DL's TA and Regional Contracts at a Glance

[xjhawk]

I think Pinnacle will be on the end of losing all or most of their CRJ 200's. But there are some who think Pinnacle will get the 70 new regional planes from the Delta contract. I tend to think those 70 planes will be used as a carrot to have other DCI carriers remove their crj 200's on a 2:1 basis like ASA did with those 900's that Mesaba was suppose to get.

What does the number 450 mean to you if you are at Pinnacle? Its your seniority number and you are the last FO on the seniority list. That is what 450 means to me.

 

[Cpt Oveur]

Pinnacle post bankruptcy will have much more advantage to take airplanes and shed many older 200s that at maintenance problems. No one should see Pinnacle as all but gone. They will be a significant force to be reckoned with, and other DCI carriers should pay close attention.

 

[Canadair RJ]

1. DING DING DING
2. WINNER WINNER CHICKEN DINNER

Keep an eye on the APA/AA deal. IF and IF that deal passes, there will be a 3 way deal that involves AA, DAL, SKYW and ASA. Sorry XE.

Right. Because more unprofitable 50 seat flying is just what AMR wants and needs. What flavor kool aid are y'all drinking over there? Some of you guys are ridiculous.

 

[XPOO]

Right. Because more unprofitable 50 seat flying is just what AMR wants and needs. What flavor kool aid are y'all drinking over there? Some of you guys are ridiculous.

It's profitable when SkyWest can operate those 50s cheaper than anyone else in the industry. Just ask United. SkyWest started flying at-risk routes with 50s about three years ago, and today United has taken them all back under contract. Are you telling me United is taking back unprofitable flying?

 

[Canadair RJ]

It's profitable when SkyWest can operate those 50s cheaper than anyone else in the industry. Just ask United. SkyWest started flying at-risk routes with 50s about three years ago, and today United has taken them all back under contract. Are you telling me United is taking back unprofitable flying?

That very well may be, but I don't see it in writing and generally do take anything I see on these forums with a grain of salt. But, I'm saying why would AMR feed out 50 seat flying? Especially with them taking so much from the Eagle contracts, it's going to be cheaper to do it in house. Plus they don't want to grow that flying. Now, the 70+ seat flying...I could possibly see an argument for that. I'd expect the bottom feeders to win out on this as well. And FWIW, I did read an article a few months back saying SkyWest rejected two RFPs because they wouldn't be profitable.

 

[777forever]

Pinnacle post bankruptcy will have much more advantage to take airplanes and shed many older 200s that at maintenance problems. No one should see Pinnacle as all but gone. They will be a significant force to be reckoned with, and other DCI carriers should pay close attention.

I disagree. Haven't seen a peep of growth out of post bankruptcy Mesa. Maybe if the mainline carrier supplies the planes but I just can't see PNCL financing a large amount of RJs at a competitive rate vs a large stable company like SKW.

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[777forever]

That very well may be, but I don't see it in writing and generally do take anything I see on these forums with a grain of salt. But, I'm saying why would AMR feed out 50 seat flying? Especially with them taking so much from the Eagle contracts, it's going to be cheaper to do it in house. Plus they don't want to grow that flying. Now, the 70+ seat flying...I could possibly see an argument for that. I'd expect the bottom feeders to win out on this as well. And FWIW, I did read an article a few months back saying SkyWest rejected two RFPs because they wouldn't be profitable.

One was definitely the 12 Comair planes that went to GoJet and the other I think was the United Q400 flying.

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[CRJ puppy]

Pinnacle post bankruptcy will have much more advantage to take airplanes and shed many older 200s that at maintenance problems. No one should see Pinnacle as all but gone. They will be a significant force to be reckoned with, and other DCI carriers should pay close attention.

This is called "bait". Please don't take the bait. You will end up being someone's "prize".

 

[i fly boxes]

I bet gojet gets every single new 900 plus all of comairs. I bet they will be over 100 planes in 3 years

 

[777forever]

I bet gojet gets every single new 900 plus all of comairs. I bet they will be over 100 planes in 3 years

I bet they don't get any planes that aren't already owned by Delta. I bet they get Comairs 700s and 900s at best, nothing more.




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[Cpt Oveur]

I disagree. Haven't seen a peep of growth out of post bankruptcy Mesa. Maybe if the mainline carrier supplies the planes but I just can't see PNCL financing a large amount of RJs at a competitive rate vs a large stable company like SKW.

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Look at their quarterly statements regarding the DIP financing from Delta. No doubt they will be smaller than they are today, but now with big D's vested interest, I'm paying more attention to them.

 

[i fly boxes]

Even though Delta has provided pinnacle with so much financing, would they care about the loss if they were able to shed all 140 of their 200's in exchange for 70 900's? Im not a financial guy so i dont know. I also dont know if delta has to honor pinnacles asa in chapter 11 and we dont even know what the new asa is because its confidential. There are so many variables but the one thing that is certain is that no one can compete with how cheaply gojet can operate these planes and that is probably what delta cares about. And if gojet can't staff the planes properly then they have to pay penalties to delta so delta wins either way!

 

[777forever]

Look at their quarterly statements regarding the DIP financing from Delta. No doubt they will be smaller than they are today, but now with big D's vested interest, I'm paying more attention to them.

True, it will be very interesting to watch. I think it will come down to if Delta is going to purchase the 76 seater RJs themselves. If they do, I see Compass and GoJet getting the lion's share

If the RFP requires the regional airline to finance the jets SKW has little to no competition.

Same situation at AMR. And I doubt AMR will be financing regional jets themselves when they don't have to.

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[amcnd]

True, it will be very interesting to watch. I think it will come down to if Delta is going to purchase the 76 seater RJs themselves. If they do, I see Compass and GoJet getting the lion's share

If the RFP requires the regional airline to finance the jets SKW has little to no competition.

Same situation at AMR. And I doubt AMR will be financing regional jets themselves when they don't have to.

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I agree.. Plus they need to get out of ASA/SkY contracts..If they dont they will have those 200's flying tell 2020...(150 of them) How are they going to do this unless they trade up to 900's. they will want to spread the 200's that will be left, over 3-4 airlines. 30-45 each. This will keep the cost down as the "rate reset" will keep the airlines in check with each other.. The big tell tell will be who is behind the financing on the 70 new airplanes..... I don't think we will see anything for about 3 months... As Delta "strong arms" everyone with a RFP...

 

[XPOO]

Also, easily forgetable, is the fact that SkyWest, Inc. has in their contract with Delta a stipulation (during the sale of ASA) to do a certain percentage of all Connection flights.