Originally Posted by
Truman_Sparks
ASA not getting 900's. Delta has it covered now with Skywest, Mesa, Comair, Pinnacle and Repub's e170's. Sorry. We missed the boat on that. Wrong place, wrong time.
The ATR's will go eventually, and the replacement aircraft will go to bid....and ASA WILL be undercut for the business. Sorry, there goes 16 more airframes.
The ASA purchase agreement between SKW Inc and DAL was for guaranteed
"flying" (not routes) through 2020. If DAL chooses to replace ASA then they must increase flying in other areas (1:1). If DAL decreases ASA flying without a 1:1 adjustment they will be in breach and that will cost then $125M which is the last installment of the purhcase price that is due at the end of the agreement. Of course the contract doesn’t specify which of SKW Inc 2 airlines must receive the positive flying. Essentially ASA can loose 1 block hour and SKW gain 1 block hour or vise versa. Also the gain can not be a previous gain post agreement seeing the contract also contains clauses for guaranteed growth (SKW Inc airline non-specific). At least this is how I understand it.
Unfortunately for ASA and
NO OFFENSE INTENDED, their a Bastard Step Child. Newly loved none the less.
Giving 12 a/c worth of flying to a lower bidder without a 1:1 trade will cost DAL more money than they'll save.