Delta rules out sale of regional carriers
#11
:-)
Joined: Feb 2007
Posts: 7,339
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I don't think we have any "90 seaters" on the property per se. Are you talking about CRJ-900 aircraft with 70-76 seats? Or ERJ-175s with 76 seats? Next up from that would be the DC9-30 with 100 seats. We can get an answer for you but please clarify which equipment you are referring to. 

#12
Two things to read into their statement on the RJs:
1. By maintaining 50% wholly owned to contracted carriers, the whipsaw will be alive and well for the indefinite future.
2. They couldn't sell any of the wholly owneds in this market because no one can raise the capital to buy any of them. That's why most if not all deliveries being made are actually older orders for which the financing was guaranteed. And you are right about the wholly owneds going to bear the brunt of the cutbacks as there is no contract for Delta to worry about with them.
All in all, I didn't think this was good in the long run for any DCI carriers. Short term, the wholly owneds have a reprieve. I guess that's good for them. Long term, this doesn't help anyone.
1. By maintaining 50% wholly owned to contracted carriers, the whipsaw will be alive and well for the indefinite future.
2. They couldn't sell any of the wholly owneds in this market because no one can raise the capital to buy any of them. That's why most if not all deliveries being made are actually older orders for which the financing was guaranteed. And you are right about the wholly owneds going to bear the brunt of the cutbacks as there is no contract for Delta to worry about with them.
All in all, I didn't think this was good in the long run for any DCI carriers. Short term, the wholly owneds have a reprieve. I guess that's good for them. Long term, this doesn't help anyone.
Hopefully if anyone it helps mainline.
#13
Delta rules out sale of regional carriers: Delta Air Lines has no intention of selling its regional carriers, President Ed Bastian said Wednesday. With about 50% of regional traffic under corporate control, "It helps us drive cost targets with our own carriers, and gives us more flexibility to respond quickly to changes in demand," he said. Following its merger with Northwest Airlines, Delta owns three regional carriers: Comair, Mesaba and Compass.
Bastian could have saved ink if he had just had the gnads to say "whipsaw"
#16
#17
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It's a natural evolution, it's already started and virtually impossible to stop now. Each major will participate eventually in their own way as some are already now and other certain to follow.
A lot more heartburn on the way to add to the current nausea, gas and explosive diarrhea that is already underway at most mainline union groups.
I'm buying stock in Pepto-Bismols parent (P&G) tomorrow.
#18
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Time for another shot of the pink juice.
#19
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Joined: Jan 2008
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From: R U Serious?
You might be the GoldenGoose but your words are not quite right! You may want to research that topic before stupid comes out of your posts again.
#20
Gets Weekends Off
Joined: Apr 2007
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Bad...
...and this is why.
I'd focus on the last sentence. Midwest put replacement jets, literally, online and parked all their MD's + 16 (or all 25 now to Mexicana?) of the 717's.
I'm 0 for 2 with W/O carriers. When things are good, they help the margin a bunch. When times are bad, they are the ones that can get downsized, or shut down all together, quite easily.
I'm 0 for 2 with W/O carriers. When things are good, they help the margin a bunch. When times are bad, they are the ones that can get downsized, or shut down all together, quite easily.
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