Delta managements number one priority has been to improve the connection carrier product. They put all the connection carriers on notices almost a year ago that if they did not improve they would have the contracts cancelled. I think you will see more in the future.

We've canceled part of our Freedom Airline agreement
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April 2, 2008





We have terminated a portion of our Delta Connection operating agreement with Freedom Airlines because of operational performance of their 50-seat aircraft. The move is effective immediately. Our operating agreement with Freedom for its 14 76-seat aircraft remains intact.

“When we began working with Freedom in October 2005, our goal was to extend the market service of Delta Connection while ensuring a mainline-like experience for our customers,” said Don Bornhorst, s.v.p.-Delta Connection. “Freedom’s agreement with Delta, similar to the agreements with all of our Delta Connection partners, reflects this requirement. We expect the operational pull down to be orderly and have minimal impact to our customers.”

Orlando and New York-JFK handle the majority of Freedom’s daily departures. Most customers will be rebooked through our hubs in Atlanta and Cincinnati. Some former Freedom point-to-point flights may continue and be supported by our other Delta Connection partners.

For what it's worth, oil companies aren't making profits as high as many companies who produce the other consumer goods you pay for. Exxon's profit margin (profits as % of revenues) last year was 11.4%. Compare that to Microsoft (28%), Pfizer (36%), Qualcomm (32%), Johnson & Johnson (20%), etc. and you'll see that they aren't even in the top 10% of the Fortune 500. Exxon is a 470 billion dollar company; the largest company in the world. Their profits are naturally going to seem large if you look at them purely as a number amount compared to another company. Harley Davidson had a 2007 profit margin of 17%, higher than Exxon Mobile, yet their profits were just $1 billion compared to Exxon's $39 billion. But Harley Davidson is a $15 billion company so their profits don't seem as much.

I don't like paying more for gas as much as the next guy, but I don't buy the bs politicians and the media push my way. Your gas is not higher because a star chamber of power brokers in Washington got together and conspired to raise the prices to fill their pockets. And when you hear politicians start talking about how they think oil company profits should be used (i.e. taken and redistributed) you should remember that those are shareholder profits. Shareholders would include a lot of mutual fund owners, and people invested in 401K plans. Just my $0.02.

Does anyone know what is the total number of 50-seaters to be taken out of DCI because of this?

Thank you

April Fools??

Amen brother !!! Americans need to wake up -- fuel in Europe is on the order of $8 / gallon and its coming our way very soon. People who are ignorant think the oil companies are "gouging" us -- despite several congressional inquiries which have turned up nothing but maybe a few localized gas stations who were price fixing.

What do you think is going to happen when a democratic presidental candidate has a commercial saying he is going to tax windfall profits on oil companies? Guess who those costs are going to be passed on to while our government continues to waste money?

-Fatty

Nope. Well, the joke's on ornstein I guess.

Not just JFK now....Freedom Air out of MCO has numerous cancelled flights this afternoon and others delayed. One even diverted after leaving MCO for TLH...diverted to TPA....what's that all about?

It doesnt help that the clowns on Wall Street are speculating on oil. One POS Nigerian rebel shoots at an oil rig and the price per barrel goes up $5...and how much oil do we REALLY get from there!??!? The reason it hit $100/bl in the first place was because of one speculator that wanted to make a name for himself.
Some analysts say oil isn't worth $110 a barrel....Id like to think that statement comes true...now...is it worth much less? Probably not. We should end speculation on a precious, dwindling resource such as oil.
Just my $.02

35 i think.