Comair to lose Aircraft in Chap 11??

[chperplt]

Somebody told me, Comair might be sold off plane by plane.

Why would they do that when they can dump as many as they want right now??? It's a little thing called bankruptcy....

 

[DrunkIrishman]

Wacopilot-

Not true. The Skywest/ASA deal assured Skywest a feed contract in or out of bankruptcy which would be honored in court. As far as every other carrier, I think Ted Nuggent said it best, "It's a free for all!"

 

[chperplt]

Not true. The Skywest/ASA deal assured Skywest a feed contract in or out of bankruptcy which would be honored in court. As far as every other carrier, I think Ted Nuggent said it best, "It's a free for all!"

I think you're (somewhat) wrong here... I believe the contract stated that Delta would have to pay Skywest a good deal of money if they changed the contract in CH 11. It doesn't assure Skywest a contract.

 

[FDJ2]

Wacopilot-

Not true. The Skywest/ASA deal assured Skywest a feed contract in or out of bankruptcy which would be honored in court.

Contracts signed outside of bankruptcy are renegotiable inside of BK. I believe the only assurance SKYW got outside of BK was that it would get to keep the balance of what is owed for ASA.

Expect to see DAL go after all contracts, except senior management's, while in court. The fee paid for each departure will be renegotiated and that will have a trickle down effect on all contract employees.

Ultimately, where else will the contract carriers go to provide their small jet lift? DAL? UAL? NWA? US? There are 100s of RJs that will have no place to go if it were not for the contracts offered by these bankrupt carriers. The contract carriers that can successfully negotiate in BK will survive, the ones that can't will be parking jets.

Unless Skywest wants to see their jets parked in the desert, they'll have to play ball.

These a troubled times and no one is immuned.

 

[FDJ2]

I think you're (somewhat) wrong here... I believe the contract stated that Delta would have to pay Skywest a good deal of money if they changed the contract in CH 11. It doesn't assure Skywest a contract.

Close, actually Skywest just doesn't have to pay DAL the additional $125M it owes DAL for the acquisition.

"SkyWest shall be entitled to retain $125 million if Delta does not affirm the ASA or SkyWest Delta Connection Agreements in a Chapter 11 proceeding prior to the fourth anniversary of the closing of this transaction."

 

[Rick James]

Contracts signed outside of bankruptcy are renegotiable inside of BK. I believe the only assurance SKYW got outside of BK was that it would get to keep the balance of what is owed for ASA.

Expect to see DAL go after all contracts, except senior management's, while in court. The fee paid for each departure will be renegotiated and that will have a trickle down effect on all contract employees.

Ultimately, where else will the contract carriers go to provide their small jet lift? DAL? UAL? NWA? US? There are 100s of RJs that will have no place to go if it were not for the contracts offered by these bankrupt carriers. The contract carriers that can successfully negotiate in BK will survive, the ones that can't will be parking jets.

Unless Skywest wants to see their jets parked in the desert, they'll have to play ball.

These a troubled times and no one is immuned.

You sir, are right on the money. We at SKW (Inc.) could lose out on all the Delta feed technically speaking. I wonder what the fine print says about # of AC to flown to still retain the 125 mil?

 

[bvt1151]

The deal signed with Skywest/ASA a week ago was just passed by the bankruptcy judge yesterday.

 

[chperplt]

The deal signed with Skywest/ASA a week ago was just passed by the bankruptcy judge yesterday.

Passed meaning what?

Are you saying that Delta asked the judge to keep the contract as is, and he agreed? I have a hard time believing that on many levels.

Delta filed on Wednesday.. Do you really think the judge has heard any arguments on what contracts are going to be kept and what aren't on day 1?

 

[RJ Bum]

These were the first day motions.

http://www.deltadocket.com/CourtFiledDocuments/firstDayMotions-Orders.html

 

[bvt1151]

Passed meaning what?

Are you saying that Delta asked the judge to keep the contract as is, and he agreed? I have a hard time believing that on many levels.

Delta filed on Wednesday.. Do you really think the judge has heard any arguments on what contracts are going to be kept and what aren't on day 1?

Don't shoot the messenger. Its in writing in the docket.