Originally Posted by
newarkblows
It doesn't matter what each agreement says. Delta will come to these companies and renegotiate their agreement for 76 seaters with a higher payment per block hour for the regional. Most regionals looking at the massive training costs associated with HR3371, increasing maintenance costs with erj 145's and crj 200's, and the hope of a better profit margin will make them sign whatever Delta is offering.
Even if your airline has X amount of airplanes until 2050 it doesn't matter. Everything is up for negotiation and Delta is pretty good at shuffling flying around.
Why do they have to renegotiate? There is already sufficient language in the current air service agreement that allows Delta to pull down 50-seat flying in exchange for 76-seat flying.
Delta may not want to enter talks.
Straight from Sean Menke's mouth on a conference call- Delta wants to use the Pinnacle bankruptcy to reset regional costs because the gap between mainline costs and outsourced costs have shrunk. Delta will not want to renegotiate for higher 76-seat rates.