Originally Posted by duvie:1406135

There is no doubt that SkyWest is writing E-jet manuals. I don't know how to say it without sounding like the typical rumor monger, but its not a secret, we spoke with the LCA that is writing them in my recurrent class. And as another poster put it (very poignantly I might add), SkyWest has been quite coy lately when asked about the E-175s. This is good information, but a few more things need consideration.

We had a team writing ERJ manuals a few years ago. Continental was paying us to write them, and although nothing was inked, I imagine our management felt pretty certain that we would see the 145s on property, one way or another. As it turned out, it was the latter, or "or another," and INC saw the jets, but had to get them buy purchasing XJT from Continental. So you could say it was a win/win for both parties. Continental got to divest themselves of XJT (cash in hand, less headaches) and ensured relatively good feed for years to come. SkyWest nearly doubled their market share of regional flying, and even though it was in the form of 50 seaters, they secured rights of first refusal for the replacements.

With that said, I don't know the strategic benefits of waiting to announce something even if it is actually a "done deal," but perhaps there are some. However, it is more likely that this thing is still being worked out, and one has to be aware that even if United has gone as far as to pay us to write manuals and give us the wink and the nod, until it is set in stone, the lawyers will keep each companies' options open and continue to evaluate opportunities for further bargaining.

Underestimating Republic's ability to sweet talk airlines would be a mistake. Apparently the latest American RFP that went to Republic was supposed to be split between Republic and SkyWest. At the last minute, AMR management decided to give the whole contract to Republic; a move that was done without the approval of the bankruptcy creditors. This move was not looked upon favorably and as such, when the merger with USair was announced the BOC told AMR that this was their chance to make things right.

Its a delicate dance, and although it may make some at SkyWest happy to know that the E-jets are a very real possibility and that plans are in fact being made to support the operation, both SkyWest and Republic are very good at changing tacks at a moments notice. And as the old adage says: until you see it in "your" paint, its just part of the continuing saga of the contract airline world.

Originally Posted by Trip7

Some of your information is incorrect. RAH didn't have to do any sweet talking for the AMR bid. They were the ONLY carrier that could logistically take on self financed E175s flying out of ORD this summer. Not only could Skywest not add the plane on certificate fast enough, they couldn't do it out or ORD:

Originally Posted by What

But how come they can fly out of LAX for United, Delta and American? Is there a waiver for LAX? I know it has been talked about but I can't remember.

And the main reason that RAH got the contract is not so much how fast they could put the Ejets on property or self financing but the fact that they had those things but underbid everyone.

Originally Posted by What:1406841

But how come they can fly out of LAX for United, Delta and American? Is there a waiver for LAX? I know it has been talked about but I can't remember.

And the main reason that RAH got the contract is not so much how fast they could put the Ejets on property or self financing but the fact that they had those things but underbid everyone.

Originally Posted by Trip7

My previous quote is directly from the Skywest Inc 10Q. LAX is not listed, ORD is

Does anyone have a link to the March 12th AMR bankruptcy hearing? AMR reps stated out of all the bids RAH was the only carrier that could do the flying on the E175 out of ORD in the time frame they were looking for. There was no real competition for RAH.

Originally Posted by What:1407000

Ohh ok, keep believing that. If it was the case why AMR summited an RFP. These deals were made last fall, this would have given SKW, Eagle and the other regionals a year to get the program up an running. Yes RAH had the program but that's not why they got it... Money talks and they volunteered to do it cheaper than anyone!

Originally Posted by Trip7

It's not what I believe, it's about the facts:

9. After careful consideration and analysis of each of the submitted bids in view of American’s business objectives and requirements, American selected Republic and commenced negotiations in December 2012 for a capacity purchase agreement relating to 53 Embraer E-175 76-seat aircraft. Unlike the other operators, Republic had the ability through aircraft options with Embraer to deploy 24 mostly new E-175 aircraft by the end of 2013 and all 53 aircraft by the first quarter of 2015. The E-175 product was determined by American as best suited for the highly competitive market in Chicago with a product experience that is more similar to a narrow body aircraft versus the CRJ-900. Republic is also not restricted from operating on behalf of American at Chicago O’Hare International Airport, one of American’s primary hubs for which regional feed services are critical to American’s operations and strategy. Republic’s economic proposal was slightly better than the cost assumption in the Debtors’ business plan for large regional jets. Additionally, as stated in the Motion, Republic will acquire, finance and/or own all of the aircraft without any financing or underwriting by AMR or any other Debtor. In sum, Republic was essentially the only operator that could meet all American’s criteria and still be able to provide the required services at better than average costs

Originally Posted by What:1407034

You mean the court document that was filled when AMR was arguing why they went with RAH and not In house with Eagle?!?!?! Theis deal was done last fall, if they wanted someone else to do it they would have been able to but since republic was able to assume all liability and do it cheaper that's why AMR gave them the flying. They could have also just given republic 25 or so and given someone else 2 years to deploy the remaining.

Originally Posted by Trip7

By that logic why didn't they give RAH 100 aircraft? Why just 47? Why even mention other carrier's restrictions in ORD if this was about Eagle?