The WO carriers have not Air Services contracts so they are a necessary accumulator in the DCI system. It stinks right now since this is where the majority of furloughs are taking place. What I see is as the economy recovers and or some of the third party contracts are voided, the WO carriers will see an increase in flying. There is a lot more flexibility to WO airlines. They can shrink and expand as needed.
I would hope that DAL has seen the issues with the third party deals when the economy goes south, and would shy away from them going forward. As we know it is always good to have a bunch in the mix to keep all parties guessing, so I would assume two or three WO carriers and two or three third party airlines will make up DCI.
I am not implying that a WO carrier is going out of business at all. I said two or three. DAL may decide to sell one, combine two or the like. They are tinkering with the system. That is all I mean. Nothing more.
ACL:
Do you think Delta would market the WO to provide lift for another carrier.
Comair/Mesaba/Compass for United?
Actually, Delta already gave us (Comair) the go ahead to pursue flying outside the Delta system and our CEO -- two CEOs ago -- admitted just as much and even said we were aggressively pursuing flying for Northwest and United. This was, of course, before the merger and economy tanking and fuel rising to $160 a barrel last summer.
The WO carriers have not Air Services contracts so they are a necessary accumulator in the DCI system. It stinks right now since this is where the majority of furloughs are taking place. What I see is as the economy recovers and or some of the third party contracts are voided, the WO carriers will see an increase in flying. There is a lot more flexibility to WO airlines. They can shrink and expand as needed.
I would hope that DAL has seen the issues with the third party deals when the economy goes south, and would shy away from them going forward. As we know it is always good to have a bunch in the mix to keep all parties guessing, so I would assume two or three WO carriers and two or three third party airlines will make up DCI.
I am not implying that a WO carrier is going out of business at all. I said two or three. DAL may decide to sell one, combine two or the like. They are tinkering with the system. That is all I mean. Nothing more.
I don't always agree with your position on DCIs but on this I have to say you are spot on. Looking at all the available sources, it is clear DAL management wants more flexibility that comes from fewer DCIs. As far as WO carriers, three will be down to two. Which one DAL will sell is pretty obvious at this point. DAL was unable to sell Comair in the past, and Comair is saddled with too many 50 seat RJs. I don't think DAL can find a buyer for Comair.
Mesaba, on the other hand, has way too many senior pilots on its roster who are not going anywhere and even with 23 Saabs that will be parked, there will still be approx. 26 Saabs left. Even if they park all 48 Saabs by 2011 and all XJ 16 CRJ200s, XJ will still have all their senior pilot roster intact. Compass is in an ideal spot to be spun off at a profit if DAL can find the right owner at the right price. Compass has E175s which are the current favorite RJ flavor for DAL and all their pilots have less than 2 1/2 year seniority. Compass has very low overhead as they have no infrastructure they own, with all their customer service and administrative functions such as payroll etc handled by outside source.
I do not see merging between either between Comair and Mesaba or Compass. I do not see any business advantage for DAL to merge Comair with Mesaba as both have a large number of senior pilots (over 16 years seniority), or to merge Comair with Compass when DAL will have a better chance of selling Compass by itself. Equally I do not see any business advantage in merging Compass with Mesaba.
DAL is putting a squeeze on SkyWest in SLC by using Mesaba CRJ900s. Next time you are in SLC count the number of XJ CRJ900s there.
Compass is in an ideal spot to be spun off at a profit if DAL can find the right owner at the right price. Compass has E175s which are the current favorite RJ flavor for DAL and all their pilots have less than 2 1/2 year seniority.
I don't always agree with your position on DCIs but on this I have to say you are spot on. Looking at all the available sources, it is clear DAL management wants more flexibility that comes from fewer DCIs. As far as WO carriers, three will be down to two. Which one DAL will sell is pretty obvious at this point. DAL was unable to sell Comair in the past, and Comair is saddled with too many 50 seat RJs. I don't think DAL can find a buyer for Comair.
Mesaba, on the other hand, has way too many senior pilots on its roster who are not going anywhere and even with 23 Saabs that will be parked, there will still be approx. 26 Saabs left. Even if they park all 48 Saabs by 2011 and all XJ 16 CRJ200s, XJ will still have all their senior pilot roster intact. Compass is in an ideal spot to be spun off at a profit if DAL can find the right owner at the right price. Compass has E175s which are the current favorite RJ flavor for DAL and all their pilots have less than 2 1/2 year seniority. Compass has very low overhead as they have no infrastructure they own, with all their customer service and administrative functions such as payroll etc handled by outside source.
I do not see merging between either between Comair and Mesaba or Compass. I do not see any business advantage for DAL to merge Comair with Mesaba as both have a large number of senior pilots (over 16 years seniority), or to merge Comair with Compass when DAL will have a better chance of selling Compass by itself. Equally I do not see any business advantage in merging Compass with Mesaba.
DAL is putting a squeeze on SkyWest in SLC by using Mesaba CRJ900s. Next time you are in SLC count the number of XJ CRJ900s there.
I have been to SLC and you are correct.
Also, you do not have to agree with me, I just have one man's take on it.
DAL is putting a squeeze on SkyWest in SLC by using Mesaba CRJ900s. Next time you are in SLC count the number of XJ CRJ900s there.
I did and I saw 3, Delta can't put the "Squeeze" on Skywest in SLC because of our contract, and we have been hearing this song and dance for years. First it was comair... gone, then it was ASA.... gone, then it was XJT... gone and now it is Mesaba and from what I understand they will soon be gone.
You love to bring that up every thread how mesaba is putting the "squeeze" on skywest, and It is nothing but a flame, and to be honest an airline with 100 people on furlough who are about to put another 100 people on furlough isn't putting the "Squeeze" on anyone.
I did and I saw 3, Delta can't put the "Squeeze" on Skywest in SLC because of our contract, and we have been hearing this song and dance for years. First it was comair... gone, then it was ASA.... gone, then it was XJT... gone and now it is Mesaba and from what I understand they will soon be gone.
You love to bring that up every thread how mesaba is putting the "squeeze" on skywest, and It is nothing but a flame, and to be honest an airline with 100 people on furlough who are about to put another 100 people on furlough isn't putting the "Squeeze" on anyone.
This is the first time I brought this issue up on here. Not intended as a flame, just an observation. No need to get all excited. It seems everytime someone says you don't like you generalize it as a flamebait. More than a few people have made this comment based on number of XJ CRJ9s at SLC. A flamebait would be if someone said SkyWest contract will be cancelled by DAL in 2010.
As for 100 on furlough, so far about 70 on furlough, and yes it is true people are getting furloughed at XJ. Most logical people would agree that SkyWest pilots are not exempt from future furlough so no need to go there.
DAL is putting a squeeze on SkyWest in SLC by using Mesaba CRJ900s. Next time you are in SLC count the number of XJ CRJ900s there.
While it might annoy the SKW pilot group, it doesn't "put the squeeze" on Inc. They have contracted flying levels, and if it comes down to it, they don't really care where the flying is done...as long as it gets done. There are a variety of good business reasons to have non-SKW carriers fly out of SLC. Just like I go to ATL, CVG, and MSP sometimes too.
Similar Threads
Linear Mode
