Remains to be seen whether it is a step in the right direction for the industry (a la DAL TA reducing total RJ airframes and block hours) because we haven't seen the text of the UAL TA.

However, there are a few points on which Bombardier has the upper hand over Embraer:

• Delivery schedules. Bombardier can get new airframes online much quicker than Embraer right now because of the E190 backlog.
• Training costs. ASA would have to set up a whole new training department for a new aircraft type, eliminating any fleet synergies.
• SKYW relationship with Bombardier and resultant unit cost efficiencies by increasing its CRJ fleet size.

Word at the GO is the ERJs will be exiting as soon as mid-2013 and replaced with the largest CRJ UAL scope will allow. The biggest hurdle right now they said is that Bombardier has reduced production to 2.5 units/month, but can flex that back up to 3.5 to 4 units/month if a large order comes in, allowing for a steady replacement schedule.

They've also tossed around the idea of getting an additional CR7 sim at the ATL training center and trimming down to two CR2 sims, as well as getting a CR7 initial training program (as opposed to CR2 initial + differences) approved due to the volume of CR7/9 training that will be occurring. It all kind of fits into what we've been seeing lately...