Originally Posted by
Nevets
I'll just repeat what some ASA pilot posted here, "keep telling yourself that if it makes you feel better."
Fact is that BH has mentioned that multiple times in his weekly updates so has BR on the quarterly earnings calls.
You believe everything the "Brads" tell ya?
Nope, which is why I pointed out that what he said is corroborated by BR almost every earnings call.
Originally Posted by
RamenNoodles
Little birdie told me the rate reset was forgiven by momma D when INC agreed to the 2 for 1 airplane swap last year. I guess we'll find out if that's true in two years.
Originally Posted by
somertime32
I heard it was delayed because of that. I have not heard it was forgiven.
From page 8 of the latest Q:
"
The SkyWest Airlines and ExpressJet Delta Connection Agreements contain multi-year rate reset provisions beginning in 2010 and continuing each fifth year thereafter...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."
http://www.sec.gov/Archives/edgar/da...13772_110q.htm
The rate reset happened on 9/8/10. They agreed to it in the 4th quarter of 2010 (probably retroactive to 9/8/10). DAL only agreed to that 2nd lowest rate until 12/31/15 instead of 9/8/15. And then it will be another reset to 2nd lowest and then again 5 years after that in 2020. Keep in mind that this Q was filed with the SEC only three months ago. The additional 34 aircraft 2/1 swap deal happened in 2012. But regardless if it is delayed or forgiven now, my point being that the reset is the reason why Skywest decided to buy xjt and merge the airlines.