Comments on: ExpressJet Rejects SkyWest’s $3.50/share Offer http://www.onlinetravelreview.com/2008/04/25/expressjet-rejects-skywests-350share-offer/ Airline News and Commentary Fri, 09 Jan 2009 22:29:08 +0000 http://wordpress.org/?v=2.6.5 By: onlinetravelreview http://www.onlinetravelreview.com/2008/04/25/expressjet-rejects-skywests-350share-offer/#comment-5343 onlinetravelreview Fri, 25 Apr 2008 17:46:40 +0000 http://boardingarea.com/blogs/onlinetravelreview/2008/04/25/expressjet-rejects-skywests-350share-offer/#comment-5343 Great points, Seth. I think the outcome then remains the same: either SkyWest picks them up for $3.50 a share, or XJet goes out of business and SkyWest picks up the CO Express routes... Great points, Seth. I think the outcome then remains the same: either SkyWest picks them up for $3.50 a share, or XJet goes out of business and SkyWest picks up the CO Express routes…

]]> By: Seth http://www.onlinetravelreview.com/2008/04/25/expressjet-rejects-skywests-350share-offer/#comment-5342 Seth Fri, 25 Apr 2008 15:47:52 +0000 http://boardingarea.com/blogs/onlinetravelreview/2008/04/25/expressjet-rejects-skywests-350share-offer/#comment-5342 XJet still flies the vast majority of CO's Express operations and they also fly a number of Express flights for Delta out of LAX. Their real issue is that CO didn't renew the contract for some part of the CO Express flights, leaving XJet with a bunch of planes they needed to do something with. They tried independent ops and that went about as well as it did for Fly-I. When they have to shut down those ops CO is going to be on the hook since the planes are leased from them. Xjet shutting down could have a much wider impact than just losing a bit player in the LCC space. XJet still flies the vast majority of CO’s Express operations and they also fly a number of Express flights for Delta out of LAX.

Their real issue is that CO didn’t renew the contract for some part of the CO Express flights, leaving XJet with a bunch of planes they needed to do something with. They tried independent ops and that went about as well as it did for Fly-I. When they have to shut down those ops CO is going to be on the hook since the planes are leased from them. Xjet shutting down could have a much wider impact than just losing a bit player in the LCC space.

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