CAL dropping Colgan?

[hou757]

Saw on another board that there is a rumor going around that CAL is planning on dropping Colgan. Anyone believe this one?

 

[SmitteyB]

This would cost a LOT of money for CAL. Getting out of that contract early would be over $100 million they would pay to PNCL.

 

[wilde737]

I dunno....
Most contracts have a safety clause that they can use to drop you if they believe you're unsafe.

 

[hou757]

I dunno....
Most contracts have a safety clause that they can use to drop you if they believe you're unsafe.

I was also thinking that CAL could assume the leases for the Q's and assign them to another operator... Who knows....

 

[30West]

You lost me at the word "rumor"

 

[DoinTime]

This would cost a LOT of money for CAL. Getting out of that contract early would be over $100 million they would pay to PNCL.

The better question is how much will it cost CAL to keep Colgan?

 

[jmreii]

This would cost a LOT of money for CAL. Getting out of that contract early would be over $100 million they would pay to PNCL.

The lawsuits over the colgan accident could easily cost them more.

 

[SmitteyB]

Colgan is operator. Colgan > Pinnacle > Delta will bear the insurance.

For those of you who didn't know- Delta held the hull and liability insurance on the airplane.

 

[SmitteyB]

I was also thinking that CAL could assume the leases for the Q's and assign them to another operator... Who knows....

I doubt it. Pinnacle owns the airplanes. If CAL dropped Colgan and CAL wanted the airplanes, PNCL would want SERIOUS money for them.

 

[SmitteyB]

I dunno....
Most contracts have a safety clause that they can use to drop you if they believe you're unsafe.

We are over a year from this. If CAL dropped them, CJC would get an injunction seeing as there is no basis for assuming Colgan is unsafe.

 

[Smarta$$]

We are over a year from this. If CAL dropped them, CJC would get an injunction seeing as there is no basis for assuming Colgan is unsafe.

Really? No basis?

 

[ackattacker]

As wild rumors go, this one doesn't get me too excited. Try harder.

 

[PBRstreetgang]

We are over a year from this. If CAL dropped them, CJC would get an injunction seeing as there is no basis for assuming Colgan is unsafe.

That's what you have to say everyday when you go to work for them. Reality is they have a body count that is difficult to overlook.
PBR

 

[Erlanger]

This would cost a LOT of money for CAL. Getting out of that contract early would be over $100 million they would pay to PNCL.

CAL has in their contract a clause that says they can cancel the contract with Colgan "if there is an accident or incident that causes CAL great embarrassment."

I can't remember the exact wording but it's worded in the fashion above. I'm very serious that this clause does exist. Now it's just a matter of waiting to see what CAL does.

 

[30West]

That's what you have to say everyday when you go to work for them. Reality is they have a body count that is difficult to overlook.
PBR

But it's still far less both in total numbers and as percentages of total block hours than most. What's your point?
So everytime an airline has a crash they should automatically go out of business? I hope you don't honestly believe CJC has the monopoly on any of the shenanigans going on in the industry.

Since you're the expert, what is their total "body count" to date since their first day in business, compared to every other carrier? We'll wait.....