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Old 05-10-2011 | 11:49 AM
  #65445  
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Bucking Bar
Can't abide NAI
 
Joined: Jun 2007
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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
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Excellent Article!
Originally Posted by Columbia
Delta aggression toward US regionals revealed in latest earnings calls | Centre for Asia Pacific Aviation - CAPA

Delta aggression toward US regionals revealed in latest earnings calls

An interesting discussion as to how Delta is trying to change the financial dynamics of the US regional airline industry occurred during the Pinnacle Airlines conference call, as Dahlman Rose analyst Helane Becker frankly stated that Delta is not a good partner for any of its regional partners.
Note that none of these allegations is any different than Delta has treated itself (aka, it's Comair division). Shrinkage and diversification all over the route structure has driven up Comair's costs.
SkyWest usually emphasises it is its job to ensure its partners have what they need but it was the first to hint at what Mr Hunt called Delta’s “aggressive” posture with regionals when it sued Delta over the major carrier withholding payments owed related to irregular operations that are reimbursable to SkyWest Airlines and Atlantic Southeast airlines. The suit remains pending in a Georgia court. To date, the cumulative total the regional airline has recognised is USD31.7 million of revenue withheld by Delta.
Which is why ASA's operations management (aka SkyWest) and Chief Pilots have enforced policies which attempted to leave passengers overnight on planes during IROPs and diversions. This is why we have DOT3.
Pinnacle owed

The new rates will be effective Jan-2013. .... Mr Hunt said the company is in negotiations with the Atlanta-based carrier to also adjust rates owing to the reduction in Saab flying which has resulted in higher costs and lower productivity for crews. The adjustment will be retroactive to 1-Jan and is expected to be USD500,000 in the first quarter with a similar amount in the second quarter. He expected the deal to be completed in the next two months.
Again, we see Delta's contracts obligating it to pay for NOT flying.

We've lost money, thrown billions down the rat hole of wholly owned, but separate, regionals, sold them, paid their new owners and done such a poor job of managing the whole mess that the Feds had to step in to stop the most egregious acts effecting Delta passengers. At some point, can't ALPA, or this Company, understand that we would be better off finding a way to perform our own work?