Originally Posted by
rjboy
This is not true guys. We take a hit on the rates we are paid by DAL if we are not the second lowest but it does not give DAL cause to void the contract. We need to hold on for a couple more years and when guys are flying out the door to mainline our pilot cost will not be as big of an issue as it is right now. I don't doubt mgmt will ask but until we start posting consistent losses there is no reason for us to even consider any cuts.
FYI, this is straight out of the Skywest Inc 2011 10K:
The SkyWest Airlines Delta Connection Agreement is subject to early termination in various circumstances, including:
• if SkyWest Airlines or Delta commits a material breach of the SkyWest Airlines Delta Connection Agreement, subject to 30-day notice and cure rights;
• if SkyWest Airlines fails to conduct all flight operations and maintain all aircraft under the SkyWest Airlines Delta Connection Agreement in compliance in all material respects with applicable government regulations;
• if SkyWest Airlines fails to satisfy certain performance and safety requirements;
• if, under certain circumstances, Delta has a right to terminate the ExpressJet Delta Connection Agreement;
• if the other party files for bankruptcy, reorganization or similar action (subject to limitations imposed by the U.S. Bankruptcy Code) or if either party makes an assignment for the benefit of creditors; or
• if SkyWest Airlines fails to maintain competitive base rate costs (provided that SkyWest Airlines has the right to adjust its rates prior to any such termination).
The agreement for ExpressJet DCI flying is identical.