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"Delta sells 2 regional carriers for $82.5 million
Posted: Jul 01, 2010 8:42 AM EDT Updated: Jul 01, 2010 9:02 AM EDT
By SAMANTHA BOMKAMP
AP Transportation Writer NEW YORK (AP) - Delta Air Lines Inc. said Thursday it sold two of its regional carriers that operate as Delta Connection for a total of $82.5 million.
Delta, the world's largest airline, said the move is part of its plan to streamline regional operations to save money.
Delta sold Mesaba Airlines to Pinnacle Airlines Corp. for $62 million and Compass Airlines to Trans States Holdings Inc. for $20.5 million. Pinnacle is one of the largest of Atlanta-based Delta's nine regional carriers.
Mesaba and Compass will continue to operate Delta flights under agreements ranging from seven to 12 years. Both Mesaba and Compass will keep their home base in the Minneapolis-St. Paul area and retain their top executives.
Pinnacle Airlines Corp. is the parent company of Pinnacle Airlines and Colgan Air Inc. Colgan, which flies as Continental Connection, United Express and US Airways Express, operated the plane that crashed in Buffalo, N.Y. last year, killing 50 people.
Trans States Holdings Inc. is the parent company of regional airlines Trans States Airlines and GoJet Airlines. It operates as United Express and US Airways Express.
On Wednesday, the Federal Aviation Administration said it wants to fine Trans States and GoJet for violating maintenance procedures and operating nine jets on 320 flights when the planes were not in compliance with safety regulations.
Trans States and GoJet have 30 days to respond. The carriers said in statements they are confident they will be able to show the FAA's allegations are incorrect.
Delta Connection carriers fly a combined 3,600 commuter flights to more than 260 cities.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed."
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What does this mean in terms of flow agreements?
Posted: Jul 01, 2010 8:42 AM EDT Updated: Jul 01, 2010 9:02 AM EDT
By SAMANTHA BOMKAMP
AP Transportation Writer NEW YORK (AP) - Delta Air Lines Inc. said Thursday it sold two of its regional carriers that operate as Delta Connection for a total of $82.5 million.
Delta, the world's largest airline, said the move is part of its plan to streamline regional operations to save money.
Delta sold Mesaba Airlines to Pinnacle Airlines Corp. for $62 million and Compass Airlines to Trans States Holdings Inc. for $20.5 million. Pinnacle is one of the largest of Atlanta-based Delta's nine regional carriers.
Mesaba and Compass will continue to operate Delta flights under agreements ranging from seven to 12 years. Both Mesaba and Compass will keep their home base in the Minneapolis-St. Paul area and retain their top executives.
Pinnacle Airlines Corp. is the parent company of Pinnacle Airlines and Colgan Air Inc. Colgan, which flies as Continental Connection, United Express and US Airways Express, operated the plane that crashed in Buffalo, N.Y. last year, killing 50 people.
Trans States Holdings Inc. is the parent company of regional airlines Trans States Airlines and GoJet Airlines. It operates as United Express and US Airways Express.
On Wednesday, the Federal Aviation Administration said it wants to fine Trans States and GoJet for violating maintenance procedures and operating nine jets on 320 flights when the planes were not in compliance with safety regulations.
Trans States and GoJet have 30 days to respond. The carriers said in statements they are confident they will be able to show the FAA's allegations are incorrect.
Delta Connection carriers fly a combined 3,600 commuter flights to more than 260 cities.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed."
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What does this mean in terms of flow agreements?
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