Originally Posted by
Lighteningspeed
If DAL goes through its plan to park most of the 50 seat RJs, most of the DCIs whether WO or not will continue to shrink. XJ only has 17 CRJ200s so even if they are all parked in the near future that is nowhere near as catastrophic as it would be for Comair, SkyWest, or Pinnacle which has in excess of hundreds of CRJ200s.
DAL will probably park all Saabs by the end of 2011 but after this year's cut, XJ is only left with 28 Saabs, and it looks like CRJ200s from all DCIs will not be safe from the chopping block. I think current DAL CEO is in a bit of a quandry due to errors made by previous CEO. Because 10 plus DCI contracts were signed away by previous management, DAL risk expensive legal battles if it tries to cancel DCI contracts with SkyWest/ASA, Pinnacle or CHQ. But his beancounters and legal advisors may give him the green signal to cancel them one at a time if the cost of getting sued is actually cheaper than going through with the continuing DCI agreements.
Current DAL CEO has said many times he wants to keep most of the DCI flying inhouse in the future. Whether he will be able to do so is a big question mark.
Pinnacle's nwa contract was signed by the same people who moved from nwa to delta. Pinnacle's delta contract was signed while RA was in office. So there was no error by the previous leaders. This is exactly what he wants. The contracts they want to cut are coming up and wont be renewed. The wholly owneds are going to take the biggest slash. RA doesn't want the regional flying in house. That is the problem. He cant do it in house cheaper than he can by contracting it out.
It was all set up before he left. While he was ceo we got a new contract with nwa good till 2017. He left nwa and went to united health care. Pinnacle then switched to united healthcare for insurance when he became ceo. then he leaves united health care and we drop them as our insurance provider and switch to cigna. just a little after he steps into office at delta we get a 900 contract. Pinnacle has been following RA around for several years now.
Remember: Current DAL CEO was NWA CEO just a few years ago. This stuff is years in the making.