Delta TA impact on Delta Connection...

[JustaNumber]

Thread drift: BH is not the ExpressJet CEO. He is the president of ExpressJet.

Oops--my mistake. Thanks for the correction.

 

[79%N1]

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.

But they can park them. Not saying they will, and we will all have many parked.

 

[JustaNumber]

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

...which was signed in 2005, and should extend until 2020. The question is, does this contract entitle us to keep flying all of our current aircraft for the duration of that contract? (If not, it wouldn't be much of a contract). If we are under contract to provide this flying, this could explain why Brad didn't feel the need to mention anything about 50's going away. Does anyone have more specific details of the contract?

 

[Nevets]

...which was signed in 2005, and should extend until 2020. The question is, does this contract entitle us to keep flying all of our current aircraft for the duration of that contract? (If not, it wouldn't be much of a contract). If we are under contract to provide this flying, this could explain why Brad didn't feel the need to mention anything about 50's going away. Does anyone have more specific details of the contract?

I'll go look at it if I get motivated to. But my guess is that they are tied to the head lease of the aircraft or the end of the ASA, whichever occurs first.

 

[cbrown1]

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!

It's Delta, when it comes to the regionals assume the worse.

 

[JustaNumber]

I'll go look at it if I get motivated to.

Where can you get access to the ASA? The specifics in it could answer just about all the questions we have here, including whether we get to keep our jobs!

 

[Nevets]

Where can you get access to the ASA? The specifics in it could answer just about all the questions we have here, including whether we get to keep our jobs!

I found a redacted version on sec.gov.

 

[No Delay]

Everyone keeps saying PNCL will get the majority of new flying because Delta controls them now.

Doesn't Delta own and control Comair?

 

[Oakum_Boy]

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

Well, we were SUPPOSED to be the second lowest. We missed that target. The result being we are being compensated as the second lowest regardless of our actual cost position.

 

[silver02ex]

Everyone keeps saying PNCL will get the majority of new flying because Delta controls them now.

Doesn't Delta own and control Comair?

Yes, but my guess is since Pinnacle is in BK, with the new contract at Pinnacle, it will be much cheaper for Pinnacle to operate it than Comair. When Mesaba was in BK they recieved 36 CRJ 900 and not Pinnacle. I'm just going by a guess and what happened in the past.

 

[bigshooter107]

But again, does delta want to pony up the cash for leases.... Or allow Skywest to do it.

 

[Oakum_Boy]

XJET will sign a good JCBA, and 10 months later announce the bankruptcy. That's the only way forward, ladies and gentlemen. We'll shed some 50's, gut every vendor contract, stop paying for hotels, and wind up in the Knights Inn with GoJet crews. We'll even have flight attendants sleeping in the hallways again because they're cleaner than the rooms.

I'm pretty sure that's the route Inc. Is going to go with this. They'll keep their brand out of it. The bean counters already have a plan for this I can assure you. We're not profitable anyhow so it won't take much voodoo.

BH has been saying this in virtually every update. Cost, cost, costs....he never actually refers to how to achieve the level of cost reductions he's looking for.

if you're in the bottom half of the list, it's time to look elsewhere. If you're under 40, time to get a new career unless you want to wait another five years to start all over again.

Cheers--

 

[Nevets]

Well, we were SUPPOSED to be the second lowest. We missed that target. The result being we are being compensated as the second lowest regardless of our actual cost position.

Yes, thats exactly what I meant. To delta, you are the second lowest, and thats all that matters to them. They don't care that your cost are higher than your revenue. You are the second lowest cost for them. This is the deal JA made with delta back in 05. Theyve known about it since day one. This is why they bought XJT and were supposedly benevolent enough to merge it with ASA. It wasn't because XJT was going bk. If that was really the case, they would have just waited and bought them in a bk bargain with abrogated labor contracts.

By the way, in the last earnings call, BR said XJT was cash flow positive.

 

[General Lee]

I can't believe I'm saying this but the General could be my very good friend now...
sarcasm of course...

If the TA goes thru, then Dear General, could you walk my resume in? (wink..wink).

F YEAH!


Bye Bye---General Lee

 

[Nevets]

This is what I found after a real quick glance. I didn't find the list of expiration dates for the aircraft leases.

F. Partial Termination. Notwithstanding anything herein to the contrary, effective at any time after the seventh (7th) anniversary of the Effective Date, Delta shall have the right to remove from the scope of this Agreement each Aircraft effective upon the date that the lease, mortgage or other financing arrangement with respect to such Aircraft in effect as of the Effective Date expires by providing ASA with at least twelve (12) months’ prior written notice.