Republic/MidWest growth...taking Delta flying
#11
Put the pieces together. Delta announces a deal to code-share with Midwest. Oh a week or two later, RAH buys them. The RAH deal was not done in the time after Midwest and Delta got in bed together. Delta pulls out of the LAX-MKE route, who steps in, RAH.
Delta and RAH are brothers. Delta is making money on the 175s that are flying the LGA-DCA routes. This has been in works for some time.
Delta and RAH are brothers. Delta is making money on the 175s that are flying the LGA-DCA routes. This has been in works for some time.
#12
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If im reading this correctly, Delta has a codeshare with Chautauqua until 2016 for 24 E145s and Shuttle until 2019 for 16 E170/175. RAH is flying the branded under the Republic certificate. So until those expiration dates come, Delta is locked in as long as the performance numbers meet certain criteria. It would be a long and expensive court battle if Delta wanted to terminate those agreements early. There may be early out clauses, but im not sure what they are.
Im with everyone else, I think they are in bed together. For some reason, Delta wants RAH to succeed in this venture.
Im with everyone else, I think they are in bed together. For some reason, Delta wants RAH to succeed in this venture.
#13
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Joined APC: Feb 2009
Posts: 798
Open your eyes.
Northwest partnered with TPG to buy Midwest and block Airtrans growth. Delta gives Midwest a one way code-share. TPG then partners with Republic and Delta could be a silent partner.
The Midwest pilots warned ALPA National and the Delta MEC.
#14
I never knew any of the details of the NW/YX TPG thing so I wasn't aware how this would benefit DL. I see everyones point now, but again Im just now learning how everything is connected.
#15
Can't abide NAI
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You thread name does not seem to match the article or the parts you highlighted. In fact the article points out that republic will likely be losing contract flying and that is the reason for this huge gamble. I suspect Republic will not see a single contract renewed with Delta in the coming years.
That might be good for Delta, but it isn't good for the pilots who wear Delta uniforms and see that DC9, MD88, or A320 as their first opportunity to wear a fourth gold stripe.
When explaining why I was voting against the JPWA I wrote that MidWest and Alaska would become virtual DCI carriers using mainline equipment as an end run around our scope.
Last edited by Bucking Bar; 08-29-2009 at 01:44 PM.
#16
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Joined APC: Feb 2009
Posts: 798
TPG did a few things during its ownership of Midwest...
1. They started new (5+) private companies or private investment groups. Delta could be partners in one of them.
2. They returned or sold all the Midwest aircraft because the new airline needed 100 seat production aircraft for growth (B717 and MD80 are out of production)
3. They changed the accounting system to take tax/paper losses to use as a deduction against other income. Value of about 190 million to TPG.
4. Started the one way Delta code-share. Midwest will feed the Delta system. I mean, that is all regionals do anyway.
5. They merged TPG Midwest with Republic. TPG and Republic are partners in a new national airline. Delta gets a 100 seat regional feed without paying for the equipment.
The airline pilot profession is being undermined. The Republic Teamsters need to require industry average wages and benefits for all aircraft over 76 seats. This still leaves the junior Delta pilots in trouble.
1. They started new (5+) private companies or private investment groups. Delta could be partners in one of them.
2. They returned or sold all the Midwest aircraft because the new airline needed 100 seat production aircraft for growth (B717 and MD80 are out of production)
3. They changed the accounting system to take tax/paper losses to use as a deduction against other income. Value of about 190 million to TPG.
4. Started the one way Delta code-share. Midwest will feed the Delta system. I mean, that is all regionals do anyway.
5. They merged TPG Midwest with Republic. TPG and Republic are partners in a new national airline. Delta gets a 100 seat regional feed without paying for the equipment.
The airline pilot profession is being undermined. The Republic Teamsters need to require industry average wages and benefits for all aircraft over 76 seats. This still leaves the junior Delta pilots in trouble.
Last edited by MD80; 08-29-2009 at 10:00 AM.
#18
We are all learning and will learn how this will affect many of us. I fear that this will accelerate the decline of the profession.
TPG and Brian Bedford are the co-conspirators who will execute the plan at the behest of those who stand in the shadows.
They will take every advantage of those who choose to help them accomplish this task, and they will fill their pockets with the gold they take from us all.
This will be a huge battle with many casualties.
#20
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Joined APC: Feb 2009
Posts: 798
If you haven't heard of TPG in the airline business. Here's part of a article about TPG/NWA buying Midwest.
.................................................. .......................................
TPG, which helped return Continental Airlines Inc. to profit, is leading a group including British Airways Plc in a takeover offer for Spain's Iberia Lineas Aereas de Espana SA. The buyout firm previously invested in carriers such as America West Airlines Inc., Tiger Airways Pte and Ryanair Holdings Plc.
TPG said it would finance the purchase through its TPG Partners V fund, which has $15.3 billion in capital, plus contributions from one or more partners.
``This is a pimple on an elephant's back for TPG,'' John Collopy, research director at Briggs-Ficks Securities LLC in Milwaukee, said in an interview.
.................................................. ...........................................
They haven't invested in airlines with only 38 aircraft before Midwest.
.................................................. .......................................
TPG, which helped return Continental Airlines Inc. to profit, is leading a group including British Airways Plc in a takeover offer for Spain's Iberia Lineas Aereas de Espana SA. The buyout firm previously invested in carriers such as America West Airlines Inc., Tiger Airways Pte and Ryanair Holdings Plc.
TPG said it would finance the purchase through its TPG Partners V fund, which has $15.3 billion in capital, plus contributions from one or more partners.
``This is a pimple on an elephant's back for TPG,'' John Collopy, research director at Briggs-Ficks Securities LLC in Milwaukee, said in an interview.
.................................................. ...........................................
They haven't invested in airlines with only 38 aircraft before Midwest.
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