Originally Posted by
JetJock16
DAL can't decrease ASA block hours with major penalties. Now if DAL reduces 2 block hours by reducing service to a city then they must increase serves or begin it somewhere else. Otherwise DAL will be in breach of their contract with SKYW Inc which would cost DAL $145M. Now from what I understand is that they can decrease ASA block hours but increase SKW which still counts as a wash, 1:1. The contract is for guaranteed flying through 2020, for both SKW & ASA, with increases in flying based but certain factors, factors that SKYW Inc. has had no problems meeting with SKW. That’s one of the many reasons why SKW has received the new DAL flying and ASA hasn’t had anything beyond the 8 (?) CR7’s from Comair.
People seem to forget that SKYW Inc.’s contract with DAL is the most iron clad (meaning loop holes) of all their code share contracts and it has the biggest penalties. JA & Co crossed their T’s and dotted their I’s when they purchased ASA. I’m not saying DAL can’t get out of it but with SKW operating with one of the lost cost per seat per mile it just would make sense for DAL to incur the $145M in penalties in order to bring in another carrier with a lower cost.
IMO, they’re probably going to cut less profitable CR2 (ASA) routes and add more profitable CR9 (SKW) routes.
I certainly could be wrong, but if I recall correctly I thought it was a % guarantee not a block hour guarantee. 85% of Delta feed in ATL had to be done by ASA, and Skywest was guaranteed a certain percentage of all DAL feed. As long as that percentage holds I think they can reduce the flying as necessary. Anywho, 35 RJ's are being removed from Delta service. The question is where. Also, they can't just add more 900's as Delta's scope clause regulates that. Plus they would have to be in the 76 seat configuration.