ASA's so called DCI contract

[gtpilot]

Anyone know where the details of this exist(for that matter, where to read any of the DCI carrier contracts)? I've heard too many rumors lately that no one can confirm. For example - they get 80% of DCI flying from ATL, performance #s aren't as strict, their ATL gates are owned by Delta, etc.

 

[Polar742]

RAH's were attached to various 10k reports.

As skyW is a public company, the SEC website is a great place to do research....

 

[gtpilot]

10Q reports maybe? Slogging through it but can't find any specifics yet.

 

[Polar742]

Yeah, prolly the 10Q. Appearantly my brain is MEL'd.

It's amazing what you dredge up on the SEC site...

 

[SoCalAprch]

Just type in the airlines stock ticker and usually any of the financial websites (yahoo finance etc...) have links to all these documents.

 

[gtpilot]

You're actually right - 10K is the yearly report (I hadn't gotten there yet) and 10Q (where I was) was the quarterly report. The quarterly report was rather vague as to what the performance criteria would be and the magic 80% number doesn't pop up either. I'll trudge through the yearly report to see if I can find it there.

 

[kellwolf]

I know the strict details of our ASAs with Delta and NWA are kept under lock and key. Personally, I think it would be good to let your employees know the standards their operation is measured by so we all know where we stand. Then again, if we knew where we stood, when management said "We're gonna lose the NWA flying if you don't sign this!!!" every pilot on property would have said "Uh....no won't and here's why...."

 

[gtpilot]

Seems like veiled threats are all the rage among regional management these days. Would be nice to know what the cut-off is though.

 

[AMH]

Heard today that ASA is losing 17 locations to Mesaba. Cities such as MGM. Suppose it's the first sign of the ominous merger.

(no source)

 

[kellwolf]

Also heard we're gonna start seeing ASA 700s and Shuttle America 170s up in DTW to run some 50 seat routes that need to be 70 seat.

 

[Screaming_Emu]

Heard today that ASA is losing 17 locations to Mesaba. Cities such as MGM. Suppose it's the first sign of the ominous merger.

(no source)

I also heard that ASA is getting the A380!!!

(no source)

Rumors are fun when you dont have to have a source!

 

[Polar742]

Seems like veiled threats are all the rage among regional management these days. Would be nice to know what the cut-off is though.

It's not just regionals. I'm sure that doesn't make you feel any better though...

 

[AMH]

I also heard that ASA is getting the A380!!!

(no source)

Rumors are fun when you dont have to have a source!

I heard it, too! Lufthansa is seriously interested in ASA. They have some just lying around and feel we'd be best to operate them to accommodate the demand for the Berlin direct fayetteville, NC flights and the like. OM's now in german.


No need to get snippy.

Bro, it may be a rumor but I happen to believe the person that said it.


Hundreds of ground support jobs would be lost if it does happen so I hope it's not true. I do, however, hope yours is.

With that, we'll let it die until something more substantiated presents itself.

 

[mxflyer]

Heard today that ASA is losing 17 locations to Mesaba. Cities such as MGM. Suppose it's the first sign of the ominous merger.

(no source)

I believe that the destinations with both ASA and Mesaba stations are being looked at to see which is more cost effective (i.e MLU). It shouldn't affect flights into the airports but which company will stick around to service those airplanes. I'm sure that airports with Comair and Mesaba are also being looked at.

 

[gtpilot]

Sooooo...the point of the thread wasn't to find out more rumors! I'm sure there will be a significant change in the landscape post merger. Anything beyond that is pure speculation at this point. Still can't find hard numbers for our current DCI contract though. All I know for sure is that ASA and SKW are good through 2020, as long as both perform, Delta can't cancel the contract for any reason they like but SKW/ASA can, ASA (not SKW) must maintain a competitive cost structure and ASA/SKW can't co-mingle airplanes when working for other carriers.

 

[kellwolf]

Not necessarily anything to do with the merger, though it might help things along. Ground contracts get put up for bid pretty often and change hands. Air Whisky took over a lot of ground contracts for stations they didn't even fly into, I believe. During the NWA bankruptcy, they pretty much dismantled their outstations and put almost all of them up for bid. Now, it's a hodge podge of Pinnacle, Mesaba, Air Wisconsin and local contract ground personnel. Sometimes it comes out cheaper that way, but it's kinda frustrating for the flight crew since there's very little consistency from station to station.

The ground crew contracts are a good way for regionals to snag some extra cash without going after more flying.

 

[gtpilot]

Here we go - from the 2005 10K found in the March 2006 SEC filings (thanks Polar):

In connection with the ASA acquisition, we have established new, separate, but substantially similar, long-term fixed-fee Delta Connection Agreements with Delta for both SkyWest Airlines and ASA. We also obtained control of 26 gates in the Hartsfield-Jackson International Airport located in Atlanta, from which we currently provide service to Delta. Delta has committed to provide to us opportunities to utilize 28 additional regional jets in our fleet by the end of 2007. Delta has also agreed that, starting in 2008, ASA is guaranteed to maintain its percentage of total Delta Connection flights that it has in 2007, so long as its bid for additional regional flying is competitive with other regional carriers.

So ASA is guaranteed an overall percentage of DCI flying but still nothing specific (20-25% maybe?) and not necessarily 80% out of ATL. Anyone know where the 80% number comes from (or did someone just pull it out of their arse?)

Potential Opportunities from Delta’s Restructuring. We believe that as Delta restructures its fleet under bankruptcy protection, there may be new regional flying contracts that become available for qualified regional carriers. ASA holds certain rights to maintain its proportion of overall Delta regional flights, as well as its proportion of Atlanta regional flights. This may help ASA compete for new flying mandates, if any, that come into existence at Delta.

SA uses 26 gates at the Hartsfield-Jackson Atlanta International Airport: 13 gates are leased directly from the airport authority, six gates are subleased from US Air, five gates are subleased from Delta and two gates are used pursuant to a month-to-month arrangement. ASA intends to lease from Delta three additional gates effective December 1, 2005.

 

[surreal1221]

I personally have never seen this 80% figure in any text that is available on the public realm.

I figure it's deep down in our actual contract with Delta that certainly is not available to the public - which I can obviously understand considering the vultures at other companies who would like to see what they are having us do so that they could in turn underbid us for a portion of our sub-contracted flying.

 

[kellwolf]

ASA is guaranteed to maintain its percentage of total Delta Connection flights that it has in 2007, so long as its bid for additional regional flying is competitive with other regional carriers.

Um, that's in there? If that's the case, then I wouldn't be so cocksure on any percentage. If they suddenly decide that ASA's pricing isn't competitive with other regionals, it's gone. We've already seen how much Delta likes to invoke tiny clauses in services agreements already this year.....

 

[gtpilot]

That's part of the reason why the recent rumor about Delta pressuring Comair to 'lead the way' with pay cuts bothers me.