Delta rules out sale of regional carriers
 

hmmm. not sure if this is good or bad.

Didn't Delta own ASA also? Did they sell them or do they still own them?

They did, but not anymore. ASA is owned by SkyWest, INC.

Roger, as soon as I read your post I remembered.......my sunburn must be screwing with my brain.....

im kind of thinking they mean, by not selling there regionals its easy for them to respond to demand changes with shifting flying to the regionals from the majors and to the majors from the regionals. Would it make a difference that owning three regionals makes this easier than with the other regionals??

They can keep the contract carriers at min contract, and use the wholly owned to pick up the slack, or cut back without violating contracts.

Gee I'm surprised...................since RJ's are supposed guaranteed money losers, you'd think they'd want to unload ASAP and farm out to the lowest bidder. The same has been said of American Eagle which was on sale for a while, but the fine print (indicating the desire to control more then stand alone entities could accept) scared off the suitors who expressed interest.

Since AMR is a habitual follower instead of a leader, I suppose this will probably insure Eagle remains under tight AMR control for a long time to come and the competitive landscape that Delta acknowledges does exist by this declaration means Eagle's economic viability is just as valid. In fact, given the severity of the approaching labor thunderstorm at AA, Eagle is likely to now have more value retained (and under control) then sold.

I'm seeing more and more 90 seaters in Delta (NWA) colors now then even a few months ago, but that is to be expected, for the evolution of the regionals is likely to maintain its momentum for the forseeable future.

Anyone have a number of the number of 90 seaters DAL/NWA has on property and order for their regionals ?

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. :)

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.

The CRJ900 is certified to 90 seats the E175 is to 88.

Hopefully if anyone it helps mainline.

Bastian could have saved ink if he had just had the gnads to say "whipsaw"

Well, then it is settled! If Delta say the regionals are NOT for sale.........then they are all openly on the market, and ready for the taking!

Republic has been used to break the union at Midwest.

Just a matter of time before Delta's regionals are called on to do the same thing.

I realize that but my point is that at DAL there isn't an aircraft flying around with a total of 90 seats installed. They can operate with that many seats but are not configured as such.

I wouldn't go that far.........but that segment will be the largest area of domestic growth over the next 5-10 years just as the 50 seat RJ's were from 1995-2003 and the 70 seat RJ's were from 2003 to present.

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.

But they CAN do it with 75-80 seats profitably and offer First-class. As long as that's possible, the flood gates will never be closed.........*burp*....*gurgle*....*pffffttt*.

Time for another shot of the pink juice.

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.

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.