Originally Posted by
johnso29
From the Skywest 8-K:
The Delta Connection Agreements also provide that, beginning with the fifth anniversary of the execution of the agreements (September 8, 2010), Delta has the right to require that certain contractual rates under those agreements shall not exceed the second lowest of all carriers within the Delta Connection program. During the fourth quarter of 2010, SkyWest Airlines and Atlantic Southeast reached an agreement with Delta on contractual rates satisfying the 2010 rate reset provision and the second-lowest rate provision and agreed to rates through December 31, 2015. Delta additionally waived its right to require that the contractual rates payable under the Delta Connection Agreements shall not exceed the second-lowest rates of all carriers within the Delta Connection program through December 31, 2015.
Waived until 2015 it looks like.
I don't know who is winning the "race to the bottom" but it looks like this agreement was the "starting gun." Actually the race is to "next to the bottom"- (over and over and over and over ) unless the number of DCI carriers is reduced to one or two.