XJT Stock upgraded to "BUY"

livingthedream · 05-29-2008, 01:22 PM

"Among low-cost carriers, ExpressJet Holdings (XJT, Trade ) was upgraded to buy from add at Calyon Securities on Friday, following the stock's 40% plunge in prior-day trading and the certainty that its acquisition by SkyWest Inc. (SKYW, Trade ) will eventually get done.

If a merger with SkyWest doesn't happen, ExpressJet is likely to go bankrupt, the investment research firm said in a note. However, Continental, ExpressJet's former parent and is its largest customer, would likely rather avoid dealing with bankruptcy courts and is a motivational force in seeing the deal done, Calyon said.

Shares of ExpressJet rose 15.5% to $1.86, while SkyWest lost 3.2% to $14.99."

.....interesting

Rick James · 05-29-2008, 10:37 PM

They're screwed if were screwed, i'd say....

Mitch · 05-29-2008, 10:44 PM

Well...I think CAL is fine no matter what...they will get their feed.

I see skywest's supposed hiring to indicate that one way or another, they envision xjt and cal turning into skyw and cal. They'll have the pilots ready soon enough...and they won't be ours.

I just hope the xjt people that know what is going on are figuring out a way to make those trained skyw pilots rideless for as long as possible.

Rick James · 05-30-2008, 02:04 AM

if XJT goes bankrupt, then CAL is stuck with 274 planes, right?
And at leases of 100K/mo, that can get pretty expensive...

SF3Flyer · 05-30-2008, 03:56 AM

Quote:

Originally Posted by Rick James

if XJT goes bankrupt, then CAL is stuck with 274 planes, right?
And at leases of 100K/mo, that can get pretty expensive...

Why would Bankruptcy cause CAL to be stuck with 274 airframes?

Hbrow15 · 05-30-2008, 05:19 AM

Quote:

Originally Posted by SF3Flyer

Why would Bankruptcy cause CAL to be stuck with 274 airframes?

I think he means that CAL is the leaseholder on our airplanes and if we cease to exist then they will be stuck paying the lease.

SF3Flyer · 05-30-2008, 12:48 PM

Quote:

Originally Posted by Hbrow15

I think he means that CAL is the leaseholder on our airplanes and if we cease to exist then they will be stuck paying the lease.

I understand that, but Bankruptcy doesn't mean an automatic shutdown of the airline and that we cease to exist, as everyone is suggesting. If that were the case, Frontier would not be here. Neither would Delta, Northwest, US Airways (twice over), United, Continental, etc.

Hbrow15 · 05-30-2008, 06:24 PM

Quote:

Originally Posted by SF3Flyer

I understand that, but Bankruptcy doesn't mean an automatic shutdown of the airline and that we cease to exist, as everyone is suggesting. If that were the case, Frontier would not be here. Neither would Delta, Northwest, US Airways (twice over), United, Continental, etc.

True but his example was us going under.....and remember bankruptcy laws have changed and you cant hang out not paying bills for 50 years like united did last time