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Originally Posted by SailorJerry
(Post 1329321)
It's not based on route by route. They're mostly long term capacity purchase agreements with letter grade performance bonuses as well as poor performance kill switches. The only time there is a bid is when the RFP goes out.
HOWEVER - the majority of the CRJ-900s are owned outright by Delta Air Lines, Inc. As a result, Delta can wheel and deal those airplanes more often, as they're on not much more than month to month leases for $1 a month to the DCI carriers. Unfortunately for your scenario, Skywest owns their own CR9s, so the capacity purchase agreement applies. Details of said agreement can be found in the SKYW Annual Report. With all that said, Delta does negotiate more flexible contracts than United or US Airways. This is mostly what allows the whipsaw to be as violent as it is. It's interesting reading the 10k report for Skywest. Funny that Delta leases them a lot of aircraft for 'nominal' rates and then pays them cost+ to fly the block hours. Well, maybe funny is the wrong word. What's also interesting is that Skywest is contractually obligated to be the second lowest cost operator for Delta, but Delta waived that obligation until EOY 2015: The Delta Connection Agreements also provide that, beginning with the fifth anniversary of the execution of the agreements (September 8, 2010), Delta has the right to require that certain contractual rates under those agreements shall not exceed the second lowest of all carriers within the Delta Connection program. During the fourth quarter of 2010, SkyWest Airlines and Atlantic Southeast reached an agreement with Delta on contractual rates satisfying the 2010 rate reset provision and the second-lowest rate provision and agreed to rates through December 31, 2015. Delta additionally waived its right to require that the contractual rates payable under the Delta Connection Agreements shall not exceed the second-lowest rates of all carriers within the Delta Connection program through December 31, 2015. Maybe this is part of the reason a lot of regional pilots are urging Pinnacle pilots to vote no. |
Originally Posted by Lysithea25
(Post 1329430)
It's interesting reading the 10k report for Skywest. Funny that Delta leases them a lot of aircraft for 'nominal' rates and then pays them cost+ to fly the block hours. Well, maybe funny is the wrong word. What's also interesting is that Skywest is contractually obligated to be the second lowest cost operator for Delta, but Delta waived that obligation until EOY 2015...
Maybe this is part of the reason a lot of regional pilots are urging Pinnacle pilots to vote no. I wonder what the "story behind the curtain" is? |
Originally Posted by orvil
(Post 1329343)
The Company may not ask for contractual changes for the new rules, but DALPA will offer changes. Isn't that how we roll, constructive engagement and all....
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Originally Posted by sailingfun
(Post 1329438)
They will take the hit and operate under the current contract.
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Originally Posted by Wasatch Phantom
(Post 1329432)
Thanks to Jerry I saw that too.
I wonder what the "story behind the curtain" is? On August 2, 2012, the Company announced that it reached an understanding with Delta to add 34 additional used dual-class Bombardier regional jet aircraft that were previously operated by other regional carriers for Delta in exchange for the early termination of 66 Bombardier CRJ200 regional jet aircraft (“CRJ200s”) under the SkyWest Airlines and ExpressJet Delta Connection Agreements. The Company anticipates the 34 additional dual-class aircraft will be subleased from Delta for a nominal amount. The 34 additional dual-class aircraft consist of five Bombardier CRJ700 regional jet aircraft (“CRJ700s”) and 29 Bombardier CRJ900 regional jet aircraft (“CRJ900s”). As of September 30, 2012, the Company had taken delivery of 13 CRJ900s and 2 CRJ700s. The Company anticipates that the remaining dual-class aircraft to be provided by Delta will be delivered by June 2013. The Company anticipates that all 66 CRJ200 aircraft will be removed from the Delta Connection Agreements by December 31, 2015. Of the 66 CRJ200s to be removed from service, 41 CRJ200s are subleased from Delta for a nominal amount, which are scheduled to be returned to Delta without obligation to the Company. As of September 30, 2012, three of the 66 CRJ200 aircraft have been removed. |
Originally Posted by sinca3
(Post 1329448)
What hit would they take?
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Originally Posted by forgot to bid
(Post 1329056)
The Seattle vs San Fransisco game next week should be pretty good. :D
Not everyone was upset with having to watch another major football game from the Georgia Dingy Dome. The state of Geo... I mean the city of Altanta, the Bay Area and the Patriots, are excited. :D http://i.ytimg.com/vi/OqsAtWGYjGU/0.jpg |
Originally Posted by sailingfun
(Post 1329438)
The stated reason was the company feels past LOA's were to costly for the changes the company got. The are not willing to overpay again and feel no deal would be possible. They will take the hit and operate under the current contract.
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Shiz and Gang
Say hello to Miss America, she attended Auburn University and was a Pi Phi there... http://images.enstarz.com/data/image...agan.jpg?w=565 :D Sure there are swimsuit pics I could've posted, but I just felt like the "Hello Ferd..." pics are always the best. |
Does anyone know if the -900s are going to have the new lighting and bins? I was on an Alaska -900 recently and it was very nice...very new, it had that new Boeing airplane smell vs. that cat lady smell...
FTB, I'm good if you send the Ms. America swimsuit pics...War Eagle! |
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