kngarthur
Well-known member
- Joined
- Oct 26, 2004
- Posts
- 348
Last Thursday, Delta had its first big court hearing. In addition to getting their $2.2 billion DIP
loan approved, Delta received bankruptcy court approval to affirm the ASA and Skywest
Connection Carrier Agreements. What does this mean? First it means that Skywest’s existing 56
CRJ-200 aircraft in SLC are secure from any modifications. Also, ASA’s 104 CRJ-200, 35 CRJ-
700 aircraft and 37 growth CRJ-700 shells are now firm and non-cancelable. The affirmation now
ties up over 50% of the current Delta Connection capacity. That leaves Chautauqua, Mesa and
Comair as the outlet for any surplus small jet units that will be removed from the network. Thus
far it looks like Comair is losing aircraft; however, their management is working hard to restructure
their high labor costs to “re-tool” Comair into a much lower cost regional carrier. They are
seeking labor rate and work rule concessions that will lower their employment costs below what
Mesa currently pays. And Mesa rates are already 5%-7% below our current employment costs.
loan approved, Delta received bankruptcy court approval to affirm the ASA and Skywest
Connection Carrier Agreements. What does this mean? First it means that Skywest’s existing 56
CRJ-200 aircraft in SLC are secure from any modifications. Also, ASA’s 104 CRJ-200, 35 CRJ-
700 aircraft and 37 growth CRJ-700 shells are now firm and non-cancelable. The affirmation now
ties up over 50% of the current Delta Connection capacity. That leaves Chautauqua, Mesa and
Comair as the outlet for any surplus small jet units that will be removed from the network. Thus
far it looks like Comair is losing aircraft; however, their management is working hard to restructure
their high labor costs to “re-tool” Comair into a much lower cost regional carrier. They are
seeking labor rate and work rule concessions that will lower their employment costs below what
Mesa currently pays. And Mesa rates are already 5%-7% below our current employment costs.