Thanks for your usual constructive input.

The fact that ALPA gets to see the ASA's from each of the represented carriers and can cross check those numbers is an advantage your little independent website of lies couldn't begin to match.

Who is the real sucker?

 

Despite what the C20 rep stated, the CRJ production backlog is currently 26 months (52 public airframes as the 700/900/1000 are built on the same line). You'll have to wait awhile.

 

I think they've telegraphed their hand pretty clearly in the PCL DIP. PCL has assumed a contract for 140 CRJ-200. Delta has the option to remove 16 of them 1 for 1 with larger aircraft, and PCL has rejected 16 CRJ-900 that they own. They also have options to reduce the PCL fleet futher. You can read about it in the DIP financing aircraft services agreement on the PCL docket.

 

From RA's own keyboard:

Q7. What is the latest with Delta’s fleet strategy? How do we plan to address our future fleet needs?
A. We continue to pursue an opportunistic fleet strategy that features acquisition and deployment of the most efficient aircraft available to meet the needs of our customers. We have employed this strategy to acquire both new and used aircraft to replace mainline (DC9s, older 757s) and regional (50-seat jets, Saab turboprops) aircraft. On the new side, we finalized a deal last summer with Boeing to purchase 100 new 737-900ER jets, which will begin delivery next year. On the used side, we have been buying MD-90s and will have 65 of these flexible, cost-efficient planes in service by the end of next year. You have probably also heard that the recent announcement of Delta’s tentative agreement with our pilots could provide the opportunity to accelerate the fleet strategy with the addition of 88 Boeing 717 aircraft to the mainline fleet, subject to pilot ratification of the agreement.

I'm sure the "cost neutral" (which was never said by management and only said by the C20 rep, btw) guys will now claim what used to be their burning bush is inaccurate...

 

Slow,

Kindly address whether the loss of Capital Expenditure lavished on the DCI carriers is included in ALPA's analysis of outsourcing which concludes "mainline pilots can not fly these airplanes for competitive rates."

Between ASA and Comair that is what ... 4.5 Billion? How much did NWA have in its connection operation?

All in, with two crashes, over 100 wrongful death settlements, three bankruptcies, two lawsuits and the wholesale destruction of value of company assets ... has Delta's outsourcing been a good deal?

A fair analysis of outsourcing can not be made without also considering the unexpected costs ... just as unscheduled engine removals end up in the MD88's costs eventually.

 

I will take Richard for his word. My point is that at the acquisition costs of the 717, would be half of the cost of a elongated pregnant beer can (crj 900). Pilots fly the airplanes management provides us. Nothing more, nothing less. My postion would be never let a airplane acquisition cloud a contract negotiation. Airplanes come and go, the contract has lasting effects.

Personally i believe the company is a value shopper and these 717's are a value. Who's right? I guess it will all shake out in a few weeks.

 

GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY GUILTY

So the world has not gone completely mad.

 

What was mad was that he got away with that crap so long. Those guilty's are for a lot of people.

 

"No answer" is an answer of sorts.

 

No, past CapEx is not included in the analysis. We are where we are. I can't change where we've been. Costs looking forward were included and disadvantaged mainline (DCI already has infrastructure to support Embraer/Bombardier products).

Some points, though. One of the best performing assets in the NWA pension plan was PCL stock placed in the plan in lieu of a cash contribution (pre-bankruptcy).

PCL's bankruptcy was not induced by Delta but by bad management decisions. The PCL CRJ-200 and Mesabah CRJ-900 contracts were profitable. Delta is making 12.5% on the DIP financing it has provided PCL and has moved itself up the food chain for claims on assets should PCL not reorganize.

Arguably the worst business transaction Delta entered into was for ASA, with a premium purchase price and fire sale sales price. The capital extracted provided just barely enough to get Delta through bankruptcy. I'm sure CMR is a close second, but the asset stripping, BK car wash and depreciation probably helped the bottom line more than ASA, even including the strike. That's just a guess on my part.