ASA's so called DCI contract
 

Anyone know where the details of this exist(for that matter, where to read any of the DCI carrier contracts)? I've heard too many rumors lately that no one can confirm. For example - they get 80% of DCI flying from ATL, performance #s aren't as strict, their ATL gates are owned by Delta, etc.

Just curious as to why it matters?;)

Peace of mind! :D

As long as ASA maintains its #'s ASA is to do 80% of DCI flying out of ATL. This was per SH and DR in the Fall of '05 while ASA was in those extended contract negotiations.

However as all DCI flying has been reduced that 80% as shrunk!

I don't recall the details, but having a solid DCI contract was an obvious prerequisite for the SKW purchase of ASA. Jerry's no amateur, so there are not going to be any loopholes.

I would assume that ASA is contractually safe as long as the performance is good, and as long as Inc doesn't voluntary trade away ASA protections to DAL in exchange for something else (I can't think of any reason this would happen).

About the only contract that could be considered ironclad, with no loopholes, would be the one signed by El Diablo hisself. Although, being a Hellspawn or Ghost Rider might be a cool thing.

Yes,.... Delta is giving you all the CRJ900s from Freedom! No go spread the joy little boy!

This must be sarcasm? You are saying that DAL has made an announcement (proof) that SKW Inc. will get F8's DAL CR9's? I haven't heard a thing about it and seeing they are NE based I would firmly expect them to end up at Comair.

Yes, people don't seem to understand this. If there are 1000 DCI departures in ATL then ASA must fly 800 per their contract. If that number shrinks to 900 then ASA can be shrunk to 720 departures, but no less than the contractual %age. If DAL does drop ASA below contractual mins then SKW gets to retain the last installment of the purchase price ($125M) due in Oct of 09.

SkyWest Airlines

We have the same contract for our SLC flying, but I thought it was 85%.

Now here’s a question for those who might know. Is ASA counted independently or does SKW departures in ATL count when it comes to that 80% (same Co.)? I can’t remember if the contract specifies ASA or SKW Inc., I know SKW Inc. said they plan on keeping the two operations separate but the contract is with Inc., not ASA. I'm not meaning anything buy it, I feel ATL should be ASA and SLC......SKW. And I even live in ATL (Roswell).

....

Cute.

Trouble is, I can't find 80% in SEC filings or any other public document. I hear that number consistently, but haven't yet found the legal reference.

I'm also more concerned about what performance #s we're tied to. If ASA screws up, Delta can terminate both SKW and ASA, and vice versa.

I know its %age based I can’t find it, if you do then post the link. I’d like to download it.

Bottom line, SKW Inc. is just too large for DAL to replace plus our a/c are our a/c (expect 12(?) CR7's, 4 at SKW and 8 at ASA), not DAL’s so they just can't simply pull an XJT/CAL or F8/Comair/DAL on us. There’s just too much money riding on it as well as too many operational problems that will occur if DAL renigs on Inc., so I wouldn't worry about ASA until our contract is almost up in 2020. But anything can happen.

Here we go - from the 2005 10K found in the March 2006 SEC filings:

So ASA is guaranteed an overall percentage of DCI flying but still nothing specific (20-25% maybe?) and not necessarily 80% out of ATL. Anyone know where the 80% number comes from (or did someone just pull it out of their arse?)

Ive never seen it in writing, but 80% is what Jerry told my new-hire class in a meet-and-greet...he made it sound like Inc, but the 10K looks like it specifies ASA?

The SKYW DCI agreement is a public document available as an attachment to the SKYW 8-K form filed on 9/13/2005. There is an 80% clause. There is also a clause specifying a minimum daily aircraft utilization. If the daily block hours fall below that minimum for several consecutive months (which they recently have), the base hourly rate payable to SKYW increases for every block hour flown.

Here's a clause from the agreement:

B. If Delta is concerned about ASA’s performance in connection with any of the performance standards set forth in Section 10(A), Operator agrees to discuss with Delta such performance and potential ways to improve such performance at Delta’s request. The parties shall have ten (10) days to determine appropriate solutions and/or a corrective action plan, and ASA agrees to diligently comply with the terms and conditions of any such solutions and corrective action plans.

All the interesting stuff is redacted. Enjoy:

http://edgar.sec.gov/Archives/edgar/...042_1ex1d2.htm

Already read that - as stated, the juicy details are left out - for example:

and

Guess we just don't get to know for sure!

Famous last words of many regional airlines.

:eek:

Yes.............. :rolleyes:

Maybe SKYW will buy DAL

JK

or am I?