Airline Pilot Central Forums - Republic/MidWest growth...taking Delta flying

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Quote:

Originally Posted by MD80 (Post 670868)

NWA has tried 3-4 times to bury Midwest and failed until they bought us.

Ironic, eh?

Sometimes I wonder if we should have just sent AirTran a check for $250,000,000.00 and called it a day.

I have an easy solution.. ( not really ) but here goes.... BUY all the DCI's..... and staple... with some sort of years of service transfer in for pay. Before you even say it.... as guys go thru DAL training and flying if they dont cut the mustard.... terminate them and hire to fill vacancies. If mainline pilots mean what they say.. and want all THEIR flying under their control...... then step up to the plate and push for purchase and integration.

When I look at Republic... I see a company with a CEO that is smart enough to see the handwriting on the wall.... companies were cutting regional feed.....what was he to do ... sit around and let his company whither on the vine .... I am not sure from an industry standpoint that I like what he has done, but the reality is he is looking towards the long term future of RJET which is exactly what a CEO is suppose to do.

Quote:

Originally Posted by HercDriver130 (Post 670878)

You're kidding, right?:confused:

Stapling because mainline pilots want it? Good luck with that and the law....

Purchasing without the consent of the companies being purchased? Good luck with all the stakeholders.

Yup, it'd be real easy!

Quote:

Originally Posted by slowplay (Post 670932)

Purchasing without the consent of the companies being purchased? Good luck with all the stakeholders.

Since Delta already owns Compass, Mesaba, and Comair there is no consent to worry about.

Pinnacle would probably be an easy buy. Doesn't RA already play golf with the big chiefs at Pinnacle?

In a year or two Skywest will be ready to sell ASA back to Delta in exchange for a iron-clad hundred year contract, three 76-seat jets, a bag of trail mix, and a handful of buddy passes.

That leaves Mesa and RepublicChitaquaLynxMidWestShuttleFrontier. And Delta may want to be rid of those two by then.

Will it ever happen? No, but not because the shareholders can't be bought.

I always find it interesting that this is always in Delta's 10Q and 10K.

Quote:

We may terminate the Chautauqua Airlines, Inc. (“Chautauqua) and Shuttle America Corporation (“Shuttle America”) agreements without cause at any time after May 2010 and January 2016, respectively, by providing certain advance notice. If we terminate either the Chautauqua or Shuttle America agreements without cause, Chautauqua or Shuttle America, respectively, has the right to (1) assign to us leased aircraft that the airline operates for us, provided we are able to continue the leases on the same terms the airline had prior to the assignment and (2) require us to purchase or lease any of the aircraft that the airline owns and operates for us at the time of the termination. If we are required to purchase aircraft owned by Chautauqua or Shuttle America, the purchase price would be equal to the amount necessary to (1) reimburse Chautauqua or Shuttle America for the equity it provided to purchase the aircraft and (2) repay in full any debt outstanding at such time that is not being assumed in connection with such purchase. If we are required to lease aircraft owned by Chautauqua or Shuttle America, the lease would have (1) a rate equal to the debt payments of Chautauqua or Shuttle America for the debt financing of the aircraft calculated as if 90% of the aircraft was debt financed by Chautauqua or Shuttle America and (2) other specified terms and conditions.
We estimate that the total fair values, determined as of June 30, 2009, of the aircraft that Chautauqua or Shuttle America could assign to us or require that we purchase if we terminate without cause our Contract Carrier agreements with those airlines (the “Put Right”) are approximately $251 million and $473 million, respectively. The actual amount that we may be required to pay in these circumstances may be materially different from these estimates. If the Chautauqua or Shuttle America Put Right is exercised, we must also pay to the exercising carrier 10% interest (compounded monthly) on the equity the carrier provided when it purchased the put aircraft. These equity amounts for Chautauqua and Shuttle America total $25 million and $52 million, respectively.

There has never been mention of any other contract regional. I don't think CHQ is going to get a renewal. They're the only other DCI carrier that is not repainting their aircraft in the new Delta livery. Freedom stopped repainting their's when they got the cancellation notice.

^ Ahh the slow collapse begins. Expect the rest of the major's to drop them too. Hopefully this will mean that the majors can lock down some better scope and the rest of the flying to be divided up between actual regional carriers.

Quote:

Originally Posted by xtreme (Post 671299)

an actual regional carrier? what is that anymore? colgan? piedmont? delta doesnt have any "regional carriers" they are all capable of flying small jets through multiple regions.

oops i forgot they have mesaba's saabs. so they have what less than 50 regional airplanes?

Quote:

Originally Posted by xtreme (Post 671299)

^ Ahh the slow collapse begins.

You did read that financial statement, right?

Delta would have to either assume the leases for those airplanes or buy the RJET-owned aircraft and pay them 10% monthly compounded interest on the capital.

The Shuttle 170/175 contract can't be touched for another 6+ years...and if Delta terminated the Chautauqua contract next year RAH would lose that revenue but all liabilities for those planes would be cleared from their balance sheet and they'd get $25M for their troubles.

That's hardly any "slow collapse".

Quote:

Originally Posted by BoilerUP (Post 671313)

That's not the whole agreement.;)

Here's an example of supporting another pilot union...

US Airways Pilots Lend Support to Striking Amerijet Pilots

Press Release
Source: US Airline Pilots Association
On Tuesday September 1, 2009, 2:26 pm ED

CHARLOTTE, N.C.--(BUSINESS WIRE)--The pilots of US Airways, represented by the US Airline Pilots Association (USAPA), wish to lend their support to the pilots of Amerijet, who officially went on strike last week following a collapse in negotiations after five years of contract talks. Beginning today, US Airways pilots will be joining the Amerijet picket line.