DAL Regionals... "The Strong Will Survive"

[777forever]

Title have been "The Cheapest Will Survive"
http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9

Richard Anderson

The great piece here is between Compass and Mesaba you have the very best operators in cost structure. So, our goal with our contract carriers is to bring their margins down over time to more accurately reflect the overall margins in the industry. And Compass and Mesaba will give us that ability to shift flying from contract carriers to owned carriers at much better CASM.
Edward Bastian

It’s a work-in-process, so it hasn’t got that much attention. But between Compass and Mesaba there exists a holding company and they are actually already between those two carriers sharing functions, and we would expect that that would continue and would expand as times goes on.

 

[Texx]

Title have been "The Cheapest Will Survive"
http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9

Richard Anderson

The great piece here is between Compass and Mesaba you have the very best operators in cost structure. So, our goal with our contract carriers is to bring their margins down over time to more accurately reflect the overall margins in the industry. And Compass and Mesaba will give us that ability to shift flying from contract carriers to owned carriers at much better CASM.
Edward Bastian

It’s a work-in-process, so it hasn’t got that much attention. But between Compass and Mesaba there exists a holding company and they are actually already between those two carriers sharing functions, and we would expect that that would continue and would expand as times goes on.

Delta Air Lines, Northwest Airlines (DAL)
Merger Call
April 15, 2008 9:00 am ET

I think things change at DAL by the minute. Old news.

 

[Speedtape]

Title have been "The Cheapest Will Survive"
http://seekingalpha.com/article/725...thwest-airlines-merger-call-transcript?page=9

Richard Anderson

The great piece here is between Compass and Mesaba you have the very best operators in cost structure. So, our goal with our contract carriers is to bring their margins down over time to more accurately reflect the overall margins in the industry. And Compass and Mesaba will give us that ability to shift flying from contract carriers to owned carriers at much better CASM.
Edward Bastian

It’s a work-in-process, so it hasn’t got that much attention. But between Compass and Mesaba there exists a holding company and they are actually already between those two carriers sharing functions, and we would expect that that would continue and would expand as times goes on.

They also said recently, post merger, any contraction that was needed would most likely come from the wholly owned carriers since they could directly control that as opposed to the contract carriers that were working under outside agreements.