Agreed, but there is a little problem that many suffer from when being in a unIon.

Nuff' said.

So if it came down to 2 or 3 regionals who's to say it is the wholly owned who survive? Actually it would be much cheaper to just get rid of the wholly owned's because there would be no expensive contract to try and get rid of. Plus if the wave of the future really is to have regionals share more of the fuel costs then that would be possible with contracts at a contract carrier. At a wholly owned the major partner is footing the entire fuel bill no matter what.

Just playing devil's advocate here. I think we all want to think we know will happen. But really none of us do.

If you guys want to survive the next 2-3 years ,the long term thinking part would be the way to go because there will be lots of changes coming to this industry and the quote brother you aint see nothin yet comes to mind and as far as ALPA they schould have gotten their act together years ago.:eek:


Back to the drink cart .

If you read my post, then you would have realized basically I was saying the samething. No one knows who will be one of those 2 or 3 regionals left standing. Samething applies to Skywest and Republic. That's my point. Wholly owned or not we are the last ones to find out. It's all pure speculation and everyone needs to ride it out with patience.

Wholly owned airlines are much easier to get performance numbers where they want as they can manipulate the variables more. Delta isn't dumping Mesa or "testing" Pinnacle without cause. There is a boatload more to make on owning your own vs. saving on a low ball contract. Look at Mesa, JO has low ball contract after low ball contract and he can't make it work because of the limitations. He was perfect for the legacy's pre-bankruptcy and is being hung out to dry post. That was a pre-bankruptcy mentality that doesn't work when bankruptcy isn't an option for management to "get theirs" after they already did. Now that the bankruptcy "boom" is over for most, they can't go to the BOD and say, "I'm going to go into bankruptcy and save the company XXX a year when I get to void labor contracts. I just want 15% of those savings." There is more incentive for management to get their money through their stock options (as it was before the bankruptcy "swoon, scandle, thievery (pick your word of choice). The only way they can do that now is show growth, happy labor groups and performance. That's what investors want to see.

IMHO, I would not be surprised to see the airlines that fly different uniforms for different airlines get left behind in the not to distant future. They don't offer enough ROI on the balance sheet for investors that want to see the stock price go up and that's how management that's gone through bankruptcy already will get "paid".

The mainline carriers are getting tired of guaranteeing profits and paying the fuel bills for the regionals. I think the reason you are seeing DAL and NWA with the wholly owned regionals is because that way they can keep the money in house and have the freedom to adjust as necessary instead of getting locked in to contracts with outside subcontractors. The days of the mainline carriers footing the fuel bills are going to quickly come to an end and there arent many regionals that can afford to cover the fuel costs now a days. Just an observation.

Please explain to me how a mainline carrier would not be footing the bill at a wholly owned carrier? They would foot ALL of the bill. However I do think a contract at a contacted carrier can be written to at least SHARE some fuel cost. While no regional can foot the entire bill either, they could relieve some of the pressure.

There are a million ways to spin this in favor of either a wholly owned or a contract carrier. We will just have to see what happens. IMO there are operational costs included with a wholly owned that are not at a contracted carrier. One thing is for certain. At a wholly owned mainline is paying 100% of the cost of everything.

They do pay 100% of the fuel bill but dont have to guarantee profits to a carrier not owned by themselves. Also they have the freedom to adjust the flying as they see fit instead of being restrained by a contract with an outside company. For instance Skywest and Mesa Suing DAL over their contracts.

Media Q&A

Why is Delta and ExpressJet ending their agreement?
Delta and ExpressJet have made this mutual decision because it benefits two airlines with a common goal to reduce operating expenses related to the sharp increase in fuel cost.

How long has ExpressJet operated as a Delta Connection carrier?
ExpressJet began operations as a Delta Connection carrier in June 2007.

How many and what type of aircraft does ExpressJet fly for Delta?
ExpressJet flies 23 145-ERJ, 50-seat aircraft.

How many daily flights and destinations does ExpressJet currently fly for Delta? How many will Delta Connection partners fly after Sept. 1?
ExpressJet flies 100 daily flights to approximately 30 destinations. After Sept. 1, Delta Connection will fly approximately 2500 daily flights to over 230 destinations.

What new routes reductions are included with this announcement?
All routes either originate or terminate in Los Angeles including: Boise, Idaho; Denver, Colorado; Eugene, Oregon; Spokane, Washington; Oakland, California; Portland, Oregon; Phoenix, Arizona; Reno Nevada; Seattle Washington; San Francisco, California; San Jose, California; Sacramento, California and Tulsa, Oklahoma. Total # Departures 31.5 day per day

Are there any current ExpressJet markets being backfilled?
Yes. While the ExpressJet routes originating in Los Angeles are being cancelled, flights originating from Salt Lake City will be replaced with 50-seat regional jets operated by other Delta Connection carriers.

Will there be any interruption in service for flights scheduled to continue beyond Sept. 1?
No. Any service flown by ExpressJet that is scheduled to continue beyond Sept. 1 will be operated by another Delta Connection carrier.

How will customers be impacted by this decision?
We expect minimal impact to customers and, Delta will work to ensure that alternate transportation options are arranged as quickly as possible.

Does this have anything to do with the NWA merger, or the pending Freedom and Pinnacle contract termination announcements?
No. This mutual decision has been made because it benefits two airlines with a common goal to reduce operating expenses related to the sharp increase in fuel cost.

What is Delta’s current situation with Mesa (Freedom) and Pinnacle?
Mesa – We disagree with the court’s decision and have filed an appeal.
Pinnacle - We have notified them of our election to terminate the Delta Connection contract. We’re in discussions to see whether the situation can be resolved through mutual agreement.

Are the ExpressJet changes part of the recently announced 13 percent domestic decrease and 60-70 regional jet reduction?
Yes. But because we have not announced the specific changes in the LAX and SLC markets we will not break them out at this time.

Will any Delta employees’ jobs be impacted by this announcement?
There will be no involuntary reductions in headcount as a result of this announcement. We will continue to review our staffing needs for our operations and allow reductions through normal attrition.

i hate seeing xjet going through all of these troubles. hope they find some1 to fly those planes