Delta Air Lines Orders Up to 70 Bombardier CRJ900 NextGen Jetliners

[HA25]

How the F do you know if I have a chance? LOL!

For all you know I could be an F-22 Wing Commander with 10,000 hours and a PHD in Human Factors.

or as in the case of the what I saw get hired in early2008 when I interviewed and didn't get hired... a gal with 2000TT and mostly in Caravans, flying VFR in Africa..

 

[trip]

How the F do you know if I have a chance? LOL!

For all you know I could be an F-22 Wing Commander with 10,000 hours and a PHD in Human Factors.

Hope that wasn't you that just ground the tail off that F22 in Hawaii?

 

[www.]

Delta announced an order for 40 Bombardier CRJ900s with options for 30 more, a move aimed at replacing smaller, less-efficient 50-seat regional jets and a big step toward the overall goal of flying larger planes to improve efficiency and customer satisfaction, Richard said. Bombardier will take back 50-seaters as part of the deal.

“It’s very important for us because we have too many (50-seaters),” he said. “By doing this transaction we were able to take 60 more of them out.”

 

[FOrever85]

This statement by Delta management is a good indicator of a couple of things
1) They aren't going Gojet (Thank god) Which also means we do not need to take a contract in line with theirs. It is a two horse race between 9E and XJT/ASA
2) The current 9E situation is not like Comair (yet)
I think there are two scenarios that will play out.

I will tweak the math from an earlier thread to show how well Delta management is manipulating this situation. In the earlier thread you wondered how a TA would pass if only 1500 pilots would be employed at 9e. As of August there were 2571 pilots and attrition is running 40/month, so let's say there are 2450 pilots left today. Delta was very careful in stating they would exchange 40 900's for 60 200's. Why not tell the truth? They are getting rid of way more than just 60.
Answer: to pass Pinnacle's TA.
Now 9e management/ALPA can sell a TA that will secure 80 200's and 81 900's which would keep 1950 pilots on property (XJ has always staffed about 12 pilots/plane) Alpa can go back to the pilots and say "look we are better than Gojets and 1900ish of you will still have a job" (Not true but it is a neat gimmick)
Maybe we sign, maybe not. I think given those numbers it would pass. Then Delta gets rid of at least 40 more 200's. If we vote it down, we go get in line behind Comair guys at the next job fair.

Then Delta can whipsaw the remaining 30 900's to try and get ASA/XJT to take cuts to match 9e and dump the number of 200's down to the magic 125 number.

Or the other way around, they give 40 900's to XJT to scare the crap out of 9e to take whatever management gives out.

Either way not a great scenario for anyone at the regionals.

 

[Oakum_Boy]

Things are only dire because Peaknuckle ran their outfit into the dirt. Not sure why GoJets is so bad considering the cleaning the 9E guys and gals are about to get. Like it or not, you're the new Mesa/Geauxjets.

 

[Ops check good]

You probably won't get the chance. But if you do, that SkyWest RJ model will be a classic, maybe worth a lot of money, since there will be so few RJs left by then. As far as who I am, I'm easy to see in the terminal. I'm the tall guy (6'5) that weighs about 140lbs. I look like Learch.



Bye Bye---General Lee

Skywest RJ's are going to be around for awhile and.............. 6'5" @ 140lbs..... are you dying?

 

[Clutch]

Skywest RJ's are going to be around for awhile and.............. 6'5" @ 140lbs..... are you dying?

AIDS is not something you should joke about...

 

[AntiJedi]

1) They aren't going Gojet (Thank god) Which also means we do not need to take a contract in line with theirs. It is a two horse race between 9E and XJT/ASA

Here, I fixed it for you:

"It is a two horse race between 9E and SKYW, Inc."

 

[CFIT]

Skywest RJ's are going to be around for awhile and.............. 6'5" @ 140lbs..... are you dying?

The only protein he gets is from his boyfriend.

 

[amcnd]

A couple post talk as if 9e is cheaper then SkyWest... If that was the case then 9e would be able to keep the 16 aircraft going to SkyWest... I don't think the first 40 will go to SkyWest.. But 9e better watch out for a left hook from GoJet or Mesa....

 

[BOX OFFICE]

6'5" @ 140lbs..... are you dying?

General Lee is female. Duh.

 

[FOrever85]

A couple post talk as if 9e is cheaper then SkyWest... If that was the case then 9e would be able to keep the 16 aircraft going to SkyWest... I don't think the first 40 will go to SkyWest.. But 9e better watch out for a left hook from GoJet or Mesa....

The 16 900's were part of the deal for Skywest to park 66 of their 200's. (25 of which skywest owns) It has nothing to do with operating cost, the game is parking 50 seaters. It says right in the announcement the new 900's are there to park and swap/get rid of 200's.

The only people left with Delta owned 200's are 9E and Expressjet.

 

[JustaNumber]

Latest rumor comes from a source in Delta's finance & accounting department--reliability unknown. Both Pinnacle and GoJets are in major financial trouble. Their financial plans were based on low-ball bids to begin with, but performance penalties have whittled their compensation down to unsustainable levels. Pinnacle's bankruptcy judge will not approve their plan to gut contracts, which he sees as financially unrealistic. Both Pinnacle and Gojets are probably unviable long term. The reason Delta sunk the $77 million or whatever into DIP financing for 9E had nothing to do with love or even whipsaw--Delta would have been fined by the DOT if service had been cut on so many routes at once (not to mention their own revenue losses they would have encountered). They just needed Pinnacle to survive short term for Delta's own financial well-being.

Supposedly ExpressJet will see 23 new 900s next year. American Eagle flying has a very good chance of massive expansion. Combining SkyWest and ASA may happen, but legacy Expressjet may be left swinging in the breeze. Supposedly their contract expectations are unreasonable, and the pilot group's militancy makes it a difficult cultural fit with the other two groups. They may very well be "Comairized," as "this isn't 1999 anymore."

I have no idea if any of this is credible--just passing it along.

 

[777forever]

Latest rumor comes from a source in Delta's finance & accounting department--reliability unknown. Both Pinnacle and GoJets are in major financial trouble. Their financial plans were based on low-ball bids to begin with, but performance penalties have whittled their compensation down to unsustainable levels. Pinnacle's bankruptcy judge will not approve their plan to gut contracts, which he sees as financially unrealistic. Both Pinnacle and Gojets are probably unviable long term. The reason Delta sunk the $77 million or whatever into DIP financing for 9E had nothing to do with love or even whipsaw--Delta would have been fined by the DOT if service had been cut on so many routes at once (not to mention their own revenue losses they would have encountered). They just needed Pinnacle to survive short term for Delta's own financial well-being.

Supposedly ExpressJet will see 23 new 900s next year. American Eagle flying has a very good chance of massive expansion. Combining SkyWest and ASA may happen, but legacy Expressjet may be left swinging in the breeze. Supposedly their contract expectations are unreasonable, and the pilot group's militancy makes it a difficult cultural fit with the other two groups. They may very well be "Comairized," as "this isn't 1999 anymore."

I have no idea if any of this is credible--just passing it along.

Good info. Sounds like XJT will get 23 900s and Skywest 17. Looks like SKYW 's plan to survive then thrive is being executed flawlessly.

The only info that sounds shaky is the L-XJT stuff. As I understand it all both sides are demanding is no concessions, and that PBS system is the only real issue left. I also heard the company was the one that slowed negotiations because it wanted to see results/effects of the Eagle and PNCL bankruptcy TAs


Sent from my HTC One X using Tapatalk 2

 

[BOX OFFICE]

Supposedly ExpressJet will see 23 new 900s next year. American Eagle flying has a very good chance of massive expansion. Combining SkyWest and ASA may happen, but legacy Expressjet may be left swinging in the breeze. Supposedly their contract expectations are unreasonable, and the pilot group's militancy makes it a difficult cultural fit with the other two groups. They may very well be "Comairized," as "this isn't 1999 anymore."

You heard this from a Delta accountant?! Wow! those accountants are amazing!

 

[HA25]

Well, I've got a lot of former ASA friends who will be happy to hear this news.

 

[amcnd]

All just a guess, but if 9E does'nt get any of the 40. Im guessing they will still take the brunt of the 60 200's going away.. Not good... Maybe we will know tomorow...

ATLANTA, Dec. 6, 2012 /PRNewswire/ --

WHAT:
Delta Air Lines (NYSE: DAL) invites stockholders, the investment community and the media to listen to a live webcast of its Investor Day Conference from 8:30 a.m. to 12:30 p.m. EST on Dec. 12, 2012.

WEB ADDRESS:
The conference call can be accessed via the Internet at http://www.delta.com/content/www/en...-relations/analyst-coverage-and-webcasts.html

SPECIAL NOTICE:
An online replay will be available at the same site shortly after the webcast is complete until Jan. 18, 2013. The presentation materials will be made available Dec. 12 through a Form 8-K filing with the SEC and on www.delta.com.

 

[JustaNumber]

You heard this from a Delta accountant?! Wow! those accountants are amazing!

I'm sure its all office gossip. Whether any of it has any validity is questionable, but I do know that the Comair liquidation first became known through the grapevine, while all the official sources were denying it. Just sayin'...some of it might be true.

 

[777forever]

Skywest inc/Xjt doesn't need help financing the aircraft. Delta is buying these so they can give them to someone else who can't get that financing.....Otherwise no reason to carry that debt on their books

Incorrect, Delta is used the purchase as leverage to work a deal to get the 50 seaters they own off their books. It's a debt neutral deal as Bombardier will take back 60 CR2s, and if Delta exercises their 30 options Bombardier takes back another 50 CR2s off Delta's books.

Delta management explained this on their last earnings call, I'll find the quote shortly.

Sent from my HTC One X using Tapatalk 2

 

[777forever]

Skywest inc/Xjt doesn't need help financing the aircraft. Delta is buying these so they can give them to someone else who can't get that financing.....Otherwise no reason to carry that debt on their books

Operator

We’ll take our next question from Michael Linenberg with Deutsche Bank.

Michael Linenberg - Deutsche Bank
Good morning, everyone. Two questions here. When we talked I guess it was Paul, you had talked about the fleet restructuring, Richard yourself as well, you talked about bringing on the 717s and the 737-900s. You also get the ability to add more, larger regional Jets, the 76-seaters and I believe you go from, I want to say, 255 up to 325. Are those airplanes going to be sourced from your current partners? Or will Delta be in the market? Will you be out there either putting those airplanes on your balance sheet or signing the master leases? And what’s the timing on that?

Ed Bastian
Well, we are in the process now of running a competition between Bombardier and Embraer and our expectation is that time around, by the end of the year we’ll have a pretty good idea of what direction we’re going to go. Our goal is to use that to take out a significant number of 50-seaters.

So we will look at all alternatives in terms of which balance sheet they end up on, the regional partner on Delta but when you think about it from a total liability perspective, what our goal is, is to take out the debt and significant costs that are part of owning all these 50-seaters. So when you think about say bringing in 40 76-seaters and taking out 60, 50-seaters, there’s a really good balance sheet and CASM trade there. So when you think about, regardless of where it ends up in terms of the balance sheet, we want to take a significant amount of debt off, to the extent we put that on, by buying 76-seaters.

http://seekingalpha.com/article/947411-delta-air-lines-ceo-discusses-q3-2012-results-earnings-call-transcript?part=single