SKYW sues DELTA.....

[goahead]

http://biz.yahoo.com/prnews/080201/laf100.html?.v=3


SkyWest, Inc. Files Complaint Over Dispute With Delta Air Lines
Friday February 1, 6:53 pm ET
ST. GEORGE, Utah, Feb. 1 /PRNewswire-FirstCall/ -- SkyWest, Inc. (Nasdaq: SKYW - News) today announced that a complaint has been filed in the Superior Court of Fulton County, State of Georgia, against Delta Air Lines, Inc. ("Delta") related to a dispute under the Delta Connection Agreements entered into between Delta and SkyWest Airlines, Inc. ("SkyWest Airlines") and Atlantic Southeast Airlines, Inc. ("ASA"). SkyWest Airlines and ASA are wholly-owned subsidiaries of SkyWest, Inc.
The dispute is related to the allocation of liability for certain irregular operations ("IROP") expenses that are paid by SkyWest Airlines and ASA to their passengers under certain situations. As a result of the dispute, Delta unilaterally withheld a combined total of approximately $25 million (pretax) from one of the weekly scheduled wire payments to SkyWest Airlines and ASA during December 2007 and has indicated that Delta does not believe the majority of IROP expenses SkyWest Airlines and ASA have paid on behalf of customers is reimbursable under the Delta Connection Agreements. Commenting on the dispute, Bradford R. Rich, Executive Vice President and CFO of SkyWest, Inc. said, "Although we and Delta are both committed to maintain a productive and cooperative long-term relationship and remain focused on continued improvements of our Delta Connection operations, we simply have a disagreement over the IROP contract language." He continued, "However, due to the inability to resolve the matter informally, we are seeking legal remedies to protect our contractual rights under our agreements."

 

[N813CA]

That could be the end of SkyWest and Delta. We all know if there is a merger that all contracts are null and void. Look at US Air and Mid Atlantic. Keep my fingers crossed

 

[MusicMan]

That could be the end of SkyWest and Delta. We all know if there is a merger that all contracts are null and void. Look at US Air and Mid Atlantic. Keep my fingers crossed

That is completely false. In a merger, the acquiring company is saddled with the other company's assets as well as their liabilities including all contracts.

 

[CHQ Pilot]

Look at US Air and Mid Atlantic.

MA was part of USAirways, just a different division. There wasn't a contract with USAirways. Depending on the structure of SKYW's contract with Delta, there might be a clause that in the event of a merger or buyout the contract could be rebid or voided.

 

[atlcrjdriver]

Gotta admit that JA has a set the size of Texas...

 

[johnsonrod]

Don't bite the hand that feeds you!!!! If CAL and UAL merge, watch Skywest potentially lose more feed (or bid down for feed) in that combination.

Yeah, the airline business is getting more complex and anxiety-prone by the day. Fingers crossed that I move on to the fractionals...

 

[Jon Rivoli]

The world might end tomorrow, and then again it might not.

 

[JoeMerchant]

Good for Skywest......Delta handles the ATL operation, and Delta has not done well during IROP situations....

The ATL operation is now the responsibility of Delta Air Lines....not ASA or Skywest.....Delta should be held accountable.....

 

[ATRCA]

SkyWest will lose all Delta flying, XJT will win that flying, SKW will go out of business, XJT will rule the world!

Thats all.

 

[DrewBlows]

Damn, I was going to make a joke about Skywest (management) needing a union, but I can't because they are 100% right. When Delta handles baggage and gates (and holds the right to take a DCI slot) there's not much that ASA can do to delay a flight during irregular operations.

 

[goahead]

I Agree, DAL cancels our flights on cruddy days thus causing our IROP problems. I understand why they do it and agree with it, however they can't expect SKYW Inc. to cover up the costs associated with their decisions.

 

[CoATP]

... they can't expect SKYW Inc. to cover up the costs associated with their decisions.

Of course they can . They are DELTA and they are double breasted. Just ask GL.

 

[fltdspx]

I agree.. I thought when Delta tell ASA what fligihts to cx then ASA /SkyWest still gets paid under the agreement... is that not the case ? Does Delta expect ASA / SkyWest to eat those cx flights ? Sometimes I think Delta has gottne a bit to big and needs to be knocked down a notch or two.

 

[Superpilot92]

Don't bite the hand that feeds you!!!! If CAL and UAL merge, watch Skywest potentially lose more feed (or bid down for feed) in that combination.

Yeah, the airline business is getting more complex and anxiety-prone by the day. Fingers crossed that I move on to the fractionals...

I think thats why Skywest has mentioned buying/merging with XJT. IF they buy XJT they get in bed with CAL and gain the additional DAL flying. They would also get a branded operation that Skywest has talked about trying for a long time. Going to be interesting.

 

[homerjdispatch]

SkyWest will lose all Delta flying, XJT will win that flying, SKW will go out of business, XJT will rule the world!

Thats all.

SKYW buys XJT....XJT dissapears!

 

[10nCLR]

SkyWest will lose all Delta flying, XJT will win that flying, SKW will go out of business, XJT will rule the world!

Thats all.

LOL
Oh, YEAAHH!!!!!!!!
Sure, good one. Hahahaha, yeaahh right!
SkyWest will be victorious just like the 13 British Colonies were when they defeated the Kingdom of Great Britain or when the Union defeated the Confederates.
2008 will be a very interesting year in the airline biz.

 

[Ben Dover]

I think thats why Skywest has mentioned buying/merging with XJT. IF they buy XJT they get in bed with CAL and gain the additional DAL flying. They would also get a branded operation that Skywest has talked about trying for a long time. Going to be interesting.

Just my personal opinion but I don't see lots of brand recognition with Expressjet. I suspect SkyWest doesn't place much value in the Expressjet branded operation. Not only is the name virtually unknown, but the operation is losing money.

If SkyWest were to buy into a brand, I suspect they would look for a name that had more brand recognition.

 

[Superpilot92]

Just my personal opinion but I don't see lots of brand recognition with Expressjet. I suspect SkyWest doesn't place much value in the Expressjet branded operation. Not only is the name virtually unknown, but the operation is losing money.

If SkyWest were to buy into a brand, I suspect they would look for a name that had more brand recognition.

I never said they wanted the "ExpressJet" name, i was referencing that Skywest wants its own branded service and XJT has already paid for and built the infrastructure. Also XJT brand recognition is actually pretty good out on the west coast now. I can only assume that you fly alot on the west coast and purchase tickets on a regular bases for travel? The pax really love the service we provide on ExpressJet Airlines. With that said i dont know how much that matters in today's travelers=all about price for most people.

 

[Superpilot92]

SKYW buys XJT....XJT dissapears!

So what your saying is that you really have no idea?

 

[WalterSobchak]

...pax really love the service we provide on ExpressJet Airlines.

I've hitched a ride on XJet a few times and I can attest that I very much enjoyed it. Y'all do great work over there.