Skyway Delta Thoughts

[SMOE]

Anyone hear anything new about Delta or Skyway?

Not enough to keep me from continuing interviews elsewhere. First concrete class date offer wins!

 

[SYXDude]

The schedule for the holiday season is already out and the CRJ or ERJ is listed on all the previous FRJ routes...

Schedules can and do change without notice. Just because it's written as such right now doesn't mean it can't be changed later.

 

[chperplt]

Schedules can and do change without notice. Just because it's written as such right now doesn't mean it can't be changed later.

That is very true.. However, assets from Comair/ASA/CHQ are already being relocated to cover the flying that ACA will be leaving.

Hopefully Delta will make something official soon so they can stop yanking everyones chain.

 

[Justino]

I hear that ACA will stop flying the D-328s on Nov1, anyone else hear this?

 

[CL600Pilot]

Yep - date is 1 Nov. - old news.

CL

 

[chperplt]

I hear that ACA will stop flying the D-328s on Nov1, anyone else hear this?

That's when ASA/CMR/CHQ pick up the flying.

 

[Indypilot]

It's also the day delta starts paying the leases, and will park the 328 fleet.

 

[chperplt]

It's also the day delta starts paying the leases, and will park the 328 fleet

Unless they go CH 11, then you guys are up sh!ts creek without the proverbial paddle..

 

[rptrain]

here are the latest facts from FLYi, as filed with the SEC...

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0000904020%2D04%2D000019%2Etxt&FilePath=%5C2004%5C09%5C23%5C&CoName=FLYI+INC&FormType=8%2DK&RcvdDate=9%2F23%2F2004&pdf=

ITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT


On September 17, 2004, FLYi, Inc. (formerly known as Atlantic Coast Airlines Holdings, Inc.) (the "Company"), the Company's wholly-owned subsidiary Atlantic Coast Airlines ("ACA") and Delta Air Lines, Inc. ("Delta") entered into the Delta Connection Agreement Amendment Number Six (the "Amendment and Termination Agreement"). The Amendment and Termination Agreement amends and provides for the termination of the parties' fee-per-departure agreement whereby ACA operates as a Delta Connection carrier (the "Delta Connection Agreement"). The Company previously announced in a Form 8-K filed on April 7, 2004 that it had received formal notification from Delta that Delta would end its relationship with ACA by invoking its right under the Delta Connection Agreement to terminate without cause upon 180 days notice.

The Amendment and Termination Agreement provides for a transition and exit plan for all of ACA's Delta aircraft, which shall be completed on or before November 1, 2004. The Amendment and Termination Agreement provides that the last date of service for the ACA aircraft in the Delta Connection schedule is as follows:


Date - 328s Last Day of Operation
August 1, 2004 - 3
September 1, 2004 - 4
October 1, 2004 - 3
November 1, 2004 - 20

As previously disclosed, under the terms of the Delta Connection Agreement, upon Delta's termination without cause, ACA and the Company have the right to require Delta to assume the leases on up to 30 of the 33 328JET aircraft used in ACA's Delta Connection operation. ACA and the Company have exercised their right to require Delta to assume all 30 of these leases. The Amendment and Termination Agreement provides that the parties shall use their good faith efforts to consummate the assignment and assumption of these 30 leases at the termination of the Delta Connection Agreement. However, the Amendment and Termination Agreement provides that any delay will not relieve Delta of its obligations with respect to these lease assumptions. The Amendment and Termination Agreement also provides that the Delta Connection Agreement will terminate on the date that Delta notifies ACA that the conditions precedent to its obligations under these assignment agreements have been satisfied or waived.


Because Delta is expected to not be able to meet certain financial condition standards at the time Delta becomes obligated to assume the leases, unless such conditions are waived by lenders, the Company expects to remain obligated under the lease agreements should Delta default at any time prior to the lease expirations. If Delta files for bankruptcy, it could seek to reject its obligation to assume the leases under the Delta Connection Agreement or, depending on the timing of any such filing, to reject its obligation under any aircraft leases assumed by it. In connection with the Amendment and Termination Agreement, the parties established rates to be paid for ACA's participation in the Delta Connection program between January 1, 2004 and November 1, 2004. The Amendment and Termination Agreement also provides for the termination as of November 1, 2004 of ancillary agreements to the Delta Connection Agreement, including ground handling services, deicing, emergency services, information technology and other airport-related services and leases associated with the Delta Connection Agreement.

 

[~~~^~~~]

Good post. Appears that Delta will declare in October.

 

[Justino]

On what information does delta "appear" to file in October? I have not found one thing stating it will or will not file for Chap 11.

 

[chperplt]

Justino

Try and relax a little bit.. Hanging all over there boards trying to figure out when and if you're going to get a call from Skyway will give you an ulcer..

 

[SYXDude]

On what information does delta "appear" to file in October? I have not found one thing stating it will or will not file for Chap 11.

As previously disclosed, under the terms of the Delta Connection Agreement, upon Delta's termination without cause, ACA and the Company have the right to require Delta to assume the leases on up to 30 of the 33 328JET aircraft used in ACA's Delta Connection operation. ACA and the Company have exercised their right to require Delta to assume all 30 of these leases. The Amendment and Termination Agreement provides that the parties shall use their good faith efforts to consummate the assignment and assumption of these 30 leases at the termination of the Delta Connection Agreement. However, the Amendment and Termination Agreement provides that any delay will not relieve Delta of its obligations with respect to these lease assumptions. The Amendment and Termination Agreement also provides that the Delta Connection Agreement will terminate on the date that Delta notifies ACA that the conditions precedent to its obligations under these assignment agreements have been satisfied or waived.


Because Delta is expected to not be able to meet certain financial condition standards at the time Delta becomes obligated to assume the leases, unless such conditions are waived by lenders, the Company expects to remain obligated under the lease agreements should Delta default at any time prior to the lease expirations. If Delta files for bankruptcy, it could seek to reject its obligation to assume the leases under the Delta Connection Agreement or, depending on the timing of any such filing, to reject its obligation under any aircraft leases assumed by it.

I'm no law genius but this states if DL doesn't file BK prior to 10-31 (termination date of agreement), they will be on the hook for the leases. If DL does file Chap 11 prior to 11-1, ACA is on the hook.

IMHO, if DL doesn't get concessions from the pilots and can't come to terms with vendors and creditors before 11-1, they will probably file BK. And the deal between Skyway and DL will go poof!

Dude, like Chprplt said, relax. If it's meant to be that you fly here, it'll happen.

Later

 

[Justino]

Good point guys/gals I should just let it be! This is what happens when I am putting off my school work to play on the net. Have a good one!

Justino

 

[WillFlyFoCookie]

SYX Dude summed it up

This really isn't anything we already didn't know and have known for quite a while. If Delta doesn't go bankrupt in October and takes the DO Jets (or gets stuck with them, however you want to look at it) in November then Skyway will be flying them (and assuming the leases I believe). If Delta does go bankrupt in October...well lets try not to think about that. One thing is for sure, NOBODY wants to see another bankrupt airline. Hang in there Justino and all the other Skyway poolies.