ACA told to close BOS Base?

[Richard]

Received an interesting memo at Comair, saying basically, to expect ACA to move their DCI Dojet flying from BOS to CVG. Anyone reading the tea leaves on this announcement?

 

[shamrock]

ASA will be replacing ACA in BOS!!!!!!! WOO HOO!!!!


I know, I know. A guy can dream can't he?

 

[chperplt]

From the ACA board


January 26, 2004

To All ACA/DLC Employees,

Delta has informed us that they are undergoing a strategic planning effort and are reviewing both their operational efficiency and diversity of carriers. Consequently, they have notified us of the possibility that they may ask us to move our BOS operations to CVG. Delta has not made any immediate decisions about moving the operation, nor have they announced a timeframe for when such a decision might be made. If I were pressed to provide a timeline for transition, I would expect it to be this summer. But again, this is subject to Delta actually choosing to move forward with a consolidation. In the coming weeks, we expect to have an ongoing dialogue with Delta about both the likelihood of this realignment occurring and the timetable that would be necessary. The final decision, however, is Delta’s.

Aside from the BOS and CVG transition, I cannot give any insight or update to the constant questions about ACA’s status within the Delta Connection program. We all understand and recognize that the operation of Airbus aircraft by Independence Air has the potential to create a conflict within the Delta organization between Delta and its ALPA agreement. This is an issue that Delta will have to resolve internally. At this point, Delta Connection operations will continue to run normally.

The last few years have presented us with many uncertainties. While this has been uncomfortable at times, we’ve always worked together to maintain the integrity of our operations and our relationships with our partners. We will continue to do so here. Thanks for all your hard work. When final decisions are made by Delta, we will keep you apprised.

Sincerely,

Tom Moore
President and Chief Operating Officer

 

[Wanderer]

tea leaves!

Who actually owns the DoJets ACA is flying for Delta?

 

[House_X]

When is that d@mn rolling bid coming out...we need to get those "buses" on the property...FAST!

 

[SaladShooter]

ACA owns the leases on the DoDo's.

 

[FlyComAirJets]

I imagine the Delta lawyers scoured the agreement between ACA and themselves and determined that yes, they can yank their chain in this manner. What next, tell ACA to move the Dorniers to Salt Lake City or Los Angeles? Can Guam be far behind?

They are just raising the ante IMHO.

 

[N813CA]

Is it at all possible that they are moving them to CVG so when they transfer the aircraft to another carrier than ACA it will be easier?

 

[SaladShooter]

It makes no difference where they want us to fly them. We are paid on a cost plus system, what that means is Delta pays all our costs and then gives us a profit margin on top of that. So if they want us to move, it costs our company little to no money to accomplish it. Now the cost plus system is based on last years costs so there is a lag time before we recover our costs. But they can move us to Guam and we still make a profit.

 

[FlyComAirJets]

Let me see if I understand this, does that mean that Delta has to pay for any additional costs such as relocation of employees as part of cost plus? Or is that part of the following year's adjustment? How are fuel price spikes handled? Let's say they do move you to Guam, for example, would they be responsible for paying a contract termination fee or would you be stuck there?

Simply put, is this some legal maneuvering on DAL's part to inflict financial harm on a fledgling Independance Air?

 

[46Driver]

I would be more inclined to think that this has something to do with increasing the reliability on ACA's Dorniers, especially inlight of the recent appalling engine problems. To quote the movie "The Great Escape", Delta is putting all of their rotten eggs in one basket.
That's humor for anyone who gets bent out of shape....

 

[FlyComAirJets]

... with the added benefit of inflicting a little pain in the process. Welcome to the bigs, boys and girls!

 

[Wanderer]

Is it at all possible that they are moving them to CVG so when they transfer the aircraft to another carrier than ACA it will be easier?

thats what I was thinking...and what Comair Management is thinking.

 

[Tim47SIP]

Figure this one out?

What would Delta gain by moving the entire ops to CVG. Since it is fee for departure, what would it matter unless ACA will not be flying those aircraft out of Boston at all. Additionaly, why would such a move even be talked about if ACA is getting the 319/320 busses. Maybe the Ryan busses won't count as they won't be on ACA's certificate. Could be a year or so before ACA starts flying theirs which could keep them in the DCI family a little longer. Or maybe Delta has found a way to bypass DALPA's scope using a grandfather clause. Guess we just have to wait and see.

Delta has been fairly quiet lately with the negotiations concerning DALPA. Something is brewing.

 

[FlyComAirJets]

It is all one big financial chess game. On the one hand you have a fledgling Independance Air starting up in Delta's backyard. Having seen two successful startups, JetBlue and The Artist Formerly Called Value Jet, eating their lunch, I can't imagine they are too thrilled to see another successful upstart airline. So after careful review of the connection contract, they would like nothing more than to yank ACA's chain as much as possible. Bringing the DoJets to CVG would increase the "hassle factor" to say the least and probably impose a financial burden on them that might be difficult to recover through Cost Plus.

Furthermore, moving the flying to Cincinnati allows a quick transition for another regional to pick up the flying (Comair, perhaps?) At the very least, that would increase Delta's bargaining postion during the endgame.

As to the prospect of the Delta pilots' scope clause forcing a termination agreement, it hasn't happened yet. Not to say that it wont but I do not think that management is greatly concerned about it. During Regional Randy's infamous fireside chat, he indicated that it would not be that difficult for Mesa to pull some legal sleight of hand to bypass the fact that they operated CRJ-700/900s and bid on the new flying. Anything is negotiable, after all.

Check!

 

[46Driver]

I still think the move is due to maintenance consolidation. It is easier for both Delta and ACA to have all 33 DoJets at CVG and run routes through Boston than it is to have 24 jets at CVG and 9 at BOS and thus have the maintenance and the crews split. We have a shortage of both engines and Dornier First Officers so having one big pool alleviates both problems.

Also, Delta is probable less likely concerned with Independence Air (it is directly targeted at USAir and UAL) than it is in assuming the DoJet leases, maintenance, crew training, and buying A LOT of Pratt & Whitney 306-B's.

Just my opinion.

 

[SaladShooter]

The cost plus system allows the DELTA to move ACA from domicle to domicle but DELTA must pay for the cost. To set up a base will cost little or no money on ACA's part. When we moved from LGA to CVG, DAL paid all the costs associated with the move. Now that said their is a hassle with moving bases that DAL does not pay for. We also have a min usage clause that states if the usage of the aircraft falls below a certain level ACA gets paid for the min usage number not the actual usage, thus ACA gets a gauarenteed profit on a certain usage of aircraft.

I would say the move has to do with MX reasons and usage issues. DAL has bigger things to worry about right now than ACA DC.


So if they move us to Guam we do not pay for the move, in addition we also get paid for a min usage of flight hours by DAL, if we fly or not.

The only way out is if DAL cancels and takes the airplanes per the contract or DAL files BNK and leaves us holding the bag!

 

[Guam360]

Hey leave Guam out of this....none of you would like it there anyway!

Guam360

 

[Diesel]

rumor was a couple of weeks ago that the chief pilot of aca in CVG said it was going to happen March 1st.

Frankly unless I see it in writing I don't believe it.

The Dojet out of BOS does a really good job filling btv, pwm, bgr all the routes the saaaaab used to do.

We shall see though.....

 

[NoName]

I still think the move is due to maintenance consolidation. It is easier for both Delta and ACA to have all 33 DoJets at CVG and run routes through Boston than it is to have 24 jets at CVG and 9 at BOS and thus have the maintenance and the crews split.

riiiiiight....open your eyes man. aca will be out as a delta conn carrier and uex carrier by fall of 04.