Trust me, I think there is more to play out and there are many pilots that left TSA for ASA because the place was a dump to work for.

As for Mesaba, Pinnacle was parked by the NMB to they now have two airlines that are in contract talks.

Like I said, this is a "developing" story that has a few more headlines to produce.

 

With these prices the girl scout troop up the street could have bought them. If they had been on EBay, we could have bought an airline and flipped it.

Yes, Nostradamus. Despite denials, the actions had predictable results.

Wonder if we are still leasing $28,000,000.00 jets for a buck?

 

The devil is in the details. The acquisition cost is chump change. The real savings to DAL are in modification of the air services agreements and leases of which we don't have details.

Also if they bust the 3 hr rule, who pays the penalty if they are not a WO, but a DCI contracted carrier?

Summary of PINNACLE AIRLINES CORP - Yahoo! Finance

The Amended CRJ-200 Airline Services Agreement.

In connection with the Company's acquisition of Mesaba and its CRJ-200 aircraft fleet, on July 1, 2010, the Company, PAI and Mesaba entered into a Second Amended and Restated Airline Services Agreement (the "CRJ-200 ASA") with Delta, which restates substantially all of the terms of the Prior ASA other than with respect to amendments that (1) increase the number of regional jets operated by the Company for Delta under the agreement, (2) modify the rates under which PAI and Mesaba shall perform the services for Delta, and (3) provide for future rate adjustments based on changes in the Company's actual operating costs. The CRJ-200 ASA shall continue in effect until December 31, 2017.

The Amended CRJ-900 Delta Connection Agreement.

The Company, PAI and Delta entered into an Amendment to Delta Connection Agreement (the "CRJ-900 Amendment"). Aside from changes related to measuring operating performance, substantially all terms of the previous DCA remain in effect.

The CRJ-900-M Delta Connection Agreement.

In connection with the Company's acquisition of Mesaba and its CRJ-900 aircraft fleet, on July 1, 2010, the Company, PAI and Mesaba entered into a 2010 Delta Connection Agreement (the "CRJ-900-M DCA") with Delta, pursuant to which Mesaba provides regional jet service to Delta by operating forty-one 76-seat CRJ-900 aircraft. The CRJ-900-M DCA provides for Delta to pay pre-set rates based upon the capacity that Mesaba provides to Delta. Mesaba is responsible for the costs of flight crews, maintenance, dispatch, aircraft ownership and general and administrative costs. In addition, Delta reimburses Mesaba for certain pass-through costs, including landing fees, most station-related costs (to the extent that Mesaba incurs them) and aircraft hull and general liability insurance. In most cases, Delta will provide fuel and ground handling services free of charge. Mesaba will earn incentive payments (calculated as a percentage of the payments received from Delta) if the Company's aggregate operations for . . .

 

So ad lib, give me your dots on the future of these airlines that have been sold for nothing. What about the flow agreements? Everyone get them now?

 

Here's some early news about who we partnered with, in the news today:

 

Well if there are marked changes to the ASA's that is huge for DAL, and huge for the regionals as the cash cow will stop producing the level of milk it has for these carriers.

I also suspect that these airlines can be sold off to other airlines as well if the acquiring airline wants to. I see RJET needing more jets and SKWI wanting more flying, so some of these new super regionals may buy Pinnacle Holdings, TSA Holdings etc and get two or more certs in the transaction.

Consolidation is happening and not just at the mainline level.

 

I don't see this changing the flow for either CPZ or Mesaba - they would have to peel back substantial numbers of acft to undo the flows - and it appears they are simply moving the lift to the new purchasers.

What might get interesting is if they do any SLI with Pinnacle or Trans States and then who is eligible to flow......

 

Remember:
Trans States Holdings Signs LOI with Mitsubishi Aircraft for Purchase of 100 MRJ Aircraft - MRJ - Flightglobal Industry Resources

 

On the first part, I am not too sure as there are many guys on our list that will "pressure" the union in to dumping the flow because DAL will not have a bit of say in the interview process. Just sayin, and please do not tell me about the contractual requirements of the flow. Just pointing out that many pilots here will not like that.

If they do an SLI it depends on what cert you are on and or if the Mesaba and or CPS certs would survive the combination.
I could say more but will just see how the cards play out.

 

Well it a gut kick. The quality of the operators (TSA management) is no improvement on Mesa.

With these prices you would hope that Delta was getting their money back through restructuring of the DCI agreements, but, TSA had already been fired once by Leo Mullin. Take away:

• We're just giving lip service to our product
• Narrow body domestic operations up to 100 seats is not seen as a core part of Delta's business
• There must have been provisions in the new DCI agreements that Jerry Atkin and Bryan Bedford found very unappealing
• Delta does not want SkyWest, or Republic getting stronger
• The whipsaw will continue, amongst labor and their employers

As for flow, a flow to these carriers is unappealing. There isn't anything in it for Delta pilots. Delta management does not seem to like the flow either. So the only place the flow remains popular is amongst the new orphans. Experience tells me that distant MEC's are not sympathetic to orphans. I doubt we'll waste the postage on a conciliatory letter, after all, we were quick to vote to enable this to happen.