Delta TA impact on Delta Connection...

[No Delay]

Any thoughts on if / how atl gate space with play in all this?

Doesn't skyw own those gates?

 

[CRJ puppy]

All the leases on Comair's remaining 50 seaters run out in the next 2-3 yrs so they are going away during this 2012-2015 time frame regardless of passage of this TA.
Aren't the CHQ leases up in 2015 or is it 2017?

 

[i fly boxes]

PNCL leases were scheduled to start expiring in 2017-2023
I see these planes going away because if the 50 seat aircraft is not economical now, there is no way it will be in 2020. The question for pinnacle is will they be replaced with something else? With only 70 total 900's up for bid if the delta TA passes, Pinnacle could be looking at a best case scenarion of a fleet of 100-125 aircraft with 2800 current pilots.

 

[79%N1]

Wasn't Pinnacle losing the 900's they currently have? Now they are getting more? This industry confuses me!

 

[JustaNumber]

I believe the individual "Airline Services Agreements" that each regional has with Delta will play the primary role in who loses their 50's. After all, each regional is under a legal contract to provide lift, and these contracts can't be unilaterally voided just because the Delta pilots want it that way. These agreement durations may or may not be concurrent with aircraft lease durations that are held between either Delta or the regional and the aircraft lessor. So it's not so important when the leases expire; it's when the "ASAs" expire.

Unfortunately, to my knowledge the exact terms of these ASAs are generally not made public, so this all is a bit speculative. One thing for certain, though, is that Pinnacle being in bankruptcy will play a large role here. An airline in bankruptcy is no longer necessarily bound to any legal agreements, so it stands to reason that if not enough ASAs expire by 2014, then the only place left to go is Pinnacle. My guess is that both Comair and Pinnacle lose ALL of their 50's.

For what it's worth (not much), Expressjet's CEO Brad Holt put out a memo today addressing the issue. He said that all the details are not yet known, but overall he sees this as good for the industry and a potential good opportunity for the company. Apparently he's not the least bit worried, for whatever reason (or he's lying about his thoughts on the deal).

 

[Oakum_Boy]

He had to spin something. XJET essentially gets nothing it bids on lately. We just lost 14 outstations to lower bidders. Places like DGS which is essentially a work-release program when they bother to show up.

Seventy 900s is hardly good news. If we want them, we'll have to take 30% pay cuts to compete with the BlowJets guys. They are the low bar that UAL and DAL now want everyone now to hit. Frankly, I'm not surprised I have to ask for their ID's when they ask for a ride. Good luck to all!

 

[centralpilot]

For what it's worth (not much), Expressjet's CEO Brad Holt put out a memo today addressing the issue. He said that all the details are not yet known, but overall he sees this as good for the industry and a potential good opportunity for the company. Apparently he's not the least bit worried, for whatever reason (or he's lying about his thoughts on the deal).

I think you read too much optimism in his statement. The way I read it as him saying there might be an opportunity, but he didn't at all mention the implications for the 200s.



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[enuffalready]

I think you read too much optimism in his statement. The way I read it as him saying there might be an opportunity, but he didn't at all mention the implications for the 200s.



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also, what do you expect him to say?..... does an Lt. look around at his platoon when they are surrounded and tell them that they are a F'd.

 

[79%N1]

I'd rather have honesty. Tell people they will downgrade or possibly lose their job so they can get an early start on a new path. All this guessing is B.S. Leadership means to give direction. The Lt. may not say we're eff'd, but he can say we're not going to make it if we stay on this path....this is where we need to go, and then lead the way.
Now, I know it's early and nobody has a clue, but we all know XJT DAL is probably the most expensive has has little to no chance of securing anything to replace the massive 50's about to be lost. I get the optimism, but I'd rather the dudes in the crows nest of the Titanic tell me we are about to hit the iceburg and the boat is going to sink. Then we could all head for the life rafts before it's too late!

 

[bigshooter107]

The only potential upside to expressjets position is skywest inc's ability to self finance alot of the potential 900 leases or purchases. Delta will be forking out a ton of capital on 717s and 737s in the near term, I doubt they want to front any more money to an RJ operator. Skywest/ expressjet also get a higher payout per block hour when they hold the tail risk, according to Brad Rich on the last earnings call..

 

[777forever]

The only potential upside to expressjets position is skywest inc's ability to self finance alot of the potential 900 leases or purchases. Delta will be forking out a ton of capital on 717s and 737s in the near term, I doubt they want to front any more money to an RJ operator. Skywest/ expressjet also get a higher payout per block hour when they hold the tail risk, according to Brad Rich on the last earnings call..

Bingo!

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[Freebrd]

Wasn't Pinnacle losing the 900's they currently have? Now they are getting more? This industry confuses me!

DAL now controls PNCL (actually all of us in a way) so I wouldn't be shocked if they get all or a majority of these planes

 

[silver02ex]

Wasn't Pinnacle losing the 900's they currently have? Now they are getting more? This industry confuses me!

Those were own by Pinnacle, they are going back to whoever finance it, along with the Q400. It possible Delta can pick them up and give it to whoever. But since Delta doesn't own it like the 200's they can't just take them from us and give it to someone else.

 

[Nevets]

I
For what it's worth (not much), Expressjet's CEO Brad Holt put out a memo today addressing the issue. He said that all the details are not yet known, but overall he sees this as good for the industry and a potential good opportunity for the company. Apparently he's not the least bit worried, for whatever reason (or he's lying about his thoughts on the deal).

Thread drift: BH is not the ExpressJet CEO. He is the president of ExpressJet. In fact, ExpressJet doesn't have a CEO. Skywest Inc has a CEO.

 

[Nevets]

I'd rather have honesty. Tell people they will downgrade or possibly lose their job so they can get an early start on a new path. All this guessing is B.S. Leadership means to give direction. The Lt. may not say we're eff'd, but he can say we're not going to make it if we stay on this path....this is where we need to go, and then lead the way.
Now, I know it's early and nobody has a clue, but we all know XJT DAL is probably the most expensive has has little to no chance of securing anything to replace the massive 50's about to be lost. I get the optimism, but I'd rather the dudes in the crows nest of the Titanic tell me we are about to hit the iceburg and the boat is going to sink. Then we could all head for the life rafts before it's too late!

You are the second lowest, according to the 15 year ASA signed as part of the Skywest purchase of ASA from Delta.