Delta Connection Flying - 100 Aircraft Reduction

[JonnyKnoxville]

The Delta conference call had that 15 Saabs and 35 fifty seat regional jets will leave the fleet this year with 50 regional aircraft leaving the Delta Connection fleet in 2011.

Anderson also said something about having good flexibility in the regional contracts in the next 18-24 months to pull down these aircraft.

He also said that the fifty-seat flying was by far the least profitable flying Delta has.

 

[79%N1]

I'm guessing all 85 RJ's will come from ASA. Heck, maybe even Comair with a few. We seem to be the whipping boys for the "New Delta"! (Much to the Glee of Gen. Lee)

 

[amcnd]

Who's contract is up in the next 18-24 months.. I don't think its ASA's???

 

[Draginass]

This is just the start. The 50 seat airplanes are rapidly becoming obsolete in all but a few very high-yield markets. If oil spikes to $100, the Mojave is going to be littered with these 50 seat Budweiser cans.

 

[bri5150]

The Delta conference call had that 15 Saabs and 35 fifty seat regional jets will leave the fleet this year with 50 regional aircraft leaving the Delta Connection fleet in 2011.

Anderson also said something about having good flexibility in the regional contracts in the next 18-24 months to pull down these aircraft.

He also said that the fifty-seat flying was by far the least profitable flying Delta has.

Careful now. Does this mean 15 MORE Saabs and 35 MORE fifty seaters than scheduled this year? Or is that the totals from the whole year including the ones that have already been lost this year?

 

[JonnyKnoxville]

I think Comair has quite a few more to be returned to the leasing companies. Mesaba's entire fleet of Saabs will be gone. I am not sure how many more that is though? The big question is where the rest come from. Freedom and the lawsuit...I doubt it. RA spoke very matter of fact on the reduction and the Freedom deal is up in the air with the lawsuit.

My guess is Chautauqua. I think a deal could have been worked out with Bedford to get rid of the Chautauqua flying with for Delta. Bedford wants out of the 50 seat market and so does Delta. Also, I know there is a option to get out of that contract (albeit with an early-out penalty) from this month going forward, but that is just my opinion.

I thought ASA was locked up with Delta for like a million more years or so.

 

[Cpt Oveur]

Looks like Uncle Rico will pony up 20 50 seaters if it means grabbing 10 900s from someone. Anyone guesses as to who they are currently flying for? Pinnacle already flies in the northeast with the 900s in addition to Comair. I see Comair 900s transferred to ASA while loosing 20 more 50 seaters. Pinnacle will fly the routes in the northeast and CVG that Comair already does, and ASA will go back to flying the 900s on routes out of ATL.

 

[JonnyKnoxville]

Careful now. Does this mean 15 MORE Saabs and 35 MORE fifty seaters than scheduled this year? Or is that the totals from the whole year including the ones that have already been lost this year?

Nothing to be careful about. He stated it in the conference call and I am repeating it. I do not know what is included if anything and he did not say. If planes have already been parked since January, I could only ASSUME that he included those in his numbers to investors.

 

[Tarzan]

I thought ASA was locked up with Delta for like a million more years or so.

7,265.45 Years to be a little more exact.

 

[Cpt Oveur]

Who's contract is up in the next 18-24 months.. I don't think its ASA's???

It all depends on ASA getting their costs in line. ASA still needs to become the second cheapest DCI carrier (of the original DCI carriers at the time this thing was inked) by 5 years, which oddly enough is THIS YEAR. Do you think Delta is going to sit idly by if this goal isn't reached? Do you really?