Mesaba getting 15 more CRJ's out of ATL

[Seaknight1]

As far as ASA's 2nd lowest clause, the way I read it is that if there is an RFP, and you get outbid, you have second chance of rebidding as to beat the lowest bidder. That's almost economic suicide for high cost carriers like ASA and Comair.

Well none of this flying is being bid. Delta is making the decision as to who gets what and where to fly it. So in reallity that clause has no merit for the current situation at the new Delta.

 

[RJLoser]

These 15 are the freedom a/c. Not new aircraft.

 

[Seaknight1]

These 15 are the freedom a/c. Not new aircraft.

No, 7 are from Freedom, the remaining 8 are coming from Bombardier. 7 were to go to Freedom and 1 that was suppossed to go to Comair.

 

[sweptback]

No, 7 are from Freedom, anf the remaining 8 are coming from Bombardier. 7 were to go to Freedom and 1 that was suppossed to go to Comair.

They were the remainder of the Freedom orders.

 

[sweptback]

As far as ASA's 2nd lowest clause, the way I read it is that if there is an RFP, and you get outbid, you have second chance of rebidding as to beat the lowest bidder. That's almost economic suicide for high cost carriers like ASA and Comair.

It's not economic suicide. It just means that SkyWest has to accept lower profit margins. They have indicated in the past that they are not willing to do so... however times have changed and we don't want to end up as ExpressJet did. They waited too long to renegotiate their deal, and when they finally realized they had to, they had no leverage.

Long term, the fee-per-departure model is just not that lucrative. When there's 10 or 12 bidders all competing for the same job, where do you think the price is going to go? The mainline partners dictate the terms and the FFD carriers either agree or go out of business.

Well none of this flying is being bid. Delta is making the decision as to who gets what and where to fly it. So in reallity that clause has no merit for the current situation at the new Delta.

That's one way of looking at it. However, SkyWest has smart lawyers and I'm sure they are on top of the language in their contract. It very well may get ugly.

 

[Seaknight1]

It's not economic suicide. It just means that SkyWest has to accept lower profit margins. They have indicated in the past that they are not willing to do so... however times have changed and we don't want to end up as ExpressJet did. They waited too long to renegotiate their deal, and when they finally realized they had to, they had no leverage.

Long term, the fee-per-departure model is just not that lucrative. When there's 10 or 12 bidders all competing for the same job, where do you think the price is going to go? The mainline partners dictate the terms and the FFD carriers either agree or go out of business.

That's one way of looking at it. However, SkyWest has smart lawyers and I'm sure they are on top of the language in their contract. It very well may get ugly.

I know ALPA has something big in the works for FFD cariers, but I don't think they'll be able to pull it together soon enough to help. Now Delta's going to have to renegotiate with the contract carriers, since they are going to begin making the contract carriers pay for their own fuel expenses. Profit margins won't be the same at the regionals

 

[Cpt Oveur]

ASA needs to get their costs in line with the competition or they won't be around soon. One way or the other, ASA needs to be more competitive.

Is anyone else sick of hearing these "pat on the back" messages from management and not getting anything in return. More people need to call/write/e-mail/ask face to face to BH "if our performance is this good, why aren't we seeing growth?"

 

[SplitBar]

Even if Skywest could become cheaper than Mesaba, Delta still ends up paying a "middle-man" fee with them. Since XJ is wholly owned and 100% of the profits flow up to Delta makes, it all the harder to compete with. With the 900 being a profitable a/c, Delta is better off having wholly owned regionals fly them. Why pay a middle man fee?

 

[blesko]

ASA needs to get their costs in line with the competition or they won't be around soon. One way or the other, ASA needs to be more competitive.

Is anyone else sick of hearing these "pat on the back" messages from management and not getting anything in return. More people need to call/write/e-mail/ask face to face to BH "if our performance is this good, why aren't we seeing growth?"

Yeah, doesnt to much for securing our future, guess we're just hoping for mesa to die....

 

[Smarta$$]

Even if Skywest could become cheaper than Mesaba, Delta still ends up paying a "middle-man" fee with them. Since XJ is wholly owned and 100% of the profits flow up to Delta makes, it all the harder to compete with. With the 900 being a profitable a/c, Delta is better off having wholly owned regionals fly them. Why pay a middle man fee?

This has always been true for any wholly owned, yet that has still never become the total model of choice. And it still will not be.