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Old 05-25-2016, 05:08 AM
  #21  
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Originally Posted by CANEWT View Post
You guys do realize that Republic provides service to other airlines. And before you ask, yes I do believe that Delta would allow the planes to be operated for a competitor. All of the legacies have done similar things in the past.
Delta may allow it, but our PWA does not. If Republic wants to operate non permitted aircraft types, they are free to do so. They just can no longer operate a single DCI flight. So, the question for them becomes, can I make more money flying these planes than I make flying for Delta.
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Old 05-25-2016, 07:55 AM
  #22  
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Unless Republic has a firm contract to operate E190's on a profitable basis there is no way they will take them on no matter what Delta as DIP financier says or does not say. Bottom line there is no way that Republic can operate E190's for any mainline carriers. There is not a single agreement that any of the majors have that allows this kind of outsourcing and in todays climate that is not about to happen. It either will be brought in house (United is the only possible candidate) as I don't see AA or Jet Blue wanting any more 190's. Most likely Delta will use them as an assistance package for helping prop up GOL. Send them the 19 190's on a 5 to 7 year subsidized rate series of leases, and in turn Delta take over 20 737-800s from GOL on a 5 to 7 year series of leases, and accelerate MD88 retirements. This allows GOL to reduce their capacity which is critical right now, while maintaining at least some frequency, and can be structured so GOL reduces some of its financial burden over the next few years, while Delta pick up some more equity percentage points without putting up any substantial cash money. At the end of the 5 to 7 year period if things are better in Brazil Delta can return the 737-800 aircraft I think we may hear news along these lines shortly after the Rio Olympics are over. If the two companies agree to structure something like this so that GOL effectively gets lower aircraft rental costs without having to go through bankruptcy (GOL is after all a family owned business and they would be wiped out), Delta can put an annual value on the 'subsidized lease' of say $30mm, and count it as a $150mm equity investment in Gol and get more shares.

Or maybe Delta has a deal to provide the E-190's to Alaska Air to operate as mainline. I heard JNU needs capacity?
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Old 05-25-2016, 08:01 AM
  #23  
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Rumors are so awesome
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Old 05-25-2016, 08:07 AM
  #24  
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Originally Posted by Coronado View Post
It either will be brought in house (United is the only possible candidate) as I don't see AA or Jet Blue wanting any more 190's. ?
You are right about AA not wanting them, check out the AA threads. It was announced the other week they are getting rid of them. You can cross UAL off the list too, the VP of network planning said a while back they looked at them and weren't interested either (paraphrase - 'we have to wonder why AirCanada is looking to get rid of a relatively new fleet so quickly'). I'm pretty sure JetBlue is looking to move on as well, they've put off deliveries and been reported to be in talks with Bombardier again regarding the C Series. Perhaps Azul will want them....
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Old 05-25-2016, 08:56 AM
  #25  
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Originally Posted by trip View Post
Had a DL jumpseater tell us some kind of regional staple was going to happen, he thought Republic.
You would see a staple ONLY if they were shutting down an airline, and wanted to see those pilots not lose their jobs. I would think some Comair pilots would be able to talk to you about that.

Imagine if they wanted to staple 9E, not only would it create an unnecessary training expense, not to mention the increased contract costs with longevity expense, all of the 9E pilots would hold a better aircraft than the RJ by the time the integration was complete. Thus, all the pilots would move, and the whole point of a staple would be negated if they wanted to staff the RJ's through some kind of staple job to retain feed.

Let's be realists here, if the RJ's don't have pilots those planes will go to the desert. If mainline wants to maintain that market share, they will put a mainline plane on those routes. I looked in my log book last week, and Delta doesn't even fly anymore to at least 30% of the destinations in there. The other 50% of those routes are now majority mainline.
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Old 05-25-2016, 09:01 AM
  #26  
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Originally Posted by trip View Post
Had a DL jumpseater tell us some kind of regional staple was going to happen, he thought Republic.
A lot of folks at Compass thought this was gonna happen when DL had planned the 20 190's into SEA (one of our bases). It certainly still could happen to really anyone, as this "pilot shortage" gets worse, regardless of 190's or not.
Compass recently started to operate 20 175's for AA out of LAX and 36 175's/6 170's for Delta(also they are owned by Delta) Our bases also happen to be Delta bases as well.(LAX, MSP, and SEA) We are staffed for 62 air frames total, so it makes sense to do that to CPZ, since it would essentially overnight deal a major blow to AA in the market DL wants to expand and be #1, LAX. Since 20 air frames at AA all of sudden are not staffed in LAX (also the vast majority of the feed to AA mainline in LAX), it made sense. Plus, most of our pilots did the interview process that qualified for the flow and guaranteed interview program that 9E and XJT now have, except the flow stopped with late 09 or early 2010 new hires. They only stopped that interview process 6-9 months ago.
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Old 05-25-2016, 10:43 AM
  #27  
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Originally Posted by Coronado View Post
Send them the 19 190's on a 5 to 7 year subsidized rate series of leases, and in turn Delta take over 20 737-800s from GOL on a 5 to 7 year series of leases, and accelerate MD88 retirements. This allows GOL to reduce their capacity which is critical right now, while maintaining at least some frequency, and can be structured so GOL reduces some of its financial burden over the next few years, while Delta pick up some more equity percentage points without putting up any substantial cash money. At the end of the 5 to 7 year period if things are better in Brazil Delta can return the 737-800 aircraft I think we may hear news along these lines shortly after the Rio Olympics are over. If the two companies agree to structure something like this so that GOL effectively gets lower aircraft rental costs without having to go through bankruptcy (GOL is after all a family owned business and they would be wiped out), Delta can put an annual value on the 'subsidized lease' of say $30mm, and count it as a $150mm equity investment in Gol and get more shares.
Good theories here too! I like it.

Send the Brazillian aircraft to Brazil- and bring the US aircraft back to the US.
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Old 05-25-2016, 11:14 AM
  #28  
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Originally Posted by GrassLandings View Post
A lot of folks at Compass thought this was gonna happen when DL had planned the 20 190's into SEA (one of our bases). It certainly still could happen to really anyone, as this "pilot shortage" gets worse, regardless of 190's or not.
Compass recently started to operate 20 175's for AA out of LAX and 36 175's/6 170's for Delta(also they are owned by Delta) Our bases also happen to be Delta bases as well.(LAX, MSP, and SEA) We are staffed for 62 air frames total, so it makes sense to do that to CPZ, since it would essentially overnight deal a major blow to AA in the market DL wants to expand and be #1, LAX. Since 20 air frames at AA all of sudden are not staffed in LAX (also the vast majority of the feed to AA mainline in LAX), it made sense. Plus, most of our pilots did the interview process that qualified for the flow and guaranteed interview program that 9E and XJT now have, except the flow stopped with late 09 or early 2010 new hires. They only stopped that interview process 6-9 months ago.
not happening...
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Old 05-25-2016, 11:21 AM
  #29  
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Originally Posted by trip View Post
Had a DL jumpseater tell us some kind of regional staple was going to happen, he thought Republic.
My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this guy who's going with the girl who overheard top men confirm it at 31 Flavors last night. I guess it's pretty serious.
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Old 05-25-2016, 12:04 PM
  #30  
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Originally Posted by GrassLandings View Post
A lot of folks at Compass thought this was gonna happen when DL had planned the 20 190's into SEA (one of our bases). It certainly still could happen to really anyone, as this "pilot shortage" gets worse, regardless of 190's or not.
Compass recently started to operate 20 175's for AA out of LAX and 36 175's/6 170's for Delta(also they are owned by Delta) Our bases also happen to be Delta bases as well.(LAX, MSP, and SEA) We are staffed for 62 air frames total, so it makes sense to do that to CPZ, since it would essentially overnight deal a major blow to AA in the market DL wants to expand and be #1, LAX. Since 20 air frames at AA all of sudden are not staffed in LAX (also the vast majority of the feed to AA mainline in LAX), it made sense. Plus, most of our pilots did the interview process that qualified for the flow and guaranteed interview program that 9E and XJT now have, except the flow stopped with late 09 or early 2010 new hires. They only stopped that interview process 6-9 months ago.
IF, big IF, Delta were to staple anyone Compass would be the last in their consideration.
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