Delta to put 100 Rj's to the desert

[B727FA]

Well, Pinnacle got an extension until the end of September for 9 CRJ-900s. Once September 30th comes around, we'll know more. But that's 9 out of 100 that Delta can cut.

They just reaffirmed on the deal with them.

 

[B727FA]

I don't really know, but I think it was stating the company could be worth X Amount after a merger, and watching the stock go down and now saying it will be worth less. I think that is right.


Bye Bye--General Lee

"Impairment of Goodwill" is the reduction of Community Service they're going to do this year. They have to account for that lowering...and that's how they do it.

 

[imisscorplife]

I was in Tucson yesterday and saw almost a dozen Delta CRJ200's sitting there at Bombardier along with 2 Go Airlines CRJ's. The Delta paint scheme was there, but no Delta name. Look like Comair birds. Who knows!!

 

[Dannone]

I say none of you knows anything! So why do all keep speculating. Like the rest of us you will find out when it happens.

 

[79%N1]

It's not speculating to say Delta is ridding 100 RJ's this fall. It has been said by top management. Everyone wants to think their company will be immune from the pain.....

 

[Superpilot92]

It's not speculating to say Delta is ridding 100 RJ's this fall. It has been said by top management. Everyone wants to think their company will be immune from the pain.....

the above is 100% accurate

 

[79%N1]

But Superpilot.....you don't have to be so happy about it! You, much like GL seem to show glee at the mere mention of the misfortune of Regionals.
Pilots are losing their livlihoods, others will be taking a hugh loss of income (myself included). It almost seems like you guys root for it.

 

[Speedtape]

So, Speedtape....

It seems to me like you are further proving potential pain for ASA. Replacing ASA aircraft with narrowbodies from Delta and/or NWA, which reduces the need for ASA flying! Not to mention that if MEM closes, the merged carrier will have a further glut of RJ's Pinnacle flies out of MEM. What is to stop them from using Pinnacle if there are increased opportunites in ATL.

Also, I must disagree that any more traffic can be pushed to ATL. ATL is running at max capacity, and Delta cannot stuff any more in there.

But, to disagree with my assertion that ASA has some hard times ahead.....and then state that you believe there will be smaller airframes replaced by larger ones is quite a contradiction! Are you saying you believe it will be ASA supplying these larger aircraft?

It may seem like a contradiction based on what was stated and what is known today. However, there is more to the story. ASA will have some future opportunities that have not been announced yet. Those opportunities will be in another hub. Stay tuned.

However, given comments by the CEO's in the early announcements, there is no regional that will not have risk if they do not play ball. But for that matter, mainline will have a few surprises as soon as the honeymoon is over, shortly after the merger.

 

[Speedtape]

What about this (complete unedited) quote:

"Rising fuel prices have particularly impacted the economics of our regional
fleet, and we are working with our partners in the regional carriers to
rationalize our capacity offering. EAS contracts will be modified as they
come up for renewal to include the current economics, and it will be the
choice of the government to decide if the service is worth the costs."

Essential Air Service contracts go through this bidding process every few years or anytime in the past when there have been sustained fuel price increases. It's the only way to adjust for inflation. Most of the time, no one else bids, and the incumbent carrier gets the new contract and the increased subsidy. Even if there is a competing bid, the carrier offering that bid has to pass a financial and safety of operation fitness test. This means that the lowest bid does not necessarily win the bid.

This process is very common in the EAS arena. However, bottom line is if the current subsidy and the meager traffic in those markets cannot surpass the break-even point with a small return, then it makes no sense to operate in those markets. Nothing is lost.

 

[DoinTime]

It's not speculating to say Delta is ridding 100 RJ's this fall. It has been said by top management. Everyone wants to think their company will be immune from the pain.....

If the comment on RJ reductions was typical management speak then that number includes airframes they have already taken down or plan to take down.

Mesa (If they still think they can get out of that) = 36.

Express jet = 22

Skywest = ??? (didn't they pull some delta 50 seat RJs out for Air Midwest?)

Comair = 7+?? (I thought there were more than this due to replacements from the -900s coming on)

The "equivalent" statement is no doubt a reduction in productivity from contract carriers that they are unable to actually pull aircraft from.

Delta looks to already be close to their goal of RJ fleet reductions.