Originally Posted by
gtechpilot
The 80% applies only to ATL and the merger won't affect that. What I've wondered myself - ASA/Skywest was also guaranteed a certain percentage of all DCI flying, how would that stand?
As for ASA/Skywest's contract with Delta, it withstood Delta's bankruptcy, and while nothing is iron clad in this industry, about the only way the contract can be broken is for Delta to go under.
Read through the SEC filings - when Delta sold ASA to Skywest, it was a pretty sweet deal.
The escape clause was that ASA must be the 2nd lowest cost carrier in DCI after 5 years, an impossible benchmark since Delta keeps adding lower cost carriers than ASA.
The contract will be voided in 2 years if ASA management doesn't take drastic action to cut costs.