But it's going to cost UAL alot more money to put RJ's on those routes over the Q400. It's not like they can find another company to opterate that many Q400 that quick. Even if they enter into an agreement with someone else. Airplanes has to be ordered and training has to be set up, more pilots has to be hired. All that is going to cost alot of money, and time. Look how long it's taking Go Jets to get the Delta flying going and that just transfering the airplanes from one company to another, and GJ is already set up to fly the 700.
In the grand scheme of things the lift Colgan now supplies to UCAL is a pimple on a donkeys d**k. It could cease all at once and no one will ever notice it in UCAL's revenue or profits. Evidently UCAL would like to give that fleet type a larger position in their revenue stream - and they are looking for a
reliable partner to provide it.
In simple terms the current situation is ..
-The ECB - the bank that has the title to the Q 400's - has let PCL defer three months of payments to April 1
-UCAL has lent PCL some cash to be repaid on April 1.
When April 1 gets here PCL will not have the cash for either of these payments. One of two things will happen at that time
-A new agreement is announced that rolls these payments into new leases and revenue payments or
-PCL defaults on the Q400's and stiffs UCAL on the money they owe. Is that being a reliable partner?
Of course not. The ECB will repo the AC and provide them to whoever UCAL contracts with. The recent agreement enables them to do this without going to BK court - maybe. UCAL has demonstrated their willingness to pay the price to put regionals out of business many times before.
But if any one balks at these proceedings the ECB and UCAL will force PCL into BK. As a result of the recent agreement they will have an even stronger position on the creditor committee.
Delta could end all this today simply by advancing payments they will owe later in the year. They won't do this. Why? They must want PCL to end up bankrupt. If that happens the 30 Q's will be the least of the pilots problems. Delta will want an even larger chunk of your fleet and much larger pay concessions.
My guess is the PCL pilots, rather than agree to small concessions to expand the airline, will let the Q's go and let the furlough happen. That is classic ALPA - full pay to the last day, no matter who you leave behind. They will gamble that will keep them out of BK court. If it doesn't once Delta finishes with them they will deeply regret it.