Here is the low down on the contract between ACA and delta if you missed it in the other thread. Concerning delta parking them, they have no choice right now execpt to file ch11 and I really don't think a mere 22M a year charge is really bothering them right now. They will park them until they can find somebody else to fly them.
Lets clear up the do jet issue.
There are 2 issues going on here.
1. Who is on the lease
Right now both Delta and ACA are on the leases. They will both stay on the leases unless delta credit rating improves to be above independence's. That is the only way independence can get the lessors to remove their name. The only other way for either of them to get off the hook, is to file ch11. Whoever does that first, will have the ability to shed the leases, and transfer them over to the co-signer. That is the credit rating issue. This has no date of expiration or anything of the sort, they will both stay on the leases until the end of the 16 year term unless, One files BK or Delta's credit rating surpasses Indy's (in which case indy is released from the leases).
2. Who is Paying the leases
Right now ACA is paying the leases. They will do so until Nov 1. At that point, Delta will start paying the leases. Delta CANNOT turn this obligation over to ACA because of credit rating. They canceled the contract, now they face the penalty of canceling the contract, which is to assume the PAYMENT of the leases. No matter what anybody says, the ONLY way for delta to stop paying those leases, is to file ch11, and turn the lease over to us, as we are still the co signers. So the ONLY way indy has to start paying again, is if delta files, and requests their name off the leases. Again, this also doesn't not have a magic expiration date. Delta will continue to pay the leases until (if) they file period.
Now that we have that cleared up, if both names stay on the leases, and delta files 7 years from now, the payment of the leases goes back to independence. The only way for indy to get off, is to have delta's credit rating above theirs. This is the way the leases were set up, and it will continue until the end of the leases.
Delta at any time durning the next 12 years can get off by:
Filing CH11 anytime during the lease period.
Indy at any time during the next 12 years can get off by:
Filing CH11 anytime during the lease period.
Having Delta's credit rating exceed theirs.
Clear as mud right!
