Poor us (ASA)

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Quote:
Bottom line is, we have a contract until 2020. It can only be cancelled for certain reasons, and Delta not liking us isn't one of them.
It can also be canceled in two years if we're not second from the bottom in cost. Right now we're second from the top, with no solution in sight. If nothing changes, the contract is canceled in two years.
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Quote: It doesn't make sense because this JP character seems to be mistaken (or just a kook). No fee-for-departure airline would have an incentive to keep costs down if their mainline partner wrote a blank check to cover expenses.
Quote: I don't think the confusion lies in the fact that the mainline partner pays a fee for each departure (hence fee-for-departure airlines) regardless of load factor. The controversy is over the fact that this JP character is saying that it isn't a set fee per departure but that the fee varies depending on variable costs at the FFD airline.
If you don't believe this "JP character", then why not research the issue yourself and report back instead of just stating your opinion of what you THINK it is?
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When I got to ASA I was told it was PERFORMANCE not cost that we had to be #2 on. This was in training.
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Quote: Right now we're second from the top, with no solution in sight.
Just curious how you came to that conclusion because once again I'm hearing different from MULTIPLE sources.
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Quote: It can also be canceled in two years if we're not second from the bottom in cost. Right now we're second from the top, with no solution in sight. If nothing changes, the contract is canceled in two years.
The contract can only be canceled for that reason if ASA/SkyWest Inc. doesn't agree to match the 2nd lowest bid. They will, and if necessary, will take a small hit on their profit margin to maintain their relationship with Delta.

Given that the 2nd lowest cost business is in every DCI agreement (JA himself said this during one of his crewroom chats), don't you think there's an issue here? After all, they can't cancel everybody's contract or there will be no DCI lift left.
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Quote: The contract can only be canceled for that reason if ASA/SkyWest Inc. doesn't agree to match the 2nd lowest bid. They will, and if necessary, will take a small hit on their profit margin to maintain their relationship with Delta.

Given that the 2nd lowest cost business is in every DCI agreement (JA himself said this during one of his crewroom chats), don't you think there's an issue here? After all, they can't cancel everybody's contract or there will be no DCI lift left.
No, it gives Delta the ability to cancel any agreement they wish. History shows that Delta NEVER, EVER signs an agreement they can't worm their way out of.
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quote=John Pennekamp;493790]No, it gives Delta the ability to cancel any agreement they wish. History shows that Delta NEVER, EVER signs an agreement they can't worm their way out of.[/quote]

Sorry if I missed this, but what's your take on what DL will do with ASA? Stay same size, reduce, grow? Do you think there is likelihood of furloughs? I know from the GLA threads you jumped to ASA at the right time. So what does your crystal ball say about the brave new world for DCI?
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[QUOTE=Spad;494125if I missed this, but what's your take on what DL will do with ASA? Stay same size, reduce, grow? Do you think there is likelihood of furloughs? I know from the GLA threads you jumped to ASA at the right time. So what does your crystal ball say about the brave new world for DCI?[/QUOTE]


ASA will stay the same size with little to no growth within DCI. We will get outr piece of the 80% pie out of ATL and nothing more. Were our growth opportunity will be is outside of DCI. Our greatest weapon is the ton of money that Skywest Inc. has in the bank. It sounds bad but this is the truth; we must wait for financially stricken regionals to go out of business and move in. I know for a fact that ASA is looking closely at two regionals which I won't mention and if they do fail we will move in quickly for their flying.
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Quote: Sorry if I missed this, but what's your take on what DL will do with ASA? Stay same size, reduce, grow? Do you think there is likelihood of furloughs? I know from the GLA threads you jumped to ASA at the right time. So what does your crystal ball say about the brave new world for DCI?
Despite Trip 7 being a new hire, I basically agree with his analysis. I do, however, believe that the "ATL 80%" will be renegotiated in exchange for the "2nd from the bottom in cost" clause, and we will lose some ATL flying, but gain flying elsewhere. I also doubt we will see new flying from other airlines, since everyone else (especially UAL) is in the ditch. Mesa COULD tank, opening up some UAL flying, but I get the vibe from St George that SkyWest Inc wants less tickets on the Chicago Titanic, not more.

I gave my take on furloughs above. I'd consider the 30-40 -200s that DAL owns the wild card on that. It all depends what they do with them. They could sell them to us (unlikely), leave them alone (possible), take them with no replacement (unlikely), or take them and replace them with half as many -900s (very likely). Options 3 and 4 would require less pilots, and we're already overstaffed. We'll have to wait and see what happens.

I'm starting to hear credible mumblings of new bases up north. Some people in the GO are buzzing that "we will be taking over 60% of CVG flying next year, and a base is being considered". I have not been able to verify this, so I'll consider it a rumor. One thing that is clear is that The New Delta plans to completely reshuffle the deck with DCI and "spread the wealth around". I wouldn't be surprised to see ASA do more flying in The Great White North, just like MSA and PCL are down here.

Bottom line: yes, I have had great success "reading the writing on the wall" throughout my career, and I don't see ASA in immediate danger. I think we will shrink a little for the next few years. By then we'll be in our next contract negotiations. If our pilots beat their chests for an industry leading contract again, I wouldn't expect to see growth. If we settle for reasonable QOL gains and a COLA, we may see some. Time will tell.
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Keep Holding onto your 80% mantra......why don't you all get tags for your chart cases that say it. You will be chanting it right onto the street.... ALPA will sell you out too.....so just stick with it.......And now 60% in CVG.....Better get two tags!!!!!!!
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