Jul 2009
Position: ERJ145 Captain
Posts: 473
Some of you don't know seem to know the difference between a "payment" and an "investment".
Sure, an investment of $125M for exit financing into US Airways by AWAC's ownership group looked like they were buying a 10 year contract for 70 airframes worth of 50 seat flying...but when the same group turned the $125M in LCC stock they were given in exchange for that exit financing into more than a 100% return on their investment in less than 3 years, it becomes a pretty damn smart investment.
Republic put up similar money to Airways, which not only got them a long-term contract for the E-Jets bought BOUGHT MidAtlantic, the US Airways E170 operation. This was an asset purchase that came with a capacity lift agreement. Along those same lines, RJET loaned Airways $35M last year, and that debt was paid by the 10 E190s Airways "sold" them, in addition to RJET assuming their debt payments.
Many investors realize that airlines, on the whole, are a gigantic money pit...so financing isn't widely available to a legacy airline and when it is, it normally comes at a steep price via high interest rate and/or unfavorable loan terms. Financing comes easier from those who have a financial interest in your survival (like a regional airline partner)...but it also allows that regional partner to often get something pretty valuable in return and make a good return on their investment into their mainline partner.
Like it or not, its simply business...
Sure, an investment of $125M for exit financing into US Airways by AWAC's ownership group looked like they were buying a 10 year contract for 70 airframes worth of 50 seat flying...but when the same group turned the $125M in LCC stock they were given in exchange for that exit financing into more than a 100% return on their investment in less than 3 years, it becomes a pretty damn smart investment.
Republic put up similar money to Airways, which not only got them a long-term contract for the E-Jets bought BOUGHT MidAtlantic, the US Airways E170 operation. This was an asset purchase that came with a capacity lift agreement. Along those same lines, RJET loaned Airways $35M last year, and that debt was paid by the 10 E190s Airways "sold" them, in addition to RJET assuming their debt payments.
Many investors realize that airlines, on the whole, are a gigantic money pit...so financing isn't widely available to a legacy airline and when it is, it normally comes at a steep price via high interest rate and/or unfavorable loan terms. Financing comes easier from those who have a financial interest in your survival (like a regional airline partner)...but it also allows that regional partner to often get something pretty valuable in return and make a good return on their investment into their mainline partner.
Like it or not, its simply business...
10-20-2009, 04:41 PM
#60
Gets Weekends Off
Joined APC: Apr 2006
Position: ERJ 170
Posts: 737
Ha, welcome to the world of RAH. That is all we have been getting. Where are all the RAH haters? Why aren't they hammering Skywest/ASA for stealing UAL pilots' flying?
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