Delta RFP press release

[John Pennekamp]

Delta Continues Transformation Plan With Request for Proposal for Competitive Regional Flying
Tuesday August 22, 11:00 am ET
RFP will allow Delta to continue building a cost-competitive network

ATLANTA, Aug. 22, 2006 (PRIMEZONE) -- Delta Air Lines today issued a request for proposal (RFP) for some of its regional jet service as part of its efforts to build a cost-competitive network in connection with its restructuring process. The RFP includes flying opportunities for up to 143 regional jets, which relates to the portion of Delta's Connection carrier network that has not been affirmed in Delta's Chapter 11 proceedings, including flying currently performed by Comair, Chautauqua, Shuttle America and Freedom Airlines.

``This is part of Delta's commitment to bring our costs to market, provide greater efficiency and build a profitable network,'' said Shawn Anderson, vice president of Supply Chain and Delta Connection. ``To successfully restructure, Delta must continue to achieve market-competitive costs in every aspect of its business, as the company has done thus far through the sacrifices of our employees and other stakeholders. The information we receive from the RFP will help us ensure cost-competitive regional flying that meets the needs of our network while providing excellent service for our customers.''

The RFP covers up to 43 70-seat regional jets and up to 50 50-seat regional jets to replace portions of existing flying from one or more of Delta's hub cities including Atlanta, New York-JFK and Cincinnati, as well as other point-to-point flying. This does not change the airline's network strategy or destinations served.

The bids also will be critical in helping Delta meet its regional flying growth needs. The RFP includes up to 50 76-seat aircraft featuring first class seating that Delta can add to the Delta Connection fleet to meet the changing demands of the network.

Delta Air Lines (Other OTCALRQ.PK - News) offers customers service to more destinations than any other global airline with Delta and Delta Connection carrier service to 295 destinations in 46 countries. With more than 50 new international routes added in the last year, Delta is America's fastest growing international airline and is the world's leading carrier between the United States and Europe with flights to 29 trans-Atlantic destinations. To Latin America, Delta offers nearly 500 weekly flights to 47 destinations and is on track to become the second-largest carrier in the region. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam partners, Delta offers flights to 470 worldwide destinations in 96 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.

I started a new thread because of all the airline bashing on the other one.

I can't believe Delta is trying to lower the bar again. This isn't even about Mesa and Ho Jets. They're shooting for the basement. We're talking Lakes, Gulfstream, Big Sky, Commutair, etc.

Clearly they don't care about providing a quality product anymore, just getting people from A to B as cheaply as possible. C.E. Woolman must be rolling in his grave.

 

[dnkt]

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Quote:
Originally Posted by Erlanger
I heard this from Skywest management and then from a friend at Shuttle. They both had said that Delta is not happy with Shuttle and Chautauqua and Delta is trying to find a way to get rid of them both completely.


Ha! Ha! Ha!...................Nice try!
Fact of the matter - DAL isn't happy with Mesa, WASN'T happy with Shuttle, but since we got the fuel burn reduced on the 170's, they are happy!

Big loser in all of this (unfortunately) = Comair (DAL isn't happy with how the bk is going over there and is going to be turning the screws), also Mesa - how could DAL be happy with their on time and canx probs????

 

[crjdxr]

I believe this falls into the BOHICA category.

 

[John Pennekamp]

It falls under the YGBSM category.

 

[crjdxr]

It falls under the YGBSM category.

Yep, that one too.

 

[~~~^~~~]

My hope is that Comair will continue to perform "their" flying.

Comair management has also released a memos which suggest ASA will operate 143 flights out of CVG. This probably is a whipsaw bluff since ASA has no new hires and not enough IP's to train them.

But it will be interesting to see how far Mesa and Republic Airlines Holdings are willing to undercut each other. The fact Republic hung in there after SkyWest said it was too risky to bid on the COEX flying tells me Republic is still in pozi scheme mode. Mesa on the other hand never let a bad idea get in the way of a good time.

 

[GuppyKiller]

This is a great oppurtunity for Republic to show Delta that we really are the most cost competetive and yet still provide great service.

 

[ReportCanoa]

Delta sucks.

 

[wmuflyguy]

This is a great oppurtunity for Republic to show Delta that we really are the most cost competetive and yet still provide great service.

F$#k Delta and F2#k You.

 

[PunchTheClown]

This is a great oppurtunity for Republic to show Delta that we really are the most cost competetive and yet still provide great service.

You mean that this is a great oppurtunity to show Delta that Republic is trying to be just like Mesa right? You guys should change your call sign to either "race to the bottom" or "mesa wannabe's"

 

[172driver]

August 22, 2006​

The following memo from President Don Bornhorst was sent to the Comair team:

Today, Comair was notified that Delta announced a Request for Proposal (RFP) for three components of its Delta Connection flying, including up to 50 new 76-seat aircraft, as well as up to 43 70-seat aircraft (which includes the 27 70-seaters currently in Comair's fleet) and up to 50 50-seat aircraft that are currently flown by various Delta Connection carriers, including Comair. Delta sent this RFP to all existing Delta Connection carriers, as well as some regional jet operators not currently flying for Delta Connection.
Perhaps more clearly than any other development during the past year, today's RFP puts into focus the risk/opportunity equation that has faced Comair since last fall.
At one end of the spectrum, completing restructuring now and getting our costs in line puts us in the best position to retain existing flying and successfully bid for new -- and increasingly rare -- growth opportunities. In this case, we have an opportunity to retain all or most of the 27 70-seat jets in our fleet and replace the planes we will lose through restructuring -- the 30 aircraft discussed since last October -- with new and larger-gauge aircraft.
In contrast, additional delays in completing restructuring and achieving a competitive cost structure likely will result in Comair's losing much or all of its 70-seat flying and possibly some 50-seat aircraft. This would leave our airline with a much smaller fleet exclusively comprised of 50-seaters.
I realize people question Delta's decision to put our flying out for bid, especially because we are a wholly owned subsidiary. We are a subsidiary, but we are also one of several supplier options for Delta. This RFP speaks to the simple laws of supply economics: as an airline planning to emerge from bankruptcy and trying to become profitable, Delta has no choice but to ensure it has competitive costs in all areas of its business, including Delta Connection flying. Whether we like it or not, we have to compete just as effectively on costs and quality as every other carrier Delta could consider for regional flying.
For the past several months, we have stressed that the time is now to complete our restructuring. We simply cannot move forward without the help of unions and our represented employees. As we stand today, we have a chance to grow again and reap the benefits that come with growth. We also face the risks of shrinking further. One thing is clear: the status-quo will not continue.
As I have stated frequently in the past few months, the decision of what kind of an airline we become is a decision we will make together. I am sorry that the professionals at Comair, who do such a great job every day, must bear this burden. I sincerely appreciate the sacrifices required to achieve our restructuring, but these sacrifices are the only way to pursue a brighter future together.
In the coming days, we will put together our response to Delta and express our intense interest in the RFP. There will be a lot of speculation from media, analysts and the like regarding what different scenarios would mean for Comair. I encourage you to stay informed with information we are sharing and to remember that speculation is nothing more than opinions, some of which are uninformed. We will continue to communicate appropriate developments. In the interim, I appreciate your continued focus on running a solid operation.

 

[GuppyKiller]

F$#k Delta and F2#k You.

Hey, can I get a copy of the pic of you and the blackhawk down dude standing together?

 

[DrewBlows]

It falls under the YGBSM category.

I disagree. It was just a matter of time before all the DCI flying was put up for bid. United did it and USAir did it. It would only be a surprise if Delta didn't do it.

I've heard it said that this is a "squeeze play on Comair", which it very well may be. In my opinion it would be hard for anyone to underbid Comair, considering the freshly negotiated (thanks to bankruptcy) lease deals on their aircraft. Maybe Delta could give them to another carrier, but I don't know how said carrier could factor that into a proposal (without Delta's consent). I really don't have much insight into the situation. What I'm sure of is that paying me $10 less per hour sure as hell won't make a difference in what Delta decides to do.

 

[sweptback]

This is not good for anybody, even if your airline wins the bidding war. We have to remember that people's jobs and careers are at stake here, and get over the temptation to upgrade in 18 months. Remember, what's good for the short term is rarely what's good for the long term.

A few comments I have on the RFP deal:

43 70-seaters seems to me to be the 27 that CMR has plus the 16 that Shuttle has.

I am honestly surprised to not see turboprop flying up for bid. Delta has many short sectors that would benefit from one. Maybe this will be a later RFP.

I imagine most feed contracts signed as a result of this RFP will be of the short-term, 2 to 5 year variety. It is just too tempting for Delta to try this bidding war stuff again once their out of Ch. 11. CHQ and MAG will have little leverage in this because they will have nowhere else to put their planes if they don't comply.

Freedom is already operating for Delta at near cost in order to find a home for the ex-US ERJs. That is why Delta has put up with their terrible performance and operational needs such as airstairs, limiting which stations they can be scheduled to and increasing the workload of ground servicing. Now that flying is up for rebid they may not be as accomodating.

CHQ may in fact be the wildcard here due to their CRJ platform starting up. However, their 170 flying may not see substantial growth due to the fact that it burns more fuel than a CRJ 900. In fact, I bet that most 70-seat airplanes will end up being 900s because of the ability to later convert to 76 seats, as well as having similar trip costs to the CRJ 700. CHQ having a CRJ platform will give them the ability to bid on all models of the CRJ line.

It does not surprise me at all that Delta is doing this to the DCI carriers, although it is quite sad to see the industry come to this. I expect that just like the United bidding, everybody will be fighting for table scraps and one or two airlines will lose big.

 

[veneratio]

This is a great oppurtunity for Republic to show Delta that we really are the most cost competetive and yet still provide great service.

go fly ur 170 at a 145 rate tool. And this is a great oppurtunity for Republic to show how low they can go. But I hope that Republic does not get any of the flying.

 

[bvt1151]

I do not think there were very favorable deals on the 70's. Lessors were ready to pull them since the market was still hot, so the rates were higher.

 

[Flyer1015]

Guppy, is your avatar for real ?! That picture in your avatar has "tool" written all over it.

 

[BoilerUP]

FWIW, Chautauqua cannot operate anything over 50 seats because of APA scope restrictions on their AMR flying.

Of course Shuttle and/or Republic could see larger CRJs on their certificate in the future once they get the initial 200 program up and running...

 

[GuppyKiller]

Guppy, is your avatar for real ?! That picture in your avatar has "tool" written all over it.

Yes it's real.

 

[dnkt]

I can't wait to watch CHQ and mesa fight it out. Who will come out the biggest whore in the industry? My moneys on CHQ.

 

[TAWS]

DNKT

I never disputed that RAH flying was up for bid. What I am saying is that DAL's opinion of the E170 is changing all the time (for the better), as they find it's best operating arena, hell every other release has a different cruise mach - something we don't see with UAL. The performance isn't what everyone thought it would be, but the customer reaction is!!
DAL only cares slightly about the pax, but they ARE a factor and they aren't going to watch UAL and USAIR operate these, without getting some in their colors!
The reverend Bedford was making a big show of inspecting an E190 on the ramp in IND, a couple of weeks ago.....................obviously, he knew about this RFP a long time ago and this is what is being considered for the 76 pax market.
I don't want to see Comair guys get shafted, but if it's going to happen then pilots can't stop it! Would you be happier to see RAH kicked out? Of course you would, but Bedford is WAYYYYYYYYYYYYYY too crafty to let that happen, unless he wanted it!!! - NOT!

 

[The Drizzle]

could we please stop responding to GuppyKiller, it amazes me what the moderators allow to go on.

 

[Crash Pad]

Look at all of you screaming at Mesa and CHQ. Make no mistake everyone is going to be in on this bid. SKYW (both of them), horizon, mesa, gojets, mesaba, comair, greatlakes, etc... this is a big bid. This is what our companies do. Somebody is going to upgrade and someone is going to be voted off the island.

 

[BoilerUP]

I can't wait to watch CHQ and mesa fight it out. Who will come out the biggest whore in the industry? My moneys on CHQ.

*sigh*

Another loudmouth Jetlink toughguy...

 

[ReportCanoa]

So basically it's a race to the bottom. Make no mistake, this is your chosen career.

 

[dnkt]

It really doesn't matter who bids on this flying. The bottom line is that the cheapest bidder is going to get it. Im not a tough guy or loud mouth. I could care less if XJT or CHQ both sink to the bottom. This isn't the career that im going to do for the rest of my life. Im just doing it right now until something better comes along. The airline industry is way to messed up to make this a career. I plan on leaving by my 30th birthday. By that time, I'll be married and have kids. I want to see my kids grow up. Im not going to live out of a suitcase the rest of my life. I'll leave this GREAT job to the rest of you. 4 years and counting to go....

 

[fieldinsight]

What aircraft does DL actually control in this bid? Just the birds currently operated by Comair? RAH owns their own aircraft, I believe Mesa does as well. RAH could offer the CHQ aircraft to CO, which would put further pressure on COEX, and UA might be interested in the remainder of S5's 170's. This isn't a one way street. With the exception of CMR, the others may find better opportunities for themselves at other carriers. If DL decides to go with some of the bottom feeders, they may find that the 70 seaters (especially the 170's), can't quickly be replaced.

 

[Turkey Shoot]

Look at all of you screaming at Mesa and CHQ. Make no mistake everyone is going to be in on this bid. SKYW (both of them), horizon, mesa, gojets, mesaba, comair, greatlakes, etc... this is a big bid. This is what our companies do. Somebody is going to upgrade and someone is going to be voted off the island.

I don't recall the press release stating anything about AssA or SkyWorst. But don't worry, if GoJet gets some of that flying, I have a bunch of Anti-GoJet stickers I can share.

 

[crjdxr]

From what I understand, since the SkyWest/ASA deal was affirmed by the bankruptcy court, the SkyWest/ASA aircraft are "safe" (as in not part of this RFP).

 

[John Pennekamp]

Based on the letter Comair sent to employees alone, I'd say this is a squeeze play on Comair. The FAs have not settld, so none of the other labor concessions have taken affect.

We've seen this all before. Pay cuts or lose airplanes. We need to call management's bluff as a collective group and stop this race to the bottom. If our regional airline managers want to bid contracts they cant fly with their current labor rates, then so be it. No more pay cuts. Let Delta contract with the bottom feeders. Thry get what they pay for and soon the pendulum will swing the other way after the public backlash.

As long as pilot groups keep falling over backwards to take pay cuts for growth, the race will continue. Our worst enemy is ourselves. Stop it now.