ASA PFN station no more.

[SpauldingSmails]

I think it's Comair for now, RHS when the name change goes into effect in the fall...

RHS = Red Headed Stepchildren?

 

[sinkrate]

If everyone hasn't figured this out I will spell it out for you. Most of us really feel for our co-workers but this is just the beginning of even bigger changes for us.

Delta is fundementaly changing the busness plan/model of the regionals that contract with them. Fairly quickly the majority of the ground handling will go to either DGS or the new RHS. The only service Skywest, ASA, Pinnacle, Compass, and Mesaba will provide will be contract lift. Essentially, Delta is reducing regionals to ACMI (Aircraft Crew Maintence Insurance) providers. With the loss of the ground handling contracts regionals will lose a significant amount of revenue that is also a significant source of 'free cash flow'. In the future the only services regionals will provide for Delta is contract flight crews and mechanics, and in some cases also aircraft. This accomplishes two thing for Delta. First - it brings a high margin business back to their books. Second - it makes it a lot easier to to do whatever it is they are going to do with us. A station, PFN lets say, won't know the difference between a PCL or Skywest aircraft, and won't care about it either.

When the consolidation of ground handling into RHS is mostly complete the real business of mergers, hub closures, contract cancellations, etc will be at hand.