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SkyWest Inc. Message Board

  • nycstockpicker nycstockpicker Jan 15, 2002 5:28 PM Flag


    Airwolf: Can you explain to me how UAL management can call for "billion of dollars" of cost savings from its employees while signing contracts with ACAI with no cost reduction provisions?

    Are those guys incompetent? Or merely stupid?

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    • I can see ACAI and SKYW agreeing to cost reductions coupled with volume increases above plan. The end result is more revenue and income for the regionals, although at a lower rate of return. UAL will shed as much flying as they can get away with. SKYW at the current rate is more profitable for UAL, than than UAL's own flying is for UAL. Of course, one of us is right and one wrong. The market will let us know soon enough. Let us know when you close out your short position. I have been long SKYW since 1991. There have been many big dips in the road but the 10 year record of SKYW is pretty hard to beat.

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