|Quoting pu (Reply 65):|
There are plenty of things DL could have done that invalidate the contract or would allow Republic to reduce its obligations - again most people assume a contract is written words on a paper but these are just the beginning of any later discussion.
What you are suggesting is that Delta should have, against its own best interests, allowed one of it's Delta Connection carriers to abrogate a contract early so that they would have pilots available to provide NEW
service, on a new contract to one of Delta's competitors. Seriously? Why on earth would Delta have any interest in doing that. That's what a lot of people in this thread seem to think Delta should have done. Once again, all of the Delta contracts pre-date the United and American contracts, and the option to extend the 145 flying was Delta's option all along. Delta was always entitled to enact that provision of the standing contract. Suggesting Delta should help Republic screw over Delta so as to win/secure and fly new planes for it's competitors is ridiculous.
|Quoting C767P (Reply 64):|
They would have to buy them from Republic, as Delta doesn’t own those airplanes.
No regional can take the 30 170/175s that S5 has operating for DL. Not even the do-no-wrong SkyWest.
Yes, I fully understand and stated that Delta could (note, Delta has deep pockets, good credit and plenty of cash on hand) force the issue and BUY
all those planes to keep Republic from contracting to fly them for another major carrier. In fact, they would be negligent to allow RAH to hold onto any of them. (My quiet suspicion and desired outcome in the following is to see Delta then serve as broker and resell them all to SkyWest Inc. and I rather suspect that would be arranged before hand between Delta and SKW.)
And yes, if the provision was timed just right, I think SkyWest Inc, in the form of ExpressJet could take every single one of them and operate them. Keep in mind, ExpressJet is looking at the imminent parking of another major tranche of ERJ145s from the United Express contract in 2016, and it's not unlikely that a deal could be struck to park them all in January 16.
Also remember that one of the subtle gotchas in that is that those planes have to be in near mint condition on handoff if that provision is enacted - so RAH is on the hook for any deferred maintenance items. (Last time I saw a S5
release, that was more than two pages of items - and while they were small items - translate that workload onto the entire list of planes we are talking about. There's some not insignificant hours involved there... and all occur while the contract provisions requiring flights on each plane continue. So, if I read right, after the end of flying under DCI
contract, RAH would have two months to see to handing off clean aircraft? That would leave 60 days for transition and acceptance of aircraft, concommitant with transitions training for crew to fly them. And if the deal were prepped for, starting now, the combined resources of SkyWest Inc could very well see all of those aircraft turned right around into SkyWest owned, ExpressJet operated aircraft in time for Easter and the late spring pickup of flying. Force Republic to carry through December 31, then burn the house down, and use the two quiet months to be ready.
Actually, were I at Delta, I'd go a little farther. I'd sign now for as many more CRJ900s as Bombardier can produce between now and March 2016, (Sign, that is, an agreement for ExpressJet to fly them for 10 years.) And do so in exchange for SkyWest Inc ordering them immediately. I'd use that capacity, spare 200's pulled back from the desert and cleaned up for service, and any 700s that appear on the market that ExpressJet can get hold of to support the DCI
system while things transition in January and February. I'd also see if I could lay hands on ERJ 145s no longer in UAX service from previous reductions but able to fly for another year, and get a short lease on them and a new paint job to run service in the Northeast by ExpressJet 145 crews with a quick Delta service lesson. (One of the side pluses to this is that the ERJ side of ExpressJet already has a EWR
base and using that base to support LGA
flying would be an asset to the DCI
And I'd remind Compass and GoJet that contract performance for DCI
is important, really, really important. (Wait, are those vultures circling overhead?)