Looks like SKW doesn't want to park 50 seaters

[JumpersAway]

The game is simple. Deny a two for one deal while holding on to all of your airframes, for the short term. Force Delta to exact their cuts on a party with weaker contractual ties (Pinnacle and Republic) and linger long enough to snap up their scraps. In a worst case scenario, SkyWest Inc. buys up the competition at a bargain price, and also gets the 76 seaters. It's a win for SkyWest, and all they have to do is play by the contract DAL signed years ago. On an upside, SkyWest cannot staff additional growth without the pilots from the scavenged airline it replaces. There are no pilots in the pipeline, aside from those trying to jump ship from the sinking regionals. SkyWest would also be diluting out the ExpressJet majority on the ERJ side, making collective bargaining easier for themselves. The legacy ExpressJet folks simply wouldn't be the majority anymore.

 

[dooork]

Delta will just have you cancel your flights and then say you did not meet performance requirements. Problem solved.

 

[COOPERVANE]

Delta will just have you cancel your flights and then say you did not meet performance requirements. Problem solved.

Yeah..... Comair was pretty big for their britches a decade ago. Big and invincible. Thought they Had the whole world by the tail. Look at them now.

Skywest inc is not untouchable.They are playing checkers while Delta plays chess.

 

[Texx]

Delta will just have you cancel your flights and then say you did not meet performance requirements. Problem solved.

No mister Mesa/Freedom. I think JA is a little bit smarter than your JO is.

 

[AntiJedi]

Yeah..... Comair was pretty big for their britches a decade ago. Big and invincible. Thought they Had the whole world by the tail. Look at them now.

Skywest inc is not untouchable.They are playing checkers while Delta plays chess.

Yet Comair was wholly owned, and striking.

While DL may be good at playing chess, SKYW is playing Go.

 

[COOPERVANE]

Hmmmmmmm...

 

[777_Jackpot]

In a worst case scenario, SkyWest Inc. buys up the competition at a bargain price, and also gets the 76 seaters. It's a win for SkyWest, and all they have to do is play by the contract DAL signed years ago...

I second this. The deck is definitely stacked in SKYW's favor.

 

[Cobraair75drvr]

RA does not play nice when challenged and very rarely loses. My guess is JA is trying to strengthen his posistion some, but is playing with fire.

 

[777_Jackpot]

RA does not play nice when challenged and very rarely loses.

As proven by?

 

[777_Jackpot]

As far I can recall the only time RA has been challenged was when he was CEO of NWA... and he quit. But maybe someone has some other examples.

 

[sinkrate]

Delta is trying to orchestrate to many players. In business three and four sided agreements are hard to make happen and if successful rarely look like what was envisioned at the start. Managing contracts with multiple contractors providing the same service can have a down side. Squeeze too hard and no one wants to do business with you. Hosing Mesa, pulling AC from quality operators and giving them to GoJet, pushing PCL into bankruptcy has clearly demonstrated what kind of business partner Delta is. Doing business with Delta can be bad for your business. With their new PWA Delta has the contractual ability to swap 50 seat RJ's for 76 seat RJ's, But can they make it happen?


The key is finding another business entity to assume or buy out the existing leases of 50 seaters. Looks like the SkyWest organization is balking. Maybe they cut Delta loose and do business with United and possibly AMR. GoJet and Republic could do the same. Delta's leases for Pinnacles 50 seat fleet won't end until 2017. Bombardier's order book is suddenly flush and they are less likely to take them back.


As things unfold CMR and Pinnacle pilots might find themselves in a much better position than they think they are in. SkyWest, GoJet and Republic are all in a position to say no to Delta if they need to. Delta has prohibited CMR and PCL from doing business with anyone else. Delta's plan, whatever it is, might have miss fired and left them with few options.

 

[Thebadcat1313]

Republic is low on cash and has major labor issues right now. Additionally, Republic has always preferred short term agreements. Don't think they're in any kind of drivers seat as far as Delta is concerned.

 

[jstyle13]

Delta will just have you cancel your flights and then say you did not meet performance requirements. Problem solved.

Ya except it doesn't work that way. We still get paid if it cancels because Delta requested it. Fail.

 

[WMUSIGPI]

True but as Freedom learned, Delta can then use those cancellations against you for your required performance numbers and terminate your CPA.

 

[Jon Rivoli]

SkyWest will not do anything to harm their relationship with Delta. Right now they are politely stating that they have a binding contract until 2020. If Delta would like to alter the agreement, it will have to be something mutually agreeable to both parties. It does give SkyWest considerably more leverage than other DCI carriers, but whatever the outcome you can bet that Jerry and Richard will both be smiling when they announce an agreement.

 

[i fly boxes]

I think it's quite simple now that I think of it. Delta will trade in all of pinnacle and comairs 200s because delta owns them. Do you think delta signed this deal so Skywest could get out of leases on 200? I don't I think delta did it for themselves. I think all of comairs 700s and 900s are heading to gojet and I think pinnacle will exchange all 140 200s for the 70 new 900s coming. This will leave pinnacle a fleet of 111 to 127 900s depending on what happens to their 16 owned 900s. Skywest and Asa will hold on to their 200s for the remainder of their terms and when they get the delivery of the mitshubishi jet they will be done doing dci.

 

[JettBoii]

Plausible

 

[amcnd]

I think it's quite simple now that I think of it. Delta will trade in all of pinnacle and comairs 200s because delta owns them. Do you think delta signed this deal so Skywest could get out of leases on 200? I don't I think delta did it for themselves. I think all of comairs 700s and 900s are heading to gojet and I think pinnacle will exchange all 140 200s for the 70 new 900s coming. This will leave pinnacle a fleet of 111 to 127 900s depending on what happens to their 16 owned 900s. Skywest and Asa will hold on to their 200s for the remainder of their terms and when they get the delivery of the mitshubishi jet they will be done doing dci.

Dude... The MRJ is nothing but the same as a CRJ900/EMB175.. Not bigger...

 

[Outta Here]

Bullseye! That's Delta managements loophole. Skywest brands and does point to point west coast flying, sells delta seats, codeshare. The scope will deal with the fee for departure and Skywest becomes the next alaska airlines. They're sitting on close to a billion and all they know how to do over there in St. George is make money so I'm sure it wont be a challenge to negotiate a nice deal for skyw from those dumbass atlanta dipsh1ts.

Rrriiiggghtt!!!!

Speaking from experience 200's do not work for any type of flying you say. Obviously you haven't been around. I was at Indy, we had a boat load of cash in fact more than jet blue had when they kicked off. It doesn't work.

I don't blame Delta for wanting to park every 200 out there they are garbage and I have to ride on thse trash buckets every week. Accept your fate the 200 has lived past it's life expectancy.

 

[i fly boxes]

Dude... The MRJ is nothing but the same as a CRJ900/EMB175.. Not bigger...

Wrong the minimum seats is 78 and the weight is what is key. It's heavier than deltas scope allows I believe. I'll eat my own words if I'm wrong. And that's the small version of it, Skywest's letter of intent was for both airplanes.