Skywest Sues Delta...

[Sedona16]

Whats that saying about biting the hand that feeds you? You might win one battle but start losing many others.

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

 

[johnsonrod]

Whats that saying about biting the hand that feeds you? You might win one battle but start losing many others.

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

Yeah, Skywest knows that it will be squeezed in any merger scenario. Either they lose feed or they compete in another bidding war and that reduces its margin. Let the consolidation game begin...

 

[PositionandHold]

Whats that saying about biting the hand that feeds you?

What are they going to do, get fed up and have their own pilots fly the planes for mainline wages?

 

[Sedona16]

What are they going to do, get fed up and have their own pilots fly the planes for mainline wages?

Thanks to the likes of SkyWest (ie 50 seat pay for up to 99 seat rates) Delta pilots had no choice to match the rates in place. That said, Delta could now have its Pilots fly these planes for a similar cost. Delta already handles ground ops. at many locations. They also purchased a number of RJ's last year. Are you saying Skywest has Delta helplessly over a barrel?

 

[JoeMerchant]

Thanks to the likes of SkyWest (ie 50 seat pay for up to 99 seat rates) Delta pilots had no choice to match the rates in place. That said, Delta could now have its Pilots fly these planes for a similar cost.

Does Delta have 50-99 seat aircraft? Why did Delta undercut ASA and CMR to fly those aircraft?
Pot meet kettle.....

Good luck getting financing for mainline pilots to fly RJs at the mainline....

 

[BobbyBiplane]

Does Delta have 50-99 seat aircraft? Why did Delta undercut ASA and CMR to fly those aircraft?

Good question.

 

[Sedona16]

Does Delta have 50-99 seat aircraft? Why did Delta undercut ASA and CMR to fly those aircraft?
Pot meet kettle.....

Good luck getting financing for mainline pilots to fly RJs at the mainline....

http://www.aviationnews.eu/?p=725

Toronto, February 08, 2007
Bombardier Aerospace announced today that Atlanta, Georgia-based Delta Air Lines has placed a firm order for 30 Bombardier CRJ900 regional jets and has taken options on an additional 30 CRJ900 aircraft (60 total). The approval for this contract was granted by the United States Bankruptcy Court, Southern District of New York.
The contract value for the 30 firm ordered aircraft, based on CRJ900 aircraft list price, is approximately $1.1 billion US. If all options are exercised, the value of the contract could rise to $2.3 billion US.

“The acquisition of these aircraft will help Delta meet its network and operational needs for 2007 and 2008, allowing us to continue providing convenient service to the places where customers most want to travel,” said Shawn Anderson, Delta’s Vice-President of Delta Connection. “The fit with our fleet, timing of delivery and ownership economics made the Bombardier CRJ900 aircraft the best overall solution to meet our needs.”

 

[JoeMerchant]

As I said....good luck getting financing for RJs to be flown at mainline by mainline pilots....

Now, why did Delta undercut ASA and CMR for the large RJ segment......

 

[DrewBlows]

As I said....good luck getting financing for RJs to be flown at mainline by mainline pilots....

Now, why did Delta undercut ASA and CMR for the large RJ segment......

Why wouldn't Delta be able to finance RJs to be flow at mainline? Because they cost too much?

Even Delta's undercut rates pay (cost?) more than ASA or Comair when you take into account health care and retirement benefits.

I'd rather be making regional wages at Delta.

 

[Sedona16]

As I said....good luck getting financing for RJs to be flown at mainline by mainline pilots....

Now, why did Delta undercut ASA and CMR for the large RJ segment......

Apparently your reading comprehension is not very good. Delta already has the financing. I see no part of this deal predicated on "regional pilots" flying the airplanes. You can try to spin it that way though if you like.

Delta came out of BK less than six months ago. These Delta RJ rates were negotiated during this time, with a proverbial gun to the head. This happened much later than the damaging and short sighted vote by self serving Skywest pilots agreeing to 50 seat pay for up to 99 seats. Keep in mind JB and others since that time pointed to the Skywest rates which subsequently caused a downward trend of rates on small jets not just at the regionals but industry wide.

 

[Sedona16]

As I said....good luck getting financing for RJs to be flown at mainline by mainline pilots....

Now, why did Delta undercut ASA and CMR for the large RJ segment......

Apparently your reading comprehension is not too good. Delta already got the financing. I see no part of this deal predicated on "regional pilots" flying the airplanes. You can try to spin it though if you like.

Delta came out of BK less than six months ago. http://www.pbs.org/nbr/site/onair/transcripts/070913c/ These Delta RJ rates were negotiated during this time, with a gun to the head. This happened much later than the damaging and short sighted vote by self serving Skywest pilots agreeing to fifty seat pay for up to 99 seats. Keep in mind JB and others since that time pointed to the Skywest rates lowering rates on small jets not just at the regionals but industry wide.

 

[goahead]

So if DAL decides to cancel flights on a particular day due to the wx to reduce flights in and out of ATL then shouldn't they be responsible for those pax having to spend the night in ATL or elsewhere? I totally understand why and agree with the reasoning behind it but as their contract carrier we do as told.
As far as the RJ debate I wish all the jet's were being flown by mainline.

 

[General Lee]

So if DAL decides to cancel flights on a particular day due to the wx to reduce flights in and out of ATL then shouldn't they be responsible for those pax having to spend the night in ATL or elsewhere? I totally understand why and agree with the reasoning behind it but as their contract carrier we do as told.
As far as the RJ debate I wish all the jet's were being flown by mainline.

Delta doesn't have to pay for WX CNX flights, only mx CNX or anything caused by Delta that made a passenger miss a flight. WX doesn't count.

Bye Bye--General Lee

 

[spongebob]

Wouldn't it be great if this was the beginning of a parting of the companies. With the price of fuel, it is only time before places like Missoula and Pueblo get one 737 a day instead of 4 barbie jets.

SB

 

[TAWS]

Yeah, Skywest knows that it will be squeezed in any merger scenario. Either they lose feed or they compete in another bidding war and that reduces its margin. Let the consolidation game begin...

The article has nothing to do with merger scenarios and the implications for feeder contracts. SkyWest has a disagreement over IROP payments and DAL kept a regular payment, to bend them over - until they saw it Delta's way, but SkyWest aren't idiots and will probably win this one.
Will they lose in a consolidation scenario? Who knows, but I bet Comair does.

BTW, Delta controls alot of the operation of it's feeders and has to pay for any flight it takes away for operational reasons, similarly, if RAH or SkyWest cancels a flight, they have to forfeit the payment to Delta. That's how I've understood the agreement.