DAL/Expressjet NO More

[Texx]

Anderson knows exactly what he is going. I wouldn't feel very comfortable at any airline that isn't wholly owned. How much did skywest pay for ASA. I think delta took good old jerry for a couple 100 mil or so. Neither skywest or asa will gain anything but comair, compass or mesaba will have the net gain. Maybe not in LA or SLC but in the total delta picture. Thats how anderson plays the game. He is in control and wants total control.

Well have you looked the ASA DCI agreement?

Two items. At the end of 2007, what ever the % of flights flown out of ATL will be guar. out of ATL.

Item two. And whom do you think has the lease on the C gates? Can you say ASA.

Mr. Anderson was not here when DAL enetered BK so he wasn't in control when the deal was made.

http://www.sec.gov/Archives/edgar/data/793733/000110465905043902/a05-16042_1ex1d2.htm

 

[USCtrojan]

Well have you looked the ASA DCI agreement?

Two items. At the end of 2007, what ever the % of flights flown out of ATL will be guar. out of ATL.

Item two. And whom do you think has the lease on the C gates? Can you say ASA.

Mr. Anderson was not here when DAL enetered BK so he wasn't in control when the deal was made.

http://www.sec.gov/Archives/edgar/data/793733/000110465905043902/a05-16042_1ex1d2.htm

Don't ya just hate it when logic slaps you upside across the face?

Trojan

 

[twott driver]

(6) In the event of an ASA For Cause Termination Event, ASA agrees to use commercially reasonable efforts to assign all of its rights in the “ASA Atlanta Gates” (as defined below) to Delta promptly following such termination.

Seems those gates aren't quite as secure a bargaining chip as most think. We get the ax, we've got to give the gates back.

 

[Bako Cap]

(6)In the event of an ASA For Cause Termination Event, ASA agrees to use commercially reasonable efforts to assign all of its rights in the “ASA Atlanta Gates” (as defined below) to Delta promptly following such termination.

Seems those gates aren't quite as secure a bargaining chip as most think. We get the ax, we've got to give the gates back.

It is not a "no cost" assigning of the gates. It just means that Delta gets first shot at the forced sale (commercially reasonable effort) of the "ASA Atlanta Gates" if the contract is terminated so Delta can run seamless DCI operation out of ASA's gates with a new carrier. This provision was written so that ASA/SkyWest Inc. will not gouge Delta on the sale of the gate rights upon termination of the contract. It is one of the many costs that Delta would incur if the contract were cancelled.

 

[Bushhatesyou]

Branded will close Sept 1st as well.. Announcment should come tomorrow.

 

[Nevets]

Its obvious who the SLC flying is going to be allocated to. The press release specifically only mentions SLC flying as being "reassigned". I wonder who will take over LAX flying?

I was under the impression from the press release and the media Q&A that ONLY XJT's 15 departures a day in SLC would be replaced by another DCI carrier.

 

[Nevets]

If Skywest were to furlough while shifting airplanes to ASA....Those pilots need to be put on the ASA list....There is absolutely no reason to furlough at one while expanding the other....ALPA or no ALPA...that isn't right....

We have a chance to do what ALPA can't seem to do.....A single list at Skywest Inc....and this could be the start of it.....

Didn't ALPA put language in your current contract to do a just that but with seniority and longevity?

 

[Nevets]

From the XJT press release today....

"With the losses we were experiencing from our Delta pro-rate flying combined with our ability to return aircraft to the lessor, this termination of service is in the best interest of our company," said Jim Ream, ExpressJet president and chief executive officer.

Jerry would have never done this deal on a "pro-rate" basis....It's a money loser....XJT did it to keep the planes flying that it lost from CAL....better to lose less money with a pro-rate deal with DAL then to park the airplanes....

Jerry doesn't sign money losing deals....XJT low balled the RFP.....

The original deal was a 10 aircraft CPA. The pro-rate aircraft were added after the fact. The loses on the pro-rate flying were so great that it consumed any money made from the 10 CPA aircraft. They were two separate deals that DAL wanted out of.

 

[Nevets]

Expressjets stock at $.49 and you could have $3.50 three weeks ago. Ouch!

You know your audience here are mostly pilots and not XJT stock holders right?

 

[dojetdriver]

The original deal was a 10 aircraft CPA. The pro-rate aircraft were added after the fact. The loses on the pro-rate flying were so great that it consumed any money made from the 10 CPA aircraft. They were two separate deals that DAL wanted out of.

Thats funny, that's pretty much what I told him in post #61.

 

[sweptback]

Didn't ALPA put language in your current contract to do a just that but with seniority and longevity?

Yeah, it's pretty sad that either he doesn't know his own contract or that he's lying to prove a point.

If SkyWest, Inc. moves airplanes in either direction from SkyWest to ASA (or vice versa), after the 4th (in a year) pilots come with the planes.

And, more importantly, the 5th airplane can't come until a seniority list integration is worked out. Oh, and ASA can't force anybody to transfer to SkyWest, and they also can't furlough anybody hired before 11/07, so they're pretty much stuck in that regard.

 

[dojetdriver]

And, more importantly, the 5th airplane can't come until a seniority list integration is worked out. Oh, and ASA can't force anybody to transfer to SkyWest, and they also can't furlough anybody hired before 11/07, so they're pretty much stuck in that regard.

Now that would be some funny crap to see. SkyWest trying to work out an SLI with ASA. Especially since that was show stopper when they were trying to by XJT.

 

[Nevets]

Now that would be some funny crap to see. SkyWest trying to work out an SLI with ASA. Especially since that was show stopper when they were trying to by XJT.

Their management pretty much said that that language in the ASA contract pretty much kills anything that would trigger it. It is "unpalatable" to them.

I just find it weird that their views on unions are so entrenched that it overrides any business decisions that actually make sense, like the integration of ASA/SKW and the buyout of XJT.

 

[XPOO]

Their management pretty much said that that language in the ASA contract pretty much kills anything that would trigger it. It is "unpalatable" to them.

I just find it weird that their views on unions are so entrenched that it overrides any business decisions that actually make sense, like the integration of ASA/SKW and the buyout of XJT.

Yes, because keeping them seperate is definitely not working. Instead of being the second most profitable airline in the US last year, they could have been number one, right?:smash:

 

[Nevets]

Yes, because keeping them seperate is definitely not working. Instead of being the second most profitable airline in the US last year, they could have been number one, right?:smash:

There is a cost at not integrating the two airlines. Lets face it, there are synergies to be gained with an integration. They may not have been number one but they may have been closer to it. Don't take things so personal or to the heart.

 

[XPOO]

There is a cost at not integrating the two airlines. Lets face it, there are synergies to be gained with an integration. They may not have been number one but they may have been closer to it. Don't take things so personal or to the heart.

These synergies are: ?

 

[Nevets]

These synergies are: ?

Think of all the duplication it takes to run two separate airlines.

 

[XPOO]

I understand the duplication, but it also costs a lot to move an entire operation from ATL to SGU.

 

[Nevets]

I understand the duplication, but it also costs a lot to move an entire operation from ATL to SGU.

Its not even just that, although that would only be one time cost for continued savings going forward. Hell, they were willing to spend a couple hundred million dollars to purchase a whole airline just recently. But just look at the reason why I brought it up in this thread: the transfer of aircraft/pilots/infrastructure and resources to put those assets where they are needed (ATL/SLC/LAX) quickly and without being encumbered with contracts and leases, etc.