Delta Sells Compass and Mesaba
 

NEW YORK (AP) -- Delta Air Lines Inc. said Thursday it sold two of its regional carriers that operate as Delta Connection for a total of $82.5 million.
Delta, world's largest airline, said the move is part of its plan to streamline its regional operations to save money.
Delta sold Mesaba Airlines to Pinnacle Airlines Corp. for $62 million and Compass Airlines to Trans States Holdings Inc. for $20.5 million. Pinnacle is one of the largest of Delta's nine regional carriers.
Delta inherited Mesaba and [edit:Compass] when it bought Northwest Airlines two years ago.
Mesaba and Compass will continue to operate Delta flights through agreements ranging from seven to 12 years. Both Mesaba and Compass will keep their home base in the Minneapolis-St. Paul area and retain their top executives.
Pinnacle Airlines Corp. is the parent company of Pinnacle Airlines and Colgan Air Inc. Colgan, which flies as Continental Connection, United Express and US Airways Express, operated the plane that crashed in Buffalo, N.Y., last year, killing 50 people.
Trans States Holdings Inc. is the parent company of regional airlines Trans States Airlines and GoJet Airlines. It operates as United Express and US Airways Express.
On Wednesday, the Federal Aviation Administration said it wants to fine Trans States and GoJet for violating maintenance procedures and operating nine jets on 320 flights when the planes were not in compliance with safety regulations.Trans States and GoJet have 30 days to respond. The carriers said in statements they are confident they will be able to show the FAA is incorrect in their allegations.Delta Connection carriers fly a combined 3,600 commuter flights to more than 260 cities. The unit was created in 1984.Major carriers are handing over more of their flights to regional operators because it's a cheaper way to fly. By selling the units, the airlines can maintain the benefits of the less-expensive operations without having to run them directly. It's also a way for airlines to maneuver around tight labor deals at their main operations.
American Airlines earlier this month reiterated its plan to find a suitor for its American Eagle subsidiary.

And Lee Moak's motivation to divest us from the DAL MEC becomes apparent. From today's Q&A to Compass employees, management is claiming the ability to cancel the flow up provision without affecting the flow down or reducing the number of 76 seaters. :eek::mad:

Ah, yes, selling yourself into profitability. That hasn't been tried before.:rolleyes:

Interesting to see what you MEC's response to that is. My response is that you need to read the LOA's and not to allow parties to play in to the emotional side of this. Do not let them divide you against us. This is trick 101.

Yeah it sounded that way to me too. That is not how I understand the contract however. ALPA better be all over this to ensure it is done correctly. :(

I just hope we get some support from the other side of the fence to keep the flow....however when there isn't much chance of needing the flowback in the near future I definately predict we wont see many DAL pilots wanting to keep this thing around. We have already heard a lot of noise to get rid of it. :(

Ahh well I guess we will see.

The timing of this announcement is interesting, but not surprising given recent discussion regarding an up-tick in hiring at Delta.

So, are they talking about doing away with the flow-up, or are they cancelling it all together?

I'm sure you would have been really happy if Delta had decided to sell CPZ while you were "represented" by a Delta MEC appointed Compass Coordinator. Then you could have folks that weren't on your seniority list negotiating with your new owners for your next contract. No risk there.

You think the representation change to an independent MEC is what got you sold or even made it easier? Right.....:rolleyes:

The contract says the flow UP can be terminated for compass new hires. Anyone on the property now should be protected by the agreement.

No. Allows LM & Co the ability to wash their hands and look the other way when we get raped. "Not our problem, what happens at the regional level doesn't affect us!" Same song, different verse.

I'm curious about your take on a potential scenario where the flow up is terminated but the flow-down remains in effect, and the current CPS pilots who've been living under the threat of a flowdown/furlough scenario for the last two years have the agreement terminated when on the verge of flowing up. Do you see the DAL MEC expending any effort whatsoever to prevent such a scenario from happening? I would hope so but as someone else posted, rather doubt they'll spent the postage to send us a condolence letter.