piloto2

What's the plan for the CRJ200s? I heard that Delta was getting rid of the ones flown by OO for them and using 9Es planes instead. Also heard about a contract extension for the 200s that OO flies for United. Any truth to that one?

captive apple

Nobody here knows.
I don't think anyone at any airline is too confident on how a particular fleet will look next year.
55 Delta CRJ 200s are naturally up for contract renewal in 2020, how that goes is up to Delta.

piloto2

The fate of the Delta 200s has already been decided. This from the news release yesterday:Fleet changes under the Delta flying contract
As of March 31, 2020, SkyWest’s capacity purchase agreement with Delta included 55 CRJ200 aircraft that are scheduled to expire in increments between Q2 and Q4 2020 and are not expected to be extended. SkyWest leases 19 of the 55 aircraft from Delta and anticipates returning the leased aircraft to Delta in 2020. SkyWest owns the remaining 36 CRJ200 aircraft and anticipates parking the 36 aircraft on an individual basis following removal from service. SkyWest has no outstanding financing obligations on the 36 owned CRJ200s. SkyWest reduced the estimated useful life on these 36 CRJ200 aircraft to align with each aircraft’s anticipated removal dates, which resulted in approximately $15 million of incremental depreciation expense in Q1 2020.

amcnd

Read the whole release. We are also removing a few 700’s and 900’s for Delta.. but adding E175’s. I think OO knows the 200’s are eventually leaving. So there trying to double down on E175’s.... start that 30 year clock all over...

bradthepilot

But this is an about-face from the Q4 2019 report, where there was some attention paid to spending additiional $$$ on TLC for the 200 fleet. That of course stopped in early March...

captive apple

yeah, also bought some 700s from somewhere which was glossed over.

amcnd

quarter 4 2019 was decades ago!!! Were in a new parallel universe airline industry now...

bradthepilot

Exactly my point. A complete reversal of a corporate strategy in the space of a quarter.

amcnd

call financial discipline. Don’t spend the money unless you know your ROR (rate of return) on your investment..

Fact is, 200’s will go away (all non-OO owned). And they will keep the paid for ones, and fish the market when/if it comes back. I think will be able to float the extra staffing.. as the 60 E175’s come online, it will even out the 200’s lost..

bradthepilot

Calling it financial discipline understates it a bit. I'd call it more than that - it's being agile and responsive to market changes. I think it's a quality and ability not shared by all corporations (airline or otherwise). Contrast that with the poster-child case of Kodak, whose inability/unwillingness to change based on changing market forces (digital photography) led to their downfall (even though they invented the technology).