Originally Posted by
PinnacleFO
compass can be sold as soon as it hits 11 aircraft, which is approaching rapidly. I wonder if Uncle Phil and the PInnacle Corp. would buy Compass
No, it can't. That seems to be a common misunderstanding on here. I'll see if I can find the contract verbage, but what the contract states is that SJ (Compass) cannot be sold until
NWA recieves 10 aircraft of a new narrobody (dc-9 replacement type) aircraft. That "10 aircraft" magic number has nothing to do with Compass' aircraft, so Compass could have 75 planes, and if NW still hasn't bought 10 of a new A/C type, NW cannot sell.
While they may fly the same aircraft, they most certainly are not direct competition for RAH. Compass is strictly an NWA venture and I don't think you're going to see an NWA subsidiary start bidding on RAH's E-jet flying for DAL, UAL, Frontier, or US Air. RAH has no ties to NWA and I haven't even heard the faintest rumor of even trying to get in the door with those guys.
Actually, the Compass charter does not prevent it from seeking flying with other carriers and, well beyond just rumors, Compass has publicly stated that it fully intends to persue opportunities to diversify it's flying, starting with a bid for Delta flying in the not-to-distant future. It is true that Compass is an NWA venture, but NWA created the company to be an entrant into the new large-rj market, and to directly compete with other E-jet and CRJ-900 carriers for flying.
Compass, like RAH and so many other regionals, is essentially a wet-lease company, and since all Compass' profit goes to NWA, there is no reason for Northwest to prevent it from seeking outside business. It's essentially the same as what Delta has done with DGS, selling it's services for profit to other carriers, even carriers that compete directly with Delta.