MarketWatch is reporting that not only has SkyWest confirmed the $3.50 a share deal for ExpressJet, but that:

“The St. George, Utah-based carrier also said it has negotiated the principal terms of a new contract with Continental Airlines which is intended to become effective after a deal with ExpressJet. ‘We believe our offer is consistent with our strategy of pursuing viable opportunities to enhance shareholder value, while also offering value to Continental through a new code-share relationship,’ said Bradford Rich, SkyWest chief financial officer.”

Now, isn’t that an interesting development?  So it would appear that it won’t do any good for ExpressJet to sit down and talk to Continental about a new contract, because it sounds like Continental has already negotiated what it believes to be the new contract with ExpressJet. The only hitch is that it will only go in effect after SkyWest buys ExpressJet.

I think they call this a “squeeze” play.

One thing I do know for sure. Next week is going to be hoppin’ in Houston.

Ticker: (Nasdaq:SKYW), (NYSE:XJT), (NYSE:CAL)

Technorati Tags: airlines, Continental Airlines, ExpressJet, SkyWest