It's Official...Compass gets the first 20 American owned E175s

[CoATP]

The problem is not the airline. The problem is RA wants to cut wages to minimum and shrink the fleet. Regardless of the airline it will not work. it is the business model that is a failure (Incompetent management does not help ... it just speeds the inevitable end result)

 

[centralpilot]

Some thing is up. There is too much smoke around Delta/ASA.

What smoke are you referring to exactly?

 

[gojo]

That was five years ago. The current problem Delta has is they need a reliable long term operator for the CRJ fleet. The plan they had for 9e is failing - they have to recognize it - so what is plan B? Buy ASA back and fold 9e? Is Air Whisky in the picture at the end of their US agreement in 2015? Buy TSA? Sell 9e to TSA?

It appears the SkyWest organization is trying to move away from DAL. Compass operating for two partners greatly reduces their dependence on Delta. RAH is not going to continue operating 50 seat AC for Delta after next year.

Some thing is up. There is too much smoke around Delta/ASA. If Delta was losing money on their agreement with 9e they are for sure losing money on their agreement with ASA. They want to fix that - somehow.

Smoke??? What smoke are you referring to? Maybe you're exhaling the smoke. Delta isn't losing money on 9e, they're just not making as much as the wanted. They were hoping to keep more 200's flying longer at the cheaper lift.

 

[jynxyjericho]

Smoke??? What smoke are you referring to? Maybe you're exhaling the smoke. Delta isn't losing money on 9e, they're just not making as much as the wanted. They were hoping to keep more 200's flying longer at the cheaper lift.

Well Delta is still 160 million in the hole with 9E. It may be made back someday sure but the ROI is still a ways out.

It does depend how you want add things up. Since ASA is covering a lot of 200 flying for Delta because of 9E's staffing issues, you could say it's costing Delta even more.

I don't think Delta's going to pull the plug on 9E, and I wouldn't want them to. Delta believes they are going to break ASA's back when they don't renew the contract, and that will fill the 9E ranks with ASA furloughs. However, it seems like Skywest can use the break from Delta flying to concentrate on the United flying and maybe pick up some more American flying.

I don't run the place though.

 

[sinkrate]

What smoke are you referring to exactly?

ExpressJet is currently being paid a visit by Steve Rossum and senior SKW Inc management as we speak

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https://www.google.com/?gws_rd=ssl#q=steve+rossum+pinnacle


If this tidbit from the 'latest xjt info' thread is true SkyWest management has retained Merger and Acquisition Counsel. Specialist in airline acquisitions. And then had him tour the ATL operation. Very few companies take that expensive step unless something is afoot. If they were contemplating a financial shake out or bankruptcy they would have used a specialist in that field versus a merger lawyer.

 

[SpauldingSmails]

I wonder how much money Delta (and pre- merger NWA) has either gained or more likely lost by buying and selling their own contract lift providers over the years?

9E/XJ certainly has been passed back and forth like the soggy sandwich at the picnic.

 

[centralpilot]

.

https://www.google.com/?gws_rd=ssl#q=steve+rossum+pinnacle


If this tidbit from the 'latest xjt info' thread is true SkyWest management has retained Merger and Acquisition Counsel. Specialist in airline acquisitions. And then had him tour the ATL operation. Very few companies take that expensive step unless something is afoot. If they were contemplating a financial shake out or bankruptcy they would have used a specialist in that field versus a merger lawyer.

I fail to see how Delta is involved. ASA (SKYW, Inc) acquired ExpressJet and has been unable to fully merge for 4 years running. Perhaps they retained an M&A specialist for advice on how to break the logjam (the union) and move forward? I can't imagine Delta being stupid enough to get directly involved in this cluster-$&@#.