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Impact of Delta Selling Regionals on Flow-through & Flow-back?

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Voice Of Reason

Reading Is Fundamental !
Sep 21, 2004
"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
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 This material may not be published, broadcast, rewritten or redistributed."
What does this mean in terms of flow agreements?
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I feel especially sorry for all the employees of Compass. Uncle Hulas has you in his hands and his hands are not clean. I guess we know who will be flying all those Japanese 70 and 90 seaters now. Hulas is betting scope will erode even more at some carrier (not saying Delta or any in particular) with this buy. I hope all the legacies can at least hold firm on scope if not get some back.
"Delta sells 2 regional carriers for $82.5 million

Better question:

How much profit sharing will your pilot group (as a whole, not limited to those who sign off LOAs) retain from this deal to recoup the astronomical losses of the past loaned to the company for its "survival"?
After watching the Frontline special " Flying Cheap". I feel this transaction is mostly due to DAL limiting it's exposure to litigation.
After watching the Frontline special " Flying Cheap". I feel this transaction is mostly due to DAL limiting it's exposure to litigation.

Then I guess that would make the $82.5 million even more available to pay back their pilots...

Somewhere I saw a comparison of contract 2000 (& previous) to now.

What is in it for DALPA to continue to avoid taking advantage of the clearly advantageous position Delta as an airline is now in. They need to act in the interest of ALL of their pilots. Not just the ones that party with their mgt.

Strike while its hot...hiring like crazy can't mean the losing money excuses can continue further.

ALSO...don't negotiate as if Anderson will be there for long. He's not a lifer...none of them are. Just the facade of the good cop paving the way for the inevitable bad cop....
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No mention of Comair...did I hear correctly that they are opening a huge hub (or crew base?) in DTW?

Seems contrary to what they are claiming to do with the others.
Comair may not be a sellable airline. I see this as a bad sign for Comair pilots. Delta is/has unloaded its whollyowneds and they were not part of the package. Maybe no one wants to take on that very senior pilot cost structure and the days may be numbered for OH.
Comair may not be a sellable airline. I see this as a bad sign for Comair pilots. Delta is/has unloaded its whollyowneds and they were not part of the package. Maybe no one wants to take on that very senior pilot cost structure and the days may be numbered for OH.

Then why the big ramp up for them in DTW?
What does that mean to Delta's mainline (domestic) flying in DTW?

From another forum:
In a memo to the Comair team, President John Bendoraitis announced that Delta has asked us to increase our flying beginning in June, resulting in the need to recall a minimum of 70 pilots and 40 flight attendants. At this time, we expect to fly an additional 200 block hours during June, with flying gradually increasing through November, when we are planning to fly approximately 1,100 additional block hours during the month.

"This is obviously a positive development, and we have already begun preparations to accommodate this new schedule from a staffing, fleet and maintenance perspective," according to the memo.

You will recall that earlier this week, we communicated a shift in the concentration of our flying in the fall schedule that will lead to the closure of our 50-seat JFK crew base and the opening of a 50-seat DTW base effective in September, among other changes. This additional flying does not change these plans. In fact, as Dave Soaper, senior vice president of Aircraft Operations, communicated to crews earlier this week, the shift out of JFK puts us in a good position to increase flying around the DTW and CVG hubs.
News article:

"Comair shifting crews from NYC to Detroit

By James Pilcher • [email protected] • May 24, 2010 A portion of Comair's flight crews will be on the move again later this year as the Erlanger-based regional carrier is closing its base in New York and opening a new base in Detroit.

The moves were announced in a company memo released to workers late Monday. The closure comes about a year after Comair opened up a major base at New York's John F. Kennedy International Airport. That affected about 300 pilots and nearly 150 flight attendants. Those bases grew, however, and now about 400 pilot and 200 flight attendant positions are being transferred to the new base at Detroit Metro Airport, Delta's second largest hub, on September 1.
Company officials said that the move is being made because parent Delta Air Lines is shifting 50-seat regional jet flying from JFK and the Northeast to its Detroit hub.
"While we have become somewhat accustomed to the fluid nature of our flight schedule in recent years, we recognize that decisions to move crew bases or adjust our Maintenance staffing impact our people," Comair's senior vice president of aircraft operations Dave Soaper said in a memo. Comair officials declined further comment.
The memo also said that Delta would fly more 70- and 90-seat regional jets out of New York, and that those planes were being equipped with first-class sections. The airline's 70/90-seat base would remain at the Cincinnati/Northern Kentucky International Airport, however.
Comair is down to about 96 planes after operating a fleet of nearly 174 jets in the middle of the decade.
The airline now employs about 1,000 pilots total and more than 700 flight attendants, all of whom are based locally except those who were moved to New York last spring. Those workers who still lived in this area were required to commute to work, as will be the case with the Detroit base.
"I've already heard from a lot of commuters who are welcoming this," said Connie Slayback, president of the local flight attendant's union, which is part of the Teamsters. "There are a lot more flights in and out of Detroit and it's within driving distance, so it makes it a lot more convenient than getting to New York." "
...and then there is:

"ALL ASA furloughs were recalled as of 1108 today, 25 June 2010"


I guess while the pilots are distracted by the selling of Compass/Mesaba, Comair will sneak in and steal all their flying in DTW (and beyond) and ASA the rest, while everyone scratches their heads later....

Funny they got rid of the flow regionals, yet kept the NON flow...and Comair has the senior (read experienced) pilot group to ease pax concerns...watch your backs. Same old, same old.

Wouldn't be surprised if the big Delta hiring wave is a big RUSE to get their pilot group to do as they want since "Times are so great." Sure.
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