Will Compass be sold if NWA merges?
#1
Will Compass be sold if NWA merges?
Republic already operates for DAL, and there has been a lot of speculation that NWA will eventually sell off Compass to somebody like Republic. If the DAL/NWA merger comes to pass, is it likely that Compass will be sold quickly?
#2
I'm curious why you think pilots would actually know this answer?
#4
NWA/DAL will need to whipsaw one regional against others, and would like to keep regionals at a relatively same power level. First ones to go on the selling block will most likely be ones with a very large inventory of 50 seat RJs. DAL may try to unload Comair first. With the skyrocketing fuel prices, 50 seat RJs are no longer economically viable for the majors. Even the 76 seat CRJ900s are not that great, but better than CRJ200s. Trend last few years WAS in the direction of 76 seat RJs but now it looks like majors may change their strategy altogether about regional flying with RJs and take back most jet flying back into the mainline flying bigger and newer mainline jets that are fuel efficient and can carry at least 100 passengers.
Compass will not be sold in the immediate future and certainly not to RAH. NWA has already formed a Mesaba Compass Holding corporation to run Mesaba and Compass. A more likely scenario is that Mesaba and Compass at some point in the near future may be merged as one, and NWA/DAL will contract out additional flying to various regionals such as Comair, Skywest, and RAH.
#5
#6
No because, there is no need for whipsawing between two regionals already owned by NWA since NWA can do whatever they want to do. NWA will pit regionals (like Skywest, XJT etc) not owned by them against each other and against the one owned by them.
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