Regional Partners in the Wake of a Big Merger
 

With the recent announcement of a possible merger (aka.-hostile takeover) between the 2 legacy carriers US Airways and Delta their is bound to be a lot of changes that happen within the industry.

Suppose the merger goes through...

1. How will this affect the current RFP's out there from Delta?
2. How would such a merger afect the regional route structure... would there be less flying?
3. Would there be a positive or negative affect on the various regional partners for both carriers?

Just thought I would start some discussion. This could be a very difficult time for a lot of airline personel and their families with job consolidation and what not, so please share your thoughts.

From what I have heard:

There would be a 10% reduction in the amount of flying being done by Delta, as the route structure does have some overlap.
Skywest from what I understand would be ok as their contract has already been signed during the bankruptcy the other regionals are kinda up in the air.
There might be a reduction in 50 seat flying with an increase in 70-90 seat flying...again all rumors I have heard.

My own thoughts...US Airways doesnt even want Delta, they are trying to get United in a bidding war with them so US Airways can then turn around and try and buy Northwest.

What about on the US Airways side... how would AWAC, PSA, Piedmont, TSA, etc... be affected by the merger.

And why in the world would Airways want Northwest? Is there any basis behind those thoughts? Please share?

First thought that comes to mind is routes to Asia.

1. There will some reduction in regional flying. Existing regional contracts on the USAir side would need to be honored for their term or bought out. Delta regional contracts are up in the air in BK...my suspicion is that the easy way out would be for the merged company to keep the USAir contracts (to which they are obligated anyway) and take any reductions out of the DL regionals who have no contracts. The exceptions are Skywest (and ASA) which has a confirmed DL contract.

2. There would be less flying all around.

3. One or DL more regionals would likely get fired or heavily reduced, the others would be OK, and maybe even gain flying. They would not do across the board cuts at all the regionals because of the existing contracts which would need to be honored. The DL regional contracts that have not ben re-affirmed in bankruptcy court are easy reduction targets.

So it sounds like their are possible rough times ahead for Comair?