Originally Posted by Wasatch Phantom

From the SKYW 10K:
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.

The way I read this (disclaimer: no legal training) on January 1, 2016 the existing agreement ends. SKYW can either match the second lowest rate and continue to be a DAL Connection Carrier, or perhaps negotiate something else. A big part of the contract is the rate. If SKYW can't (or won't) match it, I see the contract as ending. Why would Delta want to pay more?

Richard Anderson, Delta's CEO, is a tough negotiator who doesn't like to pay a nickel more for something than he absolutely has to (and he probably loses a little sleep questioning that last nickel).

Just look at the recent aircraft purchases. A bunch of used MD-90's that Delta is buying for cheap and the Boeing 717's that are coming from SWA at supposedly ridiculously low lease rates. Just last week there was a WSJ article about Delta trying to negotiate the purchase of some new deeply discounted current generation B-737's or A-320's...