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When DAL sold ASA to Skywest during bankruptcy, part of the deal was a long term contract for them to feed DAL. It sure seems from reading your posts, as well as management comments, that DAL management wants to reduce their feed via regional jets and replace at least some of it with mainline.
My question is: Do you know when that contract with Skywest expires and/or can their (Skywest and ASA) flying be substantially reduced in the interim?
There are min levels in there, and the contract goes to 2020. There are a few bench marks in the contract as it relates to their metrics and costs that will allow DAL to poke big holes in the contract. Originally Posted by Wasatch Phantom
ACL (or anyone else),When DAL sold ASA to Skywest during bankruptcy, part of the deal was a long term contract for them to feed DAL. It sure seems from reading your posts, as well as management comments, that DAL management wants to reduce their feed via regional jets and replace at least some of it with mainline.
My question is: Do you know when that contract with Skywest expires and/or can their (Skywest and ASA) flying be substantially reduced in the interim?
DAL sold ASA to SKW so they could pay off their AMEX line of credit. They did that and went in to Ch 11 the next day with AMEX providing exit financing. EV was the chip they needed to get the CH 11 done successfully.